(March 26, 2025) – Late last night, the House and Senate Budget Conference Committee members agreed on the budget bill. The provisions of the state budget, as agreed to by the House and Senate conferees, included:

• $5 million for behavioral health patient observation and transportation reimbursement
• $10 million add-on for adult behavioral health beds
• Rural Opportunity Zones was funded at $1 million State General Funds with language allowing funds only for those counties of 15,000 population or less
• Nurse Accelerator Grant Program $1 million
• Nurse Educator Grant $1 million
• $1 million for health care upskilling and training grants
• Added $1.2 million to direct the agency to increase Medicaid rates for substance use treatment for adolescents from $206 to $375 per day for the fiscal year 2026
• Added language that would no longer allow continuous eligibility in Medicaid for a parent and caregiver but would require monthly eligibility review
• Added language to create an interim study to examine KanCare 3.0, including, but not limited to, the requirements, action and rules of the agencies administering the program, the execution of the program, and any actuarial and financial concerns and practices
• Added funds for a childcare accelerator grant for a 24-hour facility in Dodge City
• Added language to adopt spring human services caseload estimates upon certification of the State Finance Council for FY 2025
• Agency across-the-board cuts of 1.5 percent in FY 2026, and 1.5 percent in FY 2027 – exceptions include judicial, legislative agencies, KBI, Corrections, Sentencing Commission, veterans homes, agriculture, KDOT, universities and state hospitals

The committee did not accept the Senate position on the Medicaid rate increases for hospital outpatient rates. The conference committee report, which will now be in Senate Bill 125, will run across the House and Senate chambers.