(Dec. 17, 2025) – Today, the Joint Legislative Budget Committee, chaired by Representative Troy Waymaster (R-Bunker Hill), met. The committee heard from Dr. Blake Flanders of the Kansas Board of Regents on university expenditures and received an update on the biomedical campus and the University of Kansas Cancer Research Center.

The Kansas Legislative Research Department presented updates on the consensus revenue estimates in Kansas. The committee heard that the overall estimate for fiscal year 2026 increased by $165.9 million compared with previous estimates. Presenters highlighted expected nominal growth in the national and state economies for calendar years 2025-2027, but noted potential disruptions from international trade tariffs and conflicts, health care costs and volatility in energy prices. The report also anticipates a possible increase in Kansas unemployment from 3.6 percent to 3.8 percent in CY 2025 and 2026, with the elimination of non-farm jobs noted as an indicator in the previous CY. These revenue estimates will form the basis of the initial budget and will also be closely watched by legislators, who hope the income tax decrease trigger set in law last session will be triggered.

Kansas Department for Aging and Disability Services Secretary Laura Howard appeared before the committee to provide an update on the Rural Health Transformation Grant Fund, noting that the project's lead, Secretary Janet Stanek, was unable to attend. Secretary Howard provided an overview of the program, funding distribution timelines and uses, the development process, and the program's goals. Secretary Howard highlighted assumptions set by the Centers for Medicare & Medicaid Services and outlined the state budget periods during which these funds would be received, between Jan. 2026 and Oct. 2030, and reminded the committee that first-year funds must be spent by Oct. 30, 2026. Secretary Howard also outlined some funding restrictions, including:

• Administrative expenses above ten percent
• New construction
• Capita expenditures and infrastructure above 20 percent
• Not for services for those presently covered and reimbursed by insurance
• Changes to existing fee schedules
• Specialists located in urban areas providing telehealth to rural residents
• Electronic Health Record replacements above five percent
• Backfill of programs that have lost funding
• Clinician salaries or wage supports for those subject to non-competes
• "Start-up" funding of more than ten percent
• Expenditures considered intergovernmental transfers, certified public expenditures or financing of the non-federal share of expenditures required by law

The secretary highlighted what is in the application that is before CMS for consideration in each area:

• Expand Primary and Secondary Prevention
  • Accountable Food is Medicine and Community Health Workers
  • Consumer-Facing Technologies
  • Behavioral Health Services Program
  • Integrated Care for Dual Eligible Beneficiaries Program
  • Mobile Cancer Screenings Program
  • Tribal Health Program

• Accessibility
  • Regional Partnership Grants
  • Rural Emergency Hospital Conversion/Transformative Capital Investment Grants
  • Revenue Improvement Program
  • Anchor Hospital Advancement Program
  • Mobile Integrated Health Pilot Program
  • Rural Primary Care-Public Health Integration Program

• Sustainability
  • Physician Pipeline Program
  • Education and Training Program
  • Recruitment and Retention Program
  • Career Exploration Program

• Value-Based
  • Evidence-Based Practice Incentive Program
  • Accountable Care Organization Readiness Program
  • Transportation Program
  • Medicaid Provider Incentive Payment Program

• Technology
  • Remote Patient Monitoring Program
  • Telehealth Navigator Program
  • Data Infrastructure Program
  • Emerging Technology Program

Committee members asked Secretary Howard questions, including whether federal law defines the term "rural," whether funds will follow patients and which entities beyond hospitals could be recipients. They emphasized the need for long-term transformation and questioned whether there are requirements for efficiency within the program. Other technical questions included the mechanics of funding allocations and whether the legislature can review the list of proposals. Chairman Waymaster cited recent reports of potential hospital closures and asked how these funds would help prevent future closures.

Other federal funds reviewed by the committee were American Rescue Plan Act spending updates, presented by Andrea Clark, director of program coordination at the Office of Recovery. Deputy Secretary Tanya Keys of the Kansas Department for Children and Families provided an update on the implementation of the comprehensive child welfare information system. The Department of Administration appeared before the committee to discuss updates to the market study and agency appeals of budget requests.

Lindsey Douglas, chief operations officer of KC 2026, presented on the transportation plans for the World Cup, and the committee heard a presentation on the State of Kansas aircraft available in the governor’s office and through the Kansas Highway Patrol.

The committee's discussions will continue the first week of January.