Kansas governor scolds lawmakers for picking ‘winners and losers’ in unvetted budget items

Gov. Laura Kelly appears at a May 14, 2024, event at the Topeka and Shawnee County Public Library. (Sherman Smith/Kansas Reflector)

TOPEKA — When Gov. Laura Kelly signed a state spending bill last week, she scolded legislators for attempting to insert budget language designed to pick “winners and losers” without being subjected to the normal scrutiny of a public hearing.

She used her line-item veto power to strike language directing state mental health funding to specific entities in de facto no-bid contracts, as well as scholarship money to private, for-profit tech schools. She also vetoed language dictating software purchases for the executive branch and granting bonding authority to a dairy facility.

None of the items had surfaced during public hearings during the legislative session but in the final days were tucked into House Bill 2551, which grew the state’s spending plans for the upcoming fiscal year to $10.6 billion.

“This practice of allocating funding to specified organizations or businesses is unfair, and I encourage the Legislature to allow all eligible entities the opportunity to access state funds through competitive processes,” Kelly said.

However, the governor also praised the Legislature for making investments to support the workforce pipeline, address water needs, and boost access to behavioral health services.

“This funding supports my administration’s work to address critical infrastructure needs, grow our economy, and make Kansas the best place in the country to live, work, and raise a family,” Kelly said.

She was silent on her decision to keep in the budget a $9 million earmark to support Emporia State University as it recovers from the self-inflicted turmoil of firing tenured faculty members, altering program offerings without supporting evidence, and cratering student enrollment. Kelly vetoed the earmark in a previous budget bill, but lawmakers reinserted the funding. She allowed it to stand without explanation.

Grace Hoge, a spokeswoman for Kelly, didn’t respond to repeated inquires about the governor’s flip-flop on the ESU earmark.

Lawmakers adopted the final round of budget provisions in the final hours of the session on April 30, with a 22-12 vote in the Senate and 71-49 vote in the House.

The legislation includes $26.5 million for construction of a new psychiatric hospital in Wichita. The facility will help alleviate overcrowded jails, where inmates often are stuck waiting for pretrial mental health evaluations.

Another $4.5 million will be invested in a pilot program to expand K-12 student access to behavioral health services.

Lawmakers added $10 million for the state water plan, in addition to $35 million previously allocated. The funding is used to address water quality and quantity needs.

They also added a $8.3 million investment in need-based financial aid and scholarships for higher education, including $2 million for nursing students, $1.7 million for first-generation students and children of teachers and paraprofessionals, and $1 million for National Guard members pursuing a master’s degree.

Kelly vetoed language that would have expanded access to a state-funded scholarship program to Wichita Tech Institute, Peaslee Tech in Lawrence and Heartland Welding Academy in Andover. She said those changes should be considered through the normal legislative process, “rather than through budget provisos that choose winners and losers.”

“The Legislature chose to provide these funds to three intentionally chosen institutions,” Kelly said. “If the Legislature desires to turn the Kansas Promise Scholarship into a form of support for private, for-profit institutions, it should attempt to enact this policy through the normal process and allow input from stakeholders.”

The governor vetoed earmarks directing $5 million in mental health funding to go to Ascension Via Christi St. Joseph in Wichita and NMC Health in Newton. The funding will now be available to entities across the state.

She also vetoed $2.5 million for Valley Hope of Atchison, a drug and alcohol rehabilitation center, $232,000 for Kansas City Full Circle and $250,000 for EmberHope Youthville in Newton.

Another veto removed language that would have provided bonding authority and debt service payments for the creation of a new dairy facility at Kansas State University.

“While this may be a worthwhile project, the university did not request it, nor was it considered through the normal budgeting process,” Kelly said.

Other vetoes included the removal of  language ordering a study on the affordability of providing breast cancer screenings to state employees through their health insurance plan. Kelly said the State Employees Health Care Commission has the authority to add the coverage and shouldn’t wait.

“The state employees potentially impacted by this provision need this service as soon as possible,” she said.

She also vetoed $350,000 for a new office of inspector general to serve under the state attorney general.

“This funding mechanism should have been vetted through the regular legislative process, especially since it expands the size of government,” Kelly said.

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