Democratic Governor Laura Kelly has proposed that Kansas put $600 million of its surplus revenue in a rainy day fund, and spend nearly $1.8 billion of the excess revenue on a long list of projects.
Repeated monthly surpluses in tax collections have left the state on track to have $3.9 billion in treasury reserves at the end of June 2023.
Kelly’s proposed expenditures would shrink that figure to $671 million.
Kelly’s proposed spending blueprint assumes that Kansas will expand its Medicaid, which lawmakers have repeatedly blocked, and give a one-time $250 income tax rebate to Kansas residents who filed state income tax returns last year.
Republicans have said they want to pursue recurring income tax cuts, and use as much as $1 billion of the surplus revenue to shore up the state’s pension fund for teachers and government workers.