Gov. Kelly wants Kansas lawmakers to limit new spending in 2026 state budget

By Daniel Caudill – Kansas News Service

The Democratic governor is once again proposing the state expand eligibility for Medicaid, but Republican leaders will almost certainly not allow a vote on it. 

Democratic Governor Laura Kelly says she wants to limit new spending as Kansas lawmakers craft the state’s annual, multibillion-dollar budget.

Kelly’s administration unveiled her 2026 budget proposal on Thursday, striking at the heart of many of the debates she’s had with Republicans over budget and tax issues.

“(Kelly’s) starting point is always the out years, and never the current budget year,” Budget Director Adam Proffitt told lawmakers. “(We) want to make sure that when she’s building a budget, she’s focused on the sustainability component.”

Indeed, Kelly has often cited the state’s financial future in rejecting Republican-led budget and tax proposals. Republicans have disagreed with her position, saying the state has more than enough money on-hand to sustain more tax cuts.

Those disagreements are already starting to take root at the Statehouse again this year, as Kelly and Republican lawmakers will likely have different priorities for the state’s annual spending.

With a goal of limiting new spending in mind, Proffitt says the governor wants to prioritize what he calls “high impact” areas, like developing a 10-year plan to preserve the state’s water supply, fully funding public schools and investing more than $13 million in child care.

“Children born today will live to see the 22nd century,” Kelly said during her annual address to lawmakers on Wednesday. “How we invest in those children now will determine our state’s trajectory for the rest of the century.”

Kelly is also proposing the state expand Medicaid eligibility for about 150,000 Kansans who don’t get health care through their employer and make too much money to qualify for Medicaid now. That’s a key issue she’s supported her entire time in office.

Republican leaders remain opposed to Medicaid expansion, and with an even stronger GOP supermajority, it’s highly unlikely that a vote will ever reach the floor.

Prior to this session, Republican lawmakers changed the budget process to start developing their own competing budget proposals ahead of the governor’s. They have asked some state agencies to prepare for potential budget cuts.

That could be in anticipation of offsetting additional tax cuts the GOP wants to pursue this session.

“Property taxes can drive our seniors from their homes and prevent younger Kansans from enjoying the dream of home ownership,” said Republican Kansas Senate President Ty Masterson. “For too long it’s just been a political talking point; we must act.”

Kelly has said she doesn’t want to pass more tax cuts this year, saying they could be unsustainable in combination with cuts passed last year.

Other initiatives in Kelly’s budget plan include a 2.5% pay raise for eligible state employees, free school meals for eligible students, and $9 million in additional stopgap funding for foster care services.

Daniel Caudill reports on the Kansas Statehouse and government for Kansas Public Radio and the Kansas News Service. You can email him at dcaudill@ku.edu.

The Kansas News Service is a collaboration of KCUR, Kansas Public Radio, KMUW and High Plains Public Radio focused on health, the social determinants of health and their connection to public policy.

Kansas News Service stories and photos may be republished by news media at no cost with proper attribution and a link to ksnewsservice.org.

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