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The court gave legislators until the end of June to come up with a new law.
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The shortfall further complicates the state of Kansas budget situation.
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The group was established to draw bioscience tech jobs to Kansas, using state and private money.
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Governor Sam Brownback says he wants to be sure that enough of the money the state's already spent is ending up in classrooms rather than in the hands of district administrators.
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Check out the latest Kansas news headlines from the Associated Press, as compiled by the KPR news team.
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Here are the day's top regional stories from the Associated Press, compiled by the KPR news staff.
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The aid requests were trimmed back, but the Kansas governor and legislative leaders approved 66 percent of the requests.
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The shortfall further complicates the state's revenue picture.
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Two lawsuits filed by district court judges against the state of Kansas are currently pending.
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There are concerns that enforcing the order could jeopardize the budget for the entire Kansas judiciary system.