Tag Archives: Kansas Policy Institute

Kansas Center for Economic Growth: Show us the math

Why won’t Kansas Center for Economic Growth show its calculations and explain its data sources? Dave Trabert of Kansas Policy Institute explains.

KCEG misleads on job growth — again

By Dave Trabert

The latest misleading claim on job growth from the Kansas Center for Economic Growth is loaded with misleading and irrelevant information; they don’t fully disclose their methodology and at this writing they have ignored our request to explain it. Sadly, this is not the first, second or even third time that KCEG has published misleading information and declined to produce documentation.

Here are the questions we posed to Annie McKay, executive director at KCEG:

We received a ‘read’ receipt but no reply, so we attempted to replicate their methodology to arrive at what they call “private sector job growth since tax changes” which they measure between January 2013 and March 2015. Based on tests of Kansas and national data, it appears that KCEG is using seasonally adjusted jobs but we couldn’t find a 6-state region including all of Kansas’ neighbors to match their number.

KCEG has the national average increasing 5.2% and Kansas 3.8%, so we assume they are comparing January 2013 to March 2015. This is not a true measure of post-tax reform activity, however; the base month of a point-to-point comparison should be the last month of the old tax system, which was December 2012. Comparing Kansas to the 5-state region does show that Kansas is slightly behind (4.0% vs. 4.2%) but by not showing the performance of individual states, KCEG hides the fact that Kansas beat three of its four neighbors.   

While Kansas is outperforming three of its neighboring states on this measurement, point-to-point comparisons are problematic; one or both points can be unusual spikes or declines, making the data less reliable.  The Bureau of Labor Statistics also publishes average annual employment, which minimizes the impact of any single data point.

The more stable comparisons of average annual employment show job growth trends for Kansas to be much more competitive since tax reform. Private sector jobs grew just 2.2% between 1998 and 2012, which ranked Kansas at #38, but Kansas moved up to #27 in 2013 and last year moved up again to #21. That’s still not good enough and it will take perhaps another decade to fully understand the impact of tax reform, but the early trend is very encouraging. Kansas still trails Colorado, but has improved its competitive position. The table below shows Kansas trailed Colorado by a factor of five (2.2% vs. 10.6%) between 1998 and 2012 but has since closed the gap to a factor of two.

KCEG noted that Utah and Idaho have higher taxes on “the wealthy” and better job growth than Kansas, but of course they don’t tell the whole story. Kansas does have a lower marginal rate than both states but that is a recent development; Kansas was higher than Utah until 2013 and much closer to Idaho when the marginal was 6.45%. Kansas’ lower rates are helping to reverse trends but it will take much more time to catch up to states that historically grew much faster – like Utah and Idaho.

Here’s the rest of the story that KCEG doesn’t want you to know. According to the Tax Foundation, the corporate income tax rate in Kansas is 40% higher than Utah’s and just slightly below Idaho’s.  State sales tax rates are comparable but Kansas has much higher local sales tax rates. 

Utah and Idaho also have much lower property taxes on commercial and industrial real estate. Kansas has the 10th highest effective tax rate on urban property and the worst in the nation on rural property!   Part of the reason that Kansas has very high effective tax rates is baked into the State Constitution, where Commercial and Industrial property is assessed at 25% of appraised value but Residential is assessed at 11.5%.

The other major factor driving up property taxes is that Kansas has too much government.  Kansas and Utah have about the same population but Kansas has 1,997 cities, counties and townships whereas Utah has only 274.  Idaho has just 244.  Extra government means extra government employees (and higher taxes to pay for all of that government); Kansas is ranked #47 in government employees per 10,000 residents (i.e., the 3rd worst in the nation) but Utah is ranked #15 and Idaho is #9.

These truths about private sector job growth and relevant competitive issues with Utah and Idaho are typical of KCEG efforts to mislead citizens and legislators – and probably explain why they refuse to engage KPI in public debates on tax, spending and education issues.

In Topeka, to raise taxes, scare the voters

The Topeka public school district is using scare tactics to persuade voters to raise taxes. David Dorsey of Kansas Policy Institute explains.

Topeka schools use scare tactics to justify LOB election

By David Dorsey

The USD 501 school board voted unanimously on April 29 to hold an election to increase the district’s local option budget (LOB). They claim the $3 million that could be raised with voter approval is necessary “in the face of state budget cuts.”  The district held three public meetings to discuss how to deal with what they called a $1.6 million cut in state funding this year and $2 million over the next two years. KPI has shown in this blog that Topeka Public Schools will actually get a total increase in state aid of 6.5% over the three years of the new block grant funding law.

But that’s not how a school district sees things. To the educrats, a cut means getting a smaller increase than they had planned.

If I were the suspicious type, I might think the meetings were just a ruse, using the implicit threat of cutting school programs in order to scare the public into supporting an override election to raise more money.

The purpose here is not to revisit the increase vs. decrease debate. The purpose here is to discuss the spending side of the equation and show just how easy it would be for USD 501 to meet their self-defined shortfalls – and without having any impact on students.

First, here’s a little perspective on the realities between what is budgeted and how much is actually  spent. The adjoining table shows the millions that have gone unexpended for the last four years. Given this recent history, it’s hard to imagine that a $1.6 million “cut” from the budgeted $203 million 2014-15 budget is even a concern, let alone cause for an election.

Even if one concedes the point of a revenue shortfall, should the taxpayers of USD 501 (in the name of full disclosure, I do not live in the district, so I don’t have a dog in this hunt) shell out more money to the district? Or could the district find ways to reduce spending and operate more efficiently (a concept foreign to any government organization)? As a former employee of USD 501 I can attest that finding a savings of what amounts to $114 per pupil should be pretty easy to accomplish.

I offer these three opportunities that would reduce spending far in excess of what the district calls a cut and save local taxpayers the burden of providing more financial support to a district that won’t look seriously at reducing spending.

Reduce a bloated administration

As the table shows, Topeka Public Schools has the highest per pupil administrative costs of the 25 largest districts in the state. A glance at their own budget document reveals the costs are trending significantly higher. The 2013-14 costs were a 14% increase from the previous year. The USD 501 2014-15 budget for administration and support of $28,301,407 is a whopping 25% higher than 2013-14! That’s an increase from two years ago of 41.8% when administration costs were just under $20 million.

Some of that increase can be explained by the decision made by the USD 501 school board to drastically increase salaries of the administrative staff by $435,400 in the summer of 2013 in the name of being competitive with other districts. Perhaps if USD 501 was “competitive” in terms of administrative costs per pupil, there would be no issue.

 I’m guessing these facts didn’t come up at the public meetings.

Put literacy and math coaches back in the classroom

Little-known to the public is that in every USD 501 school there are licensed teachers who do NOT teach students. They are known as math coaches and literacy coaches. Each school has at least one coach and most have more than one. What is their job, you ask? They are in the buildings to help classroom teachers do a better job. Furthermore, USD 501 forbids the coaches from directly teaching students, except in special circumstances. They are there to teach the teachers.

There are several reasons the practice of having licensed teachers be coaches should end.

  • “Teaching the teachers” is what professional development is supposed to do.
  • Dealing with ineffective teachers should be the job of the principals, not other teachers.
  • Since coaches have no contractual authority over teachers, teachers do not have to utilize coaches. In practice, that means teachers who are least effective don’t solicit assistance from the coaches, so the coaches end up spending most of their time with the most effective teachers.
  • Many coaches use the position as a stepping-stone toward getting into administration.
  • Most of the coaches are among the best teachers in the district and should be with students, not other teachers.

To be fair to USD 501, math and literacy coaches are an educational trend and most districts now employ them. However, it doesn’t stray from the fact that money spent on coaches doesn’t directly benefit students. In fact, students lose out anytime a quality teacher chooses to become a coach and leaves the classroom.

Putting just one coach per building back in the classroom through attrition would go a long way toward dealing with the budget “cut.”

Cash reserves

The district could easily deal with any short-term budget issue simply by using their current operating cash reserves. The following table shows USD 501’s cash reserves for the past ten years. The table not only shows the district had in excess of $24 million from which to draw at the beginning of this school year, but that is 56.2% more than a decade ago. I doubt they explained that fact to the patrons at the public meetings.

I now present a rather conservative approach to dealing with the “budget cut.” A 5% reduction in administration, returning just one coach in each building to the classroom, and tapping 10% from the operating cash reserves, hardly Draconian measures, would generate nearly twice as much as they could take from the voters.

Savings Category Spending reduction
5% reduction in administration costs $1.41 million
Returning 1 coach to the classroom (through attrition) in each traditional public school building – 26 X $60,000 (salary/benefits)  

$1.56 million

10% from operating cash reserves $2.47 million

Total reduction

 $5.44 million

Board member Patrick Woods was quoted as saying K-12 funding is a “state responsibility.” Maybe it’s time the state starts taking responsibility for how the money gets managed.

Kansas state aid to schools is increasing

The top school finance official in Kansas says that says that state aid for schools has risen for the current year. From Kansas Policy Institute.

KSDE confirms that state aid to schools is increasing this year

By Dave Trabert

While some school districts and special interests claim state aid to schools is declining this year, Kansas State Department of Education Deputy Commissioner for Finance Dale Dennis confirms that state aid to schools is increasing.

KSDE published spreadsheets comparing block grant equivalent funding for the 2013-14 school year with block grant funding for this year and the next two school years. SF15-092 shows total funding last year was $3.263 billion including KPERS and $2.951 billion without KPERS. SF15-109 shows total funding this year of $3.408 billion including KPERS and $3.093 billion without.  Even excluding KPERS, state aid to schools under the block grants will increase by $142 million.

In Kansas, a lost legislative opportunity

Kansas legislators are struggling to balance the state’s budget. In 2012 the legislature passed a tax cut, although it was unevenly applied. But in the intervening years, the legislature has not taken serious steps to cut state spending to match. Legislators failed to consider bills to streamline and outsource government functions, although the bills had passed in a previous session. The legislature has also failed to consider budgetary process reform as explained below in an article from May 2012.

Leaders in the Kansas legislature and executive branch tell us the only way to balance the Kansas budget this year is by raising more revenue through taxation. That may be true, as reforming spending and budgeting takes time to accomplish. We had the time. But our legislature and executive branch squandered that opportunity. Now, they ask you for more tax revenue.

This year Kansas made a leap forward in reducing income tax rates. The next step for Kansas is to reduce its spending, both to match the reduced revenue that is forecast, but also to improve the efficiency of Kansas government and leave more money in the hands of the private sector. Specifically, Kansas needs to improve its budgeting process and streamline state government.

In Kansas, like in many states, the budgeting process starts with the previous year’s spending. That is then adjusted for factors like inflation, caseloads, and policy changes that necessitate more (or rarely, less) spending. The result is that debates are waged over the increment in spending. Rarely is the base looked at to see if the spending is efficient, effective, or needed.

There are several approaches Kansas could take to improve on this process. One is zero-based budgeting. In this approach, an agency’s budget set to zero. Then, every spending proposal must have a rationale or justification for it to be added to the budget.

Zero-based budgeting can be successful, but, according to the recent paper Zero-base Budgeting in the States from National Conference of State Legislatures, it requires a large commitment from the parties involved. It also can take a lot of time and resources. Kansas could start the process with just a few agencies, and each agency could go through the process periodically, say once every five or six years. Some states have abandoned the zero-based budgeting process.

In its State Budget Reform Toolkit, American Legislative Exchange Council advocates a system called priority-based budgeting. This process starts with deciding on the core functions of state government. That, of course, can be a battle, as people have different ideas on what government should be doing.

ALEC reports that “In 2003, Washington state actually implemented priority based budgeting to close a budget deficit of $2.4 billion without raising taxes.”

The spending cuts Kansas needs to balance the budget are not large. Kansas Policy Institute has calculated that a one-time cut of 6.5 percent next year would be sufficient to bring the budget to balance.

The problem that Kansas will face in reducing state spending and streamlining its government is that there are those who are opposed. Streamlining often means eliminating programs that aren’t needed, aren’t performing as expected, or are very costly. These programs, however, all have constituencies that benefit from them — the concept of concentrated benefits and dispersed costs that public choice economics has taught us. These constituencies will be sure to let everyone know how harmful it will be to them if a program is scaled back or ended.

Streamlining also means that there may be fewer state employees. Some will say that the loss of state employees means a loss for the economy, as the state workers will no longer be receiving a paycheck and spending it. This reasoning, however, ignores the source of state workers’ pay: the taxpayers of Kansas. With fewer state employees, taxpayers will have more money to spend or invest. The problem is that it is easier to focus on the employees that may lose their jobs, as they are highly visible and they have vocal advocacy groups to watch out for them. This is an example of the seen and unseen, as explained by Henry Hazlitt.

Wichita economic development, the need for reform

An incentives deal for a Wichita company illustrates a capacity problem and the need for reform.

Next week the Wichita City Council will consider an economic development incentives package intended to enable a local manufacturing company to expand its operations.

R and R Aerospace benefits 2015-05-05City documents give some detail regarding the amounts of property tax to be forgiven on an annual basis, for a period of up to ten years. In the past, city documents have often mentioned other incentive programs that will benefit the company, but that information is missing. Other sources mention two state programs — PEAK and HPIP — the company may benefit from, but amounts are not available.

In order to prepare the incentives package, several events took place. There was a visit to the company. Then another visit and tour. Then economic development officials helped the company apply for benefits from the Kansas Department of Commerce. Then these officials worked closely with Wichita city staff on an incentive package.

City documents state that the expansion will create 28 jobs over the next five years. Obtaining these jobs took a lot of effort from Wichita and Kansas economic development machinery. Multiple agencies and fleets of bureaucrats at GWEDC, the City of Wichita, Sedgwick County, and the State of Kansas were involved. Wichita State University had to be involved. All this to create 5.6 jobs per year for five years.

The jobs are welcome. But this incident and many others like it reveal a capacity problem, which is this: We probably need to be creating 5.6 jobs every working hour of every day in order to make any significant progress in economic growth. If it takes this much effort to create 28 jobs over five years, how much effort will it take to create the many thousands of jobs we need to create every year?

This assumes, of course, that the incentives are necessary to enable the company to expand. City documents state that the tax exemption is necessary to make the project “viable.” It’s likely that the mayor or city council members will say that if we don’t award the incentives, the company won’t be able to expand. Or perhaps the company will expand in some other city. So the incentives really don’t have any cost, they will tell citizens.

This only hints at a larger problem. If companies can’t afford to make investments in Wichita unless they receive exemptions from paying taxes, we must conclude that taxes are too high. (An ongoing study reveals that generally, property taxes on commercial and industrial property in Wichita are high. In particular, taxes on commercial property in Wichita are among the highest in the nation. See here.) It’s either that, or this company simply doesn’t want to participate in paying for the cost of government like most other companies and people do.

To top it off, this expansion and the new jobs seem far from certain. City documents state the company is “bidding on a new work package” and the “expansion project would be completed in phases
based upon the timing and demand of the work package.”

Civic leaders say that our economic development policies must be reformed. So far that isn’t happening. Our leaders say that cash incentives are on the way out. This deal does not include grants of cash, that is true. But forgiveness of taxes is more valuable to business firms than receiving cash. That’s because cash incentives are usually taxable as income, while forgiveness of taxes does not create taxable income. Each dollar of tax that is forgiven adds one dollar to after-tax profits. 1

The large amount of bureaucratic effort and cost spent to obtain a small number of speculative jobs lets us know that we need to do something else in order to grow our local economy. We need to create a dynamic economy, focusing our efforts on creating an environment where growth can occur organically without management by government. Dr. Art Hall’s paper
Embracing Dynamism: The Next Phase in Kansas Economic Development Policy provides much more information on the need for this.

Another thing we can do to help organically grow our economy and jobs is to reform our local regulatory regime. Recently Kansas Policy Institute released a study of regulation and its impact at the state and local level. This is different from most investigations of regulation, as they usually focus on regulation at the federal level.

Business Perceptions of the Economic Impact of State and Local Government Regulation coverThe study is titled “Business Perceptions of the Economic Impact of State and Local Government Regulation.” It was conducted by the Hugo Wall School of Public Affairs at Wichita State University. Click here to view the entire document.

Following is an excerpt from the introduction by James Franko, Vice President and Policy Director at Kansas Policy Institute. It points to a path forward.

Surprising to some, the businesses interviewed did not have as much of a problem with the regulations themselves, or the need for regulations, but with their application and enforcement. Across industries and focus group sessions the key themes were clear — give businesses transparency in what regulations are being applied, how they are employed, provide flexibility in meeting those goals, and allow an opportunity for compliance.

Sometimes things can be said so often as to lose their punch and become little more than the platitudes referenced above. The findings from Hugo Wall are clear that businesses will adapt and comply with regulations if they are transparent and accountable. Many in the public can be forgiven for thinking this was already the case. Thankfully, local and state governments can ensure this happens with minimal additional expense.

A transparent and accountable regulatory regime should be considered the “low hanging fruit” of government. Individuals and communities will always land on different places along the continuum of appropriate regulation. And, a give and take will always exist between regulators and the regulated. Those two truisms, however, should do nothing to undermine the need for regulations to be applied equally, based on clear rules and interpretations, and to give each business an opportunity to comply. (emphasis added)

Creating a dynamic economy and a reformed regulatory regime should cost very little. The benefits would apply to all companies — large or small, startup or established, local or relocations, in any industry.

Our civic leaders say that our economic development efforts must be reformed. Will the path forward be a dynamic economy and reformed regulation? Or will it be more bureaucracy, chasing five jobs at a time?

  1. Site Selection magazine, September 2009. 2015. ‘INCENTIVES — Site Selection Magazine, September 2009′. Siteselection.Com. Accessed May 1 2015. http://www.siteselection.com/issues/2009/sep/Incentives/

Efficiency has not come to Kansas government

Kansas state government needs to cut spending, but finds itself in a difficult situation of its own making.

The budget bill under consideration in the Kansas Legislature calls for spending $3 million for the production of an efficiency analysis review. It’s a good idea, but is too late to help the legislature balance the budget this year.

Trimming Kansas government spending is a long-term project. The legislature has looked at several bills that would help control spending, but has not passed the bills. Had they been passed when introduced, the state would be in a much better position to make reforms. But a look at the history of these bills leads us to wonder if the leaders of our state government — both in the executive and legislative branches — are really serious about controlling spending.

The three bills — explained in detail below — were in play during the 2011 and 2012 legislative sessions. They all passed the House of Representatives in 2011. But given that the Senate was in the hands of moderate Republicans, there was little chance that the bills would also pass the Senate. That’s what happened. Each bill died in the Senate.

Starting with the 2013 session, however, the Senate has been in conservative hands. Have the bills been reintroduced? With the exception of the efficiency analysis review mentioned above and a look at K — 12 education, I don’t believe the bills, or anything else like them, have been introduced or considered.

Both chambers of the Kansas Legislature and the governor’s mansion have been under the control of conservatives for three years, but no serious initiative to control spending has emerged, with the exception of the efficiency task force on K — 12 education. This ought to cause voters to ask if the desire and will to cut spending truly exists.

It’s curious that liberals and progressives in Kansas are opposed to efforts to increase efficiency, such as the school task force. If the government services that liberals support are truly vital, they ought to insist that they are delivered as efficiently as possible so that the greatest number may benefit to the greatest extent. But that doesn’t happen.

A simple path forward

Recently I attended a meeting where a speaker reported his observations of state workers wasting time while at work. He contrasted that to the private sector, where he said this waste is less likely to happen. Shouldn’t we investigate state agencies, looking for instances of waste, and when found, eliminate the waste, he asked? It’s a good idea, but something that I think would be difficult to accomplish.

There is an easier way to root out inefficiencies in the operations of state government — and local and federal too. That is to use the benefits of the private sector that the speaker praised. We can do this by outsourcing government functions to the private sector. Then, the work is done under the motivations that exist in the private sector.

Kansas Policy Institute produced a report in 2013 that shows how Kansas can save using the principles of privatization and outsourcing. The report is Better Service, Better Price: How privatization can streamline government, improve services, and reduce costs for Kansas taxpayers.

Reforms of this nature take some time to implement. Several years ago Kansas governmental leaders had time to start the state on a path to reform, but did not take the opportunity. Now these same leaders are considering raising taxes to balance the Kansas budget. This did not have to happen.

The bills that did not pass

In 2011 the Kansas Legislature lost three opportunities to do just this. Three bills, each with this goal, were passed by the House of Representatives, but each failed to pass through the Senate, or had its contents stripped and replaced with different legislation.

Each of these bills represents a lost opportunity for state government services to be streamlined, delivered more efficiently, or measured and managed. These goals, while always important, are now essential for the success of Kansas government and the state’s economy. There is no reason why these bills, or similar measures, could not be revived. The improvements these bills would foster will not balance next year’s budget. But they will set the stage for controlling the growth of Kansas government spending. This will leave more money in the private sector, which will help Kansas grow.

Kansas Streamlining Government Act

HB 2120, according to its supplemental note, “would establish the Kansas Streamlining Government Act, which would have the purpose of improving the performance, efficiency, and operations of state government by reviewing certain state agencies, programs, boards, and commissions.” Fee-funded agencies — examples include Kansas dental board and Kansas real estate commission — would be exempt from this bill.

In more detail, the text of the bill explains: “The purposes of the Kansas streamlining government act are to improve the performance, streamline the operations, improve the effectiveness and efficiency, and reduce the operating costs of the executive branch of state government by reviewing state programs, policies, processes, original positions, staffing levels, agencies, boards and commissions, identifying those that should be eliminated, combined, reorganized, downsized or otherwise altered, and recommending proposed executive reorganization orders, executive orders, legislation, rules and regulations, or other actions to accomplish such changes and achieve such results.”

In testimony in support of this legislation, Dave Trabert, President of Kansas Policy Institute offered testimony that echoed findings of the public choice school of economics and politics: “Some people may view a particular expenditure as unnecessary to the fulfillment of a program’s or an agency’s primary mission while others may see it as essential. Absent an independent review, we are expecting government employees to put their own self-interests aside and make completely unbiased decisions on how best to spend taxpayer funds. It’s not that government employees are intentionally wasteful; it’s that they are human beings and setting self-interests aside is challenge we all face.”

The bill passed the House of Representatives by a vote of 79 to 40. It was referred to the Senate Committee on Federal and State Affairs, where it did not advance.

Privatization and public-private partnerships

Another bill that did not advance was HB 2194, which in its original form would have created the Kansas Advisory Council on Privatization and Public-Private Partnerships.

According to the supplemental note for the bill, “The purpose of the Council would be to ensure that certain state agencies, including the Board of Regents and postsecondary educational institutions, would: 1) focus on the core mission and provide goods and services efficiently and effectively; 2) develop a process to analyze opportunities to improve efficiency, cost-effectiveness and provide quality services, operations, functions, and activities; and 3) evaluate for feasibility, cost-effectiveness, and efficiency opportunities that could be outsourced. Excluded from the state agencies covered by the bill would be any entity not receiving State General Fund or federal funds appropriation.”

This bill passed by a vote of 68 to 51 in the House of Representatives. It did not advance in the Senate, falling victim to a “gut-and-go” maneuver where its contents were replaced with legislation on an entirely different topic.

Opposing this bill was Kansas Organization of State Employees (KOSE), a union for executive branch state employees. It advised its “brothers and sisters” that the bill “… establishes a partisan commission of big-business interests to privatize state services putting a wolf in charge of the hen house. To be clear, this bill allows for future privatization of nearly all services provided by state workers. Make no mistake, this proposal is a privatization scheme that will begin the process of outsourcing our work to private contractors. Under a privatization scheme for any state agency or service, the employees involved will lose their rights under our MOA and will be forced to adhere to the whims of a private contractor who typically provides less pay and poor benefits. Most workers affected by privatization schemes are not guaranteed to keep their jobs once an agency or service is outsourced.”

Note the use of “outsourcing our work.” This underscores the sense of entitlement of many government workers: It is not work done for the benefit of Kansans; to them it is our work.

Then, there’s the warning that private industry pays less. Most of the time representatives of state workers like KOSE make the case that it is they who are underpaid, but here the argument is turned around when it supports the case they want to make. One thing is probably true: Benefits — at least pension plans — may be lower in the private sector. But we’re now painfully aware that state government has promised its workers more pension benefits than the state has been willing to fund.

Performance measures

Another bill that didn’t pass the entire legislature was HB 2158, which would have created performance measures for state agencies and reported that information to the public. The supplemental note says that the bill “as amended, would institute a new process for modifying current performance measures and establishing new standardized performance measures to be used by all state agencies in support of the annual budget requests. State agencies would be required to consult with representatives of the Director of the Budget and the Legislative Research Department to modify each agency’s current performance measures, to standardize such performance measures, and to utilize best practices in all state agencies.” Results of the performance measures would be posted on a public website.

This bill passed the House of Representatives by a nearly unanimous vote of 119 to 2. In the Senate, this bill was stripped of its content using the “gut-and-go” procedure and did not proceed intact to a vote.

Opposition to these bills from Democrats often included remarks on the irony of those who were recently elected on the promise of shrinking government now proposing to enlarge government through the creation of these commissions and councils. These bills, however, proposed to spend modest amounts increasing the manageability of government, not the actual range and scope of government itself. As it turns out, many in the legislature — this includes Senate Republicans who initiated or went along with the legislative maneuvers that killed these bills — are happy with the operations of state government remaining in the shadows.

These proposals to scale back the services that government provides — or to have existing services be delivered by the private sector — mean that there will be fewer government employees, and fewer members of government worker unions. This is another fertile area of gathering support for killing these bills.

State workers and their supporters also argue that fewer state workers mean fewer people paying state and other taxes. Forgotten by them is the fact that the taxes taken to pay these workers means less economic activity and fewer jobs in the private sector.

As to not wanting performance measures: Supporters of the status quo say that people outside of government don’t understand how to make the decisions that government workers make. In one sense, this may be true. In the private sector, profitability is the benchmark of success. Government has no comparable measure when it decides to, say, spend some $300 million to renovate the Kansas Capitol. But once it decides to do so, the benchmark and measurement of profitability in executing the service can be utilized by private sector operators. Of course, private contractors will be subject to the discipline of the profit and loss system, something missing from government.

Political perspective masquerades as ‘documentary’

From Kansas Policy Institute.

Political perspective masquerades as ‘documentary’

By Dave Trabert

“Where the Buffaloed Roam — An Ode to the Kansas Budget,” a film by Louisburg High School student Carson Tappan, is being featured at the Kansas City Film Festival.  It is billed as a “documentary” but in reality, it merely presents a political viewpoint that doesn’t let facts get in the way of the story it wants to tell.

Mr. Tappan is to be commended for tackling the project and it is heartening to see a high school student take an interest in state budget issues. He deserves an “A” for initiative and creativity but he fails in his goal to “make the problem clean and simple.” I agreed to be interviewed for the film and provided Mr. Tappan with a great deal of data, some of which contradicts claims made by other participants but he chose not to use it.

I recently asked Mr. Tappan why he excluded pertinent facts I provided and he wrote back saying, “I did not exclude any facts that you provided, the interview was too long to keep it in its entirety.” But as explained later in this piece, he did indeed exclude facts that contradict one of his own contentions.

Mr. Tappan and other participants in the film are certainly entitled to their opinion, and healthy discussions of alternate views are productive. Different opinions can be evenly presented in a documentary format but “Where the Buffaloed Roam” goes out of its way to ridicule those who don’t agree with its premise that reducing taxes is a bad idea.

The film takes the position that states like Texas and Florida can manage without an income tax because they have oil and tourism revenue, but that is not the reason. Texas, for example, could have all of the oil revenue in the nation and still have a high tax burden if it spent more. Every state provides the same basket of basic services (education, social service, etc.) but some states do so at a much lower cost and pass the savings on in the form of lower taxes.

In 2012, the states that tax income spent 49 percent more per-resident providing services than the states without an income tax, and they don’t do it by pushing spending to local government; the ten states with the highest combined state and local tax burden spent 43 percent more per resident than the ten states with the lowest burdens. Kansas, by the way, spent 37 percent more per resident than the states without an income tax.

While Kansas spent $3,409 per resident, Texas only spent $2,293 and Florida spent just $1,862 per resident. Small states also spent less; New Hampshire (which doesn’t have an income tax or a state sales tax) spent just $2,455 per resident. States that spend less, tax less.

The “oil and tourism” objection is common so I gave this information to Mr. Tappan and discussed it in the interview. He didn’t just ignore those facts .. he actually made the “oil and tourism” argument.

The “clean and simple” explanation of the Kansas budget is that spending wasn’t adjusted when taxes were reduced. Regardless of whether legislators agreed with tax reform, they and Governor Brownback should have reduced the cost of government. Instead, they succumbed to pressure from the bureaucracy and special interests and continue to increase spending. General Fund spending will set a new record this year and is proposed to rise even higher over the next two years.

Let’s put that in perspective. Kansas’ 2012 spending of $6.098 billion was 37 percent higher than the per-resident spending of states without an income tax. This year Kansas is expected to spend $191.5 million more than in 2012 and the budgets under consideration in the Legislature will add another $210.1 million in the next two years.

Kansas doesn’t need to be as efficient as states with low taxes to balance the budget…the state just needs to operate a few percentage points better. Ask legislators or Governor Brownback if government operates efficiently and they will say, “of course not.”  Then ask what they are going to do about it. This year, as in the past, the majority would rather raise taxes unnecessarily than stand up to the bureaucracy and special interests that profit from excess government spending. That is the clean and simple explanation of what is wrong with the Kansas budget.

Former state budget director Duane Goossen tells a different story (but still won’t debate us in public where he can be called out). He said revenue dropped three straight years during the recent recession and it appeared that revenue would decline for a fourth year, which prompted a sales tax increase that he attributes for the revenue turnaround. But that’s not exactly true. Mr. Goossen talked about tax revenue declines before carefully shifting to a discussion of revenue declines. Most people, and probably Mr. Tappan, wouldn’t catch that nuance but Mr. Goossen knows exactly what he was doing.

As shown in the above table, tax revenue only declined two years during the recession, in 2009 and 2010. Total revenue did decline a third year and was projected down a fourth year but that was because of conscious decisions made by legislators to transfer tax money out of the General Fund. The November 2009 Consensus Revenue Estimate predicted that tax revenues would increase for 2011, from $5.192 billion to $5.324 billion, and that estimate did not consider any sales tax increase. Mr. Gossen is simply pushing a notion that tax increases are necessary. Or, maybe tax increases are Mr. Gossen’s preference but he would rather distract his interlocutor with obfuscation than simply state his true goal.

This tax revenue chart that appears in the film clearly attributes tax revenue growth between 2010 and 2012 to the 1 cent sales tax that began July 1, 2010 (it’s unknown whether Mr. Goossen or Mr. Tappan prepared it because there is no sourcing). But this chart is yet another misrepresentation of the facts.

Data readily available from the Kansas Legislative Research Department shows that income taxes and other tax sources also increased in 2011 and 2012. Income tax revenue increased by $560 million over the two years while retail sales taxes grew by $490 million and all other General Fund taxes increased by $125 million. 

Kansas certainly has a spending problem but tax revenue is actually running well ahead of inflation…even after income taxes were reduced. General Fund tax revenue increased 28 percent between 2004 and 2014 while inflation was only 24 percent. The November 2014 Consensus Revenue Estimate shows that tax revenue will continue to stay well ahead of inflation (assuming inflation continues at its current pace. Tax revenue in 2017 would be 39 percent higher than 2004 but inflation would be 29 percent higher (again, assuming inflation maintains its current pace.)

The film also contains a number of false claims about school funding. Heather Ousley, who is a member of an organization that actively campaigns for the defeat of legislative candidates who do not subscribe to the “just spend more” philosophy of school funding, repeatedly claimed that schools are being defunded. She also repeats the mantra that schools are being defunded so that public education can be privatized; she may believe that but having spent a lot of time working with legislators, I know that to be a false assumption. Defenders of the status quo are fond of repeating the mantra, but it is nothing more than a scare tactic.

Schools are not being defunded and Mr. Tappan was provided with data from the Kansas Department of Revenue that contradicts claims made in the film. Again, he chose not to use that information. In reality, school funding will set a fourth consecutive record this year at $6.145 billion. On a per-pupil basis, it’s $13,343 and will be the third consecutive record. The facts are explained in greater detail in another blog post, which also shows that state funding is increasing this year under the new block grants.

There are other examples of factual inaccuracy in the film, but hopefully those set forth here sufficiently demonstrate that “Where the Buffaloed Roam” is not the documentary it purports to be but an artfully designed political statement.

Those who agree with the film’s position are certainly entitled to their view. They should just be honest and say that they prefer higher taxes and the high spending that goes with it.

Note: KPI staff members Patrick Parkes and David Dorsey deserve credit for much of the research in this blog post.

WichitaLiberty.TV: Wichita Eagle reporting, marijuana laws, and the Kansas economy

In this episode of WichitaLiberty.TV: The Wichita Eagle prints several stories that ought to cause readers to question the reliability of its newsroom. Wichita voters pass a marijuana law that conflicts state law. Performance of the Kansas economy. Finally, some unexplained results in the way people vote. View below, or click here to view at YouTube. Episode 81, broadcast April 19, 2015.

Kansas Center for Economic Growth: Short on facts again

The Kansas Center for Economic Growth’s latest scare tactic on education funding is filled with demonstrably inaccurate data which they use to make false claims about tax reform and the efficacy of education spending, writes David Dorsey of Kansas Policy Institute.

KCEG won’t document their false claims on education funding — again

By David Dorsey

The Kansas Center for Economic Growth’s latest scare tactic on education funding is filled with demonstrably inaccurate data which they use to make false claims about tax reform and the efficacy of education spending. KCEG has a long history of making inaccurate claims and declining requests for documentation (here, here, and here for example) and this time is no different.

In Kansas Prioritizes Tax Cuts Over Kids, KCEG says a reduction in state revenue has caused cuts to education and attempts to send the message that not making even bigger “investments” in education means the state doesn’t care about student outcomes. To solidify that contention by making it appear universal, KCEG points to Wisconsin as another state that cut taxes (income and property taxes) and likewise, aid to education. But as it turns out, the only thing these assertions have in common is that neither is based in reality. Here is how their false allegations stack up to the facts.

1. KCEG claim: Kansas general aid per pupil is down 2.6% (about $129) between 2013 and 2014, a percentage that is proportionate to reduction in state revenues.

Fact: According to the Kansas Department of Education website (official data) “General State Aid Per Pupil” (a KSDE definition) increased $13 between 2013 and 2014 as shown in the table below (and all aid per pupil increased $179).

2. KCEG claim: Wisconsin cut taxes which led to cuts in education spending. General aid per pupil was cut by $36 from 2013 to 2014.

Fact: A quick look at the Wisconsin Department of Public Instruction website indicates that statewide revenue per pupil (the term in Wisconsin is “member”) shows an increase of $193 between 2013 and 2014 as shown in the table below.

And here is another fact that KCEG conveniently omitted: 2013-14 was the second consecutive year of record funding in Kansas K-12 education with $12,959 per pupil, which totals nearly $6 billion in revenue. That trend will continue with the new block grant education funding set to start next year. As KPI pointed out in this blog, total funding to education is poised to set yet another record in 2015-16.

So much for letting the truth get in the way of a highly charged contention.

KCEG relied on tax revenue data from the Rockefeller Institute of Government (RIG) and education spending data from a study by the Center for Budget and Public Policy (CBPP) to make their claims. KPI reached out to KCEG, RIG, and CBPP to source and verify their data. We received no response from KCEG or CBPP, but the director of RIG stated the 2.6% reduction in revenues was likely a misinterpretation of their data. So, instead of citing original source data from Kansas state government agencies, KCEG chose to cherry-pick and manipulate data from outside sources in order to fit their narrative. And that narrative includes the false choice that lower government spending automatically precipitates a lower quality of service.  By the way, CBPP is also notorious for making false and unsubstantiated claims; see here and here for examples.

KCEG has even gone a step farther by turning this mantra into a scare tactic. They declare less money will lead to lower educational outcomes because there will be less money to the classroom. So why are the students/teachers/classroom always the targets of the fear mongers? Why always the threat of teacher layoffs? Why not administrators? Could it be that it’s not as emotionally compelling to say an assistant principal, or a curriculum director, or even a communications officer may be let go? It is well documented that schools choose not to operate efficiently, so it’s always the students who are made human budget shields.

The idea that more money leads to better outcomes simply does not stand up to scrutiny. Much has been written to discredit that claim. Perhaps this quote from a Heritage Foundation study says it best: “Continuous spending increases have not corresponded with equal improvement in American educational performance.” NAEP reading and math scores have remained flat, as have ACT scores, and quoting KCEG in a different context: “[W]e don’t have to go any further than our own backyard to see that.”

Perhaps it’s time KCEG just acknowledge their affinity for high taxes and ineffective spending and stop pretending to present data-driven conclusions.

KPI has a history of reaching out to KCEG to have a public discussion on the issues. We again welcome that chance to provide the facts about education spending so Kansans can come to their own conclusions. We invite and are willing to host KCEG to an open debate on this issue.

WichitaLiberty.TV: Kansas Policy Institute Vice President and Policy Director James Franko

In this episode of WichitaLiberty.TV: Kansas Policy Institute has produced a study of the effect of state and local regulation on business. James Franko of KPI discusses. View below, or click here to view at YouTube. Episode 80, broadcast April 5, 2015.

The complete study from KPI may be read here.

Study on state and local regulation released

This week Kansas Policy Institute released a study of regulation and its impact at the state and local level. This is different from most investigations of regulation, as most focus on federal regulations.

Business Perceptions of the Economic Impact of State and Local Government Regulation coverThe study is titled “Business Perceptions of the Economic Impact of State and Local Government Regulation.” It was conducted by the Hugo Wall School of Public Affairs at Wichita State University. Click here to view the entire document.

Following is an excerpt from the introduction by James Franko, Vice President and Policy Director at Kansas Policy Institute.

Surprising to some, the businesses interviewed did not have as much of a problem with the regulations themselves, or the need for regulations, but with their application and enforcement. Across industries and focus group sessions the key themes were clear — give businesses transparency in what regulations are being applied, how they are employed, provide flexibility in meeting those goals, and allow an opportunity for compliance.

Sometimes things can be said so often as to lose their punch and become little more than the platitudes referenced above. The findings from Hugo Wall are clear that businesses will adapt and comply with regulations if they are transparent and accountable. Many in the public can be forgiven for thinking this was already the case. Thankfully, local and state governments can ensure this happens with minimal additional expense.

A transparent and accountable regulatory regime should be considered the “low hanging fruit” of government. Individuals and communities will always land on different places along the continuum of appropriate regulation. And, a give and take will always exist between regulators and the regulated. Those two truisms, however, should do nothing to undermine the need for regulations to be applied equally, based on clear rules and interpretations, and to give each business an opportunity to comply.

Downtown Wichita deal shows some of the problems with the Wichita economy

In this script from a recent episode of WichitaLiberty.TV: A look at the Wichita city council’s action regarding a downtown Wichita development project and how it is harmful to Wichita taxpayers and the economy. This is from episode 77, originally broadcast March 8, 2015. View the episode here.

This week a downtown Wichita project received many economic benefits such as free sales taxes and a bypass of Wichita’s code of conduct for city council members.

Exchange Place
Exchange Place
The issue had to do with tax increment financing, or TIF. This is a method of economic development whereby property taxes are routed back to a real estate development rather than funding the cost of government. It’s thought that TIF is necessary to make certain types of projects economically feasible. I appeared before the Wichita city council and shared my concerns about the harmful effects of this type of economic development.

I said that regarding the Exchange Place project in downtown Wichita, I’d like to remind the council of the entire subsidy package offered to the project.

There are historic preservation tax credits, which may amount to 25 percent of the project cost. These credits have the same economic impact as a cash payment, and their cost must be born by taxpayers.

There is $12.5 million in tax increment financing, which re-routes future property tax revenues back to the project for the benefit of its owners. Most everyone else pays property taxes in order to pay for government, not for things that benefit themselves exclusively, or nearly so.

There is a federal loan guarantee, which places the federal taxpayer on the hook if this project isn’t successful.

The owner of this project also seeks to avoid paying sales taxes on the purchase of materials. City documents don’t say how much this sales tax forgiveness might be worth, but it easily could be several million dollars.

I said: Mayor and council, if it in fact is truly necessary to layer on these incentives in order to do a project in downtown Wichita, I think we need to ask: Why? Why is it so difficult to do a project in downtown Wichita?

Other speakers will probably tell you that rehabilitating historic buildings is expensive. If so, working on historic buildings is a choice they make. They, and their tenants, ought to pay the cost. It’s a lifestyle choice, and nothing more than that.

I told the council that I’m really troubled about the sales tax exemption. Just a few months ago our civic leaders, including this council, recommended that Wichitans add more to our sales tax burden in order to pay for a variety of things.

Only 14 states apply sales tax to food purchased at grocery stores for home consumption, and Kansas has the second-highest statewide rate. We in Kansas, and Wichita by extension, require low-income families to pay sales tax on their groceries. But today this council is considering granting an exemption from paying these taxes that nearly everyone else has to pay.

I told the council that these tax subsidies are not popular with voters. Last year when Kansas Policy Institute surveyed Wichita voters, it found that only 34 percent agreed with the idea of local governments using taxpayer money to provide subsidies to certain businesses for economic development. Then, of course, there is the result of the November sales tax election where city voters emphatically said no to the council’s plan for a sales tax increase.

This project is slated to receive many million in taxpayer-funded subsidy. Now this council proposes to wave a magic wand and eliminate the cost of sales tax for its owners. People notice this arbitrary application of the burden of taxation. They see certain people treated differently under the law, rather than all being treated equally under the law. People don’t like this. It breeds distrust in government. This council can help restore some of this trust by not issuing the Industrial Revenue Bonds and the accompanying sales tax exemption.

In response to my remarks, city council member and mayoral candidate Jeff Longwell had a few comments, as we see here in video from the meeting.

We see city council member and mayoral candidate Jeff Longwell contesting the idea that TIF funds are being rerouted to the benefit of the owners of the project. We’re getting a public parking garage is the city’s response.

Let’s look at the numbers and see if we can evaluate this claim. According to city documents, the project will hold 230 apartments, and the garage is planned to hold 273 parking stalls. You can imagine that many of the apartment renters or buyers will want a guaranteed parking space available to them at all times. And in fact, an early version of the development plan states: “A minimum of 195 spaces will be allocated for use by the apartments. The remaining 103 spaces will be for public parking.” So the city is giving up $12.5 million of tax revenue to gain 103 parking spaces. That’s 121 thousand dollars per parking spot. You can buy a very nice house in Wichita for that.

The actual situation could be even worse for the city’s taxpayers. The development agreement
states: “A minimum of 103 parking spaces shall be set aside in the Parking Garage for public parking and the balance for the exclusive use of the residents and guests of Exchange Place Building and Douglas Building.” It also holds this: “This allocation can be revised by Developer as market experience may demonstrate a need to reallocate parking spaces with consent of the City Representative (which consent shall not be unreasonably withheld or delayed).”

So a large portion of the parking garage is not a public benefit. It’s for the benefit of the apartments developer. If not for the city building the garage, the developer would need to provide these parking spaces in order to rent the apartments. And because of tax increment financing, the developer’s own property taxes are being used to build the garage instead of paying for government, like almost all other property taxes do, like your property taxes do. If this was not true, there would be no benefit to the developer for using tax increment financing. And if TIF did not have a real cost to the rest of the city’s taxpayers, we might ask this question: Why not use TIF more extensively? Why can’t everyone benefit from a tax increment financing district?

In his remarks, the city manager mentioned the Block One garage as a public asset, as it was funded by tax increment financing, so let’s look at the statistics there. According to the revised budget for the project, the plan is for 270 stalls in the garage. But 125 stalls are allocated for the hotel, and 100 are allocated for the Slawson development, and 45 allocated for the Kansas Leadership Center building. That leaves precisely zero stalls for public use. That’s right. If these three businesses make full use of their allocation of parking stalls, there will be zero stalls available for the public.

It’s not quite that simple, as Slawson will use its spaces only during the workday, leaving them available to the public evenings and weekends. Perhaps the same arrangement will be made for the Kansas Leadership Center. Being near the Intrust Bank Arena, the garage is used for parking for its events. Except, there aren’t very many event in the arena. In some months there are no events. But you can see that something that is promoted for the public good really turns out to be narrowly focused on private interests.

The manager also mentioned the garage on Main Street. According to city documents, the cost to rehabilitate this garage is $9,685,000, which creates 550 parking stalls. But the city is renting 180 parking stalls to a politically-connected company at monthly rent of $35. We looked at this a few months ago and saw how bad this deal is for city taxpayers.

In his remarks, Mayor Carl Brewer thanked city staff and the developers for “working collectively as a team.” He criticized those who say, in his words, “let’s not do anything, let’s just see where the chips may fall.” As an alternative, he said “we can come together, we can work together, we can work collectively together, and we can bring about change and form it the way we want.”

These remarks illustrate the mayor’s hostility to free markets, that is, to thousands and millions and billions of people trading freely in order to figure out how to allocate scarce resources. But the mayor likens the marketplace of free people to a random event — where the chips may fall, he said. But that’s not how markets work. Markets are people planning for themselves, using their knowledge and preferences and resources in order to build things they want, and what they think others will want. That’s because in markets, the only way you can earn a profit is by doing things that other people want. You have to please customers in order to profit.

But Wichita Mayor Carl Brewer says we need to work collectively together. He says we can form the future the way “we” want. Well, who is the “we” he’s talking about? As we see, the dynamics of free markets results in people doing what other people want. But the “we” the mayor talks about is politicians, bureaucrats, cronies, and do-gooders deciding how they want things to be done, and using your money to do it. That reduces your economic freedom. Your money is directed towards satisfying the goals of politicians and bureaucrats rather than actual, real people.

Here’s how bad this deal really is for Wichita. In my remarks to the council I also said this: Might I also remind the people of Wichita that some of their taxpayer-funded subsidies are earmarked to fund a bailout for a politically-connected construction company for work done on a different project, one not related to Exchange Place except through having common ownership in the past? I don’t think it is good public policy for this city to act as collection agent for a private debt that has been difficult to collect.

I was referring to the fact that the Exchange Place project started as an endeavor of the Minnesota Guys, two developers who bought a lot of property in downtown Wichita and didn’t do very well. They both have been indicted on 61 counts of securities violations in relation to their work in downtown Wichita. One of their projects was the Wichita Executive Center on north Market Street. The Minnesota Guys still owe money to contractors on that project, and some of the taxpayer funding for the Exchange Place project will be used to pay off these contractors.

Why, you may be asking, is the city acting as collection agent for these contractors? There’s an easy answer to this. Money is owed to Key Construction company. We’ve talked about this politically-connected construction firm in the past. Through generous campaign contributions and friendships, Key Construction company manages to gain things like no-bid contracts and other subsidies from the city.

Wichita Mayor Carl Brewer with major campaign donor Dave Wells of Key Construction.
Wichita Mayor Carl Brewer with major campaign donor Dave Wells of Key Construction.
This is a problem. Dave Wells, the president of Key Construction, is a friend of the mayor, as well as frequent and heavy campaign financier for the mayor and other council members. And the mayor voted for benefits for Wells and his company. That is a violation of Wichita city code, or at least it should be. Here’s an excerpt from Wichita city code section 2.04.050, the Code of ethics for council members as passed in 2008: “[Council members] shall refrain from making decisions involving business associates, customers, clients, friends and competitors.”

Dave Wells and Carl Brewer are friends. The mayor has said so. But the City of Wichita’s official position is that this law, the law that seem to plainly say that city council members cannot vote for benefits for their friends, this law does not need to be followed. Even children can see that elected officials should not vote economic benefits for their friends — but not the City of Wichita.

There’s much research that shows that tax increment financing is not an overall benefit to a city’s economy. Yes, it is good for the people that receive it, like the developer of Exchange Place and the mayor’s friends and cronies. But for cities as a whole, the benefit has found to be missing. Some studies have found a negative effect of TIF on economic progress and jobs. That’s right — a city is worse off, as a whole, for using tax increment financing. The evolving episode involving Exchange Place — the massive taxpayer subsidies, the cronyism, the inability of the mayor and council members to understand the economic facts and realities of the transactions they approve, the hostility towards free markets and their benefits as opposed to government planning of the economy — all of this contributes to the poor performance of the Wichita-area economy. This is not an academic exercise or discussion. Real people are hurt by this.

Mayor Brewer has just a month left in office, and there will be a new mayor after that. We, the people of Wichita, have to hope that a new mayor and possibly new council members will chart a different course for economic development in Wichita.

School employment data shows gaps in reporting and wide variations among districts

Kansas school districts vary widely in employment ratios, and that’s not counting the unreported employees, writes David Dorsey of Kansas Policy Institute.

School employment data shows gaps in reporting and wide variations among districts

By David Dorsey

Kansas Policy Institute has created a state public education employment metrics report for FY 2014 and the file can be accessed here. The file contains employment totals and also five categories of pupil-per-employee ratios. Here are some highlights and analysis.

Pupils per classroom teacher

The employment metrics file shows considerable variation among the districts when it comes to the number of pupils per classroom teacher. Weskan, with an enrollment of just 92 students has a ratio of 6.2 pupils for every classroom teacher, while Spring Hill with 2,850 students has 20.5 students for every classroom teacher. Among the state’s largest districts, Shawnee Mission has the highest ratio at 17.9 and Salina is the lowest at 14.6. The state median is 13, while the mean is 15.4 pupils per classroom teacher. (KSDE excludes special education and reading specialists from their definition of classroom teaches.)

These ratios are considerably smaller than what is typically reported as classroom size. It is impossible to make an exact comparison because KSDE does not keep data on classroom size.

Administrative manager employment

As the table below shows, there is a wide range of pupils per manager* across the state. Manhattan-Ogden (USD 383) carries the distinction of having the most top-heavy administration among the state’s 20 largest districts with a ratio of 96.2 pupils per manager. Contrast that with Andover (USD 385), which has 238.7 pupils per manager. Put another way, USD 383 has 5 percent more students, but 160 percent more administrators than USD 385.

Among the biggest districts, Shawnee Mission is the most efficient with nearly twice as many pupils per manager than fellow Johnson County district Blue Valley and more than twice as many pupils per manager than Topeka. Shawnee Mission claims an even smaller administrative footprint in FY 2015 in favor of more money going toward instruction.

The following table summarizes the ranges among all districts on a per-pupil basis through the low, high, and median values for each metric.

Special Education Cooperatives and Interlocals Make Comparisons Difficult

Most school districts in Kansas enter into inter-district agreements to provide special education services in an effort to provide those services in a more cost-effective manner. According to the KSDE directory, 252 of the 286 schools districts in the state are part of what is called either a cooperative or an interlocal. Essentially, it means two or more school districts in an area pool their teaching resources to serve special education kids. This distorts the employment reporting for these two reasons:

  • About half the districts are in cooperatives that list all the employees of the cooperative in only the “home” district of that cooperative. Example: the East Central Kansas Special Education Cooperative consists of 8 districts. The home district, Paola USD 368, reports 60 special education teachers and 253 special education paraprofessionals. The other 7 districts report zero special education teachers and zero special education paraprofessionals.
  • The remaining cooperatives have been given a school district number (all in the 600s), but the number of special education teachers, paraprofessionals and other employees go unreported. According to the KSDE directory of schools there are 19 such “districts” that include 143 unified school districts. And, according to KSDE, these cooperatives have 5,284 employees, none of whom are included in state employment totals because KSDE only reports employment for unified school districts.

*”Manager” is a KPI defined category that combines the 17 KSDE administrative categories reported by all school districts (superintendents, asst. superintendents, principals, asst. principals, business managers, and directors of all other functions).

WichitaLiberty.TV: Kansas Policy Institute President Dave Trabert

In this episode of WichitaLiberty.TV: Dave Trabert of Kansas Policy Institute explains the block grants for Kansas school funding. Also: What did the school efficiency commission learn? View below, or click here to view at YouTube. Episode 79, broadcast March 22, 2015.

Kansas school funding block grants, new formula benefits students

Estimates from the Kansas Department of Education show that school funding would set new records under the block grant proposal, writes Dave Trabert of Kansas Policy Institute.

Block grants, new formula benefits students

By Dave Trabert, Kansas Policy Institute

The debate over whether to replace the current school funding formula with a temporary block grant exposed one of the greatest challenges facing public education in Kansas. Most school administrators and the special interest groups that lined up in opposition of the proposal focused almost exclusively on their institutional desire for more money and only mentioned students in the context of how they would suffer if the institutions’ demands are not met.

Every Legislative Post Audit study on schools has found them to be inefficient operators, but no administrators opposing the block grants said they would choose to operate efficiently if they wanted more money for instruction under the block grants. School administrators testifying before the K-12 Commission on Efficiency acknowledged that more money could go to classrooms if they outsourced certain functions, but no one opposing the block grants offered up those solutions. No one said that block grants would force them to cut back on their multiple layers of administration or use much of their $857 million in cash reserves. The message was pretty clear; give institutions what they want or the students will suffer.

Opponents also didn’t let facts get in their way. One superintendent said the current formula is “… tied to what it costs to educate kids” but that is a demonstrably false statement. The current formula is based on a cost study that has been proven to be deliberately skewed to produce inflated numbers. Legislative Post Audit gave legislators some estimates years ago but stressed that those estimates were only based on a specific set of variables and said “different decisions or assumptions can result in very different cost estimates.” Even the State Supreme Court said cost studies are “… more akin to estimates that the certainties …” suggested by the district court.

Administrators spoke of how much they would be “cut” under the block grants but that is largely government-speak for not getting as much of an increase as they want. Estimates from the Kansas Department of Education show that school funding would set new records under the block grant proposal, at $6.147 billion or $13,347 per pupil; only $3 million of the $171 million increase this year is for KPERS.

School funding has increased by more than $3 billion since 1998 and is $1.5 billion higher than if adjusted for enrollment and inflation. Yet only 36 percent of White students scored well enough on the 2014 ACT exam to be considered college-ready in English, Reading, Math and Science; it’s even worse for Hispanic and African American students, at 14 percent and 7 percent, respectively. Only 38 percent of 4th Grade students are Proficient in Reading on the National Assessment of Educational Progress (NAEP) and Low Income 4th Graders are almost three years’ worth of learning behind everyone else — in the 4th Grade!

The old school formula certainly gave institutions a lot more money but it didn’t work for students. The new formula should hold districts accountable for improving outcomes; it should also be transparent and require efficient use taxpayer money.

Kansas school funding still sets new record with block grant proposal

Kansas school funding is at a record high this year and is projected to rise next year, writes Dave Trabert of Kansas Policy Institute.

School funding still sets new record with block grant proposal

By Dave Trabert

You wouldn’t know it from media reports or school district newsletters, but school funding will still set another new record this year. Superintendents say they are dealing with budget cuts but that is largely government-speak for not getting as much of an increase as they would like — and media laps it up without asking how this year’s funding compares with last year.

The Kansas Department of Education (KDSE) says the proposed block grants for the current school year total $3.409 billion, but the block grants do not include state funding for Special Education or Bond and Interest aid. Including those amounts as listed in the Governor’s Budget Report puts total state aid at $3.985 billion. A few months ago, KSDE Deputy Superintendent of Finance Dale Dennis estimated Local aid at $1.652 billion and Federal aid at $510 million. That would put total taxpayer support at $6.147 billion this year and set a new funding record for the fourth consecutive year.

Funding per-pupil would be $13,262 (based on KSDE estimated enrollment of 463,500) and set a new record for the third consecutive year.

Total funding last year according to KSDE was $5.976 billion, so the revised estimate for this year represents a $171 million increase. Also of note, KSDE puts KPERS funding last year at $312 million and shows $315 million included in the block grant. That means — contrary to claims you might have heard — that almost all of the funding increase is not related to pension funding.

Here is a historical perspective on per-pupil school funding, adjusted upward for KPERS in the years prior to 2005 (when it wasn’t included in KSDE funding reports). The blue line shows actual funding and red line show what funding would have if adjusted for inflation each year. FYI, funding this year would be $1.503 billion less if it had just been increased for inflation and enrollment.

Rally for school choice in Kansas

This month, parents and children from around Kansas rallied in the Kansas Capitol for school choice.

Speakers included James Franko of Kansas Policy Institute. He told the audience that children deserve better than what they are getting today. For many, he said that might be in a public school, but for many others it may be in a private school. Parents and their children should make that decision. It shouldn’t be based on their zip code. Individuals, not institutions, should be the focus.

Kansas now has a private school choice program. Franko told the audience that newspaper coverage of this program emphasizes how it helps private schools and hurts public schools. But we should be reading stories about how school choice helps kids, giving each child the freedom and opportunity to find the best educational fit. He explained that school choice also helps the students who remain in public schools, referring to a Friedman Foundation for Education Choice study. “It’s about helping every single child,” he said.

The study Franko mentioned is A Win-Win Solution: The Empirical Evidence on School Choice. In its executive summary, author Greg Forster, Ph.D. writes “Opponents frequently claim school choice does not benefit participants, hurts public schools, costs taxpayers, facilitates segregation, and even undermines democracy. However, the empirical evidence consistently shows that choice improves academic outcomes for participants and public schools, saves taxpayer money, moves students into more integrated classrooms, and strengthens the shared civic values and practices essential to American democracy.”

Later, the specific finding that Franko used in his talk: “Twenty-three empirical studies (including all methods) have examined school choice’s impact on academic outcomes in public schools. Of these, 22 find that choice improves public schools and one finds no visible impact. No empirical study has found that choice harms public schools.

Michael Chartier of the Friedman Foundation for Education Choice said that there are now 51 school choice programs in 24 states plus the District of Columbia.

School Choice Rally, Kansas Capitol 2015-02-02 15.07.38 HDRAndrea Hillebert, principal of Mater Dei Catholic School in Topeka told the audience that school choice benefits families, schools, and the state. Families can choose the learning environment that is best for their children, and are not penalized if they choose a school that is not run by the government. She told the audience that “school choice encourages — requires — families to take an active role in shaping their students’ future.” Schools benefit because consumer choice is a catalyst for innovating programming and continuous improvement. The state benefits from the increased achievement of students in non-public schools.

Susan Estes of Americans for Prosperity – Kansas explained that even as a former public schoolteacher, it has been a challenge for her to navigate the school system so that the needs of her three children were met. She said that parents not only deserve, but have the right to be the primary decision maker for their children.

Bishop Wade Moore, founder and principal of Urban Preparatory Academy in Wichita, completed the program. Urban Prep is a new private school in northeast Wichita, and students from that school attended the rally. He said that our legislators have “a moral responsibility to do what is right for each Kansas kid.” He mentioned the students that are pushed through the system until they graduate, but are unprepared for college, trade school, or employment. “A lot of those children have no chance at life. So we say that we have a crisis in this nation,” he said.

Alluding to how Kansas has few school choice programs, Moore said “It’s time for us to wake up and move ahead, like the rest of the nation, in education reform.” He said that he heard a school superintendent make the statement that our children and parents have a choice in education. He said “They can choose one of our schools to attend.” That is not choice, Moore said. Real choice is when parents have the opportunity to go outside the public school system.

The reason for the poor academic performance of many children is that their parents have not had choice and control over the children’s education. “It is imperative that all children, regardless of their race, gender, place of residence, and socio-economic status, learn the concepts and strategies necessary for them to develop and succeed,” he told the audience.

In Kansas, resolving school district spending variances could yield savings

From Kansas Policy Institute.

Resolving school district spending variances could yield hundreds of millions in savings

By Dave Trabert

School districts spent an average $12,960 per student during the 2014 school year but the range of spending across districts varied quite significantly. Total spending went from a low of $9,245 per-pupil (USD 218 Elkhart, with 1,137 students) to a high of $23,861 (USD 490 El Dorado, 1,872 students); El Dorado also hosted a Special Ed Co-Op and must record the cost of serving students in other districts per KSDE. USD 359 Argonia had the highest spending per-pupil among districts that did not host Special Ed Co-Ops, spending $22,847 with 162 students enrolled.

Instruction spending variances can be somewhat driven by the school funding formula and student body compositions (extra money is given to districts for special education, low income students and bi-lingual students) but districts have a great deal of latitude in resource allocation. Some districts, for example, divert money from Instruction as a result of other spending decisions. Variances in spending on Administration and other cost centers, however, are primarily driven by district operating decisions.

Many Kansas school districts have low enrollment, and while it would be expected that very small districts would spend more per-pupil because of economies of scale, some small districts are able to operate at lower prices per student than many larger districts. There are also wide variances even among districts of similar size.

A complete analysis of all operating cost centers (including Operations/Maintenance, Transportation, Food Service and Community Service can be found here.

To put these variances in perspective, KPI staff calculated the potential savings of getting each district spending above median within their enrollment category down to the median for each cost center. The total comes to a staggering $516 million. There may be some circumstances that preclude some of that savings being realized but there could also be additional savings realized among those districts spending below median.

To be clear, the purpose of this analysis is not to say that a specific dollar amount of savings could be had if districts operate more efficiently. However, variances of this magnitude certainly indicate that efficiency efforts driven by the Legislature could easily yield nine-figure savings.

Better outcomes at a better price in Johnson County

From Kansas Policy Institute.

Better outcomes at a better price in Johnson County:

USD 232 De Soto and USD 231 Gardner-Edgerton

By Dave Trabert

The most recent performance and spending records of Johnson County school districts serves as a good reminder that there is no relationship between high spending and high achievement. In fact, the two districts that spend the least happen to have the best outcomes on state assessments.

Students who read grade-appropriate material with full comprehension and usually perform accurately on all grade-level math tasks are best positioned for success in college and career. Disparate demographic compositions and achievement gaps distort districts’ average scores, so student cohorts must be separately compared. De Soto and Gardner-Edgerton have the highest and second-highest percentages of income-based cohorts attaining these levels in Reading and Math and also spend the least per-pupil on current operations (no capital or debt included).

The achievement gap for low income students is common across Kansas and there are also large variances in student body compositions across districts. For example, only 8.4% of Blue Valley students are considered low income (based on eligibility for free / reduced lunch) whereas as Shawnee Mission has 37.8% who qualify as low income; eligibility for free/reduced lunch is the official metric of “income” via the Kansas Department of Education. Blue Valley’s average score benefits from having very few low income students and masks the fact that other districts do as well or better on individual student groups.

De Soto’s and Gardner-Edgerton’s superior performance has great significance for taxpayers. In fact, if the other five Johnson County districts operated at the per-pupil cost of De Soto, the burden on taxpayers could be reduced by $127.1 million! Of course, while De Soto has the lowest operating cost per-student, that doesn’t mean that the district is efficient; savings across the county would be even greater if De Soto’s costs were reduced through consolidation of non-instruction services across district lines and other efficiency opportunities.

FY 2014 per-pupil spending for each Johnson County district is shown below by cost center. Click here to download these blog tables and per-pupil spending comparisons of all Johnson County school districts, showing how spending has changed since FY 2005.

Kansas must get serious about spending

As Kansas struggles to balance the budget for this year and the next, the state needs to prepare for future budgets by resolving the problem of spending.

Click to open this visualization in a new window.
Click to open this visualization in a new window.
Why is controlling spending important? The slow rate of growth of the Kansas economy has been a problem for years. This interactive visualization lets you compare gross domestic product growth of Kansas with other states. Kansas has reduced income taxes, but Kansas has not reduced spending to match. There is pressure to balance future budgets with tax increases instead of spending cuts. Because of the lagging performance of the Kansas economy, it’s important to reduce the footprint of state government to make room for the private sector economy to grow.

Kansas Policy Institute has provided a plan for balancing the Kansas budget. It relies on structural changes and small improvements in efficiency.

Kansas can balance its budget by improving the operations of, and reducing the cost of, state government. In 2011 the Kansas Legislature lost three opportunities to do just this. Three bills, each with this goal, were passed by the House of Representatives, but each failed to pass through the Senate, or had its contents stripped and replaced with different legislation.

Each of these bills represents a lost opportunity for state government services to be streamlined, delivered more efficiently, or measured and managed. These goals, while always important, are now essential for the success of Kansas government and the state’s economy. There is no reason why these bills, or similar measures, could not be revived. The improvements these bills would foster will not balance next year’s budget. But they will set the stage for controlling the growth of Kansas government spending. This will leave more money in the private sector, which will help Kansas grow.

Kansas Streamlining Government Act

HB 2120, according to its supplemental note, “would establish the Kansas Streamlining Government Act, which would have the purpose of improving the performance, efficiency, and operations of state government by reviewing certain state agencies, programs, boards, and commissions.” Fee-funded agencies — examples include Kansas dental board and Kansas real estate commission — would be exempt from this bill.

In more detail, the text of the bill explains: “The purposes of the Kansas streamlining government act are to improve the performance, streamline the operations, improve the effectiveness and efficiency, and reduce the operating costs of the executive branch of state government by reviewing state programs, policies, processes, original positions, staffing levels, agencies, boards and commissions, identifying those that should be eliminated, combined, reorganized, downsized or otherwise altered, and recommending proposed executive reorganization orders, executive orders, legislation, rules and regulations, or other actions to accomplish such changes and achieve such results.”

In testimony in support of this legislation, Dave Trabert, President of Kansas Policy Institute offered testimony that echoed findings of the public choice school of economics and politics: “Some people may view a particular expenditure as unnecessary to the fulfillment of a program’s or an agency’s primary mission while others may see it as essential. Absent an independent review, we are expecting government employees to put their own self-interests aside and make completely unbiased decisions on how best to spend taxpayer funds. It’s not that government employees are intentionally wasteful; it’s that they are human beings and setting self-interests aside is challenge we all face.”

The bill passed the House of Representatives by a vote of 79 to 40. It was referred to the Senate Committee on Federal and State Affairs, where it did not advance.

Privatization and public-private partnerships

Another bill that did not advance was HB 2194, which in its original form would have created the Kansas Advisory Council on Privatization and Public-Private Partnerships.

According to the supplemental note for the bill, “The purpose of the Council would be to ensure that certain state agencies, including the Board of Regents and postsecondary educational institutions, would: 1) focus on the core mission and provide goods and services efficiently and effectively; 2) develop a process to analyze opportunities to improve efficiency, cost-effectiveness and provide quality services, operations, functions, and activities; and 3) evaluate for feasibility, cost-effectiveness, and efficiency opportunities that could be outsourced. Excluded from the state agencies covered by the bill would be any entity not receiving State General Fund or federal funds appropriation.”

This bill passed by a vote of 68 to 51 in the House of Representatives. It did not advance in the Senate, falling victim to a “gut-and-go” maneuver where its contents were replaced with legislation on an entirely different topic.

Opposing this bill was Kansas Organization of State Employees (KOSE), a union for executive branch state employees. It advised its “brothers and sisters” that the bill “… establishes a partisan commission of big-business interests to privatize state services putting a wolf in charge of the hen house. To be clear, this bill allows for future privatization of nearly all services provided by state workers. Make no mistake, this proposal is a privatization scheme that will begin the process of outsourcing our work to private contractors. Under a privatization scheme for any state agency or service, the employees involved will lose their rights under our MOA and will be forced to adhere to the whims of a private contractor who typically provides less pay and poor benefits. Most workers affected by privatization schemes are not guaranteed to keep their jobs once an agency or service is outsourced.”

Note the use of “outsourcing our work.” This underscores the sense of entitlement of many government workers: It is not work done for the benefit of Kansans; to them it is our work.

Then, there’s the warning that private industry pays less. Most of the time representatives of state workers like KOSE make the case that it is they who are underpaid, but here the argument is turned around when it supports the case they want to make. One thing is probably true: Benefits — at least pension plans — may be lower in the private sector. But we’re now painfully aware that state government has promised its workers more pension benefits than the state has been willing to fund.

Performance measures

Another bill that didn’t pass the entire legislature was HB 2158, which would have created performance measures for state agencies and reported that information to the public. The supplemental note says that the bill “as amended, would institute a new process for modifying current performance measures and establishing new standardized performance measures to be used by all state agencies in support of the annual budget requests. State agencies would be required to consult with representatives of the Director of the Budget and the Legislative Research Department to modify each agency’s current performance measures, to standardize such performance measures, and to utilize best practices in all state agencies.” Results of the performance measures would be posted on a public website.

This bill passed the House of Representatives by a nearly unanimous vote of 119 to 2. In the Senate, this bill was stripped of its content using the “gut-and-go” procedure and did not proceed intact to a vote.

Opposition to these bills from Democrats often included remarks on the irony of those who were recently elected on the promise of shrinking government now proposing to enlarge government through the creation of these commissions and councils. These bills, however, proposed to spend modest amounts increasing the manageability of government, not the actual range and scope of government itself. As it turns out, many in the legislature — this includes Senate Republicans who initiated or went along with the legislative maneuvers that killed these bills — are happy with the operations of state government remaining in the shadows.

These proposals to scale back the services that government provides — or to have existing services be delivered by the private sector — mean that there will be fewer government employees, and fewer members of government worker unions. This is another fertile area of gathering support for killing these bills.

State workers and their supporters also argue that fewer state workers mean fewer people paying state and other taxes. Forgotten by them is the fact that the taxes taken to pay these workers means less economic activity and fewer jobs in the private sector.

As to not wanting performance measures: Supporters of the status quo say that people outside of government don’t understand how to make the decisions that government workers make. In one sense, this may be true. In the private sector, profitability is the benchmark of success. Government has no comparable measure when it decides to, say, spend some $300 million to renovate the Kansas Capitol. But once it decides to do so, the benchmark and measurement of profitability in executing the service can be utilized by private sector operators. Of course, private contractors will be subject to the discipline of the profit and loss system, something again missing from government.

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

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.

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

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.

At risk school funding in Kansas

From Kansas Policy Institute.

At Risk School Funding 101

by David Dorsey

Note: this is the first blog in a series on the issue of at risk funding and accompanies a comprehensive KPI at risk research project.

Funding for public schools is a complicated proposition.

There are many factors that go into determining just how much money school districts will receive and where it will come from every year from state and local sources. There are property taxes, state equalization, local options, and so many more considerations that it takes 93 columns on the master spreadsheet used by the Kansas Department of Education to sort it all out! And that doesn’t even count federal money.

One piece of this funding puzzle is the “weighting” formula the state uses to adjust (increase) the amount of money that will go to each district based on certain characteristics of a) students (e.g. the number in vocational education) and b) the district (e.g. low or high enrollment). I presented the weighting formula in an earlier blog where you can see the formula in its entirety.

One part of that formula determines how much extra money goes to districts under the banner of “at risk.” So what is this at risk funding? It provides extra dollars to schools based on the number of economically disadvantaged students enrolled. It is rooted in a philosophy, and research has attempted to support, that it costs more to adequately educate poor students. That ideal is operationalized (quantified) by using the number of students who qualify for free lunch under the United States Department of Agriculture’s National School Lunch Program (NSLP). Some states also include the number of students who qualify for reduced lunch cost under NSLP. Nearly all states use the school lunch program in some form as a basis for determining their versions of at risk population.

This graphic shows how it works under current Kansas law. Base state aid per pupil (BSAPP) is $3,852. A student who qualifies for a free lunch is presently weighted at anadditional 45.6% of BSAPP and generates $5,609. (I say presently because at risk weightings have increased over time — more on that in the next blog.) Additionally, if more than half the students in a district are free lunch students a supplementary 10.5% weighting is added ($6,013). Currently, that applies to 57 of the state’s 286 school districts. One hundred four districts get a smaller, sliding scale additional percentage because they have between 35% and 50% at-risk students (more than $5,609 but less than $6,013). One hundred twenty five districts get no additional at risk money. Then, in order to determine the exact dollar amount a district will receive, the total weighted percentage is multiplied by the current BSAPP ($3,852 per pupil for 2015).

I told you it’s complicated.

Coincidentally, it is actually simpler than previous years because the legislature passed a law that eliminated a small at risk category in the 2014 session.

To show exactly how free lunch turns into at risk dollars, I present the following table that shows at risk funding for seven selected school districts that reveals the funding impact at risk dollars can have.

At risk data for selected districts, 2014-2015, from Kansas Policy Institute

Wichita, by far the biggest school district in the state, gets over $72 million per year. Pittsburg and Hays have virtually identical enrollments, but Pittsburg gets nearly $2.3 million more at risk money than Hays because Pittsburg has nearly twice the number of free lunch students, but more than twice as many weighted free lunch students. For the entire state the total at risk funding is just over $395 million.

That’s a lot of money, even in government terms.

One of the core issues associated with at risk funding is how it impacts student achievement, especially in light of the numerous and significant increases in at risk funding over the years (to be presented in the next blog). We will examine in depth what previous KPI research has shown to have limited positive effect.

Next: How did we get here? A look at the research and realities of additional funding for educating the economically disadvantaged.

Year in Review: 2014

Here is a sampling of stories from Voice for Liberty in 2014.

January

A transparency agenda for Wichita
Kansas has a weak open records law, and Wichita doesn’t want to follow the law, as weak as it is. But with a simple change of attitude towards open government and citizens’ right to know, Wichita could live up to the goals its leaders have set.

New York Times on Kansas schools, again
The New York Times — again — intervenes in Kansas schools. As it did last October, the newspaper makes serious errors in its facts and recommendations.

Visit Wichita, and pay a tourism fee
The Wichita City Council will consider adding a 2.75 percent tax to hotel bills, calling it a “City Tourism Fee.” Welcome to Wichita!

Wichita’s growth in gross domestic product
Compared to peer areas, Wichita’s record of growth in gross domestic product is similar to that of job creation: Wichita performs poorly.

The death penalty in Kansas, a conservative view
What should the attitude of conservatives be regarding the death penalty? Ben Jones of Conservatives Concerned about the Death Penalty spoke on the topic “Capital Punishment in Kansas from a conservative perspective: Is it a failed policy?”

Kansas school test scores, the subgroups
To understand Kansas school test scores, look at subgroups. Sometimes Kansas ranks very well among the states. In other instances, Kansas ranks much lower, even below the national average. It’s important for Kansans — be they citizens, schoolchildren, parents, education professionals, or (especially) politicians of any party — to understand these scores.

The state of Wichita, 2014
Wichita Mayor Carl Brewer delivered the annual State of the City address. He said a few things that deserve discussion.

February

In Wichita, why do some pay taxes, and others don’t?
A request by a luxury development in downtown Wichita raises issues, for example, why do we have to pay taxes?

Wichita considers policy to rein in council’s bad behavior
he Wichita City Council considers a policy designed to squelch the council’s ability to issue no-bid contracts for city projects. This policy is necessary to counter the past bad behavior of Wichita Mayor Carl Brewer and several council members, as well as their inability to police themselves regarding matters of ethical behavior by government officials.

Our Kansas grassroots teachers union
Letters to the editor in your hometown newspaper may have the air of being written by a concerned parent of Kansas schoolchildren, but they might not be what they seem.

Wichita’s legislative agenda favors government, not citizens
This week the Wichita City Council will consider its legislative agenda. This document contains many items that are contrary to economic freedom, capitalism, limited government, and individual liberty. Yet, Wichitans pay taxes to have someone in Topeka promote this agenda.

Wichita planning documents hold sobering numbers
The documents hold information that ought to make Wichitans think, and think hard. The amounts of money involved are large, and portions represent deferred maintenance. That is, the city has not been taking care of the assets that taxpayers have paid for.

In Wichita, citizens want more transparency in city government
In a videographed meeting that is part of a comprehensive planning process, Wichitans openly question the process, repeatedly asking for an end to cronyism and secrecy at city hall.

March

Special interests struggle to keep special tax treatment
When a legislature is willing to grant special tax treatment, it sets up a battle to keep — or obtain — that status. Once a special class acquires preferential treatment, others will seek it too.

In Wichita, West Bank apartments seem to violate ordinance
Last year the Wichita City Council selected a development team to build apartments on the West Bank of the Arkansas River, between Douglas Avenue and Second Street. But city leaders may have overlooked a Wichita City Charter Ordinance that sets aside this land to be “open space, committed to use for the purpose of public recreation and enjoyment.”

In Wichita, pushing back at union protests
A Wichita automobile dealer is pushing back at a labor union that’s accusing the dealer of unfair labor practices.

Wichita City Council to consider entrenching power of special interest groups
The Wichita City Council will consider a resolution in support of the status quo for city elections. Which is to say, the council will likely express its support for special interest groups whose goals are in conflict with the wellbeing of the public.

State employment visualizations
There’s been dueling claims and controversy over employment figures in Kansas and our state’s performance relative to others. I present the actual data in interactive visualizations that you can use to make up your own mind.

State and local government employment levels vary
The states vary widely in levels of state government and local government employees, calculated on a per-person basis. Only ten states have total government employee payroll costs greater than Kansas, on a per-person basis.

April

Wichita not good for small business
When it comes to having good conditions to support small businesses, well, Wichita isn’t exactly at the top of the list, according to a new ranking from The Business Journals.

Cronyism is welfare for rich and powerful, writes Charles G. Koch
“The central belief and fatal conceit of the current administration is that you are incapable of running your own life, but those in power are capable of running it for you. This is the essence of big government and collectivism,” writes Charles G. Koch in the Wall Street Journal.

Rich States, Poor States for 2014 released
In the 2014 edition of Rich States, Poor States, Utah continues its streak at the top of Economic Outlook Ranking, meaning that the state is poised for growth and prosperity. Kansas continues with middle-of-the-pack performance rankings, and fell in the forward-looking forecast.

Wichita develops plans to make up for past planning mistakes
On several issues, including street maintenance, water supply, and economic development, Wichita government and civic leaders have let our city fall behind. Now they ask for your support for future plans to correct these mistakes in past plans.

May

Poll: Wichitans don’t want sales tax increase
According to a newly released poll from Kansas Policy Institute, Wichitans may want more jobs and a secure water source but they certainly don’t support a sales tax increase as the means to get either. Reporting on this poll is available in these articles: In Wichita, opinion of city spending consistent across party and ideology, Few Wichitans support taxation for economic development subsidies, Wichitans willing to fund basics, and To fund government, Wichitans prefer alternatives to raising taxes.

Contrary to officials, Wichita has many incentive programs
Wichita government leaders complain that Wichita can’t compete in economic development with other cities and states because the budget for incentives is too small. But when making this argument, these officials don’t include all incentives that are available.

In Wichita, the streetside seating is illuminated very well
Wichita city leaders tell us that the budget and spending have been cut to the bone. Except for the waste, that is.

Wichita seeks to form entertainment district
A proposed entertainment district in Old Town Wichita benefits a concentrated area but spreads costs across everyone while creating potential for abuse.

In Wichita, capitalism doesn’t work, until it works
Attitudes of Wichita government leaders towards capitalism reveal a lack of understanding. Is only a government-owned hotel able to make capital improvements?

Wichita, again, fails at government transparency
At a time when Wichita city hall needs to cultivate the trust of citizens, another incident illustrates the entrenched attitude of the city towards its citizens. Despite the proclamations of the mayor and manager, the city needs a change of attitude towards government transparency and citizens’ right to know.

Wichita per capita income not moving in a good direction
Despite its problematic nature, per capita income in Wichita is used as a benchmark for the economy. It’s not moving in the right direction. As Wichita plans its future, leaders need to recognize and understand its recent history.

Uber, not for Wichita
A novel transportation service worked well for me on a recent trip to Washington, but Wichita doesn’t seem ready to embrace such innovation.

For Kansas’ Roberts, an election year conversion?
A group of like-minded Republican senators has apparently lost a member. Is the conservative voting streak by Pat Roberts an election year conversion, or just a passing fad?

June

Wichita property taxes compared
An ongoing study reveals that generally, property taxes on commercial and industrial property in Wichita are high. In particular, taxes on commercial property in Wichita are among the highest in the nation.

Government employee costs in the states
The states vary widely in levels of state government and local government employees and payroll costs, calculated on a per-person basis. Kansas ranks high in these costs, nationally and among nearby states.

With new tax exemptions, what is the message Wichita sends to existing landlords?
As the City of Wichita prepares to grant special tax status to another new industrial building, existing landlords must be wondering why they struggle to stay in business when city hall sets up subsidized competitors with new buildings and a large cost advantage.

Wichita city council schools citizens on civic involvement
Proceedings of a recent Wichita City Council meeting are instructive of the factors citizens should consider if they want to interact with the council and city government at a public hearing.

Forget the vampires. Let’s tackle the real monsters.
Public service announcements on Facebook and Wichita City Channel 7 urge Wichitans to take steps to stop “vampire” power waste. But before hectoring people to introduce inconvenience to their lives in order to save small amounts of electricity, the city should tackle the real monsters of its own creation.

July

Wichita property taxes rise again
The City of Wichita is fond of saying that it hasn’t raised its mill levy in many years. But the mill levy has risen in recent years.

For Wichita leaders, novel alternatives on water not welcome
A forum on water issues featured a presentation by Wichita city officials and was attended by other city officials, but the city missed a learning opportunity.

For Wichita’s new water supply, debt is suddenly bad
Wichita city leaders are telling us we need to spend a lot of money for a new water source. For some reason, debt has now become a dirty word.

Pat Roberts, senator for corporate welfare
Two years ago United States Senator Pat Roberts voted in committee with liberals like John Kerry, Chuck Schumer, and Debbie Stabenow to pass a bill loaded with wasteful corporate welfare.

August

Charles Koch: How to really turn the economy around
Writing in USA Today, Charles Koch offers insight into why our economy is sluggish, and how to make a positive change.

Wichita airport statistics updated
As the Wichita City Council prepares to authorize funding for Southwest Airlines, it’s worth taking a look at updated statistics regarding the airport.

Wichita sales tax hike would hit low income families hardest
Analysis of household expenditure data shows that a proposed sales tax in Wichita affects low income families in greatest proportion, confirming the regressive nature of sales taxes.

Welcome back, Gidget
Gidget stepped away for a few months, but happily she is back writing about Kansas politics at Kansas GOP Insider (wannabe).

September

Wichita planning results in delay, waste
Wichita plans an ambitious road project that turns out to be too expensive, resulting in continued delays for Wichita drivers and purchases of land that may not be needed.

‘Transforming Wichita’ a reminder of the value of government promises
When Wichita voters weigh the plausibility of the city’s plans for spending proposed new sales tax revenue, they should remember this is not the first time the city has promised results and accountability.

Fact-checking Yes Wichita: NetApp incentives
In making the case that economic development incentives are necessary and successful in creating jobs, a Wichita campaign overlooks the really big picture.

Arrival of Uber a pivotal moment for Wichita
Now that Uber has started service in Wichita, the city faces a decision. Will Wichita move into the future by embracing Uber, or remain stuck in the past?

Fact-checking Yes Wichita: Boeing incentives
The claim that the “city never gave Boeing incentives” will come as news to the Wichita city officials who dished out over $600 million in subsidies and incentives to the company.

Beechcraft incentives a teachable moment for Wichita
The case of Beechcraft and economic development incentives holds several lessons as Wichita considers a new tax with a portion devoted to incentives.

For Kansas budget, balance is attainable
A policy brief from a Kansas think tank illustrates that balancing the Kansas budget while maintaining services and lower tax rates is not only possible, but realistic.

To Wichita, a promise to wisely invest if sales tax passes
Claims of a reformed economic development process if Wichita voters approve a sales tax must be evaluated in light of past practice and the sameness of the people in charge. If these leaders are truly interested in reforming Wichita’s economic development machinery and processes, they could have started years ago using the generous incentives we already have.

For Wichita Chamber’s expert, no negatives to economic development incentives
An expert in economic development sponsored by the Wichita Metro Chamber of Commerce tells Wichita there are no studies showing that incentives don’t work.

Water, economic development discussed in Wichita
Dr. Art Hall, Executive Director of the Center for Applied Economics at the University of Kansas School of Business, presented his “Thoughts on Water and Economic Development” at the Wichita Pachyderm Club Friday, September 19, 2014

Stuck in the box in Wichita, part one
To pay for a new water supply, Wichita gives voters two choices and portrays one as bad. But the purportedly bad choice is the same choice the city made over the last decade to pay for the last big water project. We need out-of-the-box thinking here.

October

Kansas economy has been underperforming
Those who call for a return to the economic policies of past Kansas gubernatorial administrations may not be aware of the performance of the Kansas economy during those times.

Union Station TIF provides lessons for Wichita voters
A proposed downtown Wichita development deserves more scrutiny than it has received, as it provides a window into the city’s economic development practice that voters should peek through as they consider voting for the Wichita sales tax.

A simple step towards government transparency in Wichita
Kansas law requires publication of certain notices in newspapers, but cities like Wichita could also make them available in other ways that are easier to use.

While Wichita asks for new taxes, it continues to spend and borrow
The City of Wichita says it doesn’t have enough revenue for things like street maintenance and transit, but continues to borrow for spending on new projects.

Wichita debt levels seen to rise
As part of the campaign for a proposed Wichita sales tax, the city says that debt is bad. But actions the city has taken have caused debt levels to rise, and projections are for further increases.

For Wichita, another economic development plan
The Wichita City Council will consider a proposal from a consultant to “facilitate a community conversation for the creation of a new economic development diversification plan for the greater Wichita region.” Haven’t we been down this road before?

In Wichita, pro-sales tax campaign group uses sales tax-exempt building as headquarters
While “Yes Wichita” campaigns for higher sales taxes, it operates from a building that received a special exemption from paying sales tax.

For Wichita Chamber of Commerce chair, it’s sales tax for you, but not for me
A Wichita company CEO applied for a sales tax exemption. Now as chair of the Wichita Metro Chamber of Commerce, he wants you to pay more sales tax, even on the food you buy in grocery stores.

Should Wichita expand a water system that is still in commissioning stage?
Should we be concerned about rushing a decision to expand a water production system that has not yet proven itself?

Wichita sends educational mailer to non-Wichitans, using Wichita taxes
Why is the City of Wichita spending taxpayer money mailing to voters who don’t live in the city and can’t vote on the issue?

Wichita to consider tax exemptions
A Wichita company asks for property and sales tax exemptions on the same day Wichita voters decide whether to increase the sales tax, including the tax on groceries.

November

In election coverage, The Wichita Eagle has fallen short
Citizens want to trust their hometown newspaper as a reliable source of information. The Wichita Eagle has not only fallen short of this goal, it seems to have abandoned it.

Kansas school spending visualization updated
There’s new data available from Kansas State Department of Education on school spending. I’ve gathered the data, adjusted it for the consumer price index, and now present it in this interactive visualization.

In Kansas, school employment rises again
For the fourth consecutive year, the number of teachers in Kansas public schools has risen faster than enrollment, leading to declining pupil-teacher ratios.

Richard Ranzau, slayer of cronyism
In Sedgwick County, an unlikely hero emerges in the battle for capitalism over cronyism.

Kansans still uninformed on school spending
As in the past, a survey finds Kansans are uninformed or misinformed on the level of school spending, and also on the direction of its change.

In Kansas, voters want government to concentrate on efficiency and core services before asking for taxes
A survey of Kansas voters finds that Kansas believe government is not operating efficiently. They also believe government should pursue efficiency savings, focus on core functions, and spend unnecessary cash reserves before cutting services or raising taxes.

Kansas cities should not unilaterally grant tax breaks
When Kansas cities grant economic development incentives, they may also unilaterally take action that affects overlapping jurisdictions such as counties, school districts, and the state itself. The legislature should end this.

City of Wichita State Legislative Agenda: Cultural Arts Districts
Wichita government spending on economic development leads to imagined problems that require government intervention and more taxpayer contribution to resolve. The cycle of organic rebirth of cities is then replaced with bureaucratic management.

December

City of Wichita State Legislative Agenda: Airfares
The City of Wichita’s legislative agenda regarding the Affordable Airfares subsidy program seems to be based on data not supported by facts.

Options for funding Wichita’s future water supply
Now that the proposed Wichita sales tax has failed, how should Wichita pay for a future water supply?

KU records request seen as political attack
A request for correspondence belonging to a Kansas University faculty member is a blatant attempt to squelch academic freedom and free speech.

Why is this man smiling?
In Wichita, the chair of the Wichita Metro Chamber of Commerce crafts a sweetheart deal for his company to the detriment of Wichita taxpayers.

Wichita Metro Chamber of Commerce: What is the attitude towards taxes?
Does the Wichita Metro Chamber of Commerce support free markets, capitalism, and economic freedom, or something else?

Will the next Wichita mayor advocate enforcing our ethics laws?
Wichita has laws that seem clear. But the city attorney said they don’t mean what they seem to say. Will our next mayor stand up for ethics?

Campaign contribution stacking in Wichita
Those seeking favors from Wichita City Hall use campaign contribution stacking to bypass contribution limits. This has paid off handsomely for them, and has harmed everyone else.

Economic development in Wichita: Looking beyond the immediate
Decisions on economic development initiatives in Wichita are made based on “stage one” thinking, failing to look beyond what is immediate and obvious.

Economic development in Sedgwick County
The issue of awarding an economic development incentive reveals much as to why the Wichita-area economy has not grown.

Balancing the Kansas budget

Dave Trabert, President of the Kansas Policy Institute, spoke at the December 12, 2014 Wichita Pachyderm Club meeting. His program was titled “Debunking False Claims about Kansas Budget and Economy and Kansas Policy Institute Budget Plan for Kansas — How to balance the state budget without service reductions or tax increases.”

View video below, or click here to view at YouTube.

The policy brief Trabert mentioned may be downloaded from KPI at A Five-Year Budget Plan for the State of Kansas: How to balance the budget and have healthy ending balances without tax increases or service reductions or alternatively from Scribd here (may work better on mobile devices). A press release from KPI announcing the policy brief is at 5 Year Budget Plan Outlines Path To Protect Essential Services and Tax Reform.

Kansas ‘Green Book’ released

Kansas Policy Institute has published a book exploring the relationship between the size of government and economic growth.

Kansas Policy Institute Green Book 2014 coverTo introduce its book of economic statistics for Kansas and the nation, Kansas Policy Institute writes:

U.S. Supreme Court Justice Louis Brandeis saw states as “laboratories of democracy” conducting “experiments” in public policy. Today, more than eight decades after Brandeis coined the phrase, state experimentation with tax policy makes it abundantly clear that tax policy has a direct impact on economic growth. As shown on page 19, each of the eleven states that enacted an income tax since 1960 now has a smaller share of state GDP relative to the other 39 states and each one also has a smaller share of state and local tax revenue. That is a remarkable statistic; those eleven states enacted a new source of tax revenue and they lost revenue share to other states! To the contrary, states with low tax burdens and states without an income tax consistently outshine their higher-burden peers the on the key, tangible measures like private sector job, GDP, and wage growth. What’s more, citizens are taking notice and “voting with their feet” by flocking to low-burden states from higher-burden counterparts. Skeptics try to dismiss this definitive migratory trend by cherry-picking success stories like Texas and Florida and characterizing them as ‘’happy accidents” of favorable geography, climate, and/or resource abundance.

The book is available in pdf form here.

WichitaLiberty.TV: The Wichita Eagle fails the city and its readers

In this excerpt from WichitaLiberty.TV: In its coverage of the recent election, the Wichita Eagle has failed to inform its readers of city and state issues. View below, or click here to view at YouTube.

For more on this topic, see In election coverage, The Wichita Eagle has fallen short and For Wichita Eagle, no immediate Kansas budget solution.

WichitaLiberty.TV: Election results, Kansas school employment and spending, and government planning of the economy

In this episode of WichitaLiberty.TV: In Sedgwick County, an unlikely hero emerges after the November election. Then, what is the trend in Kansas school employment and spending, and what do voters think has happened? Finally, do you know how to make a simple lead pencil? View below, or click here to view at YouTube. Episode 66, broadcast November 23, 2014.

In Kansas, voters want government to concentrate on efficiency and core services before asking for taxes

A survey of Kansas voters finds that Kansas believe government is not operating efficiently. The also believe government should pursue efficiency savings, focus on core functions, and spend unnecessary cash reserves before cutting services or raising taxes.

This month Kansas Policy Institute produced a survey asking registered voters in Kansas questions on the topic of school spending. The final four questions asked voters’ opinion of government efficiency and how government should respond to budgetary issues.

From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
Question 9 asked this: “How much do you agree or disagree with this statement: Kansas state government operates pretty efficiently and makes effective use of my tax dollars.” As you can see in the nearby table and chart, 31 percent of voters agreed with this statement. 65 percent disagreed, including 39 percent who said they strongly disagree with the statement. That was the most common response.

This result is similar with a survey of Wichita voters conducted by SurveyUSA for KPI in April. The first question in that survey asked “In the past few years, have Wichita city officials used taxpayer money efficiently? Or inefficiently?” Overall, 58 percent believed city spending was inefficient, compared to 28 percent believing spending was efficient.

From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
In question 10, the current survey of Kansas voters asked “How much do you agree or disagree with this statement: Kansas state government could run 5% to 10% more efficiently than it does now.” 74 percent of respondents agreed to some extent, with 42 percent indicating they strongly agree. Only six percent strongly disagreed.

From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
Question 11 asked voters how Kansas state government should react to an unbalanced budget: “How much do you agree or disagree with this statement: I believe the Kansas state government should pursue efficiency savings, focus on core functions, and spend unnecessary cash reserves before raising taxes and/or cutting government functions.” 68 percent agreed with this statement, with 40 percent strongly agreeing. 24 percent disagreed.

From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
Question 12 asked voters how to fix Kansas state budget problems: “What would be the single best way to fix state budget problems? Increasing the income tax? Increasing the sales tax? Cutting spending, even if it means reduced services? Or reducing spending by providing services more efficiently?”

Reducing spending by being more efficient received a majority — 54 percent — of responses. 26 percent of voters responded that taxes should be increased, with income tax hikes more popular than sales tax.

A press release announcing the survey is New Survey: Kansans Remain Misinformed Regarding K-12 Finance. The results of the survey from SurveyUSA are here. Coverage of questions from the survey on education funding is at Kansans still uninformed on school spending.

Kansans still uninformed on school spending

As in the past, a survey finds Kansans are uninformed or misinformed on the level of school spending, and also on the direction of its change.

This month Kansas Policy Institute produced a survey asking registered voters in Kansas questions on the topic of school spending. The first two questions measured the level of knowledge of Kansas school spending.

From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
Question 1 asked: “How much state funding do you think Kansas school districts currently receive per pupil each year from JUST the state of Kansas?” As can be seen in the nearby table and chart, the most frequent response was less than $4,000 per year. 63 percent — nearly two-thirds — thought funding from the state was less than $5,000 per year.

The correct answer is that for the most recent school year (2013 — 2014) Kansas state funding per student was $7,088. This is estimated to rise to $8,604 for the current school year.

(The source of data for past school years is Kansas State Department of Education. Estimates for the current school year were obtained from Dale Dennis, who is Deputy Commissioner, Fiscal and Administrative Services.)

In the last school year base state aid per pupil was $3,838. How, then, does the state spend $7,088 per pupil? The answer is that various weightings are applied for things like bilingual education and at-risk pupils.

From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
Question 2 asked about funding from all sources: “How much funding per pupil do you think Kansas school districts currently receive from ALL taxpayer sources per year, including State, Federal and Local taxpayers? The most common answer was less than $7,000. Two-thirds answered less than $10,000.

The correct answer is per-pupil spending from all sources for the 2013 — 2014 school year was $12,960. The estimate for the current school year is $13,268.

From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
From Kansas Policy Institute public opinion survey, November 2014.
Question 3 asked about the change in school funding: “Over the last 4 years, how much do you think total per-pupil funding has changed?” 65 percent — nearly two-thirds — thought spending had fallen over this period. Only 14 percent thought spending had risen, and only seven percent by more than five percent. That last category holds the correct answer, which is 8.02 percent.

The findings of these three questions, which are that people are generally uninformed as to the level of school spending, are not able produce estimates that are in the same ballpark of actual values, and are wrong on the direction of change of spending, are not surprising. Past versions of similar surveys in Kansas have produced similar results. It’s not just a Kansas problem, as similar findings are found across the nation.

Commenting on the survey, KPI president Dave Trabert remarked:

It is impossible for citizens to develop informed opinions on education funding and state budget issues without accurate information. We continue to see that citizens who are accurately informed on K-12 funding have significantly different opinions than those who believe school funding is much lower than reality.” The number of Kansans who can correctly answer this question remains disturbingly low, but knowing how frequently funding is misrepresented by education officials and special interests, it’s not surprising. Instead of trying to low-ball school funding to justify increased aid, the focus should be on improving outcomes.

Kansans are providing record funding levels that exceed adjustments for enrollment and inflation over the last ten years, but outcomes on independent national assessments are relatively unchanged. It will always cost a lot of money to provide public education but the data shows that it’s how the money is spent that matters — not how much. “Just spend more” is about funding institutions. The focus needs to shift to getting more of the record-setting funding into classrooms where it will best help students.

Legislators and citizens cannot make good decisions about the challenges facing the state without good information. This survey confirms what we’ve known previously: Kansans are being misinformed and that cannot lead to good decision making. We encourage legislators and others to honestly examine facts without political bias. No finger pointing … no attempts to score political points … and no shading the facts … just civil discussion of the issues and facts.

A press release announcing the survey is New Survey: Kansans Remain Misinformed Regarding K-12 Finance. The results of the survey from SurveyUSA are here.

The problem with government spending

Of interest is that when people make major — or even minor — purchases, many will expend considerable effort researching the possibilities. Spending their own money, automobile purchasers want to get a good deal on a car that meets their preferences. That’s human nature.

But every two years, taxpayers spend on each student the amount that will buy a nice new car. In four years, taxpayers spend enough on each student to buy a new luxury car. The average taxpayer doesn’t pay that much tax for schools. But collectively, we all do.

The lack of knowledge of government spending reminds me of a passage from Free to Choose: A Personal Statement, written by Rose and Milton Friedman. It explains why government spending is wasteful, how it leads to corruption, how it often does not benefit the people it was intended, and how the pressure for more spending is always present. Spending on public schools falls in either category III — spending someone else’s money on yourself (or your children) — or category IV — spending someone else’s money on someone else. It’s no wonder it hasn’t worked very well.

Here’s a passage from Free to Choose.

A simple classification of spending shows why that process leads to undesirable results. When you spend, you may spend your own money or someone else’s; and you may spend for the benefit of yourself or someone else. Combining these two pairs of alternatives gives four possibilities summarized in the following simple table:

friedman-spending-categories-2013-07

Category I in the table refers to your spending your own money on yourself. You shop in a supermarket, for example. You clearly have a strong incentive both to economize and to get as much value as you can for each dollar you do spend.

Category II refers to your spending your own money on someone else. You shop for Christmas or birthday presents. You have the same incentive to economize as in Category I but not the same incentive to get full value for your money, at least as judged by the tastes of the recipient. You will, of course, want to get something the recipient will like — provided that it also makes the right impression and does not take too much time and effort. (If, indeed, your main objective were to enable the recipient to get as much value as possible per dollar, you would give him cash, converting your Category II spending to Category I spending by him.)

Category III refers to your spending someone else’s money on yourself — lunching on an expense account, for instance. You have no strong incentive to keep down the cost of the lunch, but you do have a strong incentive to get your money’s worth.

Category IV refers to your spending someone else’s money on still another person. You are paying for someone else’s lunch out of an expense account. You have little incentive either to economize or to try to get your guest the lunch that he will value most highly. However, if you are having lunch with him, so that the lunch is a mixture of Category III and Category IV, you do have a strong incentive to satisfy your own tastes at the sacrifice of his, if necessary.

All welfare programs fall into either Category III — for example, Social Security which involves cash payments that the recipient is free to spend as he may wish; or Category IV — for example, public housing; except that even Category IV programs share one feature of Category III, namely, that the bureaucrats administering the program partake of the lunch; and all Category III programs have bureaucrats among their recipients.

In our opinion these characteristics of welfare spending are the main source of their defects.

Legislators vote to spend someone else’s money. The voters who elect the legislators are in one sense voting to spend their own money on themselves, but not in the direct sense of Category I spending. The connection between the taxes any individual pays and the spending he votes for is exceedingly loose. In practice, voters, like legislators, are inclined to regard someone else as paying for the programs the legislator votes for directly and the voter votes for indirectly. Bureaucrats who administer the programs are also spending someone else’s money. Little wonder that the amount spent explodes.

The bureaucrats spend someone else’s money on someone else. Only human kindness, not the much stronger and more dependable spur of self-interest, assures that they will spend the money in the way most beneficial to the recipients. Hence the wastefulness and ineffectiveness of the spending.

But that is not all. The lure of getting someone else’s money is strong. Many, including the bureaucrats administering the programs, will try to get it for themselves rather than have it go to someone else. The temptation to engage in corruption, to cheat, is strong and will not always be resisted or frustrated. People who resist the temptation to cheat will use legitimate means to direct the money to themselves. They will lobby for legislation favorable to themselves, for rules from which they can benefit. The bureaucrats administering the programs will press for better pay and perquisites for themselves — an outcome that larger programs will facilitate.

The attempt by people to divert government expenditures to themselves has two consequences that may not be obvious. First, it explains why so many programs tend to benefit middle- and upper-income groups rather than the poor for whom they are supposedly intended. The poor tend to lack not only the skills valued in the market, but also the skills required to be successful in the political scramble for funds. Indeed, their disadvantage in the political market is likely to be greater than in the economic. Once well-meaning reformers who may have helped to get a welfare measure enacted have gone on to their next reform, the poor are left to fend for themselves and they will almost always he overpowered by the groups that have already demonstrated a greater capacity to take advantage of available opportunities.

The second consequence is that the net gain to the recipients of the transfer will be less than the total amount transferred. If $100 of somebody else’s money is up for grabs, it pays to spend up to $100 of your own money to get it. The costs incurred to lobby legislators and regulatory authorities, for contributions to political campaigns, and for myriad other items are a pure waste — harming the taxpayer who pays and benefiting no one. They must be subtracted from the gross transfer to get the net gain — and may, of course, at times exceed the gross transfer, leaving a net loss, not gain.

These consequences of subsidy seeking also help to explain the pressure for more and more spending, more and more programs. The initial measures fail to achieve the objectives of the well-meaning reformers who sponsored them. They conclude that not enough has been done and seek additional programs. They gain as allies both people who envision careers as bureaucrats administering the programs and people who believe that they can tap the money to be spent.

Category IV spending tends also to corrupt the people involved. All such programs put some people in a position to decide what is good for other people. The effect is to instill in the one group a feeling of almost God-like power; in the other, a feeling of childlike dependence. The capacity of the beneficiaries for independence, for making their own decisions, atrophies through disuse. In addition to the waste of money, in addition to the failure to achieve the intended objectives, the end result is to rot the moral fabric that holds a decent society together.

Another by-product of Category III or IV spending has the same effect. Voluntary gifts aside, you can spend someone else’s money only by taking it away as government does. The use of force is therefore at the very heart of the welfare state — a bad means that tends to corrupt the good ends. That is also the reason why the welfare state threatens our freedom so seriously.

Kansas property tax data, the interactive visualization

(Note: Based on feedback from readers, I’ve made a change in the way the change in tax collections is reported. Instead of showing 179 percent, I now show 79 percent. This expresses the value as a percentage change rather than a change in index value from 100. The meaning of the data is the same, but now it is expressed in a manner that is easier to understand and consistent with other figures in this visualization.)

Here is an interactive visualization that holds property tax data for Kansas counties from 1997 to 2013.

There are several charts, including line charts of trends and maps of data and changes in data. On the line charts, click on any single county or more to highlight. (Use Ctrl+click to add counties.)

Click here to open the visualization in a new window.

Data is from KansasOpenGov, a project of Kansas Policy Institute. Visualization created by myself using Tableau Public.

Kansas County Property Taxes, Change in Collections, 1997 to 2013
Kansas County Property Taxes, Change in Collections, 1997 to 2013

Newspaper editorialists with an ideology? Not in Kansas, surely.

Caution, Kansas newspaper editorialists. Your ideology is showing.

Seeking to minimize the fallout from this week’s elections in Kansas, Kansas City Star editorialist Yael T. Abouhalkah warns the governor that this election didn’t really mean much, after all. (See No, Sam Brownback, Kansans didn’t give you a mandate for more tax cuts.)

This op-ed, like many others that appear in Kansas newspapers, are useful for exposing the ideologies of their writers. Here’s an example from Abouhalkah: “Already, the first round of tax cuts have cost the state hundreds of millions of dollars in anticipated revenues.”

The corollary of this is that Kansans have saved hundreds of millions of dollars in taxes. That’s money that has stayed in the productive private sector. For those who believe that government spends wisely and efficiently, I can understand how they think there’s a problem. Everyone else thinks it’s an improvement.

The only framework — ideology? — in which tax cuts are a cost to government is if we believe that government has first claim to citizens’ money. This is a difference in fundamental beliefs. There is an ideology expressed here, one that says government spending is more important than people and their property rights.

Here’s something else from Abouhalkah’s keyboard:

And things could get worse, because the state already is more than $40 million short of its expected revenues for the current fiscal year, which is one-third of the way over.

What does that mean? Budget cuts are ahead, and public education would top the list, given the large amount of spending provided by the state.

This is the standard plaint, also voiced by the editorial board of the Wichita Eagle. Because tax revenues are lower, budget cuts are ahead. Except by budget cuts, these advocates of government spending really mean to say that government services will be cut.

It doesn’t have to be this way. There is a plan — a policy brief — for balancing the Kansas budget immediately. This plan fully funds the increases in school spending and social welfare caseloads that the non-partisan official state agency Kansas Legislative Research Department projects for the future.

But there’s a problem.

As they lambaste conservatives for blind adherence to ideology, the editorial writers at the Kansas City Star and Wichita Eagle have their own ideological blind spots. In particular, they’re not likely to read anything produced by Kansas Policy Institute, much less give it the consideration it deserves.

Oh well. It’s all about the kids, after all.

The policy brief I referenced may be downloaded from KPI at A Five-Year Budget Plan for the State of Kansas: How to balance the budget and have healthy ending balances without tax increases or service reductions or alternatively from Scribd here (may work better on mobile devices). A press release from KPI announcing the policy brief is at 5 Year Budget Plan Outlines Path To Protect Essential Services and Tax Reform.

For Wichita Eagle, no immediate Kansas budget solution

The Wichita Eagle shows how its adherence to ideology misinforms Kansans and limits their exposure to practical solutions for governance.

In an op-ed posted the day before election day, the editorial board of the Wichita Eagle wrote of the problems it believes the next Kansas governor will face:

The candidates vying to be Kansas governor have lofty-sounding goals and campaign promises. But here’s the grim reality: Whoever wins Tuesday will spend the next several years trying to fill a budget hole.

And that hole keeps growing deeper. (“Budget hole awaits winner,” November 3, 2014)

The state has to make changes. We’ve cut taxes, but we’ve not yet met the challenge of cutting spending to match. The problem with this op-ed is the assertion that will take several years to fix. Here’s what I left in reply:

I have to disagree. Kansas Policy Institute has examined the Kansas budget and found ways to make several structural changes that would immediately (within one year) balance the Kansas budget. This would preserve existing services and fully fund the increases in K-12 school spending and social service caseloads that Kansas Legislative Research has projected. The policy brief that KPI has prepared on this matter is only ten pages long and not difficult to comprehend.

The changes that KPI recommends are specific adjustments to the way Kansas spends money. They are not the vague calls to eliminate waste that we see politicians campaign on. This is something that Kansas could do if both Democrats and Republicans have the will.

Dave Trabert, president of Kansas Policy Institute, added this:

Bob is right. And the Eagle is well aware of our budget plan but declines to let readers know that the budget can be balanced without service reductions or tax increases. It won’t take “several years” to fix the budget; our plan could be implemented by passing a few pieces of legislation.

The policy brief I referenced may be downloaded from KPI at A Five-Year Budget Plan for the State of Kansas: How to balance the budget and have healthy ending balances without tax increases or service reductions or alternatively from Scribd here (may work better on mobile devices). A press release from KPI announcing the policy brief is at 5 Year Budget Plan Outlines Path To Protect Essential Services and Tax Reform.

WichitaLiberty.TV: Dave Trabert of Kansas Policy Institute on the Kansas budget

In this episode of WichitaLiberty.TV: Dave Trabert of Kansas Policy Institute talks about KPI’s recent policy brief “A Five-Year Budget Plan for the State of Kansas: How to balance the budget and have healthy ending balances without tax increases or service reductions.” View below, or click here to view at YouTube. Episode 64, broadcast November 2, 2014.

The policy brief may be downloaded from KPI at A Five-Year Budget Plan for the State of Kansas: How to balance the budget and have healthy ending balances without tax increases or service reductions or alternatively from Scribd here (may work better on mobile devices). A press release from KPI announcing the policy brief is at 5 Year Budget Plan Outlines Path To Protect Essential Services and Tax Reform.

You, too, may be a Kansas budget analyst

kansas-policy-institute-logoTo help Kansans understand the options for future Kansas budgets, Kansas Policy Institute has produced a calculator that lets voters experiment with scenarios of their own making. Click here to view the calculator.

The work is based on KPI’s recent policy brief on the Kansas budget. The policy brief is just ten pages in length. It may be downloaded from KPI at A Five-Year Budget Plan for the State of Kansas: How to balance the budget and have healthy ending balances without tax increases or service reductions or alternatively from Scribd here (may work better on mobile devices). A press release from KPI announcing the policy brief is at 5 Year Budget Plan Outlines Path To Protect Essential Services and Tax Reform.

Voter support of taxpayer-funded economic development incentives

In a poll, about one-third of Wichita voters support local governments using taxpayer money to provide subsidies to certain businesses for economic development.

In April Kansas Policy Institute commissioned SurveyUSA to conduct a scientific poll concerning current topics in Wichita. The press release from KPI, along with a link to the complete survey results, is available at Poll: Wichitans don’t want sales tax increase.

The second question the survey asked was “In general, do you agree? Or disagree? With the idea of local governments using taxpayer money to provide subsidies to certain businesses for economic development?” Following are the results for everyone, and then divided by political party and political ideology.

Overall, 55 percent disagreed with using taxpayer money to provide subsidies to certain businesses for economic development. 34 percent agreed.

The results are fairly consistent across political party and ideology, although Republicans are somewhat more likely to agree with using taxpayer funds for economic development incentives, as are those who self-identify as political moderates.

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Wichita voters’ opinion of city spending

As Wichita voters prepare to decide on the proposed one cent per dollar sales tax, a recent survey found that few voters believe the city spends efficiently.

Wichita City Budget Cover, 1990In April Kansas Policy Institute commissioned SurveyUSA to conduct a scientific poll concerning current topics in Wichita. The press release from KPI, along with a link to the complete survey results, is available at Poll: Wichitans don’t want sales tax increase.

The first question the survey asked was “In the past few years, have Wichita city officials used taxpayer money efficiently? Or inefficiently?” Following are the results for everyone, and then divided by political party and political ideology.

Overall, 58 percent believe city spending was inefficient, compared to 28 percent believing spending was efficient.

The results are surprisingly consistent. An exception is that political independents strongly believed that city spending was inefficient. Those identifying as liberal were more likely to say that city spending was inefficient.

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Moving Wichitans in the Future: Paving and Transit Via Sales Tax?

From Kansas Policy Institute, the third and final free conference examining issues related to the proposed one cent per dollar Wichita sales tax. Voters will decide on this in November.

Moving Wichitans in the Future: Paving and Transit Via Sales Tax?

A free event on Thursday October 23, 2014 from 7:30 am to 11:00 am

A review of the paving and transit portions of the proposed 1% sales tax in the City of Wichita.

Full Agenda and Speaker Line-Up

8:00 a.m. — Summary of Urban Transportation: Wendell Cox, author and international transportation consultant

9:00 a.m. — Details of Wichita Plan: Alan King, director of Wichita Public Works, and Steve Spade, director of Wichita Transit

10:00 a.m. — Reform Ideas From Around The Country: Len Gilroy, Director of Government Reform at the Reason Foundation

KPI is not taking a position on the larger sales proposal or its component pieces. KPI is hosting these events featuring multiple expert opinions on the underlying policy pieces in an effort to present Wichitans with a variety of views. A July event covered the water proposal and the “jobs fund” was reviewed in September.

The event will be held at the WSU MetroPlex, Room 185
5015 E. 29th Street North

Where is Duane Goossen, former Kansas budget director?

From Kansas Policy Institute.

Duane Goossen hides from honest scrutiny … again

By Dave Trabert

Former state budget director Duane Goossen published a scathing review of the KPI 5-Year State Budget Plan a few days ago on his blog, so I wrote and asked if he would join Steve Anderson and me for a public discussion of the facts and issues. He ignored our invitation for civil discussion, just as he did when we explained how he distorted the truth about education finance.

Duane Goossen
Goossen claims we made an $802 million math error and tries to fool unsuspecting readers by saying we didn’t account for all of what is purported to be a $1.3 billion shortfall.  We didn’t account for it because there is no $1.3 billion shortfall!

As we explained in How Budget Deficits are Fabricated in Kansas, Kansas Legislative Research Department (KLRD) counts budget changes multiple times in arriving at what they call a $1.3 billion shortfall.  Once money is cut from the base budget … it’s gone. It doesn’t have to be cut again every year into the future.

According to KLRD, the spending adjustments needed to maintain a zero ending balance total $482.3 million over five years.

In order to get to $1.3 billion, one must count the FY 2016 change FOUR times … the FY 2017 change is counted THREE times … the FY 2018 change is counted TWICE … and only the FY 2019 change is counted once.

Goossen also mischaracterizes several proposed uses of excess cash reserves as “cuts” to transportation and education. As clearly explained in our Budget Plan, we are proposing that a KDOT surplus of $150 million be returned to the General Fund and that sales tax transfers to KDOT be reduced so that future surpluses are not created. We suggest that school districts and universities be required to use a portion of excess cash reserves, allowing education funding to reduced one time while excess funds are spent down.

He also falsely claims we are recommending a $100 million cut to the Kansas Bioscience Authority, when our plan merely suggests funding KBA at the same amount it received in 2014. The budget savings comes about by removing a statutory set-aside of $25 million per year that isn’t planned to be spent.

These are just some of the outlandish claims made by Goossen, which probably explains why he ignores invitations to have a civil public discussion of the facts.  He has nothing to gain and everything to lose.

Our budget plan shows multiple options to balance the budget without service reductions or tax increases…healthy ending balances…increased funding for education and Medicaid…and record-setting spending overall.  But media won’t even look at the plan and others are spreading false claims about it.

Kansans are being inundated with the false choice of tax increases or service reductions … all for political gain.