The decision by Kansas Secretary of Social and Rehabilitation Services Don Jordan to increase funding to a group led by well-connected Democrats has caused a stir in the Kansas Legislature.

Republicans are planning hearings on the issue after reports revealed that Community Living Opportunities, a nonprofit Lenexa group that provides services to the developmentally disabled, received $713,000 in increased Medicaid payments because of a decision by Jordan.

CLO’s board includes Larry Gates, the Kansas Democratic Party chairman and friend of Gov. Kathleen Sebelius. The CLO board also includes Kansas University Athletic Director Lew Perkins, and up until the end of 2008, the board included Dan Biles, a former Gates law partner whom Sebelius appointed to the Kansas Supreme Court.

House Democratic Leader Paul Davis of Lawrence said he has spoken with SRS Secretary Jordan about the controversy. “He feels he was well within the law regarding the decision he made,” Davis said. Asked if this controversy would affect Sebelius’ confirmation for secretary of health and human services, Davis said, “I doubt it would have any impact on it, but we’ll just have to wait and see.”

But a group that represents other organizations providing services for the disabled has been highly critical of the funding decision because it says the whole system is underfunded.