Budget Status: 2024 Conference Committee Updates

Alice Fitzgerald | April 1, 2024

Now that the budget has been passed by the House and Senate, what’s next?  

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At this point in the 2024 session, both the Senate and House have passed their versions of the budget. Each chamber’s vision for the state budget was created through budget committees and amendments on the chamber’s floor.  

Since there are differences between major spending policies and both chambers would like to see their version passed, the two chambers agree to negotiate through what is known as a conference committee. The chambers each select three members from the relevant committees to discuss with the other chamber and eventually accept a deal.  

Once a deal is reached, the bill’s conference committee report will be given an up or down vote in each chamber. If given approval by both chambers, the bill will head to the Governor. If rejected, the bill heads back to the conference committee to hash out more details. 

This year, the Budget Conference Committee plans to put their agreed-upon provisions into SB 28.  

Current Budget Landscape

There are plenty of differences between both chambers’ versions of the budget. Some, however, are more significant than others and hold more political value. 

Where the chambers mostly agree, but must negotiate funding amounts or from where to draw the money: 

• Medicaid reimbursement rates 

  • Outpatient hospital Medicaid reimbursement rates  

    • For FY 2025: The Senate added $78.7 million (with $30.0 million from the State General Fund [SGF]) to increase rates (percent unknown at this time), while the House added $45.2 million (with $17.9 million from the SGF) to increase rates by 30%

    • Update: On April 2, the Conference Committee agreed to add $50.0 million (amount from the SGF not yet known) to increase outpatient hospital reimbursement rates for FY 2025  

    • For FY 2026: The Senate added $157.4 million (with $60.0 million from the SGF) to increase rates, while the House did not add any funding for FY 2026 

    • Update: On April 2, the Senate agreed with the House position not to increase outpatient hospital reimbursement rates for FY 2026 

  • Physician Medicaid reimbursement rates 

    • The Senate added $25.7 million (with $10.3 million from the SGF) to increase rates by 8%, while the House added $33.9 million (with $13.6 million from the SGF) to increase rates by 15% 

• I/DD and PD waivers 

  • I/DD waivers: The Senate added $3.4 million (with $1.3 million from the SGF) to increase the specialized medical care rate from $47 per hour to $50 per hour for the waivers for FY 2025, while the House added $5.2 million (with $2.0 million from the SGF) to increase the rate from $47 per hour to $51 per hour 

  • Update: On April 2, the Conference Committee agreed to increase the specialized medical care rate to the House’s proposed $50 per hour, which will total $5.2 million (with $2.0 million from the SGF) 

  • I/DD waivers: The Senate added $14.6 million (with $5.6 million from the SGF) to increase the supported employment rate from $28 per hour to $45 per hour, while the House added $10.2 million (with $3.9 million from the SGF) to increase the rate from $28 per hour to $40 per hour 

  • Update: On April 2, the Senate agreed to the House position, which will increase the supported employment rate to $40 per hour at a total cost of $10.2 million (with $3.9 million from the SGF) 

• Kansas Comprehensive Grant (post-secondary education grants for students) for FY 2025 and FY 2026 

  • Senate: $5.0 million from the SGF 

  • House: $9.7 million from the SGF 

  • Update: On April 2, the Conference Committee agreed to the Senate’s proposed $5.0 million from the SGF 

• Infant and Toddler Program (Tiny-K) 

  • Senate: $2.0 million from the SGF 

  • House: $2.0 million from the Children’s Initiatives Fund (CIF)

  • Update: On April 1, the House agreed to the Senate’s position to draw funding for Tiny-K from the SGF  

Included only in the Senate’s version:

• Increased Medicaid reimbursement rates 

  • In FY 2025, $4.8 million (with $1.9 million from the SGF) to extend Medicaid coverage for dental exams, x-rays, and cleanings 

  • Update: On April 2, the Conference Committee agreed to remove this coverage change until omnibus discussions, when they will review 

  • In FY 2025, $4.2 million (with $1.7 million from the SGF) for increased rates for pediatric primary care services 

  • Update: On April 2, the Conference Committee removed the only Medicaid improvement directed explicitly toward children 

• Language directing KDADS to contract with any mental health providers for the Mental Health and Intervention Team (MHIT) pilot program and preventing them from exclusively contracting with Community Mental Health Centers (CMHCs) for FY 2024 and 2025 

  • Update: On April 3, the Conference Committee agreed to reverse their previous decision to remove the MHIT pilot program all together 

• Keeping K-12 budget within the mega budget bill, including $5.0 million for Public-Private Partnership through the Dane G. Hansen Foundation

  • Update: On April 1, the Senate agreed to the House’s position to remove the K-12 budget from the mega budget bill  

• $15.0 million for child care sustainability and workforce grants 

  • Update: On April 2, the Senate agreed to the House’s position to remove the child care sustainability and workforce grants 

• $100,000 for the Local Farm to Food Initiative 

  • Update: On April 2, the Senate members of the Conference Committee reversed their position and agreed to delete the funding for the Local Farm to Food Initiative after the House already agreed to fund it 

• Suspending the Local Ad Valorem Tax Reduction Fund for FY 2027 

  • Update: On April 1, the Conference Committee agreed to suspend the LAVRTF for FY 2026, FY 2027, and FY 2028 

• $15.7 million from the SGF for a “Southwest Border Mission.” This would direct the Governor to deploy state resources to “securing” the southern border in Texas

  • Update: On April 2, the Conference Committee agreed to deviate Kansas resources to the “Southwestern Border Mission” 

• $14.1 million in funding for needs-based scholarships (reappropriated from FY 2024 to FY 2025) 

  • Update: On April 2, the Conference Committee agreed to update the language so this item will only impact FY 2025 and removed the needs-based scholarship funding 

Removed from the Senate’s version:

• K-12 enhancements, such as for special education

• $30.0 million for child care capacity accelerator grants

• Funding for Medicaid expansion

Included only in the House’s version:

• Increased Medicaid reimbursement rates

  • In FY 2025, $3.8 million ($1.5 million from the SGF) to increase rates for Applied Behavioral Analysis to $65 per hour

    • Update: On April 2, the Senate agreed to the House’s position to add the full funding to increase rates for Applied Behavioral Analysis 

  • In FY 2025, $2.5 million (with $1.0 million from the SGF) to increase rates for OBGYN services by 15%

    • Update: On April 2, the House agreed to remove funding to increase rates for OBGYN services 

• I/DD and PD waivers to reduce the waitlists

  • I/DD waiver: $17.3 million (with $6.7 million from the SGF) to add 250 individuals from the waitlist to the Intellectual and Developmental Disability waiver for FY 2025

    • Update: On April 2, the Senate agreed to add the slots and funding at the full amount requested by the House 

  • PD waiver: $5.8 million (with $2.2 million from the SGF) to add 250 individuals from the waitlist to the Physical Disability waiver for FY 2025

    • Update: On April 2, the Senate agreed to add the slots and the funding at the full amount requested by the House 

  • Also added language prohibiting KDADS from carrying a waitlist greater than 4,800 individuals for the I/DD waiver and 2,000 individuals for the PD waiver, and would require the agency to submit, as part of its budget submission for FY 2026, an estimate of the additional cost to keep each waitlist below 4,800 and 2,000 individuals, respectively, for FY 2026

    • Update: On April 2, this language was added  

• $75,000 from the SGF in FY 2024 to completely cover diagnostic and supplementary breast examinations for state employees

  • Update: On April 2, the House agreed to remove funding for diagnostic breast exams 

• $500,000 from the SGF for FY 2025 in one-time funding for a pilot program to recruit new home-based child care providers through an out-of-state vendor

Removed from the House’s version:

• The K-12 budget, which has been added to House Sub. for SB 387 and muddled by policy contingencies

• $15.0 million for child care sustainability and workforce grants

• $30.0 million for child care capacity accelerator grants

• Funding for Medicaid expansion

While there are many possibilities for improvements to the Medicaid program through reimbursement increases, Medicaid expansion seems out of the question now. The Governor’s enhancement funding to mitigate the Kansas child care crisis has largely been removed from both the House and Senate budgets, with the exception of $15.0 million in child care sustainability and workforce grants and $5.0 million for the Dane G. Hansen Public-Private Partnerships included in the Senate’s version.

Some lawmakers in the Senate seem reluctant to support the necessary investments that could help Kansans struggle with health and child care even though many senators were eager to include $15.7 million to be sent to Texas under the guise of “border security.”

And despite the (many) failed amendments to remove funding from the 2026 World Cup games and utilize those funds more widely throughout the state, the House and Senate have kept allocations that have been described as investments in the Kansas economy.

An Optimistic Approach

Conference committees are often overlooked but retain an important place in major policy decisions because of how quickly legislation can be changed by just a handful of lawmakers.

But there is much to be optimistic about going into conference committee negotiations on the state budget, such as improvements to the Medicaid system, a portion of the Governor’s recommended funding for child care, substantial investments in early debt retirement, encouraging local farmers to help those experiencing food insecurity in their community, and funding to support rural hospitals.

This includes many increases to Medicaid reimbursement rates and opening more slots so that many waiting on I/DD and PD waitlists can access benefits, both of which ensure better outcomes for children from working families and ease the difficulties of finding high-quality providers.

By the end of the week (April 5), we should see finalization of the budget as the conference committee irons out their differences. Once the conference committee agrees to a final budget, the budget bill will go before the floor of both chambers for debate and an up-or-down vote. No amendments can be made during that time.

Negotiations will move quickly and could happen in the middle of the night. We’ll keep you updated as the Legislature adjusts its funding plans.

Updates

(4/1) Monday  

The Budget Conference Committee met briefly Monday night and agreed to the House’s version of the KSDE budget being separated from the mega-budget bill. Now, the child care accelerator grant funding that was missing in both budgets and the Public-Private Partnership Dane G. Hansen funding will be up for debate in the Education Conference Committee, which is working on House Sub. for SB 387.  

The Budget Conference Committee also agreed to add $2.0 million from the State General Fund for early intervention services provided through the Infant and Toddler Program (Tiny-K) and suspended the Local Ad Valorem Tax transfer for FY 2026, FY 2027, and FY 2028.  

Though their substance is not significant, the Conference Committee also added two budget provisos of the many we expect to come this week. 

(4/2 - 4/3) Conference Concluded

The Budget Conference Committee worked most of its items on Tuesday. Among the many concessions of the day, the most disappointing are the removal of $15 million for child care sustainability and workforce grants, removal of Medicaid rate increases for pediatric primary care services, and moving of funding for routine dental care under Medicaid until its review at omnibus. Additionally, the House agreed to remove $75,000 for diagnostic breast exams for state employees.

And, after removing the provisions to help Kansas child care providers and parents, the Conference Committee agreed to give $500,000 to an unregulated, out-of-state vendor that incentivizes new child care providers to contract with them.

The Conference Committee agreed to several more provisos, including one that would divert $1.8 million from TANF to go to “toiletry programs” at public and private elementary schools. While it sounds inconsequential, it could be an improper use of TANF funds, which is directed through federal requirements.

While the Conference Committee did not deem increased access to primary care for children on Medicaid, routine dental care for those on Medicaid, or an investment to address the child care crisis worth funding, they did agree to send $15.7 million in taxpayer dollars to the State of Texas’ “border security mission.” They further agreed to add language that deems all unspent SGF funds eligible for reappropriation to the “Southwest Border Mission.”

The last item negotiated on Wednesday (with potential political implications) dealt with funding safety improvements for a highway project. The Senate initially wanted to fund a highway project in Western Kansas, but finally agreed to a market study.

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