Kansas’ Budget on Autopilot: Dedicated Funds Undermine Accountability and Tax Relief

Originally published to Kansas Policy Institute. 

While Kansans work hard to earn a living and keep up with rising prices, their state government is quietly running a massive chunk of the budget on autopilot. 

At the heart of this problem is the state’s overuse of dedicated funds—special-purpose accounts that earmark money for specific programs, regardless of performance or current needs. For FY 2026, Kansas will spend $25.6 billion, but more than $220 million of that will be funneled through just a handful of dedicated state funds that reduce legislative discretion and tie up dollars in ways that prevent better budgeting. Here’s a look at some of the largest earmarked funds:

Dedicated Funds to FY 2026 Appropriation (Millions)

State Water Plan Fund (SWPF): $46.6
Economic Development Initiatives Fund (EDIF): $41.4
Children’s Initiatives Fund (CIF): $54.3
Building Funds (State Institutions and Educational Buildings): $81.9

Total: $224.2 million
​(Source: Kansas FY 2026 Budget Bill – SB 125)

These dedicated funds are not part of the State General Fund, which lawmakers can actually prioritize and adjust. Nor are they federal funds with external mandates. They are Kansas-created carveouts that now manipulate budgeting decisions. 

The earmarks are often politically motivated and resistant to change. Their original intent may have made sense decades ago, but today, they function more as permanent spending entitlements than budget tools. Even when outcomes are poor or priorities shift, these funds remain walled off from scrutiny. Consider the EDIF which has not worked a as intended as it has distorted markets, not helped with permanent jobs, and has hurt taxpayers with higher taxes.

This kind of fiscal inertia allows the government to grow unchecked while taxpayers shoulder the burden. What’s more, as with the Ogallala Aquifer, an issue may still warrant attention but the idea of dedicated funding walled-off from other government priorities or a discussion of trade-offs ultimately undermines both fiscal discipline and attempts to address what could be a real issue. 

Why This Is a Problem

1. Loss of Flexibility – Lawmakers cannot reallocate these funds to more urgent or effective uses, even if higher-priority needs arise elsewhere in the budget.
2. Weakened Oversight – Dedicated funds escape the kind of rigorous review that performance-based budgeting demands. In many cases, legislators simply rubber-stamp funding because it’s “already spoken for.”
3. Crowded-Out Tax Relief – These funds consume budget capacity that could otherwise support property tax relief, income tax cuts, or paying down state debt—all of which would better serve Kansans long term.
4. Perpetuation of Waste – When dollars are guaranteed by statute, there’s no incentive for agencies to prove value or efficiency. This creates a culture of entitlement within the state government.
   
   

Redirecting Earmarked Dollars to Prosperity

Just by consolidating or repurposing the $224 million from these earmarked funds, Kansas could:

• Provide broad-based tax relief—enough to reduce income taxes.
• Shift toward a single, accountable fund—the State General Fund—where every program competes on merit.
• Reinforce performance-based budgeting by eliminating set-asides that dodge scrutiny.
  
  

And that’s just the start. This figure doesn’t even include hundreds of smaller special revenue funds that dot the budget and further constrain flexibility. If those were included, the total could approach $1 billion or more in spending that lawmakers can’t easily touch, despite being responsible for it.

Time to Restore Legislative Control

A better budgeting process starts by restoring discretion to the legislature. If a program is truly a priority, it should compete for funding from the General Fund like everything else. No more sacred cows. No more autopilot spending.

Sunsetting, consolidating, or outright repealing dedicated funds would give lawmakers the tools they need to govern responsibly and give taxpayers the relief they deserve.

Kansas doesn’t need more gimmicks. Freedom, transparency, and accountability are necessary for how every dollar is spent. The state’s budget should serve people, not bureaucracy. Let’s end the earmark era and get Kansas back on track.