photo by: Journal-World File Photos

University of Kansas Chancellor Douglas Girod, left, and Cheryl Harrison-Lee, chair of the Kansas Board of Regents, right, are pictured in file photos.

One year has made a big difference in how University of Kansas leaders feel about the governor’s attitude toward higher education funding.

At this time last year, KU Chancellor Douglas Girod was lamenting Gov. Laura Kelly’s recommended budget for higher education, calling the proposed 5.3% cut a disappointment and a concern.

But on Thursday, Girod joined a growing chorus of higher education leaders who are supporting Kelly’s latest recommended budget, which would add nearly $100 million of general state funding to the state’s higher education system in the 2023 fiscal year, which begins in July.

“We appreciate that Governor Kelly has proposed a number of items that would benefit higher education and the Kansas students and families we serve,” Girod said in a statement. “In particular, we support her proposal to restore higher education base funding to pre-pandemic levels so that KU can freeze tuition for a fourth straight year. We are also excited by Governor Kelly’s proposed university economic development challenge grant, which would enhance KU’s ability to drive economic growth in the state. We look forward to working with Governor Kelly and Kansas legislators on these proposals and other matters of importance to the people of Kansas.”

Girod’s comments follow similar ones made by Kansas Board of Regents Chair Cheryl Harrison-Lee, who called Kelly’s Wednesday budget release a “great day” for higher education in the state. On Thursday, Wichita State President Rick Muma also added his support, saying the governor’s proposal was a “remarkable opportunity” for the state and that the funding would “fuel the talent pipeline to help Kansas businesses grow, and contribute to the overall prosperity of our state.”

In other words, higher education leaders are pretty happy about what the last few days have brought. They might have reason to be even happier in the coming weeks.

That’s because Kansas still could be in line to get an additional $53 million in higher education funding that would be required to be spent before July 1.

Why? Federal pursestrings.

When Kansas accepted more than $1 billion in federal aid related to the pandemic, it agreed to maintain certain levels of state funding for certain types of operations. Higher education is one of those areas that must meet “maintenance of effort” funding requirements. If it does not, the state could be forced to repay large sums of the federal dollars.

Or, alternatively, the state could try to talk federal regulators into cutting it a break.

States are allowed to ask for waivers from the federal maintenance of effort requirement. Kansas did file a waiver before the Dec. 31 deadline, Elaine Frisbie, vice president of finance and administration for the Regents, said. The state is still waiting to hear whether its waiver has been accepted or rejected, Frisbie said earlier this week.

At stake is about $53 million. That’s how much Frisbie and other state officials have calculated that the fiscal year 2022 budget — which began in July — was short of meeting the federal requirements.

The federal pursestrings are structured in such a way that it is not just higher education that has something to lose in this process. In a memo to the Regents, Frisbie said that if the state’s waiver request were denied and the Legislature did not immediately appropriate the additional $53 million, the state would be “jeopardizing receipt” of the $1.2 billion in federal funds Kansas receives for K-12 education.

U.S. Secretary of Education Miguel Cardona will make the ruling on whether Kansas and other states qualify for a waiver. Frisbie said Kansas is one of about a dozen states that have requested a waiver, and they are all waiting for a ruling. State budget-makers will be watching for an outcome because if the waiver is denied, state lawmakers likely will have to stop what they are doing and appropriate the $53 million. Frisbie said it would be difficult for the Legislature to avoid doing that if the waiver is denied.

“If the secretary does not approve the waiver request, the Legislature has not met the (maintenance of effort) requirement,” Frisbie said.

Whether lawmakers would be tempted to simply cut $53 million from Kelly’s recommended budget in order to meet the 2022 obligation is unknown. The maintenance of effort requirement pertains to the fiscal year 2023 budget, which begins in July, as well. Frisbie said the governor’s recommended budget almost certainly meets the MOE requirement. However, it wasn’t clear how much legislators could cut from the 2023 budget and still meet the federal requirements.

Regardless, if the state does have to appropriate $53 million to meet the federal regulations, it may result in some fast spending. Under the federal rules, that $53 million would have to be spent by June 30 of this year. That might give universities across the state a few million dollars of unexpected money to spend as the school year is winding to a close. Under federal rules, the money cannot be spent on building projects or other capital improvements, nor on research and development projects.

Of course, KU and other universities can’t yet count on either the $53 million or the additional $100 million in Kelly’s proposed budget, as it is uncertain whether the Democratic governor’s proposed budget will win support in the Republican-controlled Legislature. Some Republicans have concerns about the amount of spending overall in Kelly’s proposed budget, while other Republicans have suggested the spending on higher education won’t be as controversial as other parts of the governor’s budget.

Rep. Susan Humphries, R-Wichita and chair of the House Higher Education Budget Committee, didn’t return a call seeking comment Thursday on the governor’s proposal for higher education.