Kansas Governor Laura Kelly has introduced her 2025 budget proposal, emphasizing responsible spending and addressing critical needs across the state. The budget, which includes only a slight 0.7% increase over the previous year, reflects the state’s financial limitations while prioritizing areas like healthcare, education, and childcare.
Budget Challenges Facing Kansas
Kansas faces uncertainty from the $2 billion tax cut passed last year. The full effects of this reduction won’t be clear until after tax filings are completed in April, with extended filings potentially delaying clarity until October. Moreover, revenue forecasts for future years predict declines.
Adam Proffitt, Kansas’ budget director, highlighted the long-term challenges, warning that without action, the state’s financial reserves could significantly decrease by fiscal years 2028 and 2029. He praised Governor Kelly’s cautious approach, emphasizing the need to limit spending increases.
Republican lawmakers have also been scrutinizing agency budgets to ensure fiscal discipline, mirroring the governor’s careful financial strategy.
Medicaid Expansion: A Priority for Governor Kelly
A centerpiece of Governor Kelly’s budget is the long-standing goal of expanding Medicaid. If approved, this expansion could provide healthcare coverage to 150,000 Kansans, joining 40 other states and Washington, D.C., that have already adopted similar measures.
Governor Kelly pointed out that Medicaid expansion could be self-sustaining, as it would unlock federal funds for Kansas. Between 2022 and 2025, the state missed out on $280 million in federal support, money that could have been used for property tax relief.
Despite public support—72.4% of Kansans favor Medicaid expansion, according to a 2024 survey—Republican leadership has consistently blocked progress. House Speaker Dan Hawkins opposes the proposal, citing concerns over potential costs and reduced work incentives.
Boosting Childcare Availability
To address a severe childcare shortage in Kansas, the budget allocates $10 million to the Childcare Capacity Accelerator Grant Program. This program, which previously received $55 million, has already created over 5,600 childcare slots across the state.
However, the need remains high. According to Child Care Aware of Kansas, the state currently has a shortfall of 80,000 childcare slots, with existing providers meeting only 45% of demand.
Investments in Education
Education is another key focus of the proposed budget, with plans to support special education, eliminate meal copays for students, and expand medical scholarships.
- Special Education Funding: Kansas law requires 92% of special education costs to be covered by the state. However, the current funding level is only 75.4%. Governor Kelly’s five-year plan aims to bridge this gap. Republican lawmakers, however, argue that existing school budgets should suffice.
- Free Meals for Students: The budget includes $5.5 million to eliminate meal copays for nearly 36,000 students. This move would remove the 40-cent lunch and 30-cent breakfast fees for students on reduced-price plans.
- Medical Scholarships: To address the state’s healthcare workforce needs, the budget proposes $2 million to expand student loans for the University of Kansas Medical Center and $2.2 million for scholarships for osteopathic medicine students.
Summary of Key Allocations
| Category | Proposed Funding | Purpose |
|---|---|---|
| Medicaid Expansion | Cost TBD (offset by federal funds) | Provide healthcare for 150,000 Kansans |
| Childcare Grants | $10 million | Create more childcare slots statewide |
| Special Education | 5-year phased increase | Achieve the mandated 92% funding level |
| Free School Meals | $5.5 million | Remove meal copays for 36,000 students |
| Medical Scholarships | $4.2 million | Support medical students and address shortages |
What’s Next?
Governor Kelly’s 2025 budget proposal reflects her commitment to balancing fiscal responsibility with the needs of Kansas residents. However, the budget faces hurdles in the Republican-controlled Legislature, especially on key issues like Medicaid expansion and education funding.
The full budget proposal is available online for public review, allowing Kansans to explore the specifics of how their taxpayer dollars are being allocated.
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