The Kansas Sentencing Commission asked the Senate committee for a $2.4 million increase in state general fund (SGF) support to raise provider reimbursement rates and expand treatment options under the Senate Bill 123 (SB 123) substance-abuse program.

The request, presented by Scott Schultz, executive director of the Sentencing Commission, and summarized by Nicole Rincher, fiscal analyst with Legislative Research (KLRD), would primarily cover rising provider costs and introduce medication-assisted treatment (MAT) to the program.

Schultz told the committee that SB 123 provides community-based treatment for people convicted of possession, small sales and some non‑drug offenses who are court-ordered to treatment while supervised in the community. “These individuals ... are 75 percent less likely to get a new conviction,” Schultz said, citing a University of Cincinnati study of the program.

Schultz and KLRD staff said the agency carried over about $3.7 million in unspent SGF for FY2025 because funds allocated for SB 123 were not fully used, and that the House restored $1.1 million of a $2.4 million deletion. KLRD noted the commission had lapsed $1.2 million before the reappropriation decisions. Nicole Rincher highlighted that the agency requested to increase its official hospitality limit but was not asking for new funds for that item.

Why it matters: The commission said improving SB 123 reimbursement rates and adding MAT would reduce future convictions and probation revocations, lowering prison usage and future capital needs. Schultz described prison-population projections showing a return to pre‑COVID growth and a projected 28.4 percent increase over 10 years, which he said makes diversion and treatment programs more important to preserve prison beds for serious offenders.

What the commission requested and why
- Reimbursement increase: The commission told lawmakers that many SB 123 cost caps have not changed since the program’s start in 2003 and now lag behind Medicaid and block‑grant rates, discouraging providers from accepting SB 123 clients. The $2.4 million requested would update rates and account for inflation and provider cost caps.
- Medication‑assisted treatment: Schultz said adding MAT for opioids and alcohol “results in ... individuals half as likely to relapse” and produces favorable benefit‑cost results; he cited a $2–$10 return on each dollar when MAT is layered onto treatment.
- Other items: The commission flagged a modest cost exposure tied to legislative pay for commission legislative members (four legislators and two public members) and sought a small amount to support cyber‑readiness work ($31,000 previously identified) that could be impaired by a 1.5% cut the House applied systemwide.

Questions from senators
- Senator Mike Owens pressed to confirm where the House and LBC (Legislative Budget Committee) actions left the commission’s deficiency; Scott Schultz acknowledged the House restored $1.1 million and that restoring the remaining $1.3 million would allow the agency to cover the requested reimbursement increases and MAT.
- Senator Patty asked whether the House followed the governor’s recommendation on the partial rate addition; Rincher said the House adopted the agency recommendation on the hospitality limitation and the House followed the governor for the partial rate add.

Decision and next steps
No final appropriation decision was made on the floor during this session; committee discussion moved on to the Department of Corrections. Senator Owens stated an intent to move to restore some portion of the deficiency when the committee works the budget.

Provenance
First mention in transcript: “We’re gonna start out with the Kansas Sentencing, commission. We’ll have a staff overview by Nicole Rincher…” (transcript block start ~s=13.92). Last related mention: committee moves to next agency after comments on funding and cyber readiness (~s=953.02).