Kansas Governor

Kansas editorial writers aren’t helping

by Bob Weeks on April 11, 2013

Recently it has become fashionable for newspapers to carry editorials bemoaning the current state of affairs in Kansas, contrasting the current regime to a tradition of moderation in Kansas governance. In particular, Governor Sam Brownback is singled out for criticism.

Examples of such columns are Kansas 1861-2013 in the Hutchinson News, Kansas slipping away from its people in the Topeka Capital-Journal, and Which Kansas is that? in the Wichita Eagle.

The common thread in these articles is willing ignorance of the facts. I say willing ignorance because these writers ought to know facts. If they don’t know facts about the Kansas economy and schools, we have to wonder why they are writing editorials that will be read by thousands of Kansans?

Here’s a brief rundown of the state of Kansas:

Kansas population has been growing at a slower rate than the country. A chart is here.

Kansas has been growing jobs at a slower rate than many other states. Here’s a link to an interactive visualization of job growth in the states. You can compare Kansas to any other state or combination of states. Should we be satisfied with the performance of Kansas compared to other states over the past few decades? No, we shouldn’t be satisfied with our record during the period that these editorialists write about.

Kansas has been growing its private-sector gross domestic product at a rate slower than most states. An interactive visualization is here.

Kansas has lost ground in interstate migrants. Many more people leave Kansas for other states than move to Kansas, as can be seen here. In the 2012 United Van Lines migration study, Kansas is seen as “balanced.” But Atlas has more outbound shipments than inbound.

While Kansas newspaper editorial writers like to boast of outstanding public schools, a proper examination of NAEP scores finds that Kansas can’t do better than Texas, a state that we often compare with ourselves in a negative way. Comparing Kansas to national averages, Kansas performs well compared to other states in math and reading in grades four and eight, scoring better than the national average in all these cases. But if we look at the data separated by racial/ethnic subgroups, something different becomes apparent: Kansas lags behind the national average in some of these areas. A table of these figures is here.

Regarding Texas again: Editorial writers say that because Texas has no income tax, its property and sales taxes are higher. Perhaps. But overall, Texas collects less taxes from its citizens. In 2011 Kansas state government collected $2,378 in taxes for each person. Texas collected $1,682. Texas may have higher sales or property taxes than Kansas, but the total tax burden in Texas is lower.

Spending follows the same pattern. In 2011 Kansas state government spent $5,115 per person in total, with $1,974 in general fund spending and $130 in bond spending. For Texas the total was $3,718 spent per person in total, with $1,654 in general fund spending and $50 in bond spending. The lower level of spending means Texas has a less burdensome state government, which allows more money to remain in the productive private sector. In Kansas, we spend more on government.

The “sea of oil” and bountiful severance tax revenue that newspaper editorial writers say benefits Texas but not Kansas: In 2011 Kansas, which has a severance tax of its own, collected $42.54 in this form of tax for each person. Texas collected $104.29 per person in its severance tax. The difference between the two — $61.75 per person per year — is only a small portion of the difference between Kansas and Texas taxation.

I could go on. But the more facts one states, the more criticism one receives.

It’s not that what our governor is doing is perfect. It wasn’t the best course to single out certain forms of business organization to receive tax cuts. Everyone should have their taxes cut the same way.

Governor Brownback still meddles in the economy, supporting harmful policies like the renewable portfolio standard for electricity generation. The Hutchinson News editorial wrote of how “Kansas proved to be a state teeming with inventiveness, ingenuity, determination and a savvy sense of business” and mentioned iconic Kansas-founded companies like Cessna, Beech, Stearman, Coleman, Pizza Hut, and White Castle. But today our state is strangling entrepreneurs, expanding control over economic development under the Brownback regime. Kansas has expanded the realm of public-private partnerships to the detriment of entrepreneurship. Cities like Wichita implement new regulations over industries like parking lot striping, taxicab driving, and haunted house attractions.

Instead of moving to a modern pension system for state employees, we’re considering borrowing money to cover up the mistakes of the past, with no reform forthcoming and few lessons learned.

Most inexplicably, Governor Brownback was absent in this year’s debate over important school reform measures like charter schools and school choice. These are initiatives that are working in other states, but not in Kansas.

It isn’t supportive of our state (or county, city, or school district) to overlook facts in order to create a false impression of a prosperous state with successful schools. Yet that’s exactly what these newspaper editorials want us to do.

If we don’t learn the facts and if we don’t accept the facts, we don’t have a common base of understanding and a common starting point for debate. Even if the facts are uncomfortable — especially then — we must recognize where we’ve been and what is the actual condition of our state.

Hoping that Kansans won’t notice might be politically expedient. Both parties can be guilty of valuing political gain more than the health of Kansas. But it’s a severe loss to Kansas that these newspaper editorial writers will not recognize facts, and a shame that they prefer political attacks to reality.

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In Kansas, arguing about the wrong school issues

by Bob Weeks on February 18, 2013

School blackboard

Sunday’s Wichita Eagle makes a state-wide issue (literally) out of something that could self-regulate, if only we would let it.

The issue is what proportion of Kansas school spending finds its way “into the classroom” — whatever that means — and Kansas Governor Sam Brownback’s use of this statistic.

The front page Sunday article (Governor’s numbers come under question) spent over 1,000 words on the topic. It covers where Brownback got the number he uses, the controversy over how to classify spending as “classroom” or other, and troubles surrounding an advocacy group that pushed for more spending going to the classroom.

Why is this issue important? In Kansas, most children attend government schools that are funded and regulated by government. This means that how schools spend money is a political issue. There will be arguments.

In the private sector, however, we don’t see these types of arguments. Do we argue in public about how much the grocery store spends on administrative overhead compared to other spending? Of course not. The managers and owners of the grocery store are intensely interested in this issue. The public is too, but only in how the management of the grocery store affects their shopping experience.

If shoppers don’t like the way a store is managed, they shop somewhere else. Management may notice this and make changes that customers appreciate. If management doesn’t adapt, the store will likely close and be replaced by other stores that do a better job delivering what customers want.

Or, some shoppers may like a high level of management in a grocery store — one with more personal service. Some like a bare-bones store where you sack the groceries yourself. This variation in customer tastes and needs leads to what we observe: diversity in the types of grocery stores shoppers can choose from.

The point is that in the private sector, people get to choose what they like. They choose what’s best for them. But with our system of public schools funded and regulated by government, there is no choice. (Yes, you can escape the public schools and use others, but you still must pay for the government schools.)

There’s a factor that leads to this diversity of grocery stores and self-regulation focused on meeting consumers’ needs. It’s market competition.

But Kansas has no market competition in schools, unless you want to escape the system entirely and still pay for it. We have a very weak charter school law, meaning there are very few charter schools in Kansas. We have no vouchers or tax credit scholarships.

If we had these instruments of school choice in Kansas, government schools would face market competition. They would have to start being responsive to customers. We could allow schools to decide for themselves how much to spend on management and things other than the classroom. Market competition would guide schools in structuring their management and budgets to best meet the needs of schoolchildren and parents.

If we had school choice in Kansas, we would have a more diverse slate of schools for parents to select from. We could rely on the nature of markets to self-regulate schools like we rely on markets to regulate grocery stores.

We could quit arguing about things like how much is spent in the classroom, and we could actually focus on teaching children.

But the Kansas school education establishment doesn’t want that. That establishment fights every attempt to introduce even small elements of choice into Kansas. We’ll see this soon as several bills facilitating school choice are introduced in the Kansas Legislature.

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Kansas school efficiency task force report

by Bob Weeks on January 22, 2013

In an effort to spur greater efficiency in Kansas public schools, Kansas Governor Sam Brownback created a school efficiency task force. The task force has released its report, which may be viewed here.

While some of the recommendations are very useful and should be implemented, some are minor in nature, and some — especially the ones that would reduce the power of the teachers union — will be very difficult to implement. There is also a list of mostly generic “best practices,” such as “Look for savings on utilities.” The task force also solicited anonymous suggestions from the public, and a representative sample is included.

Two specific recommendations relate to the issue of the various funds schools use and their balances. This has been a contentious issue, with schools defending the need for large (and increasing) fund balances. See Kansas schools have used funds to increase spending for background.

School districts have complained that the state has been late in making its payments. School districts use this as an argument for the need for high fund balances. So it’s not surprising to see this recommendation: “Place a priority emphasis on the timely transfer of state payments to school districts in June and January.”

There’s also this recommendation: “Legislatively eliminate, reduce, and consolidate the statutory cash reserve accounts and separate fund accounts that currently exist, thereby ending the ‘use-it-or-lose-it’ policy and allowing the funding contained in each fund category to be more broadly spent across the full variety of educational requirements. Accounts that remain, including the General Fund, should be allowed a modest amount of carryover from year to year.”

The explanation tells us that the current system of accounts restricts school districts’ ability to effectively use funding. And obviously, “use-it-or-lose-it” is a bad policy.

There is also the recommendation to form a definition of what counts as “instructional” spending, and whether the current target of 65 percent instruction spending is the best goal.

In school bond issue campaigns, a popular selling point made to voters is that the state will pay for some of the bond payments. It’s pitched as free money, or at least as a way to get back the money the taxpayers have been sending to Topeka to pay for other school districts’ bonds. So another recommendation is to consider reevaluating this program.

The issue of accounting and data management is addressed, with examples of the state requiring reports that are “cumbersome, inefficient, and time-consuming” to provide. The reports calls for data to be trackable down to the building level, and made more readily available to the public.

There are also recommendations that are sure to be opposed by Kansas National Education Association (KNEA), our state’s teachers union. These include a review of teacher tenure, seen as limiting administrators’ ability to efficiently allocate resources. Instead of the strict salary schedule that is currently used, the report recommends a salary range, which could include factors like experience and area of expertise.

There is also recommended a reduction in the matters that are subject to negotiation with the union, specifically mentioning “work hours, amount of work, insurance benefits, force reductions, professional evaluation procedures, etc.” as no longer subject to mandatory negotiation.

Missing from the dialog

Perhaps it was not included in the mandate given to this task force, but missing from the recommendations is using the power of markets to improve the education of Kansas schoolchildren.

For example: Private sector firms don’t need to be told to “Look for savings on utilities.” The profit motive induces them to do things like this, either to earn a better return on investment, or in the case of non-profit institutions, to better serve more customers (students).

While public education spending advocates insist that schools shouldn’t be subject to the same competitive market forces that rule the business world, competition works wonders in states where it is allowed to exist. Since Kansas has a very weak charter school law (and therefore very few charter schools) and no school choice through vouchers or tax credit scholarships, Kansas schoolchildren don’t benefit from the dynamism that we see in other states.

We also don’t experience the cost savings that states with school choice see. The The Friedman Foundation for Educational Choice has found — over and over — that school choice programs save money.

Unfortunately, Governor Brownback has not expressed support for school choice programs, or even for charter schools.

Schools are sure to oppose most of the recommendations, even those that are the hallmark of good government. An example is a KSN Television news story which reported that Newton school superintendent John Morton thinks it is “a real concern” when citizens have access to data about government spending. This is a common reaction by government bureaucrats and officials. They prefer to operate without citizen scrutiny.

Finally, there is this irony: The Kansas school bureaucracy says that everything they do “is for the kids.” You might think that they would already be doing everything they can to increase school efficiency in order to benefit students. They have much of the power they need to do this. It’s time to see whether they’re actually willing to act in the best interests of Kansas schoolchildren, and for taxpayers, too.

Kansas Governor’s School Efficiency Task Force Recommendations

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Kansas judicial selection: The need for reform

by Bob Weeks on January 21, 2013

Kansas University School of Law Professor Stephen J. Ware appeared on the KAKE Television public affairs program This Week in Kansas to discuss the method of judicial selection in Kansas. Phil Journey and Chapman Rackaway appear as panelists. Tim Brown is the host.

In today’s debate the issue of judicial selection reform is usually characterized as strictly political. Now that Kansas has a conservative governor and a conservative legislature, it is said that conservatives want to remake the courts to suit their ideology.

That may be the motivation for many. But Professor Ware has advocated for reform for a long time, favoring a system of appointment by the governor with confirmation by the senate. Ware’s 2007 research paper on this matter, published by the Federalist Society, may be read at Selection to the Kansas Supreme Court. The opening sentence of this report starkly states the singular character of the process in Kansas: “Kansas is the only state in the union that gives the members of its bar majority control over the selection of state supreme court justices.”

At the time Ware wrote this paper and convinced me of the need for reform, Democrat Kathleen Sebelius had just been re-elected Kansas Governor. The senate — which would confirm the governor’s appointments — was firmly in the control of political liberals and moderates who would be sure to rubberstamp her pick. Rubberstamp — that’s a word we see used today by progressives to describe the machinery of Kansas politics at the state level.

Another paper by 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.

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Kansas Policy Institute on Kansas 2014 budget

by Bob Weeks on January 16, 2013

Kansas Policy Institute president Dave Trabert offered the following statement today regarding the release of fiscal year 2014 — 2015 budget proposal by Governor Sam Brownback:

On taxes: “HB 2117 was a great step in the right direction on taxes and we should absolutely continue to lower taxes on all Kansans. We applaud Governor Brownback’s efforts to eliminate income taxes in Kansas, but increasing sales taxes in July is not the way to do it. Completely eliminating the income may require a sales tax increase, but the rate cannot be determined until government stops giving away taxpayer money in the name of economic development and gets spending under control.”

On spending: “We can’t know how much government should spend until we actually look for ways to be more efficient. Spending less is not about cutting service, it’s about providing the same or better service at a better price. The Governor’s budget does so in some places but it should go further. 31 states are estimated to have spent less per-resident than Kansas in 2012 so we can certainly find ways to be more efficient — especially given that general fund spending has increased 32% since 2005.”

“We often hear laughter when we ask people around the state if government operates efficiently and a recent public opinion poll we conducted with SurveyUSA backs this up. In fact, 83 percent of Kansans believe the state government could operate five to 10 percent more efficiently.”

On K-12 Finance and Gannon implications: “The $654 increase in Base State Aid Per-Pupil called for in the Gannon court ruling, would bring total taxpayer aid to schools to $14,045 per-pupil this year. It costs a lot of money to operate our schools, but it’s how the money is spent that matters, not how much. No study has ever been conducted in Kansas to determine what it costs for students to achieve required outcomes and have schools organized and operating in a cost-effective manner. Legislators have an obligation to fund schools, but they also have an obligation to do so in a way that makes effective use of taxpayer money.”

“The education focus should be on outcomes. Billions in increased aid to schools over the years have not improved student achievement on independent national exams. Even state assessments show that only 56 percent of 11th grade students read grade-appropriate material with full comprehension. More money isn’t the answer to raising student achievement. It’s time to start looking for real solutions..”

On KPERS: “Gov. Brownback clearly recognizes that last year’s KPERS reform didn’t go as far as it needs to. So even though it isn’t formally in the budget a move to a 401(k) style plan for new hires and non-vested current employees stops the likely $15 billion KPERS hole from getting deeper and, if properly structured, starts filling it back in.

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Reaction to Kansas State of the State Address, 2013

by Bob Weeks on January 16, 2013

Governor Sam Brownback delivered his State of the State Address on January 15, 2013. The as-prepared text of the address may be read here.

Americans for Prosperity-Kansas:

“Americans for Prosperity-Kansas continues to support the eventual elimination of the income tax in Kansas, and we applaud Gov. Brownback for making this a priority in 2013″” said AFP-Kansas state director Derrick Sontag. “We would support a trigger mechanism for future rate reductions in the proposal rather than legislators continuing to seek a reduction in the rate every year.

“We have no doubt that continued reductions in the income tax rate will help create economic activity, expand the tax base and create jobs.

“We’re coming off a years-long cycle in which excessive government spending stifled Kansas families and resulted in stagnant population growth, taxpayers migrating to other states, and the loss of tens of thousands of private sector jobs. The Governor said it best when he pointed out that some choose to grow spending rather than jobs.

“We look forward to working with legislators and the Governor in the coming session on other important areas of reform such as judicial selection — giving citizens of Kansas more direct input in the judges who sit on the Kansas Supreme Court and Kansas Court of Appeals. Senate confirmation or elections of judges would certainly create a more transparent process that is accountable to the people.”

Senate Democratic Leader Anthony Hensley and House Democratic Leader Paul Davis issued the following statement. Hensley is wrong about the school spending figures, as I report in Kansas Democrats wrong on school spending.

“Governor Brownback’s $2.5 billion dollar self-inflicted budget shortfall, a result of his irresponsible tax policy, has brought Kansas to the edge of its own fiscal cliff. He has brought Washington, D.C. politics to Kansas, and they do not belong here,” said Hensley. “Four months into office, he signed the single largest cut to public education in Kansas history. In just three school years, statewide funding for K-12 education was cut nearly $442 million, or a cut of $620 per child. It is no surprise that a three-judge panel issued its ruling last Friday that the Legislature isn’t meeting its K-12 school funding duty under the Kansas Constitution. Members of the Legislature took an oath just yesterday swearing to uphold the Constitution of Kansas. What is our oath worth if we renege on our constitutional duty to adequately and fairly fund our schools?”

The 2013 legislative session will likely be marked by three major issues: a budget deficit created by tax breaks for the wealthy and big corporations, a court order to restore funding to Kansas public schools and a fundamental debate over checks and balances in Kansas.

“Democrats want to be part of the solution to this problem, but we cannot support proposals that make the gap between the rich and the middle class even wider. The most troubling part of the Brownback Agenda is the extent to which it brings Washington-style politics to Kansas. We need Kansas based solutions to our Kansas problems, which means funding for Kansas schools, lower property taxes, and proposals to create good paying jobs for middle class families,” said Davis.

Some tweets:

Someone doesn’t understand the difference between “deductible” and “refundable”:

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Kansas traditional: the platform

by Bob Weeks on July 30, 2012

Will “traditional,” “reasonable,” “moderate” Kansan Republicans be defeated in the August 7, 2012 Kansas primary? Would that defeat be good or bad for Kansas?

Kansas newspapers have featured an op-ed by H. Edward Flentje of the Hugo Wall School of Urban and Public Affairs at Wichita State University. (A referendum on Brownback, July 27 Winfield Courier.) His tone, as is that of many newspaper editorials appearing through the state, is that it is vital to preserve the “traditional” moderate Republican approach to Kansas government, as it is those who “believe government has a more affirmative role in assuring a high quality of life for Kansans.” The implication, made explicit later on, is that the rise of a conservative majority in the Kansas Senate would be bad.

Here’s one area in which Flentje is incorrect. He characterizes the moderates as “Republican legislators who may exercise independent judgment on alliance issues.” He and others use the phrase “march in lockstep with [Kansas Governor Sam] Brownback” as criticism of conservative challengers, who they say will be merely puppets of Brownback, incapable of independent thought.

But when we look at the record of “moderate Republican” legislators, we usually see them “marching in lockstep” with the Kansas National Education Association, labor unions — especially public employee unions, trial lawyers, and other assorted special interest groups.

Following are the areas in which Flentje says Brownback wants legislators to “march in lockstep” and whether it would be good to maintain these policies that Flentje prefers.

“Eliminating state income taxes and seeking higher sales and property taxes to address state obligations, consequently shifting the state tax burden to lower-income residents.” I’m not aware that conservatives are pressing for higher sales and property taxes. There has been some difference of opinion over ending the temporary statewide sales tax increase, and that may play out in the next legislative session. The best way we can address state spending — living up to the obligations Flentje alludes to — is to streamline Kansas government. But moderates oppose this. See Kansas reasonable: Government reform.

The best way to pay for government services is to grow the economy and create jobs. But Kansas has performed poorly during the past decade under the reign of “traditional” moderate Republicans (and their coalition with Democrats) in the House and Senate. Just a few years ago, after a decade of moderate policies, Kansas was the only state to have a loss in private sector jobs over the past year.

“Restraining state spending on public schools and shifting school funding to property taxes at the local level.” Moderates oppose one way we can save on schools: school choice through charter schools, vouchers, or scholarship tax credits. All these programs reduce the burden of school spending on both the state and school districts. Other than this, moderates “march in lockstep” with those who constantly call for more school spending, even to the point of suing the state’s taxpayers for more money. They join with the special interests who fight against accountability measures. They also fight against an honest assessment of the condition of public schools in Kansas, and when you look under the covers, it’s not the pretty picture that education bureaucrats paint. See Kansas reasonable: The education candidates.

“Cutting funding for the arts and public broadcasting.” Those who seek money from government for arts are a special interest group. They make an economic case that government spending on the arts is good for the economy, but there’s no evidence that this form of government spending is different from any other. Instead, it takes tax money from people and forces them to spend it on things they may not want. Instead, government bureaucrats — listening to narrow special interest groups — decide how to spend money.

“Shifting the funding of state universities to students and their families through higher tuition and fees.” What a novel idea! Expecting those who use a service to pay for it!

“Challenging judicial independence and enacting measures that make state judges more susceptible to outside political influence.” Kansas judicial selection is highly politicized and undemocratic, with out-sized power concentrated in a special interest group: lawyers. Among the fifty states, Kansas is at the undemocratic extreme in the way we select judges, and moderates support this. See Kansas reasonable: Judicial selection.

“Placing out-of-state, for-profit insurance companies in charge of managing aid to elderly, disabled and vulnerable residents.” Outsourcing is one way that governments can increase quality of service and reduce cost. There’s no reason to think that just because a service is presently provided by the state, that is the best way to provide it. In fact, waste and inefficiency are characteristic of government. Far from being a rip-off or waste of taxpayer monies, the profit motive — found only in the private sector — is a reliable motivator. The challenge of the state will be to make sure that companies profit when they provide good service, efficiently.

“Spending more time finding ways to limit a woman’s access to abortion and targeting with legal action any group that supports such access.” My focus is primarily on issues of economic freedom. Others will have to weigh in on this issue.

“Punishing party members who dare to cooperate with Democrats on legislation.” Both parties do this. Ask Senator Chris Steineger how the Kansas Democratic Party feels about those who don’t toe the party line.

Whether the election is or is not a referendum on Kansas Governor Sam Brownback, Kansans need to reflect on the legacy of traditional Republican leadership and governance and realize this has not been the path to jobs and prosperity.

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Tax cuts = extra income? Commenting on Kansas tax reform, Wichita Business Journal editor Bill Roy said “Certainly for business people, it’s the elimination of the income tax on business income. … They’ll appreciate having that extra income that they can use on other things in their business.” I don’t know how much thought Roy gave to these remarks, but his easy likening of lower taxes to extra income is symptomatic of the problem: We have become accustomed to government having a claim on our income. In the rare instances where government gives up part of that claim, we taxpayers are supposed to view it as a gift, as something extra. Roy’s remarks were broadcast on the KPTS television program Impact while discussing Kansas Governor Sam Brownback’s tax reform plan. … Similar lines of thinking are revealed whenever it is said that tax cuts “cost” the government. The proper way of thinking is that government is a cost to the people, and whenever the cost of government is reduced, we experience a benefit. That is, we the people, as contrasted to the political class. If the government cuts taxes, the government gives us nothing. It simply takes less of what is ours in the first place. … I’m also reminded of former Kansas Governor Kathleen Sebelius, who when commenting on a reduction of the Kansas business machinery tax, said “We’re not giving away money for the sake of giving it away.”

Revenue-neutral tax reform. If Kansas tax reform is to be revenue-neutral, that — by definition — means that if one person pays less, someone else has to make up the difference. Peter Hancock of Kansas Education Policy Report has such an example in his post Winners and Losers in Brownback’s Tax Plan. A low-income family would experience a tax increase of $442 (mostly through loss of the Earned Income Tax Credit), while a middle class family with business income would save about $300. These examples were released by Kansas Democrats. … Hancock also reports that the Brownback administration’s projections assume 5.9 percent annual growth, instead of the standard 4 percent used by the Consensus Estimating Group. A common criticism of President Barack Obama’s administration is that its projections are based on an overly-optimistic rate of future economic growth. We shouldn’t do the same in Kansas.

Peterjohn to speak. This Friday (January 20th) the Wichita Pachyderm Club features Sedgwick County Commissioner Karl Peterjohn. He says he will speak on “critical national problems we are facing with a historical perspective.” The public is welcome and encouraged to attend Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club. Upcoming speakers: On January 27, 2012: The Honorable Jennifer Jones, Administrative Judge, Wichita Municipal Court, speaking on “An overview of the Wichita Municipal Court.”

Southwest to fly to Wichita. Since it gobbled up AirTran, the question has been: Will Southwest Airlines provide service in Wichita? Now we know the answer is yes. While the airline has recently started service in some markets without the large, ongoing subsidies that Wichita and the state provide, that won’t be the case in Wichita, according to news reports. … Last year I reported on Southwest starting service in Charleston, South Carolina, whose metropolitan area population is similar to that of Wichita: “In the Charleston situation, there evidently won’t be the massive state-supplied subsidy as we have in Kansas. But Southwest will still get a leg up: A USA Today story quotes a Charleston airport official saying ‘Southwest didn’t want a state subsidy, but was interested in the airport’s incentives a temporary waiver of landing fees, up to $10,000 to market new flights, and up to $150,000 for other start-up costs.’” That’s a lot less than what Wichita and Kansas offer. .. Will the need for subsidies last? About this time last year, Wichita City Manager Robert Layton said “The Southwest business model doesn’t require subsidies over a long period of time.” Of course, we were told that the subsidy for AirTran would be required for only a short period, but the program grew and grew until it is now considered part of our state’s transportation infrastructure.

Kansas economic development incentives. In an Insight Kansas column, Professor Chapman Rackaway of Fort Hays State University concludes: “No state will abandon the tax-incentive recruitment strategy for fear of being the only business suitor with nothing to offer. But the tax-incentive strategy remains a risky one, and perhaps it is time for Kansas and other governments to re-evaluate the practice.” … Earlier in the article he cites the lack of oversight among the states: “States and localities are regularly in competition with one another for scarce jobs. However, a 2001 article in Economic Development Quarterly reported that, despite the billions distributed annually as incentives, states were doing little evaluation of incentives’ effectiveness or their return on investment.” (Kansas has done a little of this; see here. A quote from the Kansas audit: “Most studies of economic development incentives suggest these incentives don’t have a significant impact on economic growth. The literature we reviewed concluded that, thus far, negative and inconclusive findings are far more numerous than positive findings. Most reviews of economic development assistance find few results are achieved — a theme that audits in Kansas and other states commonly find, as well. Findings of ineffectiveness include promised jobs weren’t created, return on investment is low or negative, and incentives offered weren’t a determining factor.” But also: “The literature also suggests that economic development incentives must be offered to remain competitive with other states.”) … But I think there is a way out. In his paper Embracing Dynamism: The Next Phase in Kansas Economic Development Policy, Professor Art Hall of the Center for Applied Economics at the Kansas University School of Business wrote this regarding “benchmarking” — the bidding wars for large employers that are the subject of Rackaway’s article: “Kansas can break out of the benchmarking race by developing a strategy built on embracing dynamism. Such a strategy, far from losing opportunity, can distinguish itself by building unique capabilities that create a different mix of value that can enhance the probability of long-term economic success through enhanced opportunity. Embracing dynamism can change how Kansas plays the game.”

Story is broken. “Prof. Art Carden responds to ‘The Story of Broke,’ a recent video by the creators of ‘The Story of Stuff.’ In ‘The Story of Broke,’ Annie Leonard claims that the government isn’t actually broke. Rather, the government just wastes resources on the wrong things like subsidies to the dinosaur economy and war. She claims that the government should change its ways, and instead, subsidize firms that will bring us the future we really want. Art Carden agrees with Leonard that war and subsidies are wasteful, but is skeptical of notion that there is one unified vision for the future. To Carden, everyone has a different vision for the future. Our path to the future, he argues, is determined by the interactions of billions of unique individuals pursuing their own objectives. … Carden concludes that government spending won’t buy a brighter future. A brighter future will emerge when people are allowed to spend money on things they care about. Put another way, positive change will come from billions of people cooperating freely and voluntarily with one another, not from pushing trillions of dollars through a broken political process.” This video is from LearnLiberty.org, a project of Institute for Humane Studies, and many other informative videos are available.

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Kansas spending is the problem

by Bob Weeks on January 13, 2012

While Kansas Governor Sam Brownback has some good ideas in his State of the State address and tax reform plan, there are two important points that need to be made.

First, the governor has said that tax reform is designed to be revenue neutral. That goal means that if one person pays less, someone else has to pay more. It also means that the state’s thirst for spending is not quenched. It is continued spending that prevents us from dramatically reducing or eliminating income tax rates in Kansas.

Critics of lowering income tax rates point to the advantages that states with no income tax have. Texas is often mentioned, where it is said that the state’s oil wealth and the taxes it generates make it possible for Texas to have no income tax.

There are two rebuttals to this argument. First, Kansas may have much new activity in oil and gas in the very near future. With the severance tax and taxes from other economic activity — as many as 25,000 jobs and $5 billion in investment over five years — new revenue may be flowing to the state. Brownback has called for limiting the growth of state spending to two percent annually, with revenue growth above that dedicated towards reducing income tax rates.

The second rebuttal is that states with low or no income tax generally spend much less than Kansas. Using figures I compiled for 2010, Kansas state spending per person is $4,923, which ranks it 35th among the states. Only 15 states spend more than Kansas, on a per person basis.

Texas, with no income tax, spends $3,703 per person. Florida, another state with no income tax, spends $3,300 per person.

Kansas Democrats have called for restoring school spending, and increasing it in the future. They have other plans for state spending, too. That’s why it is important that Kansas implement something that 47 states have, but Kansas does not. Unfortunately, the governor didn’t mention it in his address. That missing ingredient in the Kansas state financial plan is a rainy day fund.

Rainy day funds operate in different ways in the states that have them, but generally there are strict rules about spending the money in the fund. A rainy day fund would have helped Kansas whether a downturn in revenue without resorting to a tax increase. That’s vitally important, as once tax increases are in place, they are very difficult to remove. We have such an example of this now in Kansas: The increase in the statewide sales tax, promoted to last just three years, is now recommended to be permanent, according to the governor’s plan.

(Shifting sands: Kansas Senator Carolyn McGinn, who voted for the sales tax increase, now wants it ended a year earlier than originally planned. That was a transparent response to her having to face a conservative challenger in her primary election this year. But now she finds herself opposing the governor on this issue.)

Kansas has a requirement for a 7.5 percent ending balance in the general fund. That requirement is often waived by the legislature, as it has been for several years in a row. Rainy day fund legislation is often implemented in states’ constitutions, which can’t easily be waived or ignored by spending-happy legislature. The strict requirements as to how and when the fund balances can be spent is much different from a simple ending balance. Kansas Democrats, for example, are calling for spending the year’s ending balance.

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Kansas and Wichita quick takes: Wednesday January 11, 2012

January 11, 2012

Today: A legislator would do this?; Where to see, listen to State of State Address; Kansas Policy Institute launches blog; Kansas House Speaker criticized; Kansas presidential caucus; Democrats urged to help Republicans; Kansas health issues; Separation of art and state; Numbers trouble Americans; and Capitalism.

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Kansas and Wichita quick takes: Monday January 9, 2012

January 9, 2012

Today: Wichita City Council; Kansas House Speaker speaking in Wichita; Legislature starts; State of the State address; Kansas State Sovereignty Rally; Making Economics Come Alive.

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Kansas needs pro-growth policies

September 23, 2011

A theme of Kansas Governor Sam Brownback when he spoke in Wichita this week was jobs and opportunities, and how Kansas needs pro-growth policies to break out of a slump.

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Kansas and Wichita quick takes: Wednesday August 10, 2011

August 10, 2011

Today: Kansas House Appropriations Chair to speak; Sebelius responds to waivers inquiry; Brownback to Sebelius: No thanks; ‘Nullify Now’ tour in Kansas City; ‘Birth of Freedom’ screening.

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KDHE, Sunflower Electric, Earthjustice, Center for Climate Strategies: different peas in the same pod

July 11, 2011

Evidence that a business seeking regulatory approval of its project enjoyed an apparently close relationship with the Kansas Department of Health and Environment should not be surprising: regulatory capture is a non-partisan sport.

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Kansas jobs creation numbers in perspective

July 9, 2011

The administration of Kansas Governor Sam Brownback announced job creation figures that, on the surface, sound like good news. But before we celebrate too much, we need to place the job numbers in context and look at the larger picture, specifically whether these economic development wins are good for the Kansas economy.

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Kansas and Wichita quick takes: Tuesday May 31, 2011

May 31, 2011

Today: Pachyderm to feature DA Foulston; Sedgwick County Commission; Kansas budget signed; KPERS suit threatened; Stimulus jobs — or not; Government doesn’t create jobs.

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In Kansas Legislature this year, opportunities for saving were lost

May 23, 2011

This year the Kansas Legislature lost three opportunities to improve the operations and reduce the cost of state government.

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Wind power again reaps subsidy

December 29, 2010

Despite poor economics, wind power again reaps taxpayer subsidy.

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Kansas Governor Parkinson says “thank you”

December 29, 2010

Outgoing Kansas Governor Mark Parkinson has released a list of his favorite achievements, almost all of which decreased economic freedom and business vitality in Kansas.

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Kansas and Wichita quick takes: Monday December 27, 2010

December 27, 2010

Today: This week at Wichita City Council, Kansas schools’ unspent funds, Which Brownback will govern, Rapidly rising costs at Kansas Universities criticized, States and their pension problems, Airport security found lacking.

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Kansas and Wichita quick takes: Tuesday December 21, 2010

December 21, 2010

Today: Steineger switches teams, Kansas school funding reform to wait, Tax cuts in Kansas not likely says new senate leader, McGinn to lead Ways and Means, Kansas holds on to House seats.

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Brownback appointments a mixed bag

December 8, 2010

Incoming Kansas governor Sam Brownback has made some appointments to his economic team. Two of the appointments illustrate why Kansans need to maintain a cautious watch on Brownback as he takes over the governor’s office. A third gives us hope that the Kansas budget can be fully understood and managed.

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Kansas and Wichita quick takes: Tuesday October 26, 2010

October 26, 2010

Today: Raj Goyle, Free markets, Government spending, Kansas fourth district, Kansas Governor, Kansas legislature, Kansas Policy Institute, Sam Brownback, Tea Party, Tom Holland, Wichita Pachyderm Club, Education, School choice.

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Kansas and Wichita quick takes: Sunday October 24, 2010

October 24, 2010

Today: Free markets, Raj Goyle, Sam Brownback, Mike Pompeo, Kansas fourth district, Music, Free trade, Wichita Eagle opinion watch, Facebook, Computing, and Politics.

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Kansas and Wichita quick takes: Friday October 22, 2010

October 22, 2010

Today: Free markets, Kansas Governor, Koch Industries, Mike Pompeo, Raj Goyle, Politics, Regulation, Wichita Pachyderm Club, Kansas fourth district,

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Kansas and Wichita quick takes: Monday October 11, 2010

October 11, 2010

Today: Education, Initiative and referendum, Jerry Moran, Kansas fourth district, Kris Kobach, Mark Parkinson, Raj Goyle, Regulation, Rhonda Holman, Sam Brownback, School choice, and Wichita Pachyderm Club.

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Political site FiveThirtyEight looks at polls, statistics

October 10, 2010

The political website FiveThirtyEight provides an innovative look at political forecasting and also supplies useful information about candidates and political districts.

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Kansas and Wichita quick takes: Sunday October 10, 2010

October 10, 2010

Countryman back on air: Gene Countryman, host of a long-running radio show that went off the air earlier this year, returns to the airwaves tonight with the Gene Countryman Show. The new show airs Sunday evenings from 6:00 pm to 8:00 pm on KNSS Radio 1330 AM. Koch article criticism: Andrew Ferguson, media critic for [...]

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Kansas elected agency officeholders use websites as campaign billboards

October 8, 2010

Kansas state government agencies are headed by a mix of elected and appointed officials. After looking at the websites for agencies headed by elected officials, Kansans would be justified in asking if all are using their agency websites for campaign purposes.

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Brownback paves plan for Kansas education reform

August 23, 2010

Last week near Emporia Sam Brownback, surrounded by Kansas educators and legislators, laid out the start of his plan for improving Kansas education if he is elected governor.

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DeGraaf releases endorsements for Kansas offices

July 15, 2010

Kansas State Representative Pete DeGraaf has released his personal endorsements for Kansas statewide races and for races around the Wichita area.

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Kansas Democrats described as ‘imploding’

June 3, 2010

Larry J. Sabato, who is director of the University of Virginia Center for Politics, is a respected analyst of national who publishes Sabato’s Crystal Ball, an informative look at campaigns and races around the country.

In the most recent issue Sabato takes a look at 2010 gubernatorial races and concludes that “There’s now no question that the gubernatorial turnover in November will be historic.” He estimates that Republicans will add six or seven states to the count of those states with Republican governors

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Brownback, Colyer announce in Wichita

June 2, 2010

On Tuesday, United States Senator Sam Brownback formally filed to become a candidate for the Republican party nomination to be governor of Kansas. He also introduced his running mate.

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