11:00 p.m. Sunday
Last week was shortened by the Martin Luther King Jr. holiday on Monday, but it was an official legislative day because the 2026 calendar counts both weekends and holidays. Friday marked the 12th day of the 90-day session. Budget subcommittees held hearings on the Governor’s budget recommendations. While several committees advanced major policy proposals, others were forced to wait as bill drafts emerged slowly from the Revisor’s Office.
Property Tax
A proposed constitutional amendment SCR 1616 capping property tax assessments advanced out of the Senate Tax Committee this week, marking an early legislative attempt to address rising property taxes ahead of the 2026 elections. The amendment would limit annual increases in a property’s taxable assessed value to 3%, with exceptions for new construction, improvements, or assessment corrections. The cap would remain with the property even after a sale. For tax year 2027, increases would be measured against 2022 values.
Supporters of the measure argue that this prevents taxation on unrealized gains and contend that only a constitutional amendment can provide lasting relief. Opponents believe the proposal could shift the tax burden rather than reduce it. The amendment requires approval by two-thirds of the Legislature and a statewide vote.
A hearing on SB 319 was also held this week in the Senate Tax Committee, which proposes a property tax rebate program for certain residential, commercial, and industrial properties. In the bill, if a qualifying property sells for less than 97% of its county-appraised value, the owner could apply for a rebate equal to the difference between the taxes paid and the amount that would have been owed based on the sale price, for the year of sale and up to four prior years.
STAR Bonds and the Kansas City Chiefs Proposal
Kansas lawmakers met this week with representatives of the Kansas City Chiefs to discuss a proposed $3 billion domed stadium in Kansas City, Kansas. Chiefs officials emphasized that the project would not raise taxes or put the state’s credit at risk, noting that up to $1.8 billion in STAR bonds would be backed solely by new, incremental sales tax revenue generated by the development. They also indicated the bonds could be paid off earlier than the authorized 30-year term. The Legislature is expected to consider creating a sports authority to own the stadium, a structure commonly used in professional sports to address financing and tax considerations. To watch the Committee Informational Hearing on the STAR Bonds project, click here.
High Performance Incentive Program (HPIP)
The Kansas Department of Revenue briefed lawmakers on HPIP, a long-standing incentive program designed to encourage business investment, above-average wages, and workforce training. HPIP offers a 10% investment tax credit with a 16-year carryforward, sales tax exemptions, and a use-or-lose training credit. Officials described growing administrative complexity due to pass-through entities, ownership changes, and long carryforward periods.
A recent internal review found approximately $1.3 billion in HPIP credits available for future use, about $402 million removed from the books, and roughly $450 million expired or tied to closed businesses, with $116 million transferred since partial transferability was authorized in 2021.
Occupational Licensing
On Thursday, the Senate Commerce Committee held an informational hearing on the Conference Committee Report on SB 30. This CCR would require legislative approval for new occupational licensing requirements or significant changes adopted by state agencies. The bill, currently in conference committee, carries a $250,000 fiscal note for the Secretary of State. Supporters argue that excessive licensure limits workforce participation and that the Legislature is best positioned to balance public safety and economic opportunity. Opponents, particularly from the accounting profession, warned that rigorous licensure is necessary to protect the public and raised concerns about exemptions and regulatory clarity.
Commerce and Housing Updates
The Kansas Department of Commerce reported that economic development programs supported approximately 12,000 new or retained jobs in 2025 and generated $9.5 billion in committed capital investment. While lawmakers acknowledged the scale of these efforts, many expressed concerns about the lack of consistent return-on-investment data and net job figures, calling for improved transparency and accountability.
Housing advocates emphasized that expanding housing supply is critical to lowering property taxes by growing the tax base. Testimony highlighted the Moderate Income Housing Program, Kansas Housing Investor Tax Credits, and Reinvestment Housing Incentive Districts as effective tools for workforce housing. Local officials and developers shared examples from Dodge City, Salina, and Lindsborg, where incentives enabled moderately priced housing, supported business recruitment, and reversed population decline.
SNAP Program Oversight
The Kansas Department for Children and Families faced scrutiny following confirmation that the state’s SNAP payment error rate exceeded federal thresholds for three consecutive years. Error rates reached 9.1% in 2022, increased to 12.1% in 2023, and declined slightly to 10% in 2024. Officials attributed the issues to staff turnover and complex eligibility rules. Continued errors could affect federal funding and program integrity. Lawmakers will continue their work with DCF next week as several more hearings are scheduled.
Fiscal Integrity Auditor
House Appropriations held a hearing on HB 2427, which proposed creating a new, unclassified fiscal integrity auditor position to be appointed by the Legislative Coordinating Council (LCC) and reporting directly to the Speaker of the House and the President of the Senate. The auditor would have broad, confidential access to state accounting, budgeting, and expenditure systems to identify waste, fraud, mismanagement, and abuse.
Proponents argued that the position is needed to ensure timely access to expenditure data, to ensure spending aligns with legislative intent, and to provide ongoing oversight, annual reports to legislative leadership and budget committees, and, ultimately, to save taxpayer money. Opponents expressed skepticism about creating new positions and the costs. Some lawmakers raised questions about the scope of data access and confidentiality, potential duplication of existing agency functions, the cost, accountability and removal authority, and data privacy protections.
Student Mental Health Services
A hearing was held on HB 2420, which would require written parental consent before schools provide mental health services to students. Proponents argued that the bill strengthens parental rights and transparency. Opponents warned the bill’s broad language could unintentionally affect classroom services, discourage students from seeking help and create liability concerns. Many stakeholders urged clearer definitions and a narrower scope before the bill advances.
Natural Gas Infrastructure Availability Act
HB 2435 would allow natural gas utilities to defer depreciation and carrying costs for new infrastructure investments and recover those costs through interim rate adjustments outside of full rate cases, capped at 20% and overseen by the Kansas Corporation Commission (KCC). Proponents believe the bill reduces regulatory lag, supports economic development, and promotes affordability through gradual rate adjustments. Opponents cautioned it could provide overly favorable treatment to gas utilities but acknowledged the need for infrastructure investment and urged narrower changes to avoid disrupting the regulatory framework in place since 2006.
Looking Ahead to This Week
Budget subcommittee hearings will continue this week, including a review of the Department of Commerce budget.
HB 2430 creates Insurance Savings Accounts to help Kansans cover premiums and out-of-pocket costs while providing tax advantages for those who invest in their coverage.
The House Commerce Committee will hear HB 2464 on Tuesday. This bill will extend the Aviation Tax Credit for 10 years.
The House Judiciary Committee will hear HB 2351 on Thursday, which will disallow all mandatory arbitration in insurance contracts.
The House Health Committee will hear HB 2366 on Tuesday, which expands the scope of practice for naturopathic doctors.
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