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Ways and Means restores key KDHE reappropriations and funds CHIP, interoperability upgrades for 2027
Summary
The committee restored multiple KDHE reappropriations for FY2026 and added funds for children’s health insurance program shortfalls, Medicaid data interoperability and federal pharmacy transaction compliance for FY2027; the Kansas Water Office had reappropriations restored with specific lapses identified.
Senator Owens and Senator Peek reported on the Kansas Department of Health and Environment and the Kansas Water Office during the Ways and Means hearing.
For KDHE (Division of Public Health and Division of Healthcare Finance), the subcommittee recommended restoring about $17.7 million SGF in reappropriations for FY2026 and, for FY2027, added roughly $56.5 million all funds (including about $15 million SGF) to address children’s health insurance program (CHIP) demand, Medicaid interoperability, and a CMS pharmacy transactions rule. The subcommittee partly funded ongoing rent and data storage increases and added proviso language enabling use of federal COVID‑19 funds to reimburse approved labs for public testing services. Several KDHE supplemental requests (about $5.3M) were not funded at this time.
The Kansas Water Office presentation described a FY25 baseline of about $55 million with 24 FTEs. The subcommittee recommended restoring $6.8 million from the state water plan fund for FY2026 while identifying several lapses and leaving no changes for FY2027.
Committee members spoke frequently about transitions tied to the new Office of Early Childhood (anticipated budget moves that will reassign approximately $13.7M all funds and dozens of FTEs from KDHE in FY2027). At the meeting close, the committee approved the subcommittee recommendations for KDHE and the Kansas Water Office and adjourned.
