The FY 2027 Budget: What Does it Mean for Kansas Kids?
Megan Leopold | June 10, 2026
The state budget lawmakers passed this year will soon go into effect when the new fiscal year starts on July 1, 2026. Because state funding allocations cascade down to families in multiple ways, we analyzed where the money will go — and what opportunities lawmakers could have capitalized on to maximize the state’s investment in Kansas children.
The Big Picture
For the past several years, cutting taxes has been a key priority for the Kansas Legislature. While tax cuts can have the positive effect of putting savings into the pockets of individual Kansans, they also decrease the amount of funds the state has to spend because they serve as the primary source of state revenues. With less money coming in, legislators have less to spend on important public services, such as roads and bridges, safety net services, education, public safety, and Medicaid.
The Legislature is constitutionally required to maintain a balanced budget, meaning that they must find ways to cut spending with each tax break they pass. This mandate led to the Legislature entering the 2026 session with a goal to cut spending by $200 million. Reality, however, proved that a cut of that magnitude was simply too difficult given the many competing priorities of the state budget.
In the end, the final FY 2027 budget included $10.7 billion coming from the State General Fund (SGF), which was $30.2 million above what had been approved for the previous year. This exceeds anticipated revenue by $407.6 million, forcing the state to dip into its rainy day fund to make up the difference.
The Legislature’s inability to cut spending is a bit of a mixed bag for Kansas kids and families. On one hand, the FY 2027 budget includes several spending increases that positively impact kids. On the other hand, the Legislature’s inability to produce a long-term plan to budget within the state’s expected revenues places the programs that children and families depend on in a perilous position. At some point, the reserves will run out and, unless the Legislature has a plan to curb spending in a responsible way, across-the-board cuts may be needed. This will put the programs that serve vulnerable Kansans in serious jeopardy.
Progress for Kansas Children
The FY 2027 budget included a variety of additions that benefit Kansas children and families, including the following:
Also included in the bill were the contents of SB 513, a bill simplifying how child care subsidy payments are paid to providers. The language in the budget bill requires the Department for Children and Families (DCF) and the Office of Early Childhood to develop a payment system for the Kansas Child Care Subsidy Program to allow child care subsidy payments be sent directly to child care providers instead of provided to parents who then pay providers. Proponents testifying during the bill hearing said that direct-to-provider payments would result in increased participation in the program by increasing ease and reducing confusion for providers.
Missed Opportunities
Despite the progress in some areas, the Legislature missed several key opportunities to further support Kansas kids:
- $6.0 million SGF was cut from the Mental Health Intervention Team pilot program.
- $86.2 million was cut from the Kansas State Department of Education’s $92.2 million request for special education state aid.
- $390,606 was cut from DCF’s $1.3 million request for technology upgrades that would reduce the error rate in the SNAP program.
- Failed to fund the agency request for $3.2 million to manage the increased number of SNAP participants required to use the work and employment training program.
- Failed to fund the Kansas Department for Aging and Disability Services’ request for $4.0 million in Certified Community Behavioral Health Clinic planning grants.
New Office of Early Childhood
A highlight in the FY 2027 budget is the implementation of the new Office of Early Childhood (OEC). The OEC was formed when the 2025 Legislature passed HB 2045. The goal of the new agency was to improve transparency and coordination across the state’s early childhood system. The creation of the agency does not represent a shift in services or program make-up; it is purely a reorganization that moves current home visiting and child care programs into a new early childhood-focused agency. The new agency will also house the Kansas Children’s Cabinet and Trust Fund and associated programs.
The budget for the new agency was presented to the Legislature by the Governor’s transition team and was ultimately passed with very few adjustments. This coordination between the Governor and the Legislature allowed the agency to get started on the right foot and paved the way for a smooth transition – a definite win for Kansas kids! The agency is set to become fully operational on July 1, 2026.
Children's Initiatives Fund
We entered session with a close eye on the Children’s Initiatives Fund (CIF). This is an important funding stream that supports a variety of children’s programs, including the Early Childhood Block Grants, Part C services, and the child care subsidy program. The CIF is funded by the Kansas Endowment for Youth (KEY) Fund and, over the course of the past several sessions, we have watched the KEY Fund ending balance fall lower and lower to the point where it can no longer support the programs the CIF has traditionally funded.
Our advocacy around the CIF focused on two goals:
- Ensure all CIF programs remain fully funded
- Reduce pressure on the CIF by adding state funding to fund Part C and Kansas Preschool Program, the two largest programs that would not be moving to the OEC
We were pleased that all CIF programs were fully funded in the final budget. Unfortunately, however, the Legislature did not choose to allocate SGF to subsidize Part C services or the Kansas Preschool Program. Instead, lawmakers funded them with CIF and TANF, respectively.
By neglecting to add SGF for these programs, the Legislature simply kicked the can down the road. Neither CIF nor TANF are sustainable sources of funding, so the Legislature will need to address this in future years. We understand that tough choices must be made when budget cuts are needed; however, in neglecting to provide a long-term solution for these programs, the Legislature made the clear choice to not prioritize the needs of thousands of Kansas children and families.
Tough Times Ahead: Why Investments in Kids Make Sense for the Future
There are tough times ahead for the Kansas state budget. Legislators will be required to make difficult decisions as they find ways to create a sustainable and balanced spending plan. Prioritizing the many important items funded in the state budget is a difficult task. But with clear evidence showing that investing resources in children will benefit the state in multiple ways in the future, the Legislature must prioritize investments in children’s well-being and programs.
Unlike other state investments, early childhood programs generate savings in both the immediate and long-term future. A 2009 study of a high-quality preschool program for 3- to 5-year-olds estimated a return of between $7 and $12 for each $1 invested.
When children are thriving, communities thrive. Investing in quality child care has the short-term gain of growing an efficient workforce by allowing parents to work and provide for their families. But it also sets children up for success in school, cutting down on the need for costly special education and mental health services later on. And investments in children’s physical and mental health and early education all produce tangible outcomes that benefit Kansas communities.
As budget decisions are made in future years, legislators must continue to fund the basic services that set kids up for success.
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