Governor Kelly Unveils Fiscal Year 2027 Budget

Topeka–Governor Laura Kelly announced on Wednesday her annual budget, which provides a path back to structural balance and continues to fully fund Kansas public schools. The budget also includes investments in Kansas’ water needs, early childhood, health care, public safety, and more. Governor Kelly was committed to reflecting Kansans’ priorities that she heard on ‘The People’s Budget’ statewide tour last fall.

“Last fall, I spoke directly with Kansans, who were clear about the priorities they wanted reflected in my budget: fully funded public schools, investments in health care, and action to address our water challenges,” Governor Laura Kelly said. “My budget delivers on Kansans wishes while remaining balanced and ensuring that we protect Kansas’ fiscal foundation. This budget aligns with Kansans’ needs and is an investment in what a budget should focus on: the people of Kansas.”

The budget:

Fully funds Kansas’ public schools and increases funding for special education: Governor Kelly’s budget fully funds K-12 public schools for the eighth consecutive year and includes $50.6 million in additional funding for Special Education State Aid. If enacted by the Legislature, Governor Kelly would be the first governor in a generation to fully fund public education every year of their term.
Provides funding for free school meals for students currently on reduced-price meals: For the second year in a row, Governor Kelly’s proposal includes $2.5 million to eliminate co-pays for the 34,400 Kansas students who are already on reduced-price meals.
Prioritizes addressing Kansas’ water challenges: The governor’s budget includes resources to aid in long-term planning for water quality and quantity. Governor Kelly is again recommending fully funding the State Water Plan Fund, and the budget includes $2.3 million to improve water quality in the Equus Beds Aquifer, an additional $1.1 million for Water Planning and Project Development, and more than $870,000 in annual funding for aid to conservation districts.
Continues to invest in early childhood education and care: The Governor’s budget fully funds the Kansas Office of Early Childhood, providing the agency with the tools and resources needed to efficiently function in its first year. This includes operational funding for the agency to include salaries and wages, physical office infrastructure, digital infrastructure, and other implementation costs.
Expands funding for mental health services: Governor Kelly is delivering on her commitment to investing in mental and behavioral health services. The budget includes $30.9 million to fund the first year of operations for the South Central Regional Mental Health Hospital, addressing a critical need for more mental health beds. The Governor’s budget also includes $5 million to support six hospitals providing adult inpatient behavioral health services.
Invests in health care: To safeguard children’s access to critical health services, Governor Kelly’s budget includes $15 million to account for increased Children’s Health Insurance Caseloads. The Governor’s budget also aims to bolster the health care workforce by including funding for contract nursing at Larned State Hospital and Osawatomie State Hospital.
Fully funds the Kansas Blueprint for Literacy: The governor’s budget includes $8.6 million to fully fund the Kansas Blueprint for Literacy and equip current and prospective teachers with training and resources in modern literacy curriculum to ensure Kansas students have the support and tools necessary to improve their reading skills.
Supports Kansans with disabilities: Governor Kelly is committed to supporting Kansans with disabilities. The budget includes $12.6 million to fund the first year of the new Community Support Waiver and $10.1 million for the Technical Assistance Waiver.
Reflects Kansans’ priorities that Governor Kelly heard on ‘The People’s Budget’ tour: Several themes emerged during Governor Kelly’s conversations with Kansans on ‘The People’s Budget’ tour. In addition to the aforementioned investments, the Governor’s budget restores full funding for the State Library’s State Grants-in-Aid program, which provides public libraries across the state with resources. Governor Kelly’s budget also restores full funding for the Kansas Arts Commission, which is dedicated to promoting, supporting, and expanding Kansas’ creative industries and enriching communities through arts and culture. Funding for both programs was previously cut by the 2025 Legislature.
Bolsters Public Safety: The Governor’s budget recognizes the importance of public safety. It includes $26.8 million to relocate Kansas Highway Patrol troops to the new Dispatch Center in Salina, and $350,000 for Kansas Department of Wildlife and Parks to restructure law enforcement operations to strengthen public safety statewide. Governor Kelly’s budget also allocates $816,000 to renovate an existing building at the Topeka Correctional Facility for use as a nursery so incarcerated mothers can stay in the special unit with their babies if they have a projected release date within 18 months of the child’s birth and meet additional safety standards.
Increases State Employee Pay: Governor Kelly values the work of state employees and recognizes that to attract talented public servants, the State must remain competitive with the private sector. The Governor’s budget includes a 2.5% pay increase for qualifying state employees.