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Kansas Office of Recovery





June 9, 2023






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This week’s edition of the Office of Recovery Newsletter features an update on the recently enacted federal debt ceiling deal and its impact on COVID-19 relief funds. State and Local Fiscal Recovery Funds *are not* in jeopardy of being affected. Please see below for additional details. 

Information on the Kansas Education Enrichment Program (KEEP), which recently expanded eligibility, is also included. The program provides qualifying parents and guardians with a one-time $1,000 award per child to pay for educational goods and services, such as tutoring and school supplies. Information on the program, eligibility changes, and how to apply is below. 

Also featured is the announcement of awards for the Health Facilities and Program Expansion grant program funded through the SPARK process. $65.4 million has been awarded through this program to 7 projects to close service gaps in the continuum of health and behavioral health care by addressing statewide shortages of services and the state’s increasing demand for a well-trained health care workforce.  

For the latest information on Treasury updates and information about resources available to Kansans, see the “Updates to Services and Support” section of this newsletter. For the most up-to-date information, please visit the Office of Recovery website at: COVID.ks.gov [ [link removed] ]  

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Treasury

 

*Update on Federal Debt Ceiling Deal* 

Recently, President Biden signed H.R. 3746, the Fiscal Responsibility Act of 2023 that addresses the federal debt limit. As local governments across the State of Kansas have received State and Local Fiscal Recovery Funds (SLFRF), the Office of Recovery wanted to clarify any potential misconceptions regarding the debt limit agreement in relation to potential COVID-19 relief fund claw backs or allocation date changes.  

Regarding potential SLFRF clawbacks, State and Local Fiscal Recovery Funds *are not* in jeopardy of being affected by the debt ceiling agreement. The National Association of Counties (NACO) has noted key highlights of the agreement to be aware of:  


* The agreement will not rescind SLFRF dollars, to include direct payments to counties or to the Local Assistance and Tribal Consistency Fund (LATCF).  
* The agreement will cap non-defense discretionary spending for Fiscal Year 2024. 
* The agreement includes new administrative requirements and eligibility restrictions while also expanding exemptions for homeless individuals, veterans and youth aging out of foster care to federal food assistance and cash benefit programs. 
* The agreement allows for clawbacks for unobligated federal funding appropriated for the COVID 19 Pandemic. 
* The agreement cuts IRS budget increases enacted by the Inflation Reduction Act. 
* The agreement reinstates federal student loan payments on defaulted loans by August 29, 2023. 

*(the full article by the National Association of Counties can be found here [ [link removed] ]). 

SLFRF funds that have already been deposited in local government accounts (either from the US Treasury directly or by the State of Kansas acting as a pass-through entity for the Treasury), are considered *obligated *by the federal government and therefore not subject to any potential clawbacks. Furthermore, it should also be noted Section 9901 (which established the $362 billion in federal aid to state, local and tribal governments) from ARPA is not on the list of accounts subject to clawbacks. This means that there will be no cuts made to the ARPA State and Local Fiscal Recovery Fund or ARPA Capital Projects Fund money. The protections provided by Section 9901 will remain intact, allowing Governors to continue utilizing these funds for their intended purposes.  

As SLFRF funds received by local governments are not subject to clawback, the SLFRF funding obligation date for local governments (December 31, 2024) and the SLFRF funding expenditure date (December 31, 2026) remain unchanged.  

For additional information on the debt ceiling agreement, linked is the House Budget Committee breakdown for the estimated recission amount for agency [ [link removed] ] and FAQ document [ [link removed] ]; as well as the House Financial Services Committee one pager [ [link removed] ] and section-by-section [ [link removed] ]. 

If you have additional questions or concerns relating to the federal debt limit effects on SLFRF funding, please feel free to reach out to the Office of Recovery directly using the form in the CONTACT US [ [link removed] ]  section of the Office of Recovery website.  

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Program Spotlight
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*More Students Eligible to Receive $1,000 Through KEEP* 

As Kansas students continue to recover from the COVID-19 pandemic, the qualifications for families to apply for Kansas Education Enrichment Program (KEEP) have been expanded. Students whose household income is less than *300%* of the Federal Poverty Guidelines are now eligible for KEEP funds.   

This program provides qualifying parents and guardians with a one-time $1,000 award per child to pay for educational goods and services such as tutoring and school supplies.  

KEEP funds can be used on enrichment and educational activities including:  


* ​The purchase of curriculum and educational materials, including school supplies and certain allowed technological devices   
* Camps with academic-related curriculum such as music, arts, science, technology, agriculture, mathematics, and engineering   
* Tutoring   
* Language classes 
* Musical instruments and lessons   

Notably, the funds are not eligible for private school tuition.  

KEEP is offered through a contract between Merit International, Inc [ [link removed] ]. and the Kansas Office of Recovery, with the goal of providing educational activities and learning opportunities to students across Kansas to promote educational learning recovery in response to the impacts of the COVID-19 pandemic. The application can be found here [ [link removed] ].  

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hospital beds
 

*Health Facilities and Program Expansion Awards Announced* 

The Kansas Department for Aging and Disability Services (KDADS) has awarded $65.4 million made available through the Strengthening People and Revitalizing Kansas (SPARK) Executive Committee and State Finance Council. This round of awards funds programs designed to close service gaps in the continuum of care by addressing statewide shortages of health and behavioral health services and the state’s increasing demand for a well-trained health care workforce.  

Funds have been allocated to service providers, educational institutions, local units of government, and non-profit organizations with proposals in three program areas to the following grantees:   

*Expansion of health care facilities:* The facility expansion must result in more services being delivered within a defined geographic area or clearly increase service capacity through more licensed bed space, expanded treatment facilities, or additional credentialed providers.  


* *South Central Kansas State Mental Health Hospital**"- $25 million"*  Sedgwick County will create a new 50-bed mental health hospital, which will be owned and operated by the state. The regional facility would address the shortage of in-patient beds and allow patients to remain closer to home and family. Additional beds will ease jail overcrowding by shortening the wait time for inmates awaiting competency evaluations or treatment. The facility will be developed with room for expansion.     
* *KVC Health Systems: **"New Olathe Psychiatric Hospital Joint Venture - $12.7 million"*  KVC Health Systems has formed a joint venture to build a new 72-bed state-of-the-art psychiatric hospital in Olathe. The project includes building three-24 bed units, which will provide an additional 48 youth beds and 24 adult beds to the mental health system.    
* *Wichita State University and the University of Kansas: Health Sciences Education Center (HSEC) - $15 million*  Wichita State University and the University of Kansas are partnering to build a joint health sciences education center (HSEC) in Wichita. The health sciences complex will centralize health care education, collaboration, and research. Students will receive state-of-the-art health care education that will ultimately improve the quality of health and health outcomes for all Kansans. Initially, approximately 3,000 students and 200 faculty and staff will be housed at the center with opportunities for growth in existing and new programs.* *   

*Expansion of reach of current service providers:* Innovative delivery models using technology must be used to expand the reach of current service providers or to reach additional Medicaid-eligible beneficiaries.  


* *Windsor Place*: *"Nursing Homes Without Walls - $1.6 million"*  Windsor Place will conduct a rigorous examination of its technology bundle to improve consumer well-being and impact nursing home admissions, emergency room visits, hospital admissions, and the overall cost of caring for seniors.   
* *Rock Regional Hospital: **"Growing Community Capacity - $5 million"*  As a small, independent community hospital, Rock Regional is working to address the needs of an aging population, declining rural hospital access, and overwhelmed urban emergency rooms. Rock Regional will undertake an expansion of service providers to serve the community with additional health care capacity.   
* *The University of Kansas Health System Care Collaborative: **"ASPIRE Rural Transformation Model - $1.1 million"*  The University of Kansas Health System Care Collaborative is a clinically integrated network comprised of 82 health care providers across 72 rural Kansas counties, actively assisting them in the implementation of new models of care. The project will improve health outcomes in rural communities by strengthening the local delivery system through new models of care while expanding successful Medicare programs to Medicaid beneficiaries through centralized telehealth services. Target outcomes are improved quality outcomes for the management of chronic conditions, reduced avoidable emergency room visits and hospital admissions, and reduced hospital readmissions. The initial cohort will involve rural hospitals and clinics in northwest and central Kansas.  

*Expansion of workforce training:* Workforce training expansion must increase students being trained to serve in the medical field.   


* *Kansas Health Science Center: **"Kansas College of Osteopathic Medicine - $5 million"*  The Kansas Health Science Center – Kansas College of Osteopathic Medicine class size will nearly double the number of student doctors over the next two years. Once fully operational, 170 new physicians will be produced annually. Additionally, there is a focus on initiatives to retain physicians in Kansas. 

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SPARK Programs
SPARK

In December the State Finance Council approved a total of $374 million in COVID-19 relief funds for broadband infrastructure and adoption, the modernization and improvement of government services, economic development, and health and education initiatives recommended by the Strengthening People and Revitalizing Kansas (SPARK) Executive Committee. 

The portfolio of approved funding includes competitive grant programs in the four SPARK Advisory Panel areas: Connectivity, Efficiency and Modernization, Health and Education, and Economic Revitalization. 

An overview of approved programs and their current status is available on the Office of Recovery’s website [ [link removed] ]. 

Additional details on these competitive funding opportunities, including information on the timeline and process to apply for funding through these programs, will be shared as available.  

Those that previously submitted an idea submission to the SPARK process will be notified of funding opportunities relevant to their proposal once that information is available.  

Programs approved through the SPARK process that are currently open for application include: 


* *Local Safety and Security Equipment Grant Program - *[link removed]-(lsse) [ [link removed]-(lsse)?utm_medium=email&utm_source=govdelivery ]* * 
* *Small-Town Water and Sewer Infrastructure Assistance Program - *[link removed] [ [link removed] ]  
* *Lasting Infrastructure and Network Connectivity (LINC) Program - *[link removed] [ [link removed] ]* * 

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Updates to Services and Support
Services and Support
*Office of Recovery to Host Title VI Compliance Webinar* 

The Office of Recovery will be holding a webinar covering federal Title VI Civil Rights Compliance requirements. As submitting Civil Rights Assurances are required of recipient governments to receive federal funding (including American Rescue Plan Act (ARPA) funds), this webinar will provide a brief explanation of the types of policies and programs that are recommended to be compliant with the Civil Rights Assurance Agreement. To attend the webinar, please register at the link below. 

*Office of Recovery Title VI Civil Rights Compliance Webinar* 

*When: Tuesday June 20 at 11:00 AM* 

*Register at: *June 20 Office Of Recovery Title VI Civil Rights Compliance Webinar Registration [ [link removed] ] 

If you are not able to attend the webinar on the 20th, links to Office of Recovery webinars can be found in the Webinar Materials [ [link removed] ]section of the Office of Recovery website.  

If you have additional questions, please contact us using the form in the CONTACT US [ [link removed] ]  section of the Office of Recovery website.  *" "* 






Contact the RO

The Office of Recovery is here to offer support and coordination.  Questions and inquiries may be submitted via the Contact Us [ [link removed] ] form. Please visit covid.ks.gov [ [link removed] ] for up-to-date information and resources on recovery from the COVID-19 pandemic for Kansas residents, businesses, and communities.

*Question/Request Form* [ [link removed] ]


Warm Regards,

*The Office of Recovery*

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