KDADS asks committee to retain reappropriations as agency warns of waiver and capital shortfalls

The Kansas Department of Aging and Disability Services on Friday urged the Committee on Social Services Budget to let it retain roughly $133 million in reappropriated funds, saying the money is already committed to projects and services including construction of the South Central Regional Mental Health Hospital and one-time HCBS (home- and community-based services) programs.

Deputy Secretary Andy Brown, who manages programs at KDADS, told the committee the agency'wide FY26 revised estimate is about $3.9 billion, including roughly $1.6 billion in state general funds, and that $145 million of reappropriations (excluding $30 million tied to consensus caseload) remain in the agency's current-year budget. "We are asking you to allow us to retain $133,000,000 of the reappropriations," Brown said, explaining that some of those dollars are already contracted or obligated for one-time projects.

Why it matters: KDADS said some reappropriated funds are time-sensitive or federally constrained. Agency staff said $70 million of the reappropriations are tied to South Central Regional Mental Health Hospital construction and that nearly all HCBS ARPA (COVID-era enhanced FMAP) one-time projects have been obligated. KDADS warned that if the committee does not allow the carryover, the state could lose the ability to spend funds already under contract or to meet federal requirements tied to those dollars.

The debate centered on how the agency used one-time savings. Committee members pressed KDADS for detail about a roughly $24.1 million pool of one-time savings the agency said was used this year to avoid starting wait lists on several HCBS waivers — specifically the frail-and-elderly waiver, the brain-injury waiver and the technology-assistance waiver. Brown said that in FY26 KDADS used those reappropriated savings to maintain services and avert wait lists; as a result, the agency would need to replace that one-time funding in FY27 with ongoing SGF to maintain the same service levels.

Representative Carpenter and others pressed KDADS on the math behind the request, seeking clarity on how a $19 million one-time use for the frail-and-elderly waiver becomes a roughly $31 million FY27 SGF request. Brown said the $19 million represented reappropriated, one-time funding used this year and that the $31 million figure includes both replenishing that one-time amount and covering expected ongoing caseload growth.

KDADS also outlined a set of FY27 recommendations from the governor that the agency supports: start the community support waiver (funding estimated to serve up to 500 people), cover the TA waiver so it has no wait list, and fund several SIBF (State Institutions Building Fund) capital projects, including remodeling at Osawatomie and a proposed KNI renovation for children'focused capacity. The committee did not take a formal vote on KDADS requests during the session.

What happens next: KDADS asked the committee to allow the reappropriations to be retained in the current-year budget; legislators signaled they wanted more detailed breakouts and committed to additional follow-up. The committee adjourned and will resume budget deliberations as scheduled next week.