13 Apr 2026 Kansas Legislative Update – Sine Die Adjournment
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Following a two-week break, the Kansas Legislature reconvened Thursday, April 9 for a brief Veto Session largely dominated by property tax discussions and votes to attempt overrides of bills vetoed by governor Laura Kelly. After passage of a property tax bill on slim margins, the House and Senate gaveled out sine die (no more days) around 2:00 a.m., on Saturday morning, completing the 2026 legislative session. The 2026 session served as Governor Kelly’s final. With no signs of a special session this summer, the Legislature will plan to reconvene in January for the 2027 session. Many of the legislators have already begun turning their attention to campaigning for the 2026 election, which includes 100 percent of the Kansas House and all statewide offices. The Kansas primary is scheduled for Tuesday, August 4, and the general election for Tuesday, November 3.
Legislative Veto Session – April 9-11, 2026
Ethanol Fuel Retailer Tax Credit
Renew Kansas requested introduction of SB 498 to create an income tax credit as an incentive for fuel retailers to offer E15 and higher ethanol blend fuels for sale. The tax credit would be valued at 5 cents for each gallon of higher ethanol blend motor fuel (E15 to E85) sold. The tax credit would be capped at $2.5 million per year for three years. Modeled on legislation passed in Missouri, Iowa, Nebraska, and other Midwest states, the bill is intended to incentivize fuel retailers to offer E15 and higher blends of ethanol fuel for sale to help overcome certain infrastructure and structural market barriers to E15 fuel. The Senate amended the bill to end the tax credit on December 31, 2028, but allowed three years of carry-forward to use the tax credits. The contents of the bill were placed into CCR SB 82 and passed by the Senate 36-2 and the House 76-45. The bill now goes to Governor Kelly for consideration.
Biodiesel In State Vehicles
HB 2577 would increase the biodiesel blend used in state-owned diesel-powered vehicles and equipment from 2 percent to 20 percent. Upon referral to the House Committee on Federal and State Affairs, the bill did not receive a hearing.
HPIP Reform – Tax Credit Repeal
House Bill 2757 would make changes to the High Performance Incentive Program (HPIP) tax credit and discontinue certain income tax credits. The House Tax Committee amended the bill to remove most of the provisions that amended HPIP and extended the angel investor tax credit. The bill would clarify that transfers of unused HPIP credits for projects placed into service on and after January 1, 2021, as allowed by continuing law, could be made by any taxpayer, including pass-through entities, at any time during the carryforward period. The taxpayer would be required to ensure that any transferred tax credit has not been used. The bill would also allow, starting in tax year 2026, an S corporation wholly owned by an employee stock ownership plan (ESOP), as defined by federal law, to make one or more transfers totaling up to 100 percent of the unused portion of the tax credit. The bill would allow such transfers to be made to one or more transferees in one or more tax years at any time during the carry-forward period, provided any transferred credit has not been used. Find more details on the bill, as amended, here. After passing out of the House Tax Committee, the bill received no further action.
Lower Electric Utility Rates
HB 2483 was introduced at the request of a broad stakeholder coalition that seeks to lower electric utility rates for all rate payers. Referred to as the “TRUE” act, the bill seeks “transparency & Reform of Utility Expenditures.” The bill was referred to the House Committee on Energy, Utilities, and Telecommunications. Following a hearing in the House Utilities Committee, the bill received no further action.
Parallel Generation and Large Load Facilities
Governor Kelly signed into law CCR SB 92, a bill that amends the parallel generation law to extend an existing exclusion regarding large-load facilities to July 1, 2027. The bill extends the time in which the Kansas Corporation Commission makes a final order on a transmission line siting application. The provisions of the bill are similar to those of HB 2040, enacted in April 2025. Under current law, a utility is not required to make parallel generation service available to any customer who has a new or expanded facility that receives electric service at a voltage of 34.5 kilovolts or higher and commences such electric service on or after July 1, 2025. The bill extends the expiration date to July 1, 2027.
Kansas Fire Code Updates
Governor Kelly signed into law CCR HB 2739, a bill that creates a limited exception to the requirements for proposed rules and regulations promulgated by the State Fire Marshal for purposes of updating the Kansas Fire Prevention Code. The bill removes the requirement for the OSFM to provide an economic impact statement when submitting proposed regulations, on or before December 21, 2026, to update the Kansas Fire Prevention Code with the 2024 edition of the National Fire Protection Association Standards.
Property Tax Relief Proposals
HB 2745 proposed the creation of a protest petition process for the adoption of local government budgets in excess of a funding limit. The bill allows for the use of a protest petition to contest any taxing jurisdiction’s budget from property taxes in excess of the prior year’s amount adjusted for inflation, according to the Consumer Price Index for the Midwest Region, up to a maximum adjustment of 3 percent per year. The bill, which passed with slim margins, was vetoed by the Governor. During the Veto Session, the contents of the bill were slightly amended, placed into CCR HB 2043, and sent to the Governor.
SCR 1603 would have proposed a constitutional amendment to limit, for property tax purposes, the annual growth of taxable assessed value of residential, commercial, industrial, and agricultural real property to 9 percent (or to a lesser percentage as provided in state). After failing to pass the House on a 59-63 vote late in the evening of March 27, the bill received no further action.
Excise Taxes on Renewable Energy Facilities
SB 534 would implement new excise taxes by imposing a nameplate capacity tax and a production tax on certain wind farms and solar facilities beginning in tax year 2027. For the privilege of constructing and operating a renewable energy facility for commercial purposes in the state, any company owning, controlling, managing, or leasing any real or personal property used or intended for use as a wind farm or a solar facility would pay an annual tax equal to $4 per kilowatt multiplied by the nameplate capacity of the renewable energy facility. The bill defined a “renewable energy facility” as any wind farm or solar facility with at least 5,000 kilowatts. The bill also would include definitions of “collector system,” “company,” “solar facility,” and “wind farm.” Following a hearing in the Senate Tax Committee, the bill received no further action.
Property Tax Proposed on Battery Energy Storage Systems
HB 2083 was introduced in 2025 to end the permanent property tax exemption on battery energy storage system (BESS) units and instead provide a 10-year property tax exemption. This session, the Senate Tax Committee amended the bill to immediately place a property tax on all energy storage equipment beginning January 1, 2027. Following additional committee discussion, the bill did not advance from the committee.
Property Tax Valuation Cap
The Governor signed into law House Bill 2644, which requires a county appraiser to adjust the value of residential and commercial property upon a final determination of a valuation appeal or obtain an independent fee simple appraisal if the appraised value exceeds a 5 percent increase each year for five years. The requirement applies to commercial and residential real property, and tangible personal property beginning January 1, 2026. The requirement applies in cases where the valuation for such property has been reduced due to a final determination of value, pursuant to the valuation appeals process, and if the valuation has increased by more than 5 percent above the prior year’s valuation.
Lottery Tax Revenues for Property Tax Relief
The House Tax Committee passed out Sub SB 303, which would enact a privilege tax on sports wagers, impose retail sales and compensating use taxes on certain lottery tickets, and schedule the sunset of certain sales tax exemptions for named entities. The bill would direct revenues from these tax provisions to the Property Tax Relief Fund, created by the bill, and reduce the statewide uniform school finance property tax levy based on the amount of revenue generated from the new taxes. The Sports Wagering Privilege Tax would enact a 2 percent privilege tax on each sports wager placed with a lottery gaming facility manager to be paid by the person placing the wager and collected by the lottery gaming facility manager. Lottery gaming facility managers would be required to remit all such collections to the Department of Revenue on the 25th day of the month following the collection of the tax, along with a report of information necessary to establish the amount of tax due. In addition, the bill would sunset existing sales tax exemptions for more than 50 organizations. The bill did not receive further consideration during the Veto Session.
School Mill Levy Reduction
HB 2011 would decrease the rate of ad valorem tax imposed by school districts from 20 (currently) to 18.5 in school years 2025 and 2026, and would increase the value of the residential homestead property tax exemption. After passing out of the House Tax Committee on February 12, the bill received no further action.
M&E Property Tax Exemption
SB 320 would remove the 2006 cut-off date for the commercial and industrial machinery and equipment property tax exemption. The Senate Tax Committee held a hearing on the bill, but due to a large economic impact report did not take further action. The House Tax Committee heard and passed out a similar bill in HB 2406, which did not receive further action.
State Budget
The state budget bill, HB 2513, provides adjustments to the current budget and state agency funding for FY 2027 and FY 2028. The current fiscal budget was increased to $27.8 billion, including $10.9 billion in state general funds (SGF). This is an all-funds increase of 6.4 percent, but a 1.9 percent decrease in SGF. The budget will result in projected SGF ending balances of $2.2 billion on June 30, 2026, $1.8 billion on June 30, 2027, and approximately $500 million by June 30, 2030. The budget adds $16.6 million to restore select State Water Plan Fund (SWPF) reappropriations in FY 2026 and fully funds the SWPF for this year and next. In addition, for FY 2026, the bill includes $40 million for a 1 percent salary adjustment for Executive Branch employees. For FY 2027, the budget includes an additional $1.7 million to the SWPF for Aid to Conservation Districts, $1 million for the Musil Center for Sustainable Wheat Production, $1 million for the SWPF-contamination remediation, $304,000 for SWPF-CREP, and $225,000 for a SWPF-Water Systems Regionalization Feasibility Study. Find a full overview of the budget here, and an extended analysis at the end of this report.
State Water Plan Funding
HB 2558 would have increased the statutory transfer from the state general fund to the state water plan fund to $60M per year (currently $35M), on July 1, 2026, through July 1, 2030. The bill did not survive turnaround week and was removed from the House Calendar. However, the state budget fully funds the State Water Plan. Find a full overview of the budget here.
Water Structures
Governor Kelly signed into law CCR HB 2114. Requested by the KDA, the bill amends the Stream Obstruction Act to allow the state to provide inspections of stream obstructions on a cost-for-service basis, require any licensed professional engineer who conducts inspections required by the act to be approved by the chief engineer, and certify non-state entities to perform inspections. The legislation creates application fees based on the hazard classification for new construction or modifications and adds a civil penalty for intentional violations of the act.
Reuse of Treated Water
CCR HB 2462 requires the Secretary of Health and Environment to adopt rules and regulations that allow for the direct and indirect potable reuse of treated wastewater. After being passed by the House and Senate, Governor Laura Kelly signed the bill into law.
Corporate Income Tax Apportionment
HB 2773 would require certain manufacturers of alcoholic liquor to utilize the single sales factor method to apportion business income to Kansas for corporation income tax purposes beginning January 1, 2027. In addition, HB 2336 would require, beginning in tax year 2027, most corporations with income in multiple states to apportion their income for Kansas income tax purposes based upon the share of the corporation’s total sales that occur in Kansas. During the legislative Veto Session, the contents of both bills were placed into CCR SB 300, passed by the Legislature, and sent to Governor Kelly for consideration.
Global Intangible Low-Taxed Income
HB 2642 would decouple the state from specific portions of the federal code regarding GILTI and NCTI following passage of the federal OBBB. GILTI is a US tax provision aimed at ensuring that US taxpayers pay a minimum level of tax on foreign earnings, particularly those derived from intangible assets. The bill removes an obsolete reference to global intangible low-taxed income provided for under the federal Internal Revenue Code in determining Kansas adjusted gross income. During the legislative Veto Session, the contents of the bill were placed into CCR SB 300, passed by the Legislature, and sent to Governor Kelly for consideration.
Rural Business Growth Act
HB 2541 would create the Kansas Rural Business Growth Program Act to provide a tax credit to incentivize capital investment in rural areas and a program administered by the Secretary of Commerce. On a vote of 7-12, the bill failed to pass out of the House Tax Committee.
Local Sales Tax Authority
HB 2712 would increase the authority for a countywide retailers’ sales tax and provide for the dedicated apportionment of special purpose tax revenues up to 2 percent. It would limit the special purpose city and countywide retailers’ sales taxes to 10 years. After passing the House on a vote of 108-11, the Senate Tax Committee held a hearing on March 13. The bill received no further action.
Short Line Income Tax Credit
HB 2469 would expand the transferability of the existing income tax credit for qualified shortline railroad track maintenance expenditures. After passing out of the House Tax Committee on March 11, the bill did not receive further action.
Pesticide Product Labeling Protections
HB 2476 was introduced to codify Kansas case law that labels on USEPA-registered pesticide products satisfy statutory or common law duty to warn of potential hazards. After passing the House 81-36, the bill was tabled in the Senate Agriculture Committee. An Agriculture Conference Committee later placed the contents of the bill into CCR HB 2505, but no further action was taken.
PFAS Regulations
Introduced by Rep. Bohi, HB 2674 would have prohibited certain products that contain intentionally added PFAS and required disclosure of information and the testing of products that contain intentionally added PFAS and are sold, offered for sale, or distributed for sale in this state. While the bill, which exempted FIFRA-regulated products, did not receive a hearing, it is anticipated similar legislation will be introduced next session.
Enhancing Criminal Penalties for Theft of Grain and Hay
HB 2422 would increase the presumptive criminal penalty for theft of at least 400 bushels of grain to a severity level 6, non-person felony. This is a “border-box” penalty allowing either presumptive probation or imprisonment based on the defendant’s criminal history. After passing the House, the Senate amended the bill to add theft of 20,000 pounds of hay. The contents of the bill were added to CCR HB 2413, which was passed unanimously by the House and Senate and signed into law by Governor Laura Kelly.
Enhancing Criminal Penalties for Livestock and Implements of Husbandry
HB 2413 increased the presumptive criminal penalty for the theft of livestock or implements of husbandry to a severity level 5, non-person felony, which is presumptive imprisonment. The bill defines “livestock” as meaning “cattle and horses”. After passing the House and the Senate, the bill was placed into a conference committee, which added the contents of three other bills, creating CCR HB 2413. The bill was passed unanimously by the House and Senate and signed into law by Governor Laura Kelly.
Mobile Phone Use in Construction Zones
Governor Kelly signed into law Sub SB 366, which prohibits the use of a mobile telephone in a school zone or road construction zone under certain circumstances and authorizes certain uses and colors of warning lights on highway construction vehicles. The bill adds a prohibition in the Uniform Act Regulating Traffic on Highways on the use of a mobile telephone in a school zone when a reduced speed limit is enforced or in a road construction zone while workers are present and signs are posted at the beginning of the road construction zone alerting drivers to such workers. Holding a mobile telephone would constitute a rebuttable presumption of a violation of that prohibition.
Amending Definition of “Conviction” to Include DUI Diversion
A Kansas Court of Appeals opinion held that the state’s definition of “conviction” was not equivalent to the federal definition of “conviction,” which includes non-judicial DUI resolution, such as diversion. For that reason, HB 2606 was introduced to align the state definition in the Kansas Uniform Commercial Driver’s License Act with the federal definition. Contents of the bill were placed into CCR SB 403, which was passed by the legislature. Governor Kelly signed the bill into law.
Citizenship Status on Driver’s License
HB 2448 would require a person’s citizenship status to be stated on their driver’s license. The contents of the bill were placed into CCR HB 2587, which was passed by the Senate and the House. The bill was vetoed by Governor Kelly, and the legislature sustained the veto.
English Proficiency for Commercial Drivers
HB 2583 would have required commercial motor vehicle drivers to possess certain identification documents and proficiency in English while operating a commercial motor vehicle. The bill proposed penalties for violations. Following a House Transportation Committee hearing, the bill received no further action.
Gross Vehicle Weight
HB 2604 was introduced at the request of the Kansas Dept. of Revenue to amend statutory definitions regarding commercial motor vehicles by: adding gross vehicle weight to the definitions of class A, B, and C commercial vehicles in vehicle registration statutes; align definitions of commercial motor vehicles in the Kansas Uniform Commercial Drivers’ License Act (CDL Act) and the registration statute. The bill was passed by the House and then referred to the Senate Committee on Transportation which held a hearing on March 3. However, the bill received no further action.
Triple-Trailers on Highways
SB 411 would have authorized the use of triple trailers on highways, increasing the allowable gross weight for such vehicle combinations and allowing the use of trailers with dealer license plates. Following a hearing in the Senate Transportation Committee, the bill received no further action.
Occupational Licensing
CCR SB 30 requires adoption of new occupational licenses, and material changes to existing licenses, be approved by the Legislature. The bill also requires agencies to annually report certain information of such occupational licensing to the Joint Committee on Administrative Rules and Regulations (JCARR). An “occupational license” is defined as an exclusive authorization in law establishing the personal qualifications necessary to engage in an occupation or profession and any associated rules and regulations. Various industries were exempted from the bill. The bill was passed by the House and Senate. Following a veto by Governor Kelly, the legislature successfully voted to override the Governor’s veto and passed the bill.
Public Benefits Restrictions for Immigrants
SB 254 establishes restrictions on access to state and local public benefits for individuals who are unlawfully present in the United States. It prohibits undocumented aliens from receiving any state or local public benefit, with the only exceptions being those benefits that federal law. For applicants who are 18 years of age or older, the bill mandates that anyone seeking a state or local public benefit must provide documentary proof that they are either a United States citizen, a permanent resident, or an alien who is lawfully present in the country. Acceptable documentation includes materials recognized by the division of motor vehicles for driver’s license applications as well as any federal government document confirming lawful presence. The bill further requires that no state, county, or local agency may provide any public benefit to an alien without first verifying that person’s lawful presence and status as a qualified alien through the federal Systematic Alien Verification for Entitlements (SAVE) program, operated by the U.S. Department of Homeland Security. The bill explicitly prohibits undocumented aliens from receiving in-state tuition or reduced fee amounts under any circumstances and declares void any conflicting provisions of existing Kansas law. After passing the House and Senate, Governor Kelly vetoed the bill, and the veto was sustained by the Legislature.
Temporary Unemployment Insurance
SB 229 would clarify Legislative intent and public policy regarding the Kansas Employment Security Law, including the addition of reference to applicable federal laws and guidance. The bill would prohibit certain employment security law measures, from being amended without Legislative review. This would specifically prohibit such amendments from being made through budget provisos, appropriations bills, or temporary fiscal measures. Employer-sponsored supplemental unemployment benefit plans would be allowed if all requirements outlined in the bill were met and such plans were authorized by the Secretary of Labor. The Secretary would be required to maintain and publish a registry of authorized supplemental unemployment benefit plans submitted by employers on the Department of Labor website. In addition, the Secretary would be required to monitor the interaction between supplemental unemployment benefit plans and state unemployment insurance claims to ensure continued solvency of the Employment Security Trust Fund. Find more information here. Following further consideration in a Commerce Conference Committee, CCR SB 229 was passed by the House 88-34. However, the bill received no further action during the Veto Session.
Portable Benefit Plans
Governor Kelly signed into law HB 2602, a bill that establishes requirements for portable benefit plans for independent contractors and provides subtraction modifications for Kansas income tax purposes for contributions to such plans. The bill defines a “portable benefit plan” to mean a benefit plan chosen by an independent contractor and assigned to a beneficiary, and that is administered by a bank, credit union, investment management firm, or program manager that offers services through such entities. Portable benefit plans would not include benefit plans administered by a hiring party.
Wind, Solar, Battery Decommissioning
SB 417 would establish requirements for the development, construction, modification, maintenance, operation and decommissioning of certain industrial energy facilities and providing jurisdiction to the state corporation commission to control and permit such development, construction, modification, operation, maintenance and decommissioning of such facilities. The bill was brought at the request of the Kansas Farm Bureau and Kansas Livestock Association. The bill did not receive further consideration.
Statewide Fiber Optic Conduit
Governor Kelly signed into law CCR HB 2647, a bill that establishes the Statewide Conduit System (System) for fiber optic transmissions of broadband connections. It also establishes the Kansas Broadband Revolving Fund and a fee schedule to be charged to entities installing or using the system.
Natural Gas Infrastructure
Governor Kelly signed into law Sub HB 2435, a bill that amends the Gas Safety and Reliability Policy Act (GSRS) to allow gas utilities to recover growth-related capital investments through the GSRS, make adjustments to the timing of certain Kansas Corporation Commission proceedings, and raise the cap on monthly charges to residential customers. The bill allows natural gas infrastructure investment projects that could increase revenues by directly connecting to new customers to be considered eligible infrastructure system investments under the GSRS.
Utility Railroad Crossings
SB 439 would create the Utility Railroad Crossing Act to establish a process for the alteration of facilities crossing or parallel to a railroad right-of-way. After passing the Senate
Tort Reform – Adopting Certain Federal Expert Witness Rules of Evidence
Governor Kelly signed into law SB 398, a bill that requires a person to demonstrate that it is more likely than not that certain specialized knowledge will help the trier of fact to understand evidence before certain qualified witnesses may testify.
Tort Reform – Prohibiting Recovery in Certain Civil Actions
SB 463 prohibits certain persons from recovering damages in certain civil actions. The bill prohibits persons who engaged or participated in wrongful conduct from bringing an action for negligence or collecting damages for negligent conduct related to such wrongful conduct. The bill was amended to address concerns of attractive nuisances for children. The contents of the bill were placed into CCR SB 462 and passed by the Legislature. Following a veto by Governor Kelly, the Legislature voted to override the Governor’s veto and passed the bill.
Tort Reform – Public Nuisance Claims
SB 462 would prohibit certain public nuisance claims, require the attorney general to bring nuisance actions that are not wholly contained in one political subdivision, require special injury for certain public nuisance actions, and provide an accrual period for the statute of limitations in public nuisance actions. A joint Judiciary Conference Committee added the contents of SB 463 to the bill, creating CCR SB 462. Following a veto by Governor Kelly, the Legislature voted to override the Governor’s veto and passed the bill.
Tort Reform – Prohibiting Practice of Jury Anchoring
SB 413 was introduced to prohibit the practice, known as “jury anchoring,” where legal counsel suggest a large damage amount for noneconomic loss in civil action for the purpose of increasing the negotiated damage award. The bill was supported by various business stakeholder groups. After passing the Senate 29-11, the bill was referred to the House Judiciary Committee but did not receive a hearing.
Attorney General Litigation Review
Requested by the Kansas Attorney General, HB 2593 requires the attorney general to approve any contingency fee contract for legal services proposed or considered by any political subdivision of the state. Following a veto by Governor Kelly, the legislature successfully voted to override the Governor’s veto and passed the bill into law.
Agency Rules and Regulations
HB 2719 amends the state’s Rules and Regulations Filing Act to streamline and clarify the rulemaking process. The bill allows agencies to make “technical amendments” – minor non-substantive changes to existing rules – without going through the full rulemaking process. The bill also creates a “priority status” designation for proposed rules and regulations that an agency was directed to adopt within nine months of a law’s effective date. Following a veto by Governor Kelly, the legislature successfully voted to pass the bill notwithstanding the Governor’s veto.
Judicial Deference to Regulatory Agencies
Governor Laura Kelly signed HB 2183 into law. The bill prohibits a state court or an administrative hearing officer from deferring to a regulatory agency’s interpretation of certain statutes, rules or regulations. While the court or officer could consider the agency’s interpretation, they would be required to interpret the meaning and effect of such statute, rules and regulation, or document, de novo using their own reasoning independent of the agency’s interpretation.
Crush Transnational Repression
SB 454 would enact the “Crush Transnational Repression” act. Under the act, “transnational repression” would mean actions and behaviors intended to harass, intimidate, or censors that are committed by an agent of a foreign adversary, defined as the People’s Republic of China, Hong Kong Special Administrative Region; Republic of Cuba; Islamic Republic of Iran; Democratic People’s Republic of Korea; Russian Federation; Bolivarian Republic of Venezuela; and any organization that is designated as a foreign terrorist organization as of July 1, 2026, pursuant to the Immigration and Nationality Act, except where otherwise adopted by the Fusion Center Oversight Board. The bill was included in CCR HB 2413, passed unanimously by the House and the Senate, and signed into law by Governor Kelly.
Critical Infrastructure Protection – Countries of Concern
SB 453 would have enacted the Kansas critical infrastructure protection act to prohibit access to state critical infrastructure by countries of concern and the acquisition of critical software and other technology used in state infrastructure from countries of concern. After referral to the Senate Committee of Federal and State Affairs, the bill did not receive a hearing.
Country of Concern Registration
HB 2759 would require registration of agents and political organizations representing countries of concern. The bill would prohibit any person from acting as an agent of a foreign principal unless such person registers with the Public Disclosure Commission by submitting a registration statement and any required supplemental documents. The bill would require certain information to be included in the registration statement, such as a comprehensive statement of the nature of the agent’s business, the amount of certain payments the agent has received, and other information required by the Commission. The bill requires each foreign-supported political organization to register with the Commission. Violations of the bill would be subject to a civil penalty of up to $5,000 for the first violation, $10,000 for the second violation, and $15,000 for subsequent violations which would be deposited into the Public Disclosure Fee Fund. Following a March 11 hearing in the House Committee on Federal and State Affairs, the bill did not receive further consideration.
EXTENDED STATE BUDGET REPORT
The annual state budget, HB 2513, contains funding adjustments for fiscal year (FY) 2026, funding for state agencies for FY 2027, and adjustments for FY 2028 – FY 2030. The bill provides funding and implementation for a new agency, the Office of Early Childhood. The budget maintains SGF balance preservation while restoring key reappropriations, fully funding the State Water Plan (with targeted enhancements for conservation, remediation, and infrastructure), supporting agricultural research/extension reorganization, and providing modest operational increases for public safety (Fire Marshal). The bill prioritizes water resources, education, human services, and targeted agency efficiencies across FY 2026–2030.
Passed on March 26, 2026, by the House (67-53) and Senate (23-16), the bill now heads to Governor Laura Kelly for consideration.
Expenditures and Balances
In FY 2026, the budget adjusts total state expenditures to $27.8 billion (all funds), including $10.9 billion from the State General Fund (SGF). This represents an all-funds increase of $1.7 billion (6.4 percent) and an SGF decrease of $213.6 million (1.9 percent) from the FY 2026 approved budget, and an all-funds increase of $352.1 million (1.3 percent) and an SGF increase of $326.7 million (3.1 percent) above the budget as initially introduced. The budget leaves a remaining SGF balance of $2.2 billion in FY 2026 and $1.8 billion in FY 2027. The bill projects an SGF ending balance of $500 million by FY 2030. In FY 2027, total expenditures are $26.8 billion, including $10.7 billion SGF. This is an all-funds decrease of $1.0 billion (3.7 percent) and an SGF decrease of $186.4 million (1.7 percent) from the FY 2026 revised estimate, but still an increase above the budget bills as initially introduced.
Major Changes
Major statewide changes from the introduced bills include restorations of reappropriations ($285.6 million SGF + $16.6 million SWPF), contract staffing ($39.2 million SGF), Medicaid/nursing facility capacity payments, Children’s Health Insurance Program expansions, HCBS rate increases, salary adjustments, new mental health hospital operations, technical/community college funding, and a 1.5 percent SGF operations lapse.
State Water Plan Fund
HB 2513 fully funds the State Water Plan and adds $16.6 million SWPF in FY 2026 to restore select reappropriations. SWPF totals: $64.3 million for FY 26 (up $17.6 million), and $43.4 million for FY 27.
SWPF Reappropriations/Enhancements
Multiple lapses and restorations across agencies total ~$3.96M net lapse in FY26 reappropriations, offset by $3.52M in FY27 enhancements focused on conservation, remediation, and regionalization. Revenue includes SGF transfers ($41M annually), fees, and EDIF transfers.
Key SWPF expenditures:
Department of Agriculture (KDA – water-related):
- Water Resources Cost-Share: $4.285M (FY26) / $4.25M (FY27) + $250k enhancement (FY27).
- Conservation District Aid: $5.253M (FY26) / $5.25M (FY27) + $1.747M enhancement (FY27).
- Musil Center for Sustainable Wheat Production: $1.0M (FY26).
- Nonpoint Source Pollution Assistance, Watershed Dam Construction, Streambank Stabilization, Kansas Reservoir Protection Initiative, etc.
Kansas Water Office:
- High Plains Aquifer Partnerships: $3.5M (FY26) / $2.0M (FY27).
- Water Quality Partnerships, Assessment & Evaluation, HB 2302 Projects, Water Planning and Projects
KDHE – Division of Environment (water-related items):
- Contamination Remediation: $3.89M (FY26) / $3.09M (FY27) + $1.0M enhancement (FY27).
- Local Environment Protection Program, Nonpoint Source Technical Assistance, TMDL Initiatives, Drinking Water Protection, Watershed Restoration & Protection Plan, Water Systems Regionalization Feasibility Study ($225k enhancement, FY27), Operator Exam Updates ($300k enhancement, FY27).
K-State Extension / Cooperative Extension Services
Under Kansas State University (Education function), the budget removed $21.5 million SGF from Cooperative Extension Services and added it to the State Finance Council pending certification of a reorganization plan for agricultural industry needs. Remaining funding in the account is designated for 4-H programs. Capital improvements and research funding for KSU Extension Systems and Agricultural Research continue separately.
Office of the State Fire Marshal
The Fire Marshal operates primarily from fee funds (no SGF).
- FY 2026 approved base: $11.395 million, all funds / 68.5 FTE. Conference adds: $87,457 (Fire Marshal Fee Fund) + 1.0 FTE for an additional IT employee (FY26/FY27)
- FY27 additional: $500,000 (Fee Fund) for volunteer fire department protective equipment kits + language for up to $250,000 toward rural fire departments for extraordinary disaster expenses (emergency response fund flexibility up to $50,000 without prior approval for hazmat/search-and-rescue). FTE adjustment: +5.5 positions (FY27) to correct count.