Kansas school employees by type

An interactive visualization of relative trends in Kansas school employment.

Kansas State Department of Education makes available tables of the number of employees working in Kansas schools. Employees are classified in two broad categories, Certified and Non-Certified. Within each category, employees are further classified by job type such as Superintendent, Curriculum Specialist, and Social Worker.

Visualization of certified employees, showing Principals and Curriculum Specialists highlighted.
Visualization of certified employees, showing Principals and Curriculum Specialists highlighted.
I’ve gathered the tables back to fiscal year 2002 (the 2001 – 2002 school year) and present them in an interactive visualization. There are separate visualizations for Certified and Non-Certified employees. In each, as shown in the instruction, you may check the check boxes to add or remove types of employees. For the employee types that are shown, you may click to highlight types apart from the others.

The line charts show the relative change in the number of employees. You may learn whether the number of employee type A is growing faster or slower than employee type B.

The visualization also holds tables showing the number of employees.

Click here to open the visualization in a new window.

Using the visualization.
Using the visualization.

WichitaLiberty.TV: That piano, the effect of school choice on school districts, and making Wichita inviting.

In this episode of WichitaLiberty.TV: The purchase of a piano by a Kansas school district is a teachable moment. Then, how do school choice programs affect budgets and performance of school districts? Finally, making Wichita an inclusive and attractive community. View below, or click here to view at YouTube. Episode 75, broadcast February 15, 2015.

As lawmakers, Kansas judges should be selected democratically

Kansas Judicial Center in snowWhile many believe that judges should not “legislate from the bench,” that is, make law themselves, the reality is that lawmaking is a judicial function. In a democracy, lawmakers should be elected under the principle of “one person, one vote.” But Kansas, which uses the Missouri Plan for judicial selection to its two highest courts, violates this principle.

A recent paper by Kansas University School of Law Professor Stephen J. Ware explains the problem with the process used in Kansas. The paper is titled Originalism, Balanced Legal Realism and Judicial Selection: A Case Study and may be downloaded at no charge. The Kansas courts that use the judicial selection described in the paper are the Kansas Court of Appeals and the Kansas Supreme Court.

At issue is whether judges are simply arbitrators of the law, or do they actually participate in the lawmaking process. Ware explains: “This realist view that statutory interpretation often involves ‘substantial judicial discretion’ and therefore constitutes ‘judicial lawmaking, not lawfinding,’ had by the 1950s, ‘become deeply rooted.'”

A “‘balanced realism,’ to use Brian Tamanaha’s appealing label, recognizes both that judges’ policy preferences have little or no influence on many judicial decisions and that judges’ policy preferences have a significant influence on other judicial decisions. Empirical studies tend to support this balanced view.” In other words, there is some role for ideology in making judicial decisions. Politics, therefore, is involved. Ware quotes Charles Gardner Geyh: “In a post-realist age, the ideological orientation of judicial aspirants matters.” And the higher the court, the more this matters.

Since judges function as lawmakers, they ought to be selected by a democratic process. In the Kansas version of the Missouri Plan, a nominating commission dominated by lawyers selects three candidates to fill an opening on the Kansas Court of Appeals or Kansas Supreme Court. The governor then selects one of the three, and the process is over. A new judge is selected. This process gives members of the state’s bar tremendous power in selecting judges.

Ware presents eleven examples of judges on the two highest Kansas courts engaging in lawmaking. In one, a workers’ compensation case, the employee would lose his appeal if the “clear” precedent was followed. Justice Carol A. Beier wrote the opinion. Ware explains:

But this is not, in fact, what Justice Beier and her colleagues on the Kansas Supreme Court did. Rather they did what Kansas Judges Greene and Russell say never happens. Justice Beier and her colleagues engaged in lawmaking. They changed the legal rule from one contrary to their ideologies to one consistent with their ideologies.

Justice Beier’s opinion doing this started by criticizing the old rule, while acknowledging that it was, in fact, the rule prior to her opinion by which the Supreme Court made new law. Here again is the above quote from Coleman, but now with the formerly omitted words restored and italicized: “The rule is clear, if a bit decrepit and unpopular: An injury from horseplay does not arise out of employment and is not compensable unless the employer was aware of the activity or it had become a habit at the workplace.”

Who decided that this rule is “decrepit and unpopular” and so should be changed? Was it the Kansas Legislature? No, it was the Kansas Supreme Court. It was judges, not legislators, who decided that this legal rule was bad policy. It was judges, not legislators, who changed the law to bring it in line with what the lawmaking judges thought was good policy.

Beier wrote in her opinion: “We are clearly convinced here that our old rule should be abandoned. Although appropriate for the time in which it arose, we are persuaded by the overwhelming weight of contrary authority in our sister states and current legal commentary.”

The result: New Kansas law, made by people selected through an undemocratic process.

In conclusion, Ware writes:

Non-lawyers who believe in the principle that lawmakers should be selected democratically need to know that judicial selection is lawmaker selection to be troubled by the Missouri Plan’s violation of this principle. Non-lawyers who do not know that judges inevitably make law may believe that the role of a judge consists only of its professional/technical side and, therefore, believe that judges should be selected entirely on their professional competence and ethics and that assessments of these factors are best left to lawyers. In short, a lawyer who omits lawmaking from a published statement about the judicial role is furthering a misimpression that helps empower lawyers at the expense of non-lawyers, in violation of basic democratic equality, the principle of one-person, one-vote.

Prospects for Kansas

In Kansas, the process for selecting judges to the Kansas Court of Appeals is governed by statute, and can be changed by the legislature and governor. Last year the House of Representatives passed a bill to reform the process, but it was blocked by Senate Judiciary Chair Tim Owens. He said “I think this is the first time I did not hear a bill because I thought it was so bad. This is a terrible, terrible bill that’s hated by the courts; it’s an attempt to take over control of the courts.”

Owens, who ranked as the least friendly senator to economic freedom in the 2012 edition of the Kansas Economic Freedom Index, lost his bid for re-election in the August primary election. Many of the other moderate Republicans who voted against reform also lost their primary election contest.

Owens, it should be noted, is an attorney, and is therefore a member of the privileged class that has outsize power in selecting judges.

Sometimes legislators are simply uninformed or misinformed on judicial selection. An example is Jean Schodorf, who lost a re-election bid in August. In an interview, she was quoted as saying “We thwarted changes to judicial selection that would have allowed the governor to have the final say in all judicial selections.”

The bill that the senate voted on, and the one that Owens killed the year before, called for Court of Appeals judges to be appointed by the governor, with the consent of the senate. It’s actually the senate that has the final say.

Newspaper editorial writers across Kansas are mostly opposed to judicial selection reform. An example is Rhonda Holman of the Wichita Eagle, who in 2010 wrote: “Some critics may have a beef with past court decisions, perhaps even a legitimate one — which is no surprise, given that judicial decisions pick winners and losers. But they also may be motivated by politics — which is a problem, given that the judiciary is supposed to be fair, impartial and independent. In the absence of a strong case for change, Kansas should stick with what works.”

With the change in composition of the Kansas Senate, the climate is more favorable for reform for the way judges are selected for the Kansas Court of Appeals. The law governing how judges for the Kansas Supreme Court are selected is in the Kansas Constitution, and would require an amendment to alter the process. Such an amendment requires a two-thirds vote in both chambers of the Kansas Legislature, and then a simple majority vote of the people.

By the way: For those who criticize the support for judicial selection reform as pure power politics, since Kansas has a conservative governor, remember this: When Professor Ware sounded the need for reform and convinced me of the need, our governor was the liberal Kathleen Sebelius. There was also a liberal senate at that time, one which would undoubtedly have rubberstamped any nominee Sebelius might have sent for confirmation.

Originalism, Balanced Legal Realism and Judicial Selection: A Case Study
By Stephen J. Ware

Abstract: The “balanced realist” view that judging inevitably involves lawmaking is widely accepted, even among originalists, such as Justice Scalia, Randy Barnett and Steven Calabresi. Yet many lawyers are still reluctant to acknowledge publicly the inevitability of judicial lawmaking. This reluctance is especially common in debates over the Missouri Plan, a method of judicial selection that divides the power to appoint judges between the governor and the bar.

The Missouri Plan is one of three widely-used methods of selecting state court judges. The other two are: (1) direct election of judges by the citizenry, and (2) appointment of judges by democratically elected officials, typically the governor and legislature, with little or no role for the bar. Each of these two methods of judicial selection respects a democratic society’s basic equality among citizens — the principle of one-person, one-vote. In contrast, the Missouri Plan violates this principle by making a lawyer’s vote worth more than another citizen’s vote.

This Article provides a case study of the clash between the inevitability of judicial lawmaking and the reluctance of lawyers to acknowledge this inevitability while defending their disproportionate power under the Missouri Plan. The Article documents efforts by lawyers in one state, Kansas, to defend their version of the Missouri Plan by attempting to conceal from the public the fact that Kansas judges, like judges in the other 49 states, inevitably make law. The case study then shows examples of Kansas judges making law. The Article concludes that honesty requires lawyers participating in the debate over judicial selection in the United States to forthrightly acknowledge that judges make law. Lawyers who seek to defend the power advantage the Missouri Plan gives them over other citizens can honestly acknowledge that this is a power advantage in the selection of lawmakers and then explain why they believe a departure from the principle of one-person, one-vote is justified in the selection of these particular lawmakers.

The complete paper may be downloaded at no charge here.

What we can learn from the piano

The purchase of a piano by a Kansas school district teaches us a lesson. Instead of a system in which schools raise money voluntarily — a system in which customers are happy to buy, donors are happy to give, and schools are grateful to receive — we have strife.

A Kansas City, Kansas school has spent $48,000 to purchase a new piano, replacing one in use for many years. Critics of school spending, even Governor Brownback, point to this as an example of school spending out of control. How can schools want more money, they say, if one school can spend $48,000 on a piano?

We can learn a few things about our public schools from this.

Piano piano-558452_1280First, there is no way to tell whether this purchase was wise. There are several reasons. First, the school is not spending its own money. The school is spending other people’s money, and in a near vacuum. It’s spending in circumstances that are not amenable to wise purchases. Milton Friedman has developed a grid of the ways that money may be spent. The purchase of the piano falls into category III, which is spending someone else’s money on yourself.

Second, the school is spending this money in an uncompetitive environment. In Kansas, the public schools have a near-monopoly on the use of public funds for schools. No matter how bad the public schools may be, not matter how wasteful of funds, public schools know that parents have few alternatives. Yes, there are private schools in Kansas, but if parents choose them, they still have to pay the public schools. Who else can do that?

Competition is important because it provides accountability. It provides a framework for making decisions about the allocation of resources. If we see, say, a grocery store spending lavishly on fixtures and furnishings, we may surmise that the store is trying to attract customers. The ultimate test of the strategy is profit. Do customers appreciate the store’s investment enough to shop there? If so, profits may be earned. If not, there will be losses, and store management has learned a lesson.

Similarly, if Kansas public schools faced meaningful competition for students, schools would have a framework for making spending decisions, as well as for making many other decisions. But with no meaningful competition, Kansas schools are operating in the dark. They do not have the benefit of market competition and profit to let them know if they are making wise decisions as to the allocation of resources.

Market competition is not competition like a life-and-death struggle in the jungle or sea, where the winners eat the losers. It is also not a contrived event, as is a sporting event. Instead, market competition refers to a discovery process, where through mountains of voluntary transactions we learn what works and what doesn’t. We don’t have that learning process in Kansas public schools.

Kansas City school district spending. Click for larger version.
Kansas City school district spending. Click for larger version.
The purchase of the piano has also stimulated much rancorous debate. People are yelling at each other, and over the education of children. Instead of fighting and strife, we should be celebrating children, schools, and education. But that’s not the way government works. Money is taken through taxes. (I realize it’s considered impolite in some circles to say this, but taxes are taken by the threat of force.) Then tax money is spent by people who pretty much say “screw you” to taxpayers. That is the tone of an article written by the superintendent of the school district that bought the piano. The real problem, she contends, is that the people of Kansas are not taxed enough.
Employment ratios in Kansas City schools. Click for larger version.
Employment ratios in Kansas City schools. Click for larger version.
No matter that spending per student in this school district is $15,388. That’s down from 2009 when it nearly touched $18,000, but much higher than the early years of this century when it was around $11,000. (These are inflation-adjusted, per student figures.) Employment ratios in this district have improved, and unspent fund balances, not including bond and capital funds, have risen.

Unspent funds in Kansas City schools, not including bond and capital. Click for larger version.
Unspent funds in Kansas City schools, not including bond and capital. Click for larger version.
Despite these improvements, the Kansas City school superintendent says Kansans do not pay enough taxes to her schools. I get the sense that she wants to fight for more.

Do we fight over which grocery store is best? Do we fight over how much to spend on building and operating grocery stores? No. People peacefully and freely choose the store they like. Sometimes they choose several stores at the same time.

Civil society is dying. Instead of a system in which schools raise money voluntarily — a system in which customers are happy to buy, donors are happy to give, and schools are grateful to receive — we have strife. Instead of a Kansas school superintendent saying “thank you” to taxpayers for the new piano and $15,388 to spend each year on each student, we have something else. We have the gnashing of teeth, and that’s a shame.

How do school choice programs affect budgets and performance of school districts?

Opponents of school choice programs argue the programs harm school districts, both financially and in their ability to serve their remaining students. Evidence does not support this position.

If school choice programs — charter schools, vouchers, or tax credit scholarships — harmed the existing public schools, it would be a reasonable argument against school choice. Especially if the students who remain in public schools had less of an opportunity to learn.

The prevalent argument is that charter schools and other public school alternatives drain funds from public schools. That is, if a public school student chooses a charter or private school, and if the money follows the student to the other school, the public school district loses money that it otherwise would have received. Therefore, the public school district is worse off, and so too are its students.

A rebuttal is that since a public school has shed the responsibility for schooling the student, its costs should fall correspondingly. This would be true if all the costs of a public school are variable. Some costs are fixed, however, meaning they can’t be adjusted quickly — in the short run, that is. An example is the cost to maintain a classroom. If a school has one less student than the year before, it still requires the same support for utilities. One or several fewer students doesn’t mean that fewer teachers are needed.

Public schools and their lobbyists, therefore, argue that school choice programs are a financial burden to public schools. Under school choice programs, they say, public schools lose students and their accompanying funding, but the public schools retain their fixed costs.

The Fiscal Effects of School Choice Programs on Public School Districts (cover)The question, then, is what portion of a school’s costs are variable, meaning costs that schools can adjust quickly, and what portion are fixed, meaning they can’t be adjusted quickly? Benjamin Scafidi, professor of economics at Kennesaw State University, has examined schools looking for the answer to this question. His paper The Fiscal Effects of School Choice Programs on Public School Districts, published by The Friedman Foundation for Educational Choice, holds answers to these questions.

The first question is this: What is the relation of school choice programs to school districts’ variable costs? Scafidi has endeavored to determine the breakdown between variable and fixed costs in each state. In Kansas, for the 2008 – 2009 school year, total spending per student was $11,441. Of that, Scafidi estimates $3,749, or 32.8 percent, were fixed costs. Variable costs were $7,692, or 67.2 percent. Since then spending has risen, but there’s no reason to think the allocation of costs between fixed and variable has changed materially. For the school year ending in 2014 total spending per student was $12,960. That implies fixed costs per student of $4,251 and variable costs per student of $8,709.

Now, how much money would a public school lose if a student chose, say, a private voucher school under a voucher program? In Kansas we don’t have vouchers for school choice, so we can’t answer the question directly. We do know that base state aid per pupil in Kansas is $3,852. That is the starting point for state spending per student.

In a recent presentation on this topic, Scafidi said: “Any school choice program where about $8,000 per student or less, on average, follows the child to the school of his or her choice, improves the fiscal situation of the public school district, on average, and students who remain in public schools have more resources available for their education.”

A typical Kansas school district, therefore, with variable costs of $8,709 per student, has its fiscal situation improved when it loses a student and its $3,852 in state funding.

Kansas School Finance Formula, from Kansas Policy Institute, August 2014
Kansas School Finance Formula, from Kansas Policy Institute, August 2014
Many Kansas students, however, trigger much more funding due to weightings that compensate for the purported higher costs of some situations. The largest weighting in Kansas, based on numeric magnitude, is the at-risk weighting. It adds 45.6 percent to base state aid. So if a Kansas public school loses such a student and weighting, it loses $5,608 in funding. That is far less than its variable costs of $8,709. State funding for Kansas schools in the 2013 to 2014 school year was $7,088 per student, still less than school districts’ variable costs.

I asked Scafidi what is the dividing line between variable and fixed costs? The answer is that within two or three years, schools should be able to adjust their fixed costs to be in line with their needs. This is in line with the economic and accounting reality that says in the long run, all costs are variable.

Can school districts adjust their costs quickly in response to changing enrollments? This may be a problem for the very smallest districts, those with just one or two teachers per grade, Scadifi concedes. In his paper, Scafidi illustrates two examples of districts in Georgia with just over 1,000 students making adjustments. In Kansas, there are 286 school districts. Of these, 207 have enrollment of less than 1,000 students, but only 20 percent if the state’s students are in these small districts.

School districts often dispute the contention that they are able to reduce their variable costs rapidly in response to enrollment changes. Scafidi notes that if school districts say they cannot reduce costs when they lose students, the implication is that all of their costs are fixed. If true, then schools should not receive additional funding when enrollment rises. After all, if all their costs are fixed, costs do not change with enrollment — either up or down.

We have seen that school choice programs do not harm the finances of local school districts. The second question concerns the quality of education for the students who remain in public schools.

To answer this question, we must recognize the wide variation of teacher efficacy. Some are very good, and some very poor. Further, the difference between good and bad is large. Eric A. Hanushek and others have found that very good teachers routinely produce 1.5 years of gain in achievement during an academic year. Bad teachers produce 0.5 years of gain. If a student is unfortunate enough to experience ineffective teachers two or three years in a row, the student may be so far behind as to never catch up.

What does this have to do with school choice programs? If public schools have to downsize due to students lost for any reason — including school choice programs — this gives public schools an opportunity to shed their least effective teachers. This means that students who remain in public schools have a higher likelihood of experiencing the most effective teachers.

Making Wichita an inclusive and attractive community

There are things both easy and difficult Wichita could do to make the city inclusive and welcoming of all, especially the young and diverse.

Wichita Chamber of Commerce 2013-07-09 004In its questionnaire for candidates for Wichita mayor and city council, the Wichita Metro Chamber of Commerce asked this: “How will you work to make Wichita an inclusive community where all will feel welcome, particularly the young and diverse talent we need to help attract more young and diverse talent?”

There are a few very easy things Wichita could do to appeal to millennials — I think that is one of the groups the Chamber addresses in its questions — and diverse people.

Support the decriminalization of marijuana. The city council reacted to a recent petition to reduce the penalty for carrying small amounts of marijuana by placing the measure on the April general election ballot. Another option the city had was to adopt the ordinance as submitted. That would have sent a positive message to millennials, but the council did not do that.

Ask the state to positively end marriage discrimination. The city has a legislative agenda it prepares for state legislators each year, but this matter was not mentioned.

wichita-taxi regulationsWichita should reform its taxicab regulations so that ride-sharing businesses like Uber are operating fully within the law, instead of outside the law as Uber is currently operating. Uber is an example of the type of innovation that city officials and civic leaders say we need, and millennials love Uber. But: Uber has been operating in Wichita since August. Uber has model legislation that could be adopted quickly. Yet, six months later the city has not acted. This delay does not send a message that Wichita welcomes innovation. Instead, it sends a message that the regulatory regime in Wichita is not able to adapt to change.

Pledge to resist the growth of the surveillance state. No street surveillance cameras in Wichita. No mass license plate scanning by police.

To the extent there are problems with the Wichita Police Department, resolve them so that citizens feel safe and minorities feel welcome and not threatened. A citizen oversight panel that has real authority would be a good step. Proceed quickly with implementation of police body cameras. End the special entertainment districts, which many feel are targeted at minority populations.

Here’s a bad idea, but an indication what passes for innovation at the Wichita Chamber: Pay down the student loan debt of young people. This is a bad idea on several levels. First, it rewards those who borrowed to pay for college. Those who saved, worked, or went to inexpensive colleges are not eligible this benefit. Further, if we award this incentive, those who receive it might wonder if that someday they will be taxed to provide this benefit to younger people. After all, the corollary of “Come to Wichita and we’ll pay down your student loan” is “Stay in Wichita, and you’re going to be paying down someone else’s student loan.” If the Chamber wished to raise funds voluntarily to provide such a program, that would be fine. But no tax funds should be used for anything like this.

What Wichita really needs to do

Most of the above are relatively easy to accomplish. Here’s something that is very important, something that should be easy to do, but goes against the grain of elected officials, bureaucrats, and civic leaders like those who run the Wichita Metro Chamber of Commerce. That is: Promote free markets instead of government management of the economy.

A Reason-Rupe survey of 2,000 Americans between the ages of 18 and 29 found that millennials strongly prefer free markets over a government-managed economy. When asked to choose the better system, 64 percent of millennials choose the free market over an economy managed by the government (32 percent).

Also, the survey found that millennials are distrustful, believing that government acts in favor of special interest groups and that government abuses its powers: “A Reason-Rupe survey of 2,000 Americans between the ages of 18 and 29 finds 66 percent of millennials believe government is inefficient and wasteful — a substantial increase since 2009, when just 42 percent of millennials said government was inefficient and wasteful. Nearly two-thirds of millennials, 63 percent, think government regulators favor special interests, whereas just 18 percent feel regulators act in the public’s interest. Similarly, 58 percent of 18-to-29 year-olds are convinced government agencies abuse their powers, while merely 25 percent trust government agencies to do the right thing.”

What could Wichita do, in light of these findings? One thing is to stop its heavy-handed regulation of development, particularly the massive subsidies directed to downtown Wichita.

We should take steps to make sure that everyone is treated equally. Passing “pay-to-play” ordinances — where city council members or county commissioners are prohibited from voting on matters that would enrich their campaign contributors — would be a first step in regaining the trust of citizens.

We also need to reform our economic development practice to favor entrepreneurship. Millennials like to start businesses, the survey tells us: “55 percent of millennials say they’d like to start their own business one day and that hard work is the key to success (61 percent). Millennials also have a positive view of the profit motive (64 percent) and competition (70 percent).” red-tape-person-upsetMuch of our economic development practice consists of directing subsides to our existing large firms or large firms we hope to lure here. But young and small firms — entrepreneurial firms, in other words — can’t qualify for most of our incentive programs. For example. the programs that offer property tax abatements have lengthy application forms and other obstacles to overcome, plus annual fees. Sometimes there are minimum size requirements. Young firms can’t suffer through this red tape and the accompanying bureaucratic schedules.

Kansas spring elections should be moved

Moving spring elections to fall of even-numbered years would produce more votes on local offices like city council and school board.

Before each election, observers such as newspaper editorialists and others urge citizens to get registered and to vote. After the election — especially spring elections in Kansas — the same parties lament the usually low voter turnout.

There is a pattern that could be used if we want more voters in city and school elections. That pattern is that in Sedgwick County, on average, people vote in fall elections at nearly 2.5 times the rate of voting in spring elections.

Summary of Sedgwick County Elections since 2000, 2015-02-09I’ve gathered statistics for elections in Sedgwick County, and these numbers show that voter turnout in spring elections is much lower than in fall elections. (For these statistics I count the August primary as part of the fall election cycle.) Since 2000, turnout for fall elections, both primary and general, has been 44 percent. Over the same period, spring elections turnout has been 18 percent. There were two special elections during this period, one in spring, and one in the fall cycle. I did not include them in these statistics.

Remarkably, a special Wichita citywide election in February 2012 with just one question on the ballot had voter turnout of 13.7 percent. One year earlier, in April 2011, the spring general election had four of six city council districts contested and a citywide mayoral election. Turnout was 12.8 percent, less than for a single-question election.

The problem of low voter participation in off-cycle elections is not limited to Sedgwick County or Kansas. In her paper “Election Timing and the Electoral Influence of Interest Groups,” Sarah F. Anzia writes “A well developed literature has shown that the timing of elections matters a great deal for voter turnout. … When cities and school districts hold elections at times other than state and national elections, voter turnout is far lower than when those elections are held at the same time as presidential or gubernatorial elections.”

Since this paper, Anzia has written, and University of Chicago Press published, a book on this topic: Timing and Turnout: How Off-Cycle Elections Favor Organized Groups.

In the paper, Anzia explains that when voter participation is low, it opens the door for special interest groups to dominate the election: “When an election is separated from other elections that attract higher turnout, many eligible voters abstain, but interest group members that have a large stake in the election outcome turn out at high rates regardless of the increase in the cost of voting. Moreover, interest groups’ efforts to strategically mobilize supportive voters have a greater impact on election outcomes when overall turnout is low. Consequently, the electoral influence of interest groups is greater in off-cycle elections than in on-cycle elections. As a result, the policy made by officials elected in off-cycle elections should be more favorable to dominant interest groups than policy made by officials elected in on-cycle elections.” (Election Timing and the Electoral Influence of Interest Groups, Sarah F. Anzia, Stanford University, Journal of Politics, April 2011, Vol. 73 Issue 2, p 412-427, version online here.)

WichitaLiberty.TV: Wichita economic development, one more untold story

In this excerpt from Wichitaliberty.TV: Readers of the Wichita Eagle might be excused for not understanding the economic realities of a proposed tax giveaway to a local development. View below, or click here to view at YouTube. Originally broadcast September 14, 2014.

For more on this issue, see: Wichita economic development, one more untold story.

WichitaLiberty.TV: Kansas school employment and spending

In this excerpt from WichitaLiberty.TV: What is the trend in Kansas school employment? Then, what do citizens know about Kansas school spending? Finally, what did Milton Friedman have to say about private vs. government spending? View below, or click here to view at YouTube. Originally boradcast November 23, 2014.

Mentioned in this excerpt:
Are Kansas classroom sizes growing?, Kansans still uninformed on school spending, and Friedman: The fallacy of the welfare state

WichitaLiberty.TV: Flipping in Wichita, price of sin going up, and what your legislature wants you to know

In this episode of WichitaLiberty.TV: In Wichita, historic value is gone in a flash, a flip-flop on drivers permits, and does the city really believe in transparency or was it just a way to get votes? Then, let’s stop calling a vice a sin, and what does the Kansas Legislature really want you to know? View below, or click here to view on YouTube. Episode 74, broadcast February 8, 2015.

Kansas school funding controversy is about entitlement, not need

From Kansas Policy Institute.

School funding controversy is about entitlement, not need
By Dave Trabert

When every Johnson County school district qualifies as a property-poor district, you know you have a broken school funding formula … and a controversial claim based on entitlement.

The Kansas Legislature authorized $134 million in school funding this year in a good-faith effort to resolve the Supreme Court equity finding in Gannon v. State of Kansas. Most of the increase, $109 million –- was for Supplemental General State Aid (SGSA), which equalizes Local Option Budgets for property-poor districts.  The other $25 million was for equalization of Capital Outlay aid.

Kansas Judicial Center
Kansas Judicial Center
You wouldn’t know it from most media coverage, but the Supreme Court ruling on equity provides the Legislature with broad latitude in resolving wealth-based disparity, and does not require specific funding levels. “We agree that the infirmity can be cured in a variety of ways — at the choice of the legislature. And the legislature should have an opportunity to promptly cure. Any cure will be measured by determining whether it sufficiently reduces the unreasonable, wealth-based disparity so the disparity then becomes constitutionally acceptable, not whether the cure necessarily restores funding to the prior levels.

The Legislature didn’t have to increase SGSA in order to satisfy the Supreme Court ruling on LOB equity, but they did so anyway. The $109 million authorized was based on calculations from the Kansas State Department of Education, but KSDE underestimated the amount by which districts would increase their Local Option Budgets, and now school districts want another $36 million from taxpayers. Districts want this money because the formula says they are entitled to it. But there is ample evidence that more money is not needed, and now SB 71 has been introduced into Senate Ways and Means Committee to revise the equalization formula and eliminate the $36 million increase.

SB 71 is opposed by school districts, but it is a necessary fix to a broken formula and frankly, districts don’t need the extra money.

The intention of SGSA is to offset wealth-based disparity among school districts, but calculations from the Kansas Department of Education has the current formula allocating $54.8 million to districts in Johnson County –- the state’s wealthiest county. Every district in Johnson County is considered a “property-poor” district under the current formula, including Blue Valley, which may be the most affluent district in Kansas.

Johnson County schools are being subsidized by taxpayers in far less affluent parts of Kansas under the current formula. One additional mill of property tax levied in the Blue Valley district raises $2.3 million; one mill raises $2.9 in Shawnee Mission and $1.7 million in Olathe. But taxpayers in counties where one mill generates less than $50,000 are being asked to subsidize property-rich districts; those counties include Cheyenne, Clark, Edwards, Ellis, Gove, Gray, Greeley, Kearny, Kiowa, Lane, Logan, Ness, Reno, Rice, Rooks, Rush, Russell, Stafford, Thomas, Trego and Wallace. One or more districts in those counties are considered ineligible for equalization aid by the current formula, but those districts’ patrons are expected to subsidize urban districts in Johnson County, Sedgwick County, Shawnee County and Wyandotte County –- just to name a few.

On the issue of need, the K-12 Commission on Student Achievement and Efficiency heard testimony from school districts, regional service centers and others recently, confirming that school districts could operate much more efficiently. However, school districts made it very clear that they are strongly opposed to being required to make efficient use of taxpayer money. Legislative Post Audit also told the Commission that districts have not enacted many of their recommendations to reduce the cost of services.

There is also no need to increase equalization of Capital Outlay aid. The $25 million allocated for this year was based on Capital Outlay property taxes levied by school districts last year, but districts increased local property taxes even more, entitling them to $20 million more in Capital Outlay equalization. This is another example of a broken school funding formula, as it has nothing to do with need. School districts began this year with a record $434.9 million set aside for Capital projects. Capital Outlay reserves are completely separate from capital projects related to bond issues and have increased each year since 2005. Districts may feel entitled to even more money for capital projects but there is no need to further pump up their reserves.

The equalization system and the entire entitlement-based school funding system need to be replaced with a student-focused and taxpayer-focused perspective.

Kansas legislative resources

Citizens who want to be informed of the happenings of the Kansas Legislature have these resources available.

Legislative documents
The Legislature’s site at kslegislature.org has rosters of members, lists of committees, lists of bills, journals (the daily record of proceedings in each chamber), calendars (the plan for the day, along with topics for upcoming committee meetings).

A useful feature is the “Current Happenings” link for both the House and Senate. This has a link to the bills that have seen movement in some way each day. The page for each bill is generally useful, too, with the steps in the bill’s history, along with links to the bill text, fiscal and supplemental notes, and other material. Fiscal notes — prepared by the Division of Budget — estimate the financial impact of a bill, while the supplemental notes — prepared by Kansas Legislative Research Department — contain background and explanatory information. When attempting to understand legislation, the fiscal and supplemental notes are very useful.

Audio and video
Both the House and Senate broadcast audio of their proceedings. But you must listen live, as the broadcasts are not made available to the public in any other way. It would be exceedingly simple to make these past broadcasts available to the public, as explained here. But the legislature does not retain audio recordings of sessions.

The Kansas Legislature does not make available video of its proceedings.

Documents
Kansas Legislative Research Department (KLRD) has many documents that are useful in understanding state government and the legislature. This agency’s home page is www.kslegresearch.org/klrd.html. Of particular interest:

Kansas Legislative Briefing Book. This book’s audience is legislators, but anyone can benefit. The book has a chapter for major areas of state policy and legislation, giving history, background, and explanations of law. In some years the entire collection of material has been made available as a single pdf file, but not so this year. Contact information for the legislative analysts is made available in each chapter. The most recent version can be found on the Reports and Publications page. The version for 2015 is available here.

Kansas Fiscal Facts. This book, in 118 pages, provides “basic budgetary facts” to those without budgetary experience. It provides an overview of the budget, and then more information for each of the six branches of Kansas state government. There is a glossary and contact information for the fiscal analysts responsible for different areas of the budget. This document is updated each year. The most recent version can be found on the Reports and Publications page.

Legislative Procedure in Kansas. This book of 236 pages holds the rules and explanations of how the Kansas Legislature works. It was last revised in November 2006, but the subject that is the content of this book changes slowly over the years. The direct link is Legislative Procedure in Kansas, November 2006.

How a Bill Becomes Law. This is a one-page diagram of the legislative steps involved in passing laws. The direct link is How a Bill Becomes Law.

Summary of Legislation. This document is created each year, and is invaluable in remembering what laws were passed each year. From its introduction: “This publication includes summaries of the legislation enacted by the 2014 Legislature. Not summarized are bills of a limited, local, technical, clarifying, or repealing nature, and bills that were vetoed (sustained).” 189 pages for 2014. The most recent version can be found on the Reports and Publications page.

Legislative Highlights. This is a more compact version of the Summary of Legislation, providing the essentials of the legislative session in 12 pages for 2014. The most recent version can be found on the Reports and Publications page.

Kansas Tax Facts. This book provides information on state and local taxes in Kansas. The most recent version can be found on the Revenue and Tax page.

Kansas Statutes. The laws of our state. The current statutes can be found at the Revisor of Statutes page.

Kansas Register. From the Kansas Secretary of State: “The Kansas Register is the official state newspaper. This publication provides a wide range of information such as proposed and adopted administrative regulations, new state laws, bond sales and redemptions, notice of open meetings, state contracts offered for bid, attorney general opinions, and many other public notices.” The Register is published each week, and may be found at Kansas Register.

Historic value, gone in a flash

Which buildings in Wichita have historic value can change at the whim of the council.

The Wichita City Council has decided that three historic buildings in Wichita are no longer worthy of preservation. Today the council reversed a decision by the Historic Preservation Board and will allow the property owner to proceed with the demolition of three formerly historic buildings in southern downtown Wichita.

The impetus for the demolition is a request by the new property owners, who also own the nearby WaterWalk development.

For those who believe in property rights, if the owner of a building wants to tear it down, that is their right. The owners should not have to ask anyone’s permission. The owners should not have to overcome regulations created by busybodies who claim rights to property based on their assertion that they know what is the best use of others’ property.

507 South Market Wichita 2013-07-09 001But the city council doesn’t feel that way. Council members feel that they are best judges of what should be done with a property.

So it is strange to see the council consent to the request of these developers. The WaterWalk development has received many millions of taxpayer subsidy and has produced very little benefit so far. Even the editorial board of the Wichita Eagle can see that. I’m almost surprised that the council was not skeptical of the judgment of the property owners.

All members but Janet Miller (district 6, north central Wichita) voted in favor. James Clendenin (district 3, southeast and south Wichita) did not vote.

Availability of testimony in the Kansas Legislature

Despite having a website with the capability, only about one-third of standing committees in the Kansas Legislature are providing written testimony online.

On the Kansas Legislature website, each committee has its own page. On these committee pages there are links for “Committee Agenda,” “Committee Minutes,” and “Testimony.” But in most cases there is no data behind these links.

In particular, the written testimony and informational presentations provided to committees would be of interest and value to citizens. Most committees — perhaps all — require conferees to supply a pdf or Microsoft Word version of their testimony in advance of the hearing. These electronic documents could be placed online before the committee hearing. Then, anyone with a computer, tablet, or smartphone could have these documents available to them.

Having committee testimony online would be extremely useful for those who attend hearings. Often there is only a limited number of printed copies of testimony available, so not everyone gets a copy.
This would not be difficult to accomplish. It would cost very little, perhaps nothing.

Plus, citizens could access these documents. Of note, many organizations that regularly testify before the legislature make their testimony available on their own websites. Examples include Kansas Association of School Boards and Kansas Policy Institute.

Publishing testimony online would be an easy matter to accomplish and would be a great help to those following the legislature. It would cost very little or nothing.

Following is a list of all standing committees of the legislature and whether they have any testimony online for the 2015 session. A notation of “Yes” does not imply that all testimony is available online. It means that I found some testimony. Some committees are not listed as they do not meet for the purpose of receiving testimony. (Calendar and Printing in the House is an example.)

Of the 40 standing committees that I examined, 26 do not provide any testimony online.

Download (PDF, 30KB)

Transparency in the Kansas House of Representatives: Some success

Last week the Kansas House of Representatives took votes on several amendments to its rules regarding transparency and understandability of the legislative process. Of the three most important amendments, two passed. The amendment that failed, however, was much more important than the other two.

The important amendment — the record all votes amendment — failed 51 to 67. This would have required that every non-trivial vote be recorded. Currently many important votes are by voice only, and no recording is made of who voted which way.

The limiting hours amendment passed 69 to 49. This would prevent the late-night sessions, where procrastination by the legislature has resulted in important business being conducted in the early morning hours.

The bundling amendment passed 82 to 35. This would prevent many unrelated bills being presented together for a single vote.

I’ve prepared a list of legislators and their votes on these amendments. I’ve also assigned weights to these votes, as one — the recording all votes amendment — is much more important than the others. So each member has a computed score, with higher numbers meaning the legislator is more concerned about operating transparently as opposed to the current ways. 42 Members voted in favor of transparency on all three amendments. But 34 voted against all three. The latter group includes the Speaker of the House, the Speaker Pro Tem, and the Majority Leader.

Looking forward: Will the Kansas Senate consider any of these reforms?

Download (PDF, 45KB)

WichitaLiberty.TV: Radio show host Joseph Ashby

In this episode of WichitaLiberty.TV: Radio talk show Joseph Ashby appears to talk about transparency in the Kansas Legislature and the State of the City Address for Wichita. View below, or click here to view at YouTube. Episode 73, broadcast February 1, 2015.

The video of Titus referred to is now available here.

Judicial panel used cherry-picked data in Gannon decision

From Kansas Policy Institute.

Judicial panel used cherry-picked data in Gannon decision

By David Dorsey

(w)e conclude that the Kansas K-12 school finance formula still stands as constitutionally inadequate by its failure to assure and implement adequate funding to meet and sustain a constitutionally adequate education as a matter of sound expert opinion from those with relevant and reliable expertise and experience with the Kansas K-12 school system.(emphasis added)

Thus is the opinion, filed December 30, 2014, from the Shawnee County District Court three-judge panel as tasked by the Kansas Supreme Court pursuant to their decision in Gannon v. Kansas in March of 2014.

We reported in a previous KPI blog that the unspecified underfunding of K-12 public education in Kansas identified in this decision is at least $548 million. The judges based their opinion on several categories of adequacy they deemed relevant to the case. One such category in the decision is entitled Adequacy As A Matter Of Student Performance (pp. 20-48). The judges included as its linchpin evidence an interview with Kansas City, Kansas USD 500 superintendent Dr. Cynthia Lane. Dr. Lane provided testimony regarding how a federal grant enabled Emerson Elementary, a USD 500 school, to significantly increase student performance.

In short, Emerson Elementary is a small K-5 school. Several years ago, it gained notoriety for being declared the lowest performing elementary school in Kansas. As such, it was awarded a School Improvement Grant (SIG) from KSDE, authorized by the No Child Left Behind law. The school was given nearly $3 million over a three-year period (2010-11 to 2012-13 school years) to improve state assessment test scores. Dr. Lane testified that “fewer than 30 percent” of the students met state standards in math and reading prior to receiving the grant. According to demographic data published by KSDE, Emerson has about 95% economically disadvantaged students. While Dr. Lane testified that Emerson is ethnically “about 50 percent African American and about 48 percent Hispanic,” KSDE reported that the ethnic breakdown is about two-thirds Hispanic, one-quarter African American and less than 10% white. She told the court that over the life of the grant Emerson’s students performed “on both the reading and math state assessment to have more than 85 percent … meeting or exceeding expectations just in the last three years. It’s a remarkable story.”

Apparently the court agreed, afforded to say:

Given the continuing grade advancement and migration upwards of K-12 schoolers during their school careers, it seems but obvious that for educational advancement, much less the maintenance of results accomplished prior with the earlier funding initiatives implemented, but now abandoned, that the revenue streams which supported those results in that period of favorable funding needed to be continued to be provided in order to properly educate the continuing stream of new faces going forward, either initially entering the school system or advancing in grade. No evidence or proffer of evidence supports otherwise. (pp. 39-40, emphasis not added)

Translated: More money = greater student achievement, and there is no evidence to the contrary.

I will now proffer contrary evidence, a much less remarkable story that should have been proffered in the original court case: Northwest Middle School.

The same year Emerson Elementary was awarded its SIG, another USD 500 school, Northwest Middle School, was awarded a similar grant with a higher amount of $4.77 million. Northwest has similar minority and economically disadvantaged populations to Emerson Elementary (just over half African American and just over one-third Hispanic and 98% low income). But the outcomes pursuant to the SIG were very much dissimilar, indeed.

The following table and the accompanying graph show how Northwest Middle School scored on the state reading and math assessments for the three years prior to receiving the SIG and during the three-year implementation of the grant.

Northwest Middle school from KPI 2015-01

As the graphics show, achievement at Northwest had an uptick in both math and reading the first year of the grant, but then fell off dramatically the following two years. To put their performance in perspective the following graphs compare Northwest to Rosedale Middle School (the USD 500 school most comparable to Northwest according to KSDE) and the USD 500 district as a whole.

Northwest and Rosedale from KPI 2015-01

In reading, Northwest underperformed both Rosedale (which did not get a SIG) and the district as a whole both prior to and after receiving the grant. The trend and gap between Northwest and Rosedale remained amazingly consistent throughout this period. The picture in math is a little different. Northwest students maintained a slight advantage over Rosedale throughout the grant period and nearly eliminated the gap with the district as a whole. However, the overall trend is downward, with just over 40% of the Northwest middle schoolers proficient in math as of the last recorded state assessments.

It is safe to say that in terms of achievement, that $4.77 million granted to Northwest Middle School in Kansas City, Kansas didn’t buy much. This is evidence that, once again, more money does not inherently make a difference in student outcomes. This nationwide study conducted by the Heritage Foundation supports that contention. Even Kansas’s own Legislative Post Audit says in this report (p. 107) that a correlation between increased funding and increased outcomes is inconclusive.

As a 20-year teaching veteran, I know it’s not the money that makes a difference in student achievement. It’s commitment by students, parents, teachers, principals and administrators to make it happen. Trying to quantify that in dollar terms is a fool’s errand. If the increase in education funding prescribed in the most recent Gannon decision were to become a reality, it would mean a nice raise for teachers and likely more administrators, but student outcomes would remain flat and achievement gaps would continue. Think of it as Montoy redux.

Clearly, the judges got it wrong. Let’s hope their decision gets overturned on appeal and an end is put to this seemingly endless carousel of education funding lawsuits. The citizens of Kansas deserve better.

This is how much the Kansas Legislature wants Kansans to know

Not much.

Currently, the proceedings of the Kansas Senate and House of Representatives are not available on video. The audio is broadcast on the internet, but it’s live only. No archiving. You must listen live, or figure out some way to record it on your own. It’s possible, but beyond what most people are willing to do. Given the unpredictable schedule of the legislature, you can’t simply set a timer to start at a certain time each day.

Video of the proceedings would be great. Even better is archived video, where a person doesn’t have to watch live. But these options are expensive. The expenditure would be worthwhile, but there doesn’t seem to be much desire to spend on this.

Based on this tweet, we know the attitude of Rep. Dan Hawkins of Wichita is disrespectful to Kansans who want to follow the Legislature.
Based on this tweet, we know the attitude of Rep. Dan Hawkins of Wichita is disrespectful to Kansans who want to follow the Legislature.
But for eight dollars per month the legislature could make its audio proceedings available to listen to at any time.

For eight dollars per month at least one podcast hosting company offers an unlimited plan. Unlimited storage, and unlimited bandwidth. That’s just what is needed. Since the audio of the proceedings is broadcast on the internet, it must pass through a computer somewhere. That computer could also be recording the audio. Once recorded, the process of uploading the audio to the podcast host is a trivial procedure. If not being recorded, any number of open source (free) applications like Audacity can do the recording.

But neither Kansas legislative chamber records their proceedings, according to the Secretary of the Senate and the Chief Clerk of the House.

This is so simple. It is almost without cost. It would have great benefit.

Interns can do this.

But the Kansas Legislature doesn’t do this.

This is how much your legislative leaders want you to know.

Wichita city council candidate forum

At a meeting of the Sedgwick County Republican Party, Republican candidates for Wichita city council districts 4 and 5 spoke. January 22, 2015. For district 4 the candidates are Jeff Blubaugh and Josh Shorter. For district 5, Gary Bond and Bryan Frye. Video courtesy Mike Shatz of Kansas Exposed. View below, or click here to view in high definition at YouTube.

Ray Merrick on the gotcha factor

The Kansas House of Representatives, led by its Speaker, decides to retain the ability to cast votes in secret.

On the Joseph Ashby Show Kansas House of Representatives Speaker Ray Merrick appeared to discuss several issues, one being an issue regarding legislative procedure in Kansas. In particular, there is a movement to have all votes by members recorded, including those in committee. Ashby asked “Can we record all those committee votes and have that available online?”

In a response that held a chuckle by Merrick — you can tell he isn’t comfortable with this topic — the Speaker said that his chairs run their committees, and they have the ability to record the votes in their committees, if they desire. But he said there are a lot of “gotchas.”

The speaker also said that every vote on the House floor is recorded. He clarified that as “final action” votes that are all recorded. It’s good that he made that clarification, as there are many voice votes on the floor of the House that are not recorded, and no one knows who voted each way. Most are inconsequential, but many are not.

The move to have all votes recorded is popularly known as the “Rubin Rule,” promoted by Representative John Rubin.

What is troubling is the admission by Merrick that if all votes are recorded there could be “gotchas.” As Speaker of the House, he is the one person who can lead reform of the legislative process. And it needs reform.

The gotchas referred to are votes that may be taken for reasons other than genuine legislative intent. There may be votes that are for show only. There may be votes that are simply preening for advertisements, either positive or negative ads. Legislators may vote in a way other than what they really believe. None of this is good.

The gotcha votes are a symptom of a larger problem. When legislative proceedings are complicated, when votes don’t really mean what they seem to mean, when citizens can’t easily understand the proceedings, we lose confidence in government. The understanding of legislative process remains in the hands of politicians, staff, and lobbyists, plus a few journalists who try to explain it.

We see the “omnibus” bills, which cover many topics. A vote for or against such a bill means very little, because there may some things legislators agree with, and some they don’t. But the entire package is forced upon them. Maneuvers like this allow Kansas Governor Sam Brownback, on the campaign trail, to say that his opponent Paul Davis voted against increasing school funding. This is true, but only because the bill contained other subjects. Everyone knows that Paul Davis wanted more school spending. But he couldn’t — at least he didn’t — vote in favor of that because the spending legislation was mixed with other legislation that he didn’t support.

We are left with the realization that we don’t conduct politics in a straightforward manner, where what politicians do and say actually reflects their values, and that anyone can see these values. Today the tradition continues. The Kansas House of Representatives failed to pass an amendment offered by Rubin to require recorded votes on all but trivial matters. As a result, it will be easy to know how your representative voted on the state fish of Kansas, but on important matters like school choice, you may never know.

On roll call, the vote was: Yeas 51; Nays 67; Present but not voting: 0; Absent or not voting: 7. Those with leadership positions are in boldface.

Yeas: Anthimides, Becker, Bollier, Bradford, Bridges, Bruchman, Couture-Lovelady, Campbell, Carmichael, B. Carpenter, Clark, Clayton, DeGraaf, Dierks, Doll, Esau, Ewy, Finch, Finney, Gallagher, Garber, Grosserode, Hedke, Hibbard, Highberger, Hildabrand, Hill, Hineman, Houser, Houston, Jennings, K. Jones, Kiegerl, Lusk, Macheers, O’Brien, L. Osterman, Ousley, Peck, Read, Rhoades, Rooker, Rubin, Scapa, Sloan, Sutton, Swanson, Trimmer, Ward, Whipple, Whitmer.

Nays: Alcala, Alford, Ballard, Barker, Barton, Billinger, Boldra, Brunk, Burroughs, Carlin, W. Carpenter, Claeys, Concannon, Corbet, Curtis, Dannebohm, Davis, Estes, Francis, Frownfelter, Gonzalez, Hawkins, Hemsley, Henderson, Henry, Highland, Hoffman, Huebert, Hutchins, Hutton, Johnson, D. Jones, Kahrs, Kelly, Kleeb, Kuether, Lane, Lunn, Lusker, Mason, Mast, McPherson, Merrick, Patton, Pauls, Phillips, Powell, Proehl, Ruiz, Ryckman, Ryckman Sr., Schroeder, Schwab, Schwartz, Seiwert, Smith, Suellentrop, Thimesch, Thompson, Tietze, Todd, Vickrey, Victors, Waymaster, Williams, Wilson, Wolfe Moore.

Present but not voting: None.

Absent or not voting: Dove, Edmonds, Goico, Kelley, Moxley, Sawyer, Winn.

On Kansas tax experiment, we do know what doesn’t work: High taxes

Those who criticize lower Kansas tax rates tax rates as an experiment that may not work should be aware that we know with certainty what hasn’t worked in Kansas.

There are a number of ways to measure the performance of an economy. Often the growth of jobs is used. That’s fine. Here I present an alternative: the gross domestic product for a state. As with job growth, it is not the only measure of a state’s economy. GDP is a comprehensive measure, encompassing changes in population, employment, and productivity. The nearby static illustration from an interactive visualization shows Kansas (highlighted in blue) compared to some neighboring states.

Real GDP by state, Kansas highlighted, through 2013.
Real GDP by state, Kansas highlighted, through 2013. Click for larger version.
The top chart shows the change in GDP from the previous year. Kansas, highlighted in dark blue, is often near the bottom of a selection of neighboring states. The bottom chart shows growth in GDP since 1997. Again, Kansas is near the bottom of neighboring states.

Neither of these trends is recent. The Kansas economy has been underperforming for many years. We need no experiment to tell us this. It is in our data, and is part of the legacy of decades of moderate Kansas leadership.

real-gdp-state-2014-05-19-instructionsThe visualization holds data from the U.S. Bureau of Economic Analysis. You may click on a state’s name to highlight it. You may choose different industry sectors, such as government or private industry.

Click here to open the visualization in a new window. Visualization created using Tableau Public.

Sin-tax or vice-tax?

As Kansas considers raising additional revenue by raising the tax on tobacco and alcohol, let’s declare the end to governmental labeling of vice as sin, and people as sinners.

Smoking cigarettes and drinking alcohol are vices, not sins. Yes, some religions may label these activities as sins, and the people who engage in them, sinners. That is fine for them to do. But these sins — no, vices — harm no one except the person practicing them. Yes, I know that some will say that alcohol fuels aggression in some people, and that leads to harm to others. If they really believe that line of reasoning, they should call for the prohibition of alcohol rather than the state to profiting even more from its sale. (And we know how well prohibitions work [not].)

Say, if smoking and drinking are sinful, what does it say about the State of Kansas profiting from these activities? And what about the state having an even greater rooting interest in smoking and drinking, so there is more for the state coffers?

At one time gambling was illegal in Kansas. It was a sin, we were told. But then the state found it could profit from gambling, first through the lottery, and now through full-service casinos. But gambling is still illegal, unless the state controls it — and profits from it. What constitutes sin, it seems, is in the eye of the beholder — and profiteer.

Like the general sales tax, these special sales or excise taxes are regressive, falling hardest on those least able to pay. If we feel sorry for those who drink or smoke, how about this: Let’s offer them a good word or a hand up — not a kick in the teeth in the name of propping up state spending.

By the way: Many of those who may vote on these higher Kansas taxes have signed a pledge to not raise taxes. I wonder if we can place a tax on violating a pledge made to to voters.

Lysander Spooner wrote long ago:

Vices are those acts by which a man harms himself or his property.

Crimes are those acts by which one man harms the person or property of another.

Vices are simply the errors which a man makes in his search after his own happiness. Unlike crimes, they imply no malice toward others, and no interference with their persons or property.

In vices, the very essence of crime — that is, the design to injure the person or property of another — is wanting.

It is a maxim of the law that there can be no crime without a criminal intent; that is, without the intent to invade the person or property of another. But no one ever practises a vice with any such criminal intent. He practises his vice for his own happiness solely, and not from any malice toward others.

Unless this clear distinction between vices and crimes be made and recognized by the laws, there can be on earth no such thing as individual right, liberty, or property; no such things as the right of one man to the control of his own person and property, and the corresponding and coequal rights of another man to the control of his own person and property.

For a government to declare a vice to be a crime, and to punish it as such, is an attempt to falsify the very nature of things. It is as absurd as it would be to declare truth to be falsehood, or falsehood truth.

The philosophy and research supporting at-risk funding

From Kansas Policy Institute.

The philosophy and research supporting at-risk funding –- second in a series
By David Dorsey, Kansas Policy Institute

As I discussed in the first blog in this series, the state of Kansas provides almost $400 million additionally each year for at-risk funding to K-12 education. But what is the philosophy behind spending more taxpayer dollars to educate economically disadvantaged students? What does the research say? And how have states responded in their particular “at-risk” funding formulas? In this blog I will briefly answer address these questions.

It may sound like a dumb question, but why is it that it should cost more to adequately educate students who are disadvantaged? Sure, it seems intuitive, but where did that idea start and where is the research to back it up?

The genesis of the premise that it costs more to adequately educate the economically disadvantaged comes from a 1969 article in theNational Tax Journal by three economists who attempted to explain why the cost of all local public services was outpacing inflation in post-World War II America. (Sidebar: their article is proof that the concern over rapidly expanding government spending is not a recent phenomenon.) The researchers suggested that differing costs for public service across jurisdictions could partially be explained by environmental factors. Specifically regarding education, they say that outcomes might be a function of “the ‘basic intelligence’ of pupils, home backgrounds and neighborhood conditions.” That seems to be the phrase subsequent researchers have locked onto to justify the need for what has become commonly known as at-risk funding.

Many studies since then, including this 1997 study and this one from 2004, focused on spending disparities and “outcome” disparities among school districts within states. Again, without getting too “wonky,” studies showed school districts that were property poor, and as a parallel had lower per pupil spending (since school financing is primarily a function of property values), had lower outcomes than their counterparts with higher property values. And of course, those property poor districts had a disproportionate share of low income families/students. Therefore, the studies concluded that poor school districts needed more money to bring their students up to an acceptable minimum outcome standard. Researchers typically defined outcome as an index of a combination of standardized test scores and other indicators such as graduation rates.

But these studies have remained academic exercises. Even though it is now a given that poor students require more money to reach a given outcome, most states now have some form of additional funding based on economic status of students. However, the amounts states have allocated are all less than the research concludes are necessary.

Yes, politics and budget constraints trump academia.

The Kansas At-Risk Timeline

In 1992 a new law entitled the School District Finance and Quality Performance Act included a 5% weighting for students who qualified for free school lunch. That percentage was increased to 6.5% in 1997 and increased seven more times in the next decade to its current level of 45.6%. In 2006, two more categories of at risk were added. One was for schools with high percentages of at risk populations and/or an enrollment density of at least 212.1 students per square mile. The other additional category targeted money for students non-proficient in math and reading, but not eligible for a free lunch. (The non-proficient category was eliminated in 2014.) In dollar terms, the 5% in 1992 generated just over $13 million. That amount is now nearly $400 million.

The situation in Kansas is not dissimilar to those in other states. At least 35 states have a mechanism for additional funding generated by economically disadvantaged students. Most of them use some variation of the number of students who qualify for free OR free or reduced lunches through the National School Lunch Program (NSLP). NSLP has been the choice because it is an expedient and convenient proxy for determining economically disadvantaged students since qualification for free/reduced lunches is predominantly income based. And like Kansas many have weight values that are not static. A 2004 study out of the University of Wisconsin reports that nationwide the weights range from 15% in Vermont to 62.5% in Illinois, while a presentation last year to the Nevada state legislature showed a low of 9.15% in New Mexico to 180.0% in Georgia. The thing to keep in mind here is that it is nearly impossible to compare Kansas to other states because not all states use the same definition of disadvantaged and some use multiple factors to determine additional spending.

So how did Kansas go from a relatively modest 5% at-risk weighting in 1992 to a hefty 45.6% (with two additional categories) by 2006? That is the topic of the next blog.

Next: The political history of at-risk funding in Kansas

A Kansas calamity, at $15,399 per pupil

If things are so bad in Kansas schools at this level of spending, will any amount of spending satisfy school districts?

The Washington Post has presented a letter written by a schoolteacher in Wamego. Reading it, one might be excused for concluding that a massive calamity has befallen Kansas and Wamego specifically.

The letter is full of complaints: “Resources and staff are limited.” “Due to budget cuts, again, we are not able to have a full-time librarian, art teacher, technology teacher or music teacher.” “Schools are already struggling because of underfunding so adding more fiscal responsibility will only further cut programs.”

Click for larger version.
Click for larger version.
Given these complaints, we might look at the statistics for this district. Total spending for the school year that ended in 2014 was $15,399 per pupil. That’s lower than 2009, when spending was $16,154 (inflation-adjusted dollars). Spending in 2014 was up from the year before. See Kansas school teacher cuts, student ratios.

Spending supported by the state was $7,359 last year, down from $8,609 in 2009 (inflation-adjusted).

School Employment, USD 320 WamegoEmployment in this district has risen. Both the number of teachers and the number of certified employees is much higher than the 2009 — 2011 years. Correspondingly, the ratios of these employees to students has declined since then, although the pupil-teacher ratio has risen the past two years. See Kansas school spending visualization updated.

School Employment ratios, USD 320 WamegoThis school district has one certified employee for every eight pupils.

So: Some numbers are up, others are down, and some mostly unchanged. Taxpayers have to wonder, though: If a school district receives well over $15,000 per pupil each year, how much more does it want?

WichitaLiberty.TV: Wichita Eagle, Kansas Democrats, Kris Kobach on voting, and the minimum wage

In this episode of WichitaLiberty.TV: Wichita Eagle labels hold a clue to the newspaper’s attitude, Kansas Democratic Party income tax reckoning, straight-ticket voting could leave some issues unvoted, and how a minimum wage hike would harm the most vulnerable workers. View below, or click here to view at YouTube. Episode 72, broadcast January 25, 2015.

For Kansas schools, a share of your income is the standard

If Kansas personal income rises but the school spending establishment doesn’t get its cut, something is wrong, they say.

A publication by KASB is titled “Despite increases, share of Kansans’ incomes spent on public schools is at a 30-year low.”

In the document, KASB, the Kansas Association of School Boards, states: “According to new reports released by state agencies, total funding for Kansas school districts will exceed $6 billion for the first time this year. However, when compared to the total income of all Kansans, school spending will be at the lowest level in at least 30 years.”

This is not the first time KASB has made this argument. It’s a curious and ultimately spurious argument, that even though more will be spent on Kansas schools this year, it’s still not enough, as Kansan’s incomes rose faster than school spending.

Can we list the reasons why this argument is illogical?

1. What if Kansas income declined? Would KASB then call for reducing school spending to match? Not likely.

2. What if the number of students declined? Would KASB then be satisfied with spending less of our income on public schools? I don’t think so.

3. What if Kansans decided to spend more on private education rather than public education? Would KASB be satisfied if the total spent on education remained constant? Not likely, as KASB is only concerned about public education. Money spent on private education, in fact, is viewed by KASB as money that should have been spent on public schools.

Another indication of the perversity of this argument is that spending less of a share of our income to obtain a product or service is usually viewed as an advancement, not a situation to be cured. For example in 1929, American households spent 23.4 percent of disposable personal income on food. In 2013 it was 9.8 percent. This is a good thing. We have to work less in order to feed ourselves.

But to the Kansas school spending establishment, that’s not the way the world should work. If personal income rises, so too should Kansas school spending, they say. This is the entitlement society at work. When KASB writes “Kansas are spending less of their income to fund public education” it’s not meant as a sign of advancement. Instead, it is the Kansas school spending establishment complaining that it isn’t getting its share.

It’s a risky argument to make. Many Kansans are concerned that school spending rises while the quality of education falls. Kansas school vigorously oppose any sort of market-based reforms to Kansas education, such as school choice or treating teachers like private-sector employees are treated.

Now, Kansas schools argue that if hard-working Kansans increase their income, schools should get their cut too.

WichitaLiberty.TV: Wichita city government and upcoming elections

In this episode of WichitaLiberty.TV: We’ll take a look at how city government and council meetings operate. Then, there are city elections coming up. How can you get involved? How can you decide which candidates to support? View below, or click here to view at YouTube. Episode 71, broadcast January 18, 2015.

Medicaid found to increase, not decrease, emergency room usage

Those who continue to call for the expansion of Medicaid in Kansas should be aware of this astonishing finding, which contrary to what the conventional wisdom has told us about health care.

For years, it has been the number one talking point of Obamacare supporters. People who are uninsured end up getting costly care from hospitals’ emergency rooms. “Those of us with health insurance are also paying a hidden and growing tax for those without it — about $1,000 per year that pays for [the uninsureds’] emergency room and charitable care,” said President Obama in 2009. Obamacare, the President told us, would solve that problem by covering the uninsured, thereby driving premiums down. A new study, published in the journal Science, definitively reaches the opposite conclusion. In Oregon, people who gained coverage through Medicaid used the emergency room 40 percent more than those who were uninsured.

Continue reading at New Oregon Data: Expanding Medicaid Increases Usage Of Emergency Rooms, Undermining Central Rationale For Obamacare

Cato Institute scholars respond to the 2015 state of the union address

Cato Institute scholars Alex Nowrasteh, Aaron Ross Powell, Neal McCluskey, Mark Calabria, Bill Watson, Chris Edwards, Gene Healy, Chris Preble, Julian Sanchez, Pat Michaels and Trevor Burrus respond to President Obama’s 2015 State of the Union Address. View below, or click here to view in high definition at YouTube.

Video produced by Caleb O. Brown, Austin Bragg and Tess Terrible.

Effect of federal grants on future local taxes

Grants.gov logo“Nothing is so permanent as a temporary government program.” — Nobel Laureate Milton Friedman

Is this true? Do federal grants cause state and/or local tax increases in the future after the government grant ends? Economists Russell S. Sobel and George R. Crowley have examined the evidence, and they find the answer is yes.

The research paper is titled Do Intergovernmental Grants Create Ratchets in State and Local Taxes? Testing the Friedman-Sanford Hypothesis.

The difference between this research and most other is that Sobel and Crowley look at the impact of federal grants on state and local tax policy in future periods.

This is important because, in their words, “Federal grants often result in states creating new programs and hiring new employees, and when the federal funding for that specific purpose is discontinued, these new state programs must either be discontinued or financed through increases in state own source taxes.”

The authors caution: “Far from always being an unintended consequence, some federal grants are made with the intention that states will pick up funding the program in the future.”

The conclusion to their research paper states:

Our results clearly demonstrate that grant funding to state and local governments results in higher own source revenue and taxes in the future to support the programs initiated with the federal grant monies. Our results are consistent with Friedman’s quote regarding the permanence of temporary government programs started through grant funding, as well as South Carolina Governor Mark Sanford’s reasoning for trying to deny some federal stimulus monies for his state due to the future tax implications. Most importantly, our results suggest that the recent large increase in federal grants to state and local governments that has occurred as part of the American Recovery and Reinvestment Act (ARRA) will have significant future tax implications at the state and local level as these governments raise revenue to continue these newly funded programs into the future. Federal grants to state and local governments have risen from $461 billion in 2008 to $654 billion in 2010. Based on our estimates, future state taxes will rise by between 33 and 42 cents for every dollar in federal grants states received today, while local revenues will rise by between 23 and 46 cents for every dollar in federal (or state) grants received today. Using our estimates, this increase of $200 billion in federal grants will eventually result in roughly $80 billion in future state and local tax and own source revenue increases. This suggests the true cost of fiscal stimulus is underestimated when the costs of future state and local tax increases are overlooked.

So: Not only are we taxed to pay for the cost of funding federal and state grants, the units of government that receive grants are very likely to raise their own levels of taxation in response to the receipt of the grants. This is a cycle of ever-expanding government that needs to end, and right now.

An introduction to the paper is Do Intergovernmental Grants Create Ratchets in State and Local Taxes?.

David Theroux: C.S. Lewis on mere liberty and the evils of statism

Following is a very interesting lecture I recommend you view or listen to.

David J. Theroux, founder and president of The Independent Institute and the C.S. Lewis Society of California, discusses the writings of C.S. Lewis and Lewis’s views on liberty, natural law and statism.

The presentation was the keynote talk at the first annual conference of Christians for Liberty, that was held at St. Edwards University in San Antonio, TX, August 2, 2014. View below, or click here to view in high definition at YouTube.

For further discussion, see the following:

C.S. Lewis on Mere Liberty and the Evils of Statism,” by David J. Theroux

Secular Theocracy: The Foundations and Folly of Modern Tyranny,” by David J. Theroux

Wichita school district checkbook updated

writing checkData now available through November 2014.

USD 259, the Wichita public school district, makes its monthly checkbook register available. I’ve gathered the monthly spreadsheets made the consolidated available for analysis through Tableau Public.

The workbook (click here to open it in a new window) has a number of tabs, each showing the same data organized and summarized in a different way.

There are some caveats. First, not all school district spending is in this database. For each year, the total of the checks is in the neighborhood of $350 million, while the total spending for USD 259 is over $600 million. So there’s spending that isn’t included in this checkbook data.

Second, there are suppliers such as “Commerce Bank Visa BusinessCard.” Payments made to this supplier are over $7 million per year. These payments from the district’s checkbook undoubtedly pay a credit card bill, and this alone doesn’t let us know what the $7 million was spent on.

wichita-school-checkbook-data-quality-exampleThere are some data quality issues, as seen nearby.

USD 259 supplies this advice with this data: “The information you find may cause you to ask more questions. If so, the person to contact is Wichita Public School’s Controller, Barbara Phillips. She can be reached at (316) 973-4628, or at bphillips@usd259.net.”

Using the Wichita school district visualization
Using the Wichita school district visualization

Wichita Eagle labels hold a clue

How Wichita Eagle news stories label outside organizations is a window into the ideology of the paper’s newsroom.

A Wichita Eagle op-ed references a report released by two think tanks, Institute on Taxation and Economic Policy and Kansas Center for Economic Growth. (Kansas tax system among the most regressive, January 18, 2015.)

Here’s what readers can learn about the mindset of the Wichita Eagle. These organizations were named. Named and referenced without labels, adjectives, or qualifications that give readers clues about the ideology of the organizations.

That wouldn’t be remarkable except for noticing the contrast in how the Eagle labels conservative and libertarian organizations, most notably Kansas Policy Institute. A quick use of Google finds these mentions of KPI in recent Eagle pieces:

  • “Dave Trabert, president of the Kansas Policy Institute and an outspoken advocate for conservative education reforms”
  • “The Kansas Policy Institute, a free-market think tank linked to Koch Industries”
  • “The Kansas Policy Institute, a conservative think tank”
  • “Dave Trabert, president of the Kansas Policy Institute, a conservative think tank in Wichita”
  • “The Kansas Policy Institute, a conservative think tank based in Wichita”
  • “The Kansas Policy Institute, a conservative Wichita nonprofit organization”
  • “parallel recommendations from the Kansas Policy Institute, a conservative small-government think tank”

Always, a reference to Kansas Policy Institute includes a description of the organization’s politics. This is not inaccurate, as KPI is conservative and free-market.

Contrast with these recent excerpts from Eagle stories:

  • “Duane Goossen is a senior fellow at the Kansas Center for Economic Growth”
  • “said Annie McKay, director of the Kansas Center for Economic Growth”
  • “The Kansas Center for Economic Growth recently surveyed districts and analyzed data from the Kansas State Department of Education”
  • “A study by the Institute on Taxation and Economic Policy that Laffer disputes”
  • “said Matt Gardner, executive director of the liberal-leaning Institute on Taxation and Economic Policy”
  • “according to an analysis by the Institute on Taxation and Economic Policy, which is based in Washington, D.C.”
  • “Wednesday’s report by the Institute on Taxation and Economic Policy says”

You can see that one time the Eagle slipped and labeled ITEP as “liberal-leaning.” That’s actually a gentle characterization of ITEP, which in reality lies quite far on the left end of the political spectrum, as does Kansas Center for Economic Growth. But the use of a label shows that someone, at one time, was aware of ITEP’s politics.

So why does the Eagle routinely label Kansas Policy Institute, but never or rarely label Institute on Taxation and Economic Policy and Kansas Center for Economic Growth?

We know the editorial page of the Eagle is liberal, favoring progressive policies of more taxes and larger government over economic freedom almost without exception. We see too that the newsroom shares the same view, as shown by the sampling of references above. Labeling a source as conservative, free-market, and linked to Koch Industries is not meant by the Eagle to be a compliment.

A note: The two outfits the op-ed relied upon produce much content that is demonstrably wrong. The Tax Foundation has found many serious problems with the report that is the subject of the Eagle op-ed. See Comments on Who Pays? A Distributional Analysis of the Tax Systems in All 50 States (Second Edition). For KCEG, see Kansas school teacher cuts, student ratios.

Kansas Democratic Party income tax reckoning

A story told to generate sympathy for working mothers at the expense of Kansas Governor Sam Brownback is based on arithmetic that is not plausible.

In the response to the State of the State Address, Senator Anthony Hensley told a tale of woe.

He said, according to the printed remarks “Take for example the single mother who works full time and lives within her means, but still struggles to provide for her family.”

That’s someone we can empathize with. And, someone who is a key Democratic Party constituent. Here’s the burden she faced under Brownback’s tax plan, according to Hensley:

“She paid $4,000 more in income taxes due to the Governor’s plan,”

When I heard him say that on television, I thought surely he had misread or misspoke. $4,000 in state income taxes is a lot of taxes. You have to have a pretty good income to have to pay $4,000 in Kansas state income taxes, much less to pay $4,000 more, as Hensely said. But $4,000 is in the prepared remarks as made available by the Kansas Democratic Party. You’d have to think that someone proofread and checked the senator’s arithmetic, wouldn’t you?

Here’s the arithmetic. According to the Kansas income tax tables for 2013, in order to owe $4,000 in tax, a person filing as single or head of household would have to have “Kansas taxable income” of $87,451. That number is after subtracting $2,250 for each exemption. Let’s say there are three exemptions, allowing for the mother and two children. That means that the person’s “Federal adjusted gross income” would be $94,201. When computing this figure, there are some “above the line” deductions from total income on the federal form 1040, but the most common deductions are after this.

So we can be quite sure that Hensley’s “single mother who works full time and lives within her means, but still struggles,” and who owes $4,000 in Kansas income tax, earns at least $94,201. In all likelihood she earned much more than that, because Hensley said she paid “$4,000 more” this year. If this fictional person saw her Kansas income tax bill rise to $6,000 from $2,000 — that’s an increase of $4,000 that Hensely used — her income would need to be $128,265. That’s before we increase it even more to account for deductions.

Of note, a justice on the Kansas Supreme Court earns $135,905. The U.S. Census Bureau has a statistic named “Median household income, 2009-2013.” For Kansas, the value is $51,332.

I’m not an income tax expert. I could be off by a little. But I’m pretty sure Anthony Hensley and the Kansas Democrats are way wrong on this.

In Kansas, straight-ticket voting could leave some issues unvoted

There are several issues involved with straight-party voting. Kansas shouldn’t adopt this practice. But on the other hand, why not?

Kansas Secretary of State Kris Kobach is proposing to add an option for straight party ticket voting in Kansas elections. If enacted, voters would be able to take one action — one pull of the lever, so to speak — and cast a vote for all candidates of a party for all offices.

I see a few issues.

1. What if a party does not field a candidate for an office? A notable and prominent example is the recent election in which the Kansas Democratic Party did not field a candidate for a major office, that of United States Senator. What if a person pulls the “Straight Democratic Party” lever (or checks the box)? Who will get their vote for senator? Will the voting machine present an exception to the voter and ask them to make a selection for senator? Conceivably this could be done with voting machines, which are, after all, computers. But what about those who vote using paper ballots, like all the advance voters who vote by mail?

Other parties such as the Libertarian Party may also contribute to this problem, as the party may not have candidates for all offices.

2. The ballot items for judges on the Court of Appeals and Supreme Court are of the form “Shall justice so-and-so be retained? Yes or No.” If a voter votes a straight party ballot for the sake of time and convenience — so important to the Secretary of State — will the voter take the time to vote on these judicial retention matters? Or does anyone really know anything about these judges?

3. Initiatives are not associated with a party. An example is the recent Wichita sales tax question, where voters selected either yes or no. This matter was way down the ballot, below the judicial retention elections.

4. Like initiatives, referenda are not associated with a party.

5. Questions regarding the adoption of constitutional amendments are not associated with a party. They appear near the end of ballots.

6. Undervoting, that is, not casting a vote for any candidate for an office, is a perfectly acceptable choice. There have been many times where I thought that none of the candidates for an office were worthy of my vote. Therefore, I voted for no one. A related consideration: I don’t think Kansas needs an insurance commissioner. Therefore, I voted for none of the candidates.

The Wichita Eagle quoted Kobach: “I think it will improve participation in races down the ballot and it’s a matter of voter convenience too.”

But given the above considerations, do you think one-touch straight-ticket voting will improve participation in down-ballot issues? Move votes may be cast, but are they informed votes? No? Well, this isn’t the first time reason conflicts with what Kris Kobach wants to do.

On the other hand, if voters are informed of the considerations listed above and still want the option to cast a straight-party ballot with one touch, well, why not?

Unemployment insurance for school bus drivers

Should a Kansas state insurance program be expanded to cover entirely predictable events?

A bill introduced in the Kansas Senate would allow school bus drivers working for private bus companies to collect unemployment insurance during the summer months when school is not in session. Currently these employees are specifically excluded from eligibility for unemployment insurance benefits.

Is it a good idea to extend unemployment insurance benefits to seasonal workers like these bus drivers? Part of the answer depends on what we want the meaning of the word “insurance” to be. Usually, insurance refers to something that mitigates harm from unforeseen circumstances, like a fire, tornado, or automobile accident. These are unpredictable events, although their probabilities can be forecast with accuracy considering a large population. But for jobs and employment, most job losses are unanticipated. Companies don’t wish for a loss of business that leads to layoffs.

But it is certain that school bus drivers will not have a job driving a school bus in the summer. So should this predictable event be covered by insurance? It would be like having routine auto maintenance and a set of new tires every four years paid for by auto insurance. It’s not necessarily a bad idea, but it transforms insurance — something that protects against accidents — into something that pays for the routine and predictable.

The Unemployment Insurance Employer Handbook, published by the Kansas Department of Labor, explains how the rates that employers are charged for unemployment insurance premiums are determined. The rate is based on loss experience: “Experience rating helps ensure an equitable distribution of costs of the unemployment compensation program among employers. It is a procedure for varying employer rates and allocating costs of the Unemployment Insurance program in relation to the employer’s actual and potential risk with unemployment.” This is congruous with how many forms of insurance are priced. For example, drivers with bad driving records pay higher rates than those with good records, as their likelihood of future claims is greater, based on past experience.

So if the bill passes and bus drivers become eligible for unemployment benefits, we would expect the bus companies to have fairly high unemployment insurance rates. After all, they have many employees that would apply for and receive benefits on a regular basis. This higher insurance cost would be paid for by a private bus company. So is there an issue of public policy here?

First, I don’t know if the higher unemployment insurance rates the bus companies would pay would be sufficient to cover the cost of the unemployment insurance benefits the drivers receive. If not, then someone else — taxpayers — have to pay.

Second, who will really pay the bus companies’ higher unemployment insurance premiums? It’s likely the bus companies will try to pass along these higher costs to their customers. Those are primarily public schools, which, of course, are funded by taxpayers.

So yes, there is an issue of public policy. Costs will rise, and it appears that taxpayers will bear all, or nearly all, of the increase. There is the further consideration that an insurance program is converted into another entitlement program, again at taxpayer cost.

A possible solution is this: Schools may offer teachers an option to receive their pay during school months only, or spread across the entire twelve months of the year. Bus companies could do the same.

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

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