Senate Ways and Means subcommittee approves multiple agency budgets, alters lottery transfer and contract language

The Senate Ways and Means Executive Subcommittee on Monday approved revised fiscal-year 2026 and 2027 budget estimates for several state agencies and advanced policy language affecting the Kansas Lottery.

Senator Larry Alley, chair of the subcommittee, presented the Kansas Insurance Department’s revised FY2026 estimate of $47.8 million and a FY2027 request of $47.9 million, citing increases for contractual services tied to a real‑time motor‑vehicle insurance verification system, salary adjustments and IT capital outlays. After brief review, the subcommittee approved the insurance budgets by voice vote.

The subcommittee also approved a revised FY2026 estimate of $10.7 million for the Office of the Secretary of State and a FY2027 request near $10.2 million. Alley said the FY2026 adjustments include state matches required for Help America Vote Act grants, a $1.5 million regulation‑modernization software request and federal funds for county election equipment. The special committee recommended deletion of certain state‑match transfers before the subcommittee concurred and voted to approve the estimates.

Senator Alley presented the Department of Administration’s revised FY2026 on‑budget estimate of $195.1 million and a FY2027 request of $175.5 million. Key FY2026 items included reappropriations for the Kansas License Verification Portal (about $8.2 million), work on the Docking State Office Building and remaining ARPA funds for that project. The FY2027 request includes a routine gubernatorial transition allotment and staffing adjustments in procurement operations. The subcommittee approved the department’s estimates after discussion.

The committee’s Federal and State Affairs report proposed several changes tied to the Kansas Lottery. Alley said the subcommittee’s recommendations reflected upward revisions to revenue estimates driven by expanded casino gaming and sports wagering — putting the FY2026 revenue estimate at roughly $541.4 million and FY2027 at about $543 million.

Among the committee’s policy recommendations, members added proviso language that would prohibit the Kansas Lottery from negotiating, entering into, renewing or extending management contracts for sports wagering with any lottery-gaming facility manager for fiscal year 2027. The committee also recommended increasing statutory lottery vending‑machine (LVM) transfers to the community crisis stabilization centers fund and the clubhouse‑model program fund at the Kansas Department for Aging and Disability Services from $8 million to $16 million in 2027, and proposed suspending a transfer from the state gaming revenues fund to the Economic Development Initiatives Fund for fiscal year 2028.

The lottery changes prompted multiple questions from members about timing and possible conflicts with existing contracts. "Does this in any way jeopardize any of our current contracts or contracts that are being worked on at the time right now?" Senator Penny asked, noting concern that the language could affect active agreements. Alley said staff would circulate additional information and that committee staff would prioritize identifying conflicts when the full bill is drafted.

Senators also pressed for more detailed revenue flows showing how traditional lottery, vending machines, sports wagering and casino gaming revenues are distributed. "Is there a way to get this with all of the actual revenues included?" Senator Owens asked; staff agreed to provide the figures. Alley and staff cited an estimate that facility managers received about $157.3 million in FY25 and that the FY26 estimate was roughly $139.5 million.

Several lawmakers raised process and fiscal‑risk concerns during the meeting. "When you hear about these grants and matching funds, a lot of times there's a contract involved and those contracts can have contingent liabilities in them," said Senator Fay, urging agencies to report contingent liabilities tied to grant matches. Alley responded that state deposits required for matches needed to be made and that the subcommittee had worked to ensure necessary deposits occurred this year.

The committee also approved a FY26 revised estimate of about $13.4 million and a FY27 request of roughly $13.44 million for the Kansas Racing and Gaming Commission, including an added $100,000 for regulatory equipment at a new historic course pari‑mutuel facility in Park City.

All presented budgets and the Federal and State Affairs recommendations were approved by voice vote. Motions were made on the record by Senator Larry Alley and seconded in each instance; roll‑call tallies were not recorded in the public transcript.

The subcommittee asked staff to provide additional documentation on lottery revenue flows, the financial details behind the Kansas License Verification Portal (which Alley said was authorized by Senate Bill 66), and any contract‑conflict analysis related to the proposed sports‑wagering language. The meeting adjourned after those votes.