Kansas governor proposes $600M rainy day fund, spending $1.8B in surplus funds

Rainy day funds
Photo credit Getty

Topeka, KS - Kansas Gov. Laura Kelly has proposed that Kansas put $600 million of its surplus revenue into a rainy day fund and spend nearly $1.8 billion of the excess revenue on a long list of projects.

Parts of Kelly’s proposed spending blueprint for state government through June 2023 are likely to meet strong resistance from the Legislature.

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It assumes that Kansas will expand its Medicaid coverage, which lawmakers have repeatedly blocked, and give a one-time $250 income tax rebate to residents who filed state income tax returns last year.

Before Kelly’s budget director outlined her proposals to a joint meeting of the House and Senate budget committees Wednesday, lawmakers suggested that the state’s good economic fortunes could sour quickly.