Laura

**Summary of Governor Laura Kelly's Proposed FY 2027 Budget**

Governor Laura Kelly (D-Kansas) released her proposed budget for Fiscal Year 2027 (starting July 1, 2026) in mid-January 2026, as she prepares to leave office. The plan focuses on restoring **structural balance** to the state's finances while prioritizing investments based on public input from her "The People's Budget" tour (which gathered feedback from over 800 Kansans). Key themes include fully funding public education for the eighth consecutive year, addressing water challenges, expanding mental health and health care services, and supporting early childhood education.

**Major Highlights and Priorities:**

- **Education**: Fully funds K-12 public schools (aiming to be the first governor in a generation to do so every year of her term). Includes **$50.6 million** in additional funding for Special Education State Aid, **$2.5 million** to provide free school meals by eliminating co-pays for about 34,400 students on reduced-price meals (second year in a row), continued support for early childhood education (full funding for the Kansas Office of Early Childhood), and the Kansas Blueprint for Literacy.

- **Water Infrastructure**: Recommends full funding for the State Water Plan Fund. Allocates **$2.3 million** to improve water quality in the Equus Beds Aquifer, **$1.1 million** for water planning and project development, and over **$870,000** annually for aid to conservation districts. Emphasizes long-term water planning.

- **Health and Mental Health**: Continues investments in mental health services and community-based programs. Includes significant funding for expanded behavioral health capacity (e.g., nearly **$31 million** for a new South Central Regional Mental Health Hospital adding 103 beds, **$3 million** in capital improvements at the Kansas Neurological Institute for children's behavioral health beds, and **$5 million** one-time support for local hospitals with behavioral health beds).

- **Other Areas**: Restores full funding to the Arts Commission and the State Library's State Grants-in-Aid program. Supports state employee raises (mentioned in related coverage), public safety, and community support waivers for disabled Kansans.

The proposal aims for a modest overall spending increase (around 1.6% in some reports, aligned with expected revenue growth) and reflects Kansans' shared priorities like education, health care, and water security while maintaining fiscal responsibility.

**Republican Response**: The Kansas Republican Party condemned the proposal via a social media statement, accusing it of increasing the state's deficit in coming years. They likened it to post-COVID spending excesses ("the party is over and the hangover is coming") and urged the Legislature to reject it, return to pre-COVID spending levels, restore "fiscal sanity," and prepare for a "post-Kelly migraine."

This is based on Kelly's official announcements, KSNT coverage, and other Kansas news sources. The full budget report is available through the Kansas Division of the Budget website for detailed agency breakdowns. The Legislature will ultimately shape and approve the final version.

Henry McClure  
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