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KDADS asks lawmakers to restore reappropriations and fund HCBS waiver expansions to avoid new wait lists
Summary
KDADS told the committee it needs restoration of about $133M in reappropriations (including $70.1M tied to South Central construction) and recommended funding for several HCBS waivers; without funding the agency would begin wait lists for frail elderly and brain injury waivers.
Kansas Department of Aging and Disability Services (KDADS) leaders told the Human Services Subcommittee the agency faces time-sensitive reappropriation and waiver funding issues that could trigger new waiting lists for home-and-community-based services (HCBS).
Secretary Howard and agency staff outlined three main reappropriation buckets they asked the committee to restore: construction and early operating obligations for the South Central Regional Mental Health Hospital (~$70.1M), approximately $39M in HCBS ARPA-obligated funds that are contracted or committed, and additional HCBS waiver timing savings. KDADS said it would seek restoration of roughly $133M in SGF reappropriations tied to FY26 obligations.
For FY27 the agency highlighted four governor-supported enhancements: a community support waiver startup (agency cited $9M total, including $3.7M SGF to serve 500 people), an expansion of the HCBS technology-assisted waiver ($7.6M total including $3M SGF) and two SIBF capital projects (Osawatomie Adair unit rehab and a $3M Sunflower Cottage remodel at KNI to enable youth short-term inpatient capacity in the future). KDADS warned that, under the legislative budget as introduced, it would start wait lists for the frail elderly and brain injury waivers; the governor’s recommendation would avert the technology-assistive waiver wait list but not the other two.
Secretary Howard emphasized legal and federal constraints tied to earlier ARPA-era HCBS matching rules — the state must spend retained state dollars in specified HCBS ways or risk returning federal dollars. KDADS asked for time to provide additional documentation and pledged to return with more granular distribution data (for example, on how the $2M Meals-on-Wheels nutrition funds were distributed last year).
