From Pachyderm: Radio Host Joseph Ashby

Voice for Liberty radio logo square 02 155x116From the Wichita Pachyderm Club this week: Radio Host Joseph Ashby, host of The Joseph Ashby Show. His talk focused on the administration of Kansas Governor Sam Brownback. Bob Weeks provided the introduction. This is an audio presentation recorded on August 26, 2016.

Shownotes

Intrust Bank Arena loss for 2015 is $4.1 million

The depreciation expense of Intrust Bank Arena in downtown Wichita recognizes and accounts for the sacrifices of the people of Sedgwick County and its visitors to pay for the arena.

The true state of the finances of the Intrust Bank Arena in downtown Wichita are not often a subject of public discussion. Arena boosters cite a revenue-sharing arrangement between the county and the arena operator, referring to this as profit or loss. But this arrangement is not an accurate and complete accounting, and hides the true economics of the arena. What’s missing is depreciation expense.

There hasn’t been much talk of the arena’s finances this year. But in February 2015 the Wichita Eagle reported: “The arena’s net income for 2014 came in at $122,853, all of which will go to SMG, the company that operates the facility under contract with the county, Assistant County Manager Ron Holt said Wednesday.” A reading of the minutes for the February 11 meeting of the Sedgwick County Commission finds Holt mentioning depreciation expense not a single time.

Payments by Intrust Bank Arena to Sedgwick County, tableIn December 2014, in a look at the first five years of the arena, its manager told the Wichita Eagle this: “‘We know from a financial standpoint, the building has been successful. Every year, it’s always been in the black, and there are a lot of buildings that don’t have that, so it’s a great achievement,’ said A.J. Boleski, the arena’s general manager.”

I didn’t notice the Eagle opinion page editorializing this year on the release of the arena’s profitability figures. So here’s an example of incomplete editorializing from Rhonda Holman, who opined “Though great news for taxpayers, that oversize check for $255,678 presented to Sedgwick County last week reflected Intrust Bank Arena’s past, specifically the county’s share of 2013 profits.” (Earlier reporting on this topic in the Eagle in 2013 did not mention depreciation expense, either.)

All of these examples are deficient in some way, and contribute only confusion to the search for truthful accounting of the arena’s finances. As shown below, recognizing depreciation expense is vital to understanding profit or loss, and the “net income” referred to above doesn’t include this. In fact, the “net income” cited above isn’t anything that is recognized by standard accounting principles.

The problem with the reporting of Intrust Bank Arena profits

There are at least two ways of looking at the finance of the arena. Most attention is given to the “profit” (or loss) earned by the arena for the county according to an operating agreement between the county and SMG, a company that operates the arena.1

This agreement specifies a revenue sharing mechanism between the county and SMG. For 2105, the accounting method used in this agreement produced a profit of $1,150,206, to be split (not equally) between SMG and the county. The county’s share was $375,103.

While described as “profit” by many, this payment does not represent any sort of “profit” or “earnings” in the usual sense. In fact, the introductory letter that accompanies these calculations warns readers that these are “not intended to be a complete presentation of INTRUST Bank Arena’s financial position and results of operations and are not intended to be a presentation in conformity with accounting principles generally accepted in the United States of America.”2

That bears repeating: This is not a reckoning of profit and loss in any recognized sense. It is simply an agreement between Sedgwick County and SMG as to how SMG is to be paid, and how the county participates.

A much better reckoning of the economics of the Intrust Bank Arena can be found in the 2015 Comprehensive Annual Financial Report for Sedgwick County.3 This document holds additional information about the finances of the Intrust Bank Arena. The CAFR, as described by the county, “… is a review of what occurred financially last year. In that respect, it is a report card of our ability to manage our financial resources.”

Regarding the arena, the CAFR states:

The Arena Fund represents the activity of the INTRUST Bank Arena. The facility is operated by a private company; the county incurs expenses only for certain capital improvements or major repairs and depreciation, and receives as revenue only a share of profits earned by the operator, if any, and naming rights fees. The Arena Fund had an operating loss of $4.1 million. The loss can be attributed to $4.4 million in depreciation expense.

Financial statements in the same document show that $4,443,603 was charged for depreciation in 2015, bringing accumulated depreciation to a total of $30,791,307.

Depreciation expense is not something that is paid out in cash. Sedgwick County didn’t write a check for $4,443,603 to pay depreciation expense. Instead, depreciation accounting provides a way to recognize and account for the cost of long-lived assets over their lifespan. It provides a way to recognize opportunity costs, that is, what could be done with our resources if not spent on the arena.

But not many of our public leaders recognize this. In years past, Commissioner Dave Unruh made remarks that show the severe misunderstanding that he and almost everyone labor under regarding the nature of the spending on the arena: “I want to underscore the fact that the citizens of Sedgwick County voted to pay for this facility in advance. And so not having debt service on it is just a huge benefit to our government and to the citizens, so we can go forward without having to having to worry about making those payments and still show positive cash flow. So it’s still a great benefit to our community and I’m still pleased with this report.”

Earlier in this article we saw examples of the Sedgwick County Assistant Manager, the Intrust Bank Arena manager, and several Wichita Eagle writers making the same mistake.

Intrust Bank Arena commemorative monument
Intrust Bank Arena commemorative monument
The contention — witting or not — of all these people is that the capital investment of $183,625,241 (not including an operating and maintenance reserve) in the arena is merely a historical artifact, something that happened in the past, something that has no bearing today. There is no opportunity cost, according to this view. This attitude, however, disrespects the sacrifices of the people of Sedgwick County and its visitors to raise those funds. Since Kansas is one of the few states that adds sales tax to food, low-income households paid extra sales tax on their groceries to pay for the arena — an arena where they may not be able to afford tickets.

Any honest accounting or reckoning of the performance of Intrust Bank Arena must take depreciation into account. While Unruh is correct that depreciation expense is not a cash expense that affects cash flow, it is an economic fact that can’t be ignored — except by politicians, apparently. The Wichita Eagle aids in promoting this deception.

We see our governmental and civic leaders telling us that we must “run government like a business.” Without frank and realistic discussion of numbers like these and the economic facts they represent, we make decisions based on incomplete and false information.


Notes

  1. Management Agreement between Sedgwick County and SMG. August 1, 2007. Available here.
  2. The Operations of INTRUST Bank Arena, as Managed by SMG. December 31, 2015. Available here.
  3. Sedgwick County. Comprehensive Annual Financial Report of the County of Sedgwick, Kansas for the Year ended December 31, 2015. Available here.

School staffing and students

Trends for the nation and each state in teachers, administrators, and students, presented in an interactive visualization.

Each year states report data to the National Center for Education Statistics. While NCES provides methods for extracting data, it isn’t an easy process, and opportunities to produce charts are limited. Here I present trends in teachers, administrators, and students for each state from 1998 to the school year ending in summer 2014, the most recent year of data that is available.

For each state, the charts show the growth in teachers, administrators, and students. For both teachers and students, the value used is full-time equivalency. A table also shows pupil/teacher ratio and pupil/administrator ratio.

There are some obvious mistakes in the data. An example is the number of administrators reported for Kansas for years 2007 through 2009. Figures obtained directly from Kansas State Department of Education show no sudden drop and increase in the count of administrators. Nonetheless, I have presented the data as retrieved from NCES.

Sorting on columns.
Sorting on columns.
For the nation as a whole, the count of students has increased 8.5 percent since 1998. The count of teachers (full-time equivalent) rose by 13.4 percent, and the number of administrators by 19.4 percent. Individual states vary widely, with many having increased administrators at a far faster pace than either students or teachers. Some states, however, have reduced the number of administrators, or the rate has grown slower than students and teachers.

Click here to open and use the visualization.

Data is from the Elementary/Secondary Information System (ElSi) at National Center for Education Statistics, part of the U.S. Department of Education and the Institute of Education Sciences. The number of administrators is calculated as the sum of “LEA Administrators” and “LEA Administrative Support Staff.” LEA Administrators is defined by NCES as “The count of Local education agency superintendents, deputy and assistant superintendents, and other persons with district-wide responsibilities such as business managers and administrative assistants. Excludes supervisors of instructional or student support staff.” LEA Administrative Support Staff is defined as “The count of Staff members who provide direct support to LEA administrators, including secretarial and other clerical staff.”

Using the visualization. Click for larger.
Using the visualization. Click for larger.

From Pachyderm: Westar Energy

Voice for Liberty radio logo square 02 155x116From the Wichita Pachyderm Club: Don Sherman, Vice President Community Relations and Strategic Partners with Westar Energy introduced Jeff Beasley, Vice President of Customer Care with Westar for an informative presentation titled, “An overview of Westar Energy — Solar, Conservation, Community.”

This was recorded August 12, 2016. Click here for the audio presentation. Click here for the slides.

From Pachyderm: Martin Hawver on Kansas Politics

Voice for Liberty radio logo square 02 155x116From the Wichita Pachyderm Club this week: Martin Hawver briefed members and guests on the state of Kansas politics. Judge Phil Journey provided the introduction. Recorded August 19, 2016.

Hawver is the dean of Kansas Statehouse press corps, having covered the beat longer than any current Statehouse reporter — first for 17 years as a Statehouse reporter for the Topeka Capital-Journal and since 1993 for Hawver’s Capitol Report, for which he is the primary reporter/writer. He also writes a column syndicated to Kansas newspapers, is interviewed about Kansas government and politics on TV and radio shows, and is a speaker for seminars and conventions.

Hawver’s Capitol Report is owned by Martin and his wife Vickie Griffith Hawver, who met and married while both worked at the Topeka Capital-Journal newspaper. Their website is havernews.com.

Sedgwick County delinquent tax list for 2015

Here is the delinquent property tax list for Sedgwick County for 2015, summarized and presented in an interactive table that you may sort.

Of note, the two property owners with the largest delinquent balances are the City of Wichita and the Kansas Turnpike Authority.

Inquiry to the City of Wichita reveals that two properties, 3239 E 1st and 3244 E Douglas ($72,282.69 and $47,878.37), are left over from a real estate developer’s default. He, not the city, was responsible for these taxes. A third property is a leased property related to the East Kellogg expansion, and the tenant is responsible for the taxes. For another property, the taxes were paid late, and another was an error that has been corrected.

The Sedgwick County Treasurer issues this caution:

Public notice is hereby given that taxes on Personal Property located in Sedgwick County, State of Kansas, is unpaid, in whole or in part, and here appears the name of each delinquent taxpayer followed by his/her last known address and the total amount of unpaid taxes, penalties and costs.

Some of the names listed may have already paid their personal property taxes or may be awaiting results of a tax grievance or tax protest before paying the taxes due. Unfortunately, it is not practical to delete these names.

I regret any undue embarrassment this may cause those who are still awaiting tax protest decisions.

Linda Kizzire
Sedgwick County Treasurer

Click here to access this data.

WichitaLiberty.TV: A variety of topics, with some good news, but a lot of bad news

In this episode of WichitaLiberty.TV: Wichita’s economic development, Sedgwick County spending, editorials ignoring facts, your house numbers, Kansas governors, taxpayer-funded political campaigns, and the nature of economic competition. View below, or click here to view at YouTube. Episode 127, broadcast August 21, 2016.

State of the States, 2016

What did the nation’s governors tell their constituents this year?

American Legislative Exchange Council (ALEC) has examined the “State of the State” addresses delivered this year by state governors. Its report State of the States 2016 analyzes each for proposals that will affect economic competitiveness.

The good news, according to the report? “The majority of governors seem to understand that lower tax rates and limited government give citizens and businesses a greater incentive to reside and operate in their states compared to others with higher tax rates and more regulations.”

But some states received bad news. Louisiana Governor John Bel Edwards told his state: “So, if you insist on saying that I never said I would raise taxes — that I’m going back on my word — that’s fine. Say it. Get it out of your system, and then please come back here ready to work with me to do the job we were all hired to do.”

In Minnesota — which has a budget surplus — Governor Mark Dayton told his constituents, “They say, ‘give it all back’ to the taxpayers. But that slogan is based upon a wrong premise and a wrong conclusion.”

Kansas wasn’t highlighted in this report, as Governor Brownback’s State of the State address contained little regarding economic policy.

The report is available at no charge from ALEC at State of the States 2016.

Kansas tax receipts

Kansas tax receipts by category, presented in an interactive visualization.

The Kansas Division of the Budget publishes monthly statistics regarding tax collections. These figures have been gathered and are presented in an interactive visualization.

Example from the visualization.
Example from the visualization.
For the past two years, individual income tax collections have been relatively flat. There are variations each month, but overall the trend is slightly up. Corporate income tax collections are on a slight downward trajectory.

Retail sales tax and compensating use tax have been rising for two years. A higher sales tax rate took effect on July 1, 2015, with the rate rising from 6.15 percent to 6.50 percent.

Cigarette taxes have risen rapidly since July 2015 when higher tax rates on these products took effect. The same trend is present in the tobacco products tax.

Severance taxes — tax collected on natural gas and oil as it is extracted from the ground — have been on a downward trend as prices for these produces have fallen. This is a sizable tax. In June 2014 collections of this tax were running at about $143 million per year. Two year later the rate is $28 million annually.

Click here to use the visualization.

Source of data is Kansas Division of the Budget.

CID and other incentives proposed in downtown Wichita

A proposal for a community improvement district in downtown Wichita includes a public hearing, but much information the public needs is missing.

This week the Wichita City Council will consider starting the process of creating a community improvement district and other economic development incentives. The action the council will consider Tuesday is to accept the petition of the property owners and set September 6 as the date for the public hearing. Also, on September 6, “a development agreement defining the City and Developer’s responsibilities will be presented to the City Council.”1

A community improvement district, or CID, is a geographical district in which merchants add extra sales tax, known as the CID tax. This extra tax is then routed to the property owners. CIDs may be of two types. In one, the city borrows money to give to the developers, and the CID tax repays the bonds. In the second, no money is borrowed. Instead, the CID tax is periodically remitted to the developers as it is collected. The proposed CID is of the latter type. It is proposed to collect a CID tax of 1.5 percent for up to ten years, with a limit of $930,000. (For more information about how CIDs work, see Community improvement districts in Kansas.)

City documents also state the developers will request industrial bond financing. In this case, according to city documents, the purpose of the IRBs is to avoid paying sales tax on property purchased. The developers are also requesting use of the nearby state office building parking garage, but no details are given.

A public hearing?

The September 6th meeting will include a public hearing regarding the CID, industrial revenue bonds, parking agreement, and development agreement. As of today, we have information about the CID. But we have little or no information about the other items to be considered that day, which is billed as a public hearing.

If a public hearing is to include meaningful input from the public, the city needs to provide citizens with information about these items, and soon.

Rationale

What is the need for these economic development incentives? No reason is given. Some incentive programs require that the applicant demonstrate financial necessity. In other words, if the incentive is not given, it is impossible to proceed. No such argument has been advanced for this project. And if such an argument were to be made, we have to ask why are incentives needed to develop in downtown Wichita?

Since these incentives are proposed for a hotel, supporters argue that the cost of the incentives — at least the CID — will be borne by visitors to Wichita. This development, however, will contain a rooftop bar and ground floor commercial space. To the extent that Wichitans patronize these business firms, they will pay the CID tax. Even considering only the hotel, there are many Wichita-based companies whose employees travel to Wichita, staying in hotels at their companies’ expense. Wichita companies will be paying the CID tax in these cases. They will also pay the tourism fee, even though their employees are not tourists.

Besides, we shouldn’t view visitors to Wichita as a cash cow. Visitors staying in this hotel will pay these taxes:

State of Kansas sales tax, 6.5%
Sedgwick County sales tax, 1.0%
Wichita hotel tax, 6%
City tourism fee, 2.75%2
CID tax, 1.5%

The total of these taxes is 17.75%. (Yes, Wichita does charge visitors a “tourism fee.” If Wichita voters had followed the recommendation of the city, its bureaucrats, and the political class, there would be an additional tax of one percent.3)

Finally: As with all CIDs, why don’t the merchants simply raise their prices? Part of the answer is that the CID tax goes to benefit the landowners, which may not be the same party as the merchants who collect the tax.

Other than that, it’s convenient to have someone to blame higher prices on.


Notes

  1. Wichita City Council Agenda packet for August 16, 2016. Available at wichita.gov/Government/Council/Agendas/08-16-2016%20City%20Council%20Agenda%20Packet.pdf.
  2. Weeks, Bob. Wichita seeks to add more tax to hotel bills. Available at wichitaliberty.org/wichita-government/wichita-seeks-add-tax-hotel-bills/.
  3. Ballotpedia. City of Wichita Sales Tax Measure (November 2014). Available at ballotpedia.org/City_of_Wichita_Sales_Tax_Measure_(November_2014).

Sedgwick County Health Department: Services provided

Sedgwick County government trimmed spending on health. What has been the result so far?

During last year’s Sedgwick County budget hearings, there were warnings that trimming spending on health would decimate the health department’s ability to provide services. But after six months, that hasn’t been the case.

Sedgwick County Health Department services provided. Click for larger.
Sedgwick County Health Department services provided. Click for larger.

The nearby table shows measures of services provided for the first six months of this year compared to the same period the year before. The source of this data is the Sedgwick County Health Department, with my added column calculating the percent change. For most categories of service, the amount provided has risen or fallen slightly. The exception is WIC, the Women, Infants, and Children program. Participation in this program has fallen in Sedgwick County every year since peaking in 2010, mirroring the national trend.1

Average Monthly WIC Participation per 1,000 population, Sedgwick County


Notes

  1. KansasHealthMatters.org. Average Monthly WIC Participation per 1,000 population. Available here.

Free trade is important, but may be in peril

Robert E. Litan, a lawyer and economist and adjunct senior fellow at the Council on Foreign Relations spoke on “The Future of Trade Policy” before a luncheon at the Wichita Pachyderm Club August 5, 2016. Litan explained the importance of free trade and examined the trade policies of presidential candidates. View below, or click here to view at YouTube.

Value of of money varies by state

From the Tax Foundation, the value of $100 by state. Click to visit the study.
From the Tax Foundation, the value of $100 by state. Click to visit the study.
Based on data from the Bureau of Economic Analysis, the Tax Foundation has produced a map showing how the value of a dollar varies among the states. This difference is due to the relative price levels found in states. Kansas ranks fourteenth highest, with a benchmark $100 being worth $110.25.

To find more about the study and your state, click here.

Wichita water statistics update

With adequate river flow every day, the Wichita ASR water project produced water equivalent to six days design capacity during July 2016.

An important part of Wichita’s water supply infrastructure is the Aquifer Storage and Recovery program, or ASR. This is a program whereby water is taken from the Little Arkansas River, treated, and injected in the Equus Beds aquifer.1 2 That water is then available in the future as is other Equus Beds water.

With a cost so far of $247 million, the city believes that ASR is a proven technology that will provide water and drought protection for many years. In 2014 the city recommended that voters approve $250 million for its expansion, to be paid for by a sales tax.3 Voters rejected the tax in the November 2014 election.

July 2016 production

Flow of the Little Arkansas River at Valley Center. The ASR project is able to draw from the river when the flow is above 30 cfs at this measurement station. (Click charts for larger versions.)
Flow of the Little Arkansas River at Valley Center. The ASR project is able to draw from the river when the flow is above 30 cfs at this measurement station. (Click charts for larger versions.)
In July 2016, the ASR project recharged 158,770,175 gallons of water.4 The design capacity for ASR is 30,000,000 gallons per day, so production for the entire month of July was about six days design capacity. For other context, in 2015 the Wichita Water Utility produced 18,942 million gallons of water.5 The water recharged in July 2016 is 0.84 percent of this.

The ASR project is able to draw from the Little Arkansas River when the flow is above 30 cfs. As shown in the chart of the flow of the river, there was adequate river flow for ASR to operate every day of the month for July 2016. This is counting only those days when the flow was above 30 cfs for the entire day.6

ASR project background and production

According to city documents, the original capacity of the ASR phase II project to process water and pump it into the ground (the “recharge” process) was given as “Expected volume: 30 MGD for 120 days.” That translates to 3,600,000,000 (3.6 billion or 3,600 million) gallons per year. ASR phase II was completed in 2011.

Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR Phase II, cumulative since July 2013.
Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR Phase II, cumulative since July 2013.
At a city council workshop in April 2014, Director of Public Works and Utilities Alan King briefed the council on the history of ASR, mentioning the original belief that ASR would recharge 11,000 acre feet of water per year. But he gave a new estimate for production, telling the council that “What we’re finding is, we’re thinking we’re going to actually get 5,800 acre feet. Somewhere close to half of the original estimates.” The new estimate translates to 1,889,935,800 (1.9 billion) gallons per year.7

Based on experience, the city has produced a revised estimate of ASR production capability. What has been the actual experience of ASR? The U.S. Geological Survey has ASR figures available here. I’ve gathered the data and performed an analysis. (Click charts for larger versions.)

Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR phase II, monthly.
Gallons of Water Recharged Through Recharge Basins and Wells during Wichita ASR phase II, monthly.
I’ve produced a chart of the cumulative production of the Wichita ASR project compared with the original projections and the lower revised projections. The lines for projections rise smoothly, although it is expected that actual production is not smooth. The second phase of ASR was completed sometime in 2011, but no water was produced and recharged that year. Further, 2013 was a drought year, so to present ASR in the best possible light, I’ve prepared a chart starting in July 2013. That was when it started raining heavily, and data from USGS shows that the flow in the Little Arkansas River was much greater. Still, the ASR project is not keeping up with projections, even after goals were lowered.

On the chart of monthly production, the horizontal line represents the revised annual production projection expressed as a constant amount each month. This even rate of production is not likely, as river flow varies. In the three years that ASR phase II has been in production, that monthly target been exceeded in six months.

ASR days of flow and work through July 2016.
ASR days of flow and work through July 2016.

 ASR operating efficiency through July 2016.
ASR operating efficiency through July 2016.
Two nearby charts give an idea of the efficiency of operation of the ASR project. (Click charts for larger versions.) For each month, I counted how many days had a river flow above 30 cfs at every measurement for the day. (The flow is measured many times each day.) If a day had all measurements above 30 cfs, I counted that as a day of adequate river flow. I then calculated the number of days of work actually accomplished using the water produced each month, the number of days of adequate river flow for the month, and the ASR design capacity.

As can be seen in the charts, the ASR project is operating far below its design goal.

At one time the city was proud enough of the ASR project that it maintained an informative website at wichitawaterproject.org. That site no longer exists.
At one time the city was proud enough of the ASR project that it maintained an informative website at wichitawaterproject.org. That site no longer exists.


Notes

  1. City of Wichita. Wichita Area Future Water Supply: A Model Program for Other Municipalities. Available at www.wichita.gov/Government/Departments/PWU/UtilitiesDocuments/WICHITA%20AREA%20FUTURE%20WATER%20SUPPLY.pdf.
  2. City of Wichita. Equus Beds Aquifer Storage and Recovery Project. Available at www.wichita.gov/Government/Departments/PWU/Pages/PublicWaterSupply.aspx.
  3. City of Wichita. Plans and Background on Proposed 1 cent Sales Tax. Available at wichitaliberty.org/wp-content/uploads/2016/05/City-Sales-Tax-Information.pdf.
  4. United States Geological Survey. Equus Beds Water Recharge. Available at ks.water.usgs.gov/water-recharge.
  5. Wichita, City of. Comprehensive Annual Financial Report for Fiscal Year Ended December 31, 2015. Page J-14.
  6. United States Geological Survey. USGS 07144200 L ARKANSAS R AT VALLEY CENTER, KS. Available at waterdata.usgs.gov/usa/nwis/uv?site_no=07144200.
  7. Wichita City Council Workshop, April 8, 2014. Video available at wichitaks.granicus.com/MediaPlayer.php?view_id=2&clip_id=2548.

WichitaLiberty.TV: Gidget Southway, or Danedri Herbert

This week on WichitaLiberty.TV: Danedri Herbert, also known as Gidget Southway, visits Wichita and WichitaLiberty.TV. Her blog is Kansas GOP Insider. This interview was recorded on July 27, 2016. View below, or click here to view at YouTube. Episode 126, broadcast August 7, 2016.

Wichita Business Journal editorial missed the news on the Wichita economy

A Wichita business newspaper’s editorial ignores the history of our local economy. Even the history that it reported in its own pages.

Of the several problems with a Wichita Business Journal editorial, the worst is the author’s view that now, with the result of the David Dennis/Karl Peterjohn election for Sedgwick County Commission, the Wichita area can return to making progress in economic growth. The article is full of phrases like “good news for anyone in Wichita who values the city’s growth” and “We once took pride, in Wichita and in Kansas, in our record of pragmatic, collaborative economic growth.”1

Chung Report cover image from Facebook 2016-08-08Except: This is not truthful. Making such a claim ignores the evidence. Anyone who pays attention knows economic growth in the Wichita area has lagged for a long time. Even the Wichita Metro Chamber of Commerce belatedly came to this conclusion. Even the Wichita Community Foundation realizes it, having just started a project titled “The Chung Report: Examining Wichita’s Economic Downtown and How We Can Reverse It.”

None of this should be a secret to the editorial writers at the Wichita Business Journal. Two years ago it reported on, and showed, a chart from the Wichita Chamber that is similar to the chart at the end of this article.2 That chart showed slow job growth in the Wichita area. The Chamber used it to campaign for a new sales tax in Wichita.

Why don’t Wichita Business Journal editorial writers understand this? Regardless of one’s view on government’s role in economic development, to write as though we’ve had much growth in Wichita is factually incorrect. It’s not responsible.

An interactive visualization that is the source of the following chart is available here.

Wichita MSA and other job growth. Click for larger.
Wichita MSA and other job growth. Click for larger.


Notes

  1. Wilson, Bill. Kansas, Wichita take a step to the center. Wichita Business Journal, August 5, 2016. Available at www.bizjournals.com/wichita/blog/2016/08/kansas-wichita-take-a-step-to-the-center.html.
  2. Stearns, John. Chamber speakers: Wichita’s red line on jobs recovery a call to action. Wichita Business Journal, February 7, 2014. Available at www.bizjournals.com/wichita/blog/2014/02/chamber-speakers-wichitas-red-line.html.

In Wichita, your house numbers may become illegal

House numbers that may become illegal in Wichita.
House numbers that may become illegal in Wichita.
Thousands of Wichita homeowners may soon be lawbreakers if the city council follows its staff’s recommendation.

An update is at the end of this article.

This week the Wichita City Council may make your house number illegal, even though those numbers may — literally — be set in stone. This will be the case if the council takes the action recommended by its Department of Public Works and Utilities.

Current city code requires address numbers three inches high. The proposed ordinance requires numbers four inches tall. The penalty for noncompliance is $500 per day, with each day being “a separate and distinct offence.”

Existing and proposed ordinances

The existing city code:1

Sec. 10.04.190. – Same — Duty of owner or occupant to place; size, etc.

The owner or occupant of each and every house or building in the city is required to place on the house or building, in a conspicuous place, numbers of at least three inches in height of a type to be selected by the owner or occupant, which numbers shall be in conformity with and according to the provisions of the two preceding sections of this chapter. (Ord. No. 14-491 § 2)

The proposed code.2

SECTION 10. Section 10.04.190 of the Code of the City of Wichita, Kansas, is hereby amended to read as follows:

“Duty of owner or occupant to place; size, etc.”

The owner or occupant of every house or building in the City is required to conspicuously place on the house or building house numbers of at least four (4) inches in height. Painting house numbers on the Curb alone shall not be sufficient to comply with this Section.

Such numbers shall be consistent with Sections 10.04.170 and 10.04.180. Such numbers shall be of a sufficient contrast such that police officers and firefighters can read the numbers from the abutting street. Any property owner failing to comply with this Section is guilty of a misdemeanor punishable by a fine not to exceed five hundred (500) dollars. Each day house numbers are not properly placed on the house or building is a separate and distinct offence.

Update
At its August 9 meeting, the city council deferred this item to September.


Notes

Which Kansas Governor made these proposals?

Cutting spending for higher education, holding K through 12 public school spending steady, sweeping highway money to the general fund, reducing aid to local governments, spending down state reserves, and a huge projected budget gap. Who and when is the following newspaper report referencing?

Under _____ budget for fiscal _____, public schools would continue to receive $3,863 per student in state aid, and higher education would lose only $5 million in general tax dollars, mostly in the central Board of Regents office.

But _____ would take $165 million from highway projects and eliminate $86 million in aid to local governments — on top of the $95 million _____ withheld from highway projects and $48 million _____ kept from cities and counties.

_____ also made a campaign promise to build all projects promised under the state’s 10-year, $13.5 billion transportation program. _____ proposals didn’t say how the Department of Transportation would deal with the loss of funds.

_____ budget also would allow the Kansas Highway Patrol to hire 70 new troopers, give state employees a 1.5 percent pay raise, and prevent the closings of four minimum-security prison units and two inmate boot camps.

Under _____ proposals, total spending in fiscal _____ would decrease about $31 million, or 0.4 percent.

But that figure didn’t convey the seriousness of the state’s budget problems, which some officials have said are the worst since the Great Depression. The gap between expected general tax revenues and spending commitments during the next 18 months is more than $1 billion.

_____ also proposed to help eliminate the gap by spending some $313 million — all but $500,000 — that otherwise would be set aside as emergency cash reserves.

This is coverage from John Hanna of the State of the State Address from Governor Kathleen Sebelius in 2003, where she revealed plans for the fiscal 2004 budget. (Except the blank in “on top of the $95 million _____ withheld from highway projects” refers to her predecessor Bill Graves.) The original article is here.

Wichita Metro Chamber of Commerce on the campaign trail

We want to believe that The Wichita Metro Chamber of Commerce and its PAC are a force for good. Why does the PAC need to be deceptive and untruthful?

Wichita Chamber PAC mailing for David Dennis, excerpt

In a mailing supporting David Dennis, the political arm of the Wichita Metro Chamber of Commerce makes this statement about Karl Peterjohn: “The current county commissioner has spent his life making money from the government sector. When not working for the government, he worked as a registered lobbyist.”

If we look at reality, we find that the candidate who has been a government employee for his entire adult career, according to his bio, is Dennis. Working as a lobbyist is a private sector job, except for taxpayer-funded lobbyists. It’s not “making money from” the government sector. (Even if you disagree with lobbyists not “making money from” the government sector, Peterjohn has worked in private sector jobs that had nothing to do with government. There’s an outright lie from the Chamber.)

Karl Peterjohn lobbying for taxpayers.
Karl Peterjohn lobbying for taxpayers.
As I’m sure the Chamber knows, Karl Peterjohn lobbied on behalf of Kansas taxpayers, working to keep taxes and spending low. The Wichita Chamber, on the other hand, wants more taxes. Voters may remember that the campaign to create a Wichita city sales tax was run by the Wichita Chamber.

Why does the big-taxing Wichita Metro Chamber of Commerce and its PAC support David Dennis? The answer is they want more taxes from you. They must see Dennis as compliant with their desire for higher taxes.

Wichita and U.S. job growth. Click for larger.
Wichita and U.S. job growth. Click for larger.
Wichita and U.S. personal income growth. Click for larger.
Wichita and U.S. personal income growth. Click for larger.
Wichita and U.S. GDP growth. Click for larger.
Wichita and U.S. GDP growth. Click for larger.
It’s not only this. Another mailer says Peterjohn opposed building the Intrust Bank Arena. An accurate statement is Peterjohn opposed raising taxes to fund the arena. Many others held the same belief, as the vote for the arena tax was close, with 48 percent voting no tax for the arena. By the way, that tax was a sales tax, the type that falls disproportionately on low-income families.

We want to believe that our Chamber of Commerce is a force for good. Why does the Chamber need to be deceptive? Why does it lie to voters?

It would be one thing if the Wichita Chamber was a positive force for the Wichita-area economy. But the Chamber and its subsidiaries have been managing economic development for a long time. Nearby is a chart of job growth data from the Bureau of Labor Statistics. Wichita job growth hasn’t always lagged behind the United States. But Wichita is now behind, and as the Wichita Chamber has taken more responsibility for managing our local economy, the gap between Wichita and the country is growing. Wichita is falling behind.

Wichita and United States Job Growth 2016-07

WichitaLiberty.TV: The State of Kansas

In this episode of WichitaLiberty.TV: Jonathan Williams helps us understand what’s right — and wrong — with Kansas. Williams is Vice President for the Center for State Fiscal Reform at the American Legislative Exchange Council (ALEC). View below, or click here to view at YouTube.

Shownotes

  • American Legislative Exchange Council (ALEC)
  • Rich States, Poor States, ninth edition. This volume holds the most recent state-by-state rankings.
  • Rich States, Poor States, eighth edition. This volume holds Chapter 4, titled “Lessons from Kansas: A Behind the Scenes Look at America’s Most Discussed Tax Reform Effort.”

Individual liberty, limited government, economic freedom, and free markets in Wichita and Kansas