Republicans continue to enjoy a supermajority in the House and Senate which provides enough votes to potentially override any veto made by Democrat Governor Laura Kelly – the legislature successfully exercised this override power on some key issues last session. In her lame duck year as governor, Kelly may feel less inclined to reach across the aisle on the many hot-button issues. We’ ll soon see how budget woes and election year politics influence the 2026 session. •
INDUSTRY INSIGHT
Dan Hawkins( R-Wichita) for Commissioner of Insurance. They could use their leadership positions to stake out their claim for higher office by pushing certain“ red meat” legislation. Johnson County Democrat Senators Ethan Corson and Cindy Holscher are also vying for Governor.
Budget cuts will be a main focus in the 2026 session. While state revenues continue to outpace projections and there is a healthy ending balance, there is an anticipated $ 200 million annual shortfall over the next three years. Legislators began budget work during the interim session looking for ways to make significant cuts. Requests from those looking for a boost in state support will fall on deaf ears.
The legislature was able to pass legislation that will cut both individual and corporate income tax rates based upon future revenue receipts. But far and away the issue that hounds them is property taxes. The legislature levies very little property tax as most is controlled by local taxing entities. But, the legislature will again look at a constitutional amendment that generally would place a cap on property taxes.
OTHER POLICY DISCUSSIONS
Beyond the politics of budget cuts and property taxes, we anticipate seeing several other policy debates which will grab the headlines this session. Energy rates, tax credit reform, legal reform and housing and economic development top the list of issues of interest among many in the legislature. Legislators will also be looking at ways to impact policy on the many federal issues impacting states, like public assistance for the needy and rural health care.
Additionally, Republican legislative leaders continue to signal that they plan their ongoing pursuit of policies creating more transparency in K-12 public schools and giving parents more choices in where they send their kids to school. Finally, we anticipate legislation to address a court decision related to gender markers on state-issued IDs.
INDUSTRY IMPACTS
On matters directly impacting agents and brokers and the insurance industry, we expect this session to be relatively quiet. However, KAIA joins the business community in pushing for legal reform measures. We expect there to be renewed efforts to restrict frivolous lawsuits in light of the Kansas Supreme Court decision tossing out caps on non-economic damages. The KAIA also is working to find administrative relief on the cost of requesting motor vehicle records. If these efforts don’ t bear fruit, there may be a push to tamp down these rising fees through legislation.
Among other items, the Kansas Department of Insurance will renew its efforts to pass legislation creating insurance savings accounts. Legislation introduced last session, which KAIA supported, would allow tax-sheltered accounts to help pay for premiums and deductibles. There are also on-going discussions with KDOI about implementing the NAIC model data security bill.
SUPERMAJORITY STILL IN PLACE
Republicans continue to enjoy a supermajority in the House and Senate which provides enough votes to potentially override any veto made by Democrat Governor Laura Kelly – the legislature successfully exercised this override power on some key issues last session. In her lame duck year as governor, Kelly may feel less inclined to reach across the aisle on the many hot-button issues. We’ ll soon see how budget woes and election year politics influence the 2026 session. •
Dan Murray is our KAIA Lobbyist and has over 20 years of experience in lobbying state legislative issues in Kansas. During this span, Murray has engaged in local and state lobbying, legislative and administrative branch monitoring; issue management, and professional association management. He has worked on behalf of Fortune 500 companies, trade and professional associations, health care groups, and not-for-profit organizations. He is a principal of Devine & Donley, Murray.
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