Governor Kelly on Thursday announced her administration’s annual budget. The key focal points were tax relief, school funding, and healthcare expansion, all while maintaining fiscal responsibility.

In a release, Kelly highlighted the following bullet-points:

• Responsible tax relief: Governor Kelly’s “Axing Your Taxes” plan aims to save Kansans more than $500 million in tax cuts over the next three years. The plan includes a proposal to completely axe the state sales tax on groceries, diapers, and feminine hygiene products by April 1, 2023. The second proposal adds a four-day back-to-school sales tax holiday, and the third increases the exemption on Social Security income tax to provide tax relief for retirees.
• Fully fund schools: The Governor’s budget fully funds K-12 schools for the fifth consecutive year and puts Kansas on the path to fully fund special education. The budget also invests nearly $110 million in higher education, allowing schools to continue the recent trend of low-to-no tuition increases and expand financial aid.
• Future preparations: The Governor’s budget adds $500 million to the Rainy Day Fund, putting the balance at $1.5 billion. When Governor Kelly first came into office, the Rainy Day Fund was empty.
• Infrastructure investment: The Governor’s Budget keeps the ‘Bank of KDOT’ closed for the second year in a row and adds $220 million to the state’s “Infrastructure Leveraging Fund” so that local communities can have the state and local matching funds they need to access federal funding for transportation, broadband, and water infrastructure upgrades.
• Pay off debt: By paying off the remaining $53 million for reservoir debts at Milford and Perry Lakes, Governor Kelly’s budget will save taxpayers nearly $30 million in future interest payments. The budget also pays in cash for the state’s share of the proposed new veterans home in Topeka – saving close to $10 million in interest.
• Invest in Kansas workers: The Governor’s budget ramps up funding for the recently formed Office of Registered Apprenticeship and invests in a college internship program to encourage Kansans to stay in the state post-graduation.
• Repair Kansas’ foster care system: The Governor’s budget invests over $5 million to increase placement rates for foster homes and support foster kids transitioning to adulthood.
• Expand mental and physical healthcare: The Governor’s budget directs over $12 million to the current KanCare program to eliminate disparities in service for KanCare program recipients, enhances the ability to secure providers, and expands network capacity. The budget also shows why Kansas must expand Medicaid. Kansas will receive an estimated $370-$450 million in additional federal funding over the next two years when we expand Medicaid – which would cover the state’s share of expansion for eight years.
• Increase state employee pay by 5%: The Governor’s budget works to recruit and retain state workers by increasing pay and maintaining the Career Progression Plan for Kansas Highway Patrol officers that was provided in last year’s budget.
• Investment in housing and childcare: The Governor’s budget invests in early childhood education and care, giving local communities the ability to implement solutions tailored to their needs. It also provides $20 million to the Housing Revolving Loan Program to help expand housing stock across the state, especially in rural Kansas.
• Invest in IT infrastructure and cybersecurity: The Governor’s budget works to modernize and protect IT systems across state government and provide additional IT support and cybersecurity measures at state agencies.

View the Governor’s full budget recommendations here.