In this episode of WichitaLiberty.TV: Journalist, novelist, and blogger Bud Norman joins host Bob Weeks to discuss presidential election politics. View below, or click here to view at YouTube. Episode 108, broadcast February 7, 2016.
In this episode of WichitaLiberty.TV: Journalist, novelist, and blogger Bud Norman joins host Bob Weeks to discuss presidential election politics. View below, or click here to view at YouTube. Episode 108, broadcast February 7, 2016.
A filing by a group seeking to recall a county commissioner declares “facts” that can’t possibly be known at this time.
Those hoping to recall Sedgwick County Commissioner Richard Ranzau have filed a petition with the Kansas Supreme Court seeking to overturn the finding of the Sedgwick County District Attorney. That finding was the petition did not meet the grounds and conditions proscribed in Kansas law.
(Many news headlines and reporting use phrases like “District Attorney blocks petition.” That’s not accurate. The DA simply ruled that the petition did not meet the legal requirements.)
In the filing, under a section title “Statement of Facts,” paragraph 2 starts with “It is the will of the electors of Sedgwick County’s District 4 to seek the removal of Richard Ranzau from office …”
I’d like to know how the petitioner knows the will of the electors (voters) of district 4, specifically that they want to remove Ranzau from office. Since August 2008, Ranzau has prevailed in all four elections regarding his current office. In each election the revealed preference — or “will” — of the voters is that they preferred Ranzau to the alternatives, both other Republicans in two primary elections, and Democrats in two general elections. Each election was contested by experienced politicians who had held offices including that of Sedgwick County Commissioner, Wichita City Council Member, Kansas State Representative, and Kansas State Senator.
The only fact we know so far is that there are 100 citizens of Sedgwick County (not just district 4 residents) who have signed up to become recall petition circulators. Should the recall petition be approved, these circulators would have to gather a large number of valid signatures in a short period of time. If that petitioning effort is successful, there will be an election. It is at that time — and only that time — that the electors (voters) of district 4 express their will regarding the recall of Richard Ranzau.
Here is a list of all the Wichita Pachyderm Club programs in 2015. For many of the programs a video or audio presentation is available. For those programs, the link is clickable.
Thank you to club president John Stevens for compiling the list, and to vice-president John Todd for putting together these programs.
Click here to access this document.
In this episode of WichitaLiberty.TV: There are things simple and noncontroversial that the Kansas Legislasture should do in its upcoming session, and some things that won’t be easy but are important. Also, a look at eminent domain. View below, or click here to view at YouTube. Episode 106, broadcast January 3, 2016.
In this episode of WichitaLiberty.TV: Debate expert Rodney Wren joins Bob Weeks to discuss the presidential debates and nomination contest. View below, or click here to view in high definition at YouTube. Episode 105, broadcast December 27, 2015.
In this episode of WichitaLiberty.TV: Radio talk show host Joseph Ashby visits the WichitaLiberty.TV studios to help us understand the Republican presidential debate and nomination contest. View below, or click here to view in high definition at YouTube. Episode 104, broadcast December 20, 2015.
In this episode of WichitaLiberty.TV: A look at Wichita community outreach and communications, rewriting city council history, and entrepreneurship. View below, or click here to view at YouTube. Episode 102, broadcast December 6, 2015.
In this episode of WichitaLiberty.TV: Congressman Mike Pompeo talks about the Middle East, politics in Washington, and domestic issues. View below, or click here to view in high definition at YouTube. Episode 101, broadcast November 29, 2015.
Arthur C. Brooks, author of The Conservative Heart, spoke about being a happy warrior in the conservative movement during the keynote speech of the Annual Awards Dinner of the Kansas Policy Institute on October 20, 2015, in Wichita. Brooks was introduced by KPI President Dave Trabert. Videography by Paul Soutar. View below, or click here to view at YouTube.
In this episode of WichitaLiberty.TV: Radio talk show host Andy Hooser of the Voice of Reason introduces himself to Wichita and talks about millennials, local politics, and the presidential races. View below, or click here to view in high definition at YouTube. Episode 99, broadcast October 25, 2015.
Government promotes and promises transparency, but finds it difficult to actually provide.
In this excerpt from WichitaLiberty.TV, I give some examples of how little information government actually shares with us, despite its proclamations. Click here to view in high definition at YouTube. Following, the script for this video excerpt.
During the campaign for the one cent per dollar Wichita city sales tax last year, a city document promised this if the tax passed: “The process will be transparent, with reports posted online outlining expenditures and expected outcomes.” The “Yes Wichita” campaign promised “Reports will be measured and reported publicly.”
These are good ideas. The city should implement them even though the sales tax did not pass. We were promised a website if the tax passed. If it’s good for citizens to have this type of information if the sales tax had passed, it’s good for them to know in any circumstance.
Why is this information not available? Is the city’s communications staff overwhelmed and have no time to provide this type of information? During the sales tax campaign Wichita city staff had time to prepare news releases with titles like “City to Compete in Chili Cook-off” and “Jerry Seinfeld Returns to Century II.”
Since then the city has hired additional communications staff, adding a Strategic Communications Director in March. Now, while the city’s Facebook page has some useful information, there is also time to promote Barry the Bison playing golf.
Now Wichitans have to wonder: Was transparency promised only to get people to vote for the sales tax? Or is it a governing principle of our city? I think I know the answer.
Here’s another example. The Wichita transit system is a matter of interest right now. Funding for the system has been a problem for some years, and money for the bus system was part of the sales tax last year that Wichita voters rejected. So what is the city and the transit system doing to make information available? The answer is: not much. Some of the fundamental documents of government agencies are agendas, agenda reports, and minutes of meetings. And there is such a thing as the Wichita transit advisory board. But good luck finding agendas and minutes for this board. They do not exist. Well, I’m sure they exist somewhere. But they’re not available on the city’s website, or on the transit system’s’ own website. I’m sure that if you call or write someone will send these documents to you. But that takes time, both for citizens and government workers.
It is not difficult to do this, making documents available. There are many city agencies that make documents available, like the city council and airport advisory board. Earlier this year a local activist mentioned the lack of agendas and minutes for the transit board, bemoaning that there was no part-time web person to post the documents. Well, you don’t need a web person to do it. It is so simple that anyone can do it for free.
Here’s an example. This summer as Sedgwick County was preparing and debating its budget, I wanted to do some research on past budgets. But on the county’s website, the only budgets available were for this year and last year. There was nothing else.
So I asked for budgets and other financial documents. I received them on CD. Then I created a shared folder using Google Drive and uploaded the documents. Now, these documents are available to the world. They can be found using a Google search. Oh, and here’s something a little ironic. These old budgets had been on the Sedgwick County website at one time. Someone made the decision to remove them.
Creating this depository of budget documents cost nothing except a little bit of time. Well, if you have a lot of data to share, you might have to pay Google a little, like ten dollars per month for each agency or person. But it is so simple that there is no excuse for the failure of agencies like Wichita Transit to make documents like agendas and minutes available. You don’t need specialized personnel to do this work. All you need is the will and desire to make the documents available.
Here’s another example of how simple it can be to achieve transparency. These days live and archived video of governmental meetings is commonplace. Commonplace, that is, except for the Wichita public schools. If you want to see a meeting of the Wichita school board, you must either attend the meetings, or view delayed broadcasts on cable TV. There’s a simple and low-cost way to fix this. It’s called YouTube.
When the Sedgwick County Commission was faced with an aging web infrastructure for its archived broadcasts, it did the sensible thing. It created a YouTube channel and uploaded video of its meetings. Now citizens can view commission meetings at any time on desktop PCs, tablets, and smartphones. This was an improvement over the old system, which was difficult to use and required special browser plug-ins. I could never get the video to play on my Iphone.
The Wichita school district could do the same. In fact, the district already has a YouTube channel. Yes, it takes a long time to upload two or three hours of video to YouTube, but once started the process runs in the background without intervention. No one has to sit and watch the process.
Earlier this year I asked why the district does not make video of its meetings available archived online. The district responded that it “has a long-standing commitment to the USD 259 community of showing unabridged recordings of regular Board of Education meetings on Cox Cable Channel 20 and more recently AT&T U-verse Channel 99.” The meetings are broadcast seven times starting the day after each meeting. Two of the broadcasts start at 1:00 am.
Showing meetings delayed on cable TV is okay. It was innovative at one time. But why aren’t meetings shown live? What if you can’t watch the meeting before it disappears from the broadcast schedule after a week? What if you don’t want to pay cable television bills? What if you want to watch meetings on your computer, tablet, or smartphone? I don’t think the fact that meetings are on cable TV means they can’t also be on YouTube.
There are two elements of irony here, if that is the correct term. One is that earlier this year the Wichita school district considered hiring a marketing firm to “gauge its reputation and suggest new branding strategies.” Here’s an idea: Act as though you care about people being able to view the district’s board meetings.
Second: In August the Wichita school district raised property taxes. The mill levy will rise by 2.86, an increase of about five percent from its present level. The projected cost is an additional $33 per year for a home worth $100.000. That is quite a large increase. That’s bad. What’s also bad is the district’s lack of respect for taxpayers. As I’ve just told you, it’s difficult to view a meeting of the school board, which is a sign that the district prefers to operate in the shadows as much as possible. The board will raise your taxes, and at the same time keep it difficult for you to see them do it.
Just for the sake of completeness, let’s not let the state of Kansas off the hook. Currently, the proceedings of the Kansas Senate and House of Representatives are not available on video. The audio is broadcast on the internet, but it’s live only. No archiving. You must listen live, or figure out some way to record it on your own.
But for eight dollars per month the legislature could make its audio proceedings available to listen to at any time. For eight dollars per month at least one podcast hosting company offers an unlimited plan. Unlimited storage, and unlimited bandwidth. That is just what is needed. And since the audio of the proceedings of the House and Senate is broadcast on the internet, it must pass through a computer somewhere. That computer could also be recording the audio. Once recorded, the process of uploading the audio to the podcast host is a trivial procedure.
But neither Kansas legislative chamber records their proceedings, according to the Secretary of the Senate and the Chief Clerk of the House. I asked. Recordings of sessions are not available because they are not made. It would be simple to record audio of the Kansas House and Senate and make it available for anyone to listen to at any time. It is almost without cost. It would have great benefit.
Oh, and I can’t forget the federal government. In January I requested a document from the United States Department of Energy. I had several conversations and emails with a records clerk. We came to agreement as to what I would receive, or at least what I am requesting to receive. But I’ve received nothing so far. I don’t know if the document will be made available to me at no charge, or will I have to pay thousands of dollars. The Department of Energy is working on my request, they say. Our congressman Mike Pompeo and his office have intervened on my half. But after nine months: nothing.
All these levels of government — city, county, school district, state, and federal — say they value open records and transparency. But let me ask you: Do you think they really mean it?
Randall Harris, Utility Manager of Chisholm Creek Utility Authority, spoke on the topic “An Overview of the Chisholm Creek Utility Authority.” This was recorded on August 26, 2015, at the Park City (Kansas) Chamber of Commerce meeting. This is an audio presentation. The accompanying visual presentation is here.
Who could such a mysterious dark horse be? Well, it’s not as if every well-qualified contender is already on the field. Mitch Daniels was probably the most successful Republican governor of recent times, with federal executive experience to boot. Paul Ryan is the intellectual leader of Republicans in the House of Representatives, with national campaign experience. The House also features young but tested leaders like Jim Jordan, Trey Gowdy and Mike Pompeo. There is the leading elected representative of the 9/11 generation who has also been a very impressive freshman senator, Tom Cotton. There could be a saner and sounder version of Trump—another businessman who hasn’t held electoral office. And there are distinguished conservative leaders from outside politics; Justice Samuel Alito and General (ret.) Jack Keane come to mind.
In this episode of WichitaLiberty.TV: Debate and communications coach and expert Rodney Wren explains the recent presidential debate. What should viewers look for as they watch? View below, or click here to view at YouTube. Episode 93, broadcast August 23, 2015.
Cato Institute Senior Fellow Michael Tanner speaks about his new book, “Going for Broke: Deficits, Debt and the Entitlement Crisis,” at a luncheon of the Wichita Pachyderm Club, July 31, 2014. View below, or click here to view at YouTube. Video production by Paul Soutar.
Tanner’s appearance on Wichitaliberty.TV is here.
A celebrity roast of Donald Trump provides insight into the honoree’s character.
Anyone who is thinking of supporting Donald Trump for president might want to view the Comedy Central Roast of Trump. This was recorded in 2011, and several roasters referred to Trump’s possible presidential candidacy. You can find it on YouTube.
In these roasts the humor is raunchy and vulgar. The language is foul. I’m not sure I understand all the jokes, and I’m a little ashamed to admit that I do understand many. The roasters — a collection of has-beens like Larry King and celebrities who seem to do nothing but appear on roasts — poke fun at the roastee, in this case Donald Trump.
Well, it’s much more than poking fun. The roasters skewer Trump. No aspect of his life seems off limits. Multiple jokes refer to his several young wives and his sex life. These jokes are often funny. They’re funny because they exaggerate some aspect of Trump. They have to have a whiff of plausibility, some grounding in reality, in order to be funny.
If, for example, a roaster were to poke fun at Trump for being poor or short, that wouldn’t be funny. Trump is not poor; he’s extremely wealthy, and he’s tall. There’s no platform from which to exaggerate for humorous effect.
But when a roaster crudely jests at how Trump’s ego intrudes on his sex life (it has to do with Trump being more interested in himself than in his partner), that’s pretty funny. It references things that are true about Trump — his massive ego and his several beautiful young wives — and exaggerates a little.
Jokes like this could not have been a surprise to Trump. He (or his people) must have known the nature of the humor employed at these roasts. So the question is: Why did he appear in such a forum? Is this a way to appear presidential?
A series of short videos from the Independent Institute entertains and teaches lessons at the same time.
The Independent Institute has produced a series of humorous and satirical videos to present lessons about the nature of government. The Institute describes the series here:
Love Gov depicts an overbearing boyfriend — Scott “Gov” Govinsky — who foists his good intentions on a hapless, idealistic college student, Alexis. Each episode follows Alexis’s relationship with Gov as his intrusions wreak (comic) havoc on her life, professionally, financially, and socially. Alexis’s loyal friend Libby tries to help her see Gov for what he really is — a menace. But will Alexis come to her senses in time?
There are five episode (plus a trailer). Each episode is around five minutes long and presents a lesson on a topic like jobs, healthcare, and privacy. The episodes are satirical and funny. They’d be really funny if the topic wasn’t so serious. I recommend you spend a half-hour or so to view the series.
The link to view the video series is here.
In this episode of WichitaLiberty.TV: Radio talk show host Joseph Ashby joins host Bob Weeks to discuss his interview with Kansas Governor Sam Brownback, the end of the legislative session, and Republican presidential candidates. Episode 87, broadcast June 21, 2015. View below, or click here to view at YouTube.
In this excerpt from WichitaLiberty.TV: What recourse do citizens have when elected officials are not responsive? Initiative and referendum are two possibilities. View below, or click here to view at YouTube. Originally broadcast May 3, 2015.
A Wichita statistician is thwarted in efforts to obtain data that might explain a strange observation.
A paper details the discovery of unexplained patterns in election returns. The paper is titled 2008/2012 Election Anomalies, Results, Analysis and Concerns. The authors are Francois Choquette and James Johnson. A passage from the introduction explains what has been noticed:
Back in February 2012 during the South Carolina primaries, a keen observer noted that Republican candidate Mitt Romney had an unusual gain of votes in larger precincts. Analysts noted this effect violated expected statistics. Specifically, the percentage of votes in each precinct strangely increased as a function of precinct size (vote tally). The vote gain is correlated to precinct size, not the precinct location, be it in cities or rural areas. This anomaly is not apparent in other elections that don’t include Republican candidates. In 2008, Mitt Romney had the benefit of this anomaly and then the gain switched to John McCain once Romney exited the campaign. The Democrat Party elections we looked at don’t show this problem. (emphasis added)
There is a mysterious correlation between votes for Republican candidates and the number of votes cast in a precinct. So far no one has advanced a convincing reason why this should happen.
In Wichita, WSU statistician Beth Clarkson has sought to obtain the paper tapes that Sedgwick County voting machines produce as voters make selections using the electronic machines. (“WSU statistician sues seeking Kansas voting machine paper tapes,” April 1, 2015 Wichita Eagle)
But Kansas Secretary of State Kris Kobach has said no, the time for viewing the tapes has passed. According to Kansas law, he says, the records are sealed. (“Kobach on Sedgwick County election lawsuit: Time is past, votes are sealed, April 5, 2015 Wichita Eagle)
The Choquette and Johnson paper gives the method for examining the relationship between precinct size and candidate vote percentages. I applied the method to three recent Sedgwick County elections. The anomaly appears to be present.
If Kansas law does in fact prevent the release of voting machine tapes to Clarkson, we need to change the law, and right now. It’s curious that Secretary Kobach is not interested in investigating this apparent anomaly. Voting fraud has been one of Kobach’s key issues.
I was concerned that the paper tapes produced by voting machines might contain information that would link individual voters with the votes they cast. That would be a potential problem concerning the confidentiality of votes. But when I voted this week, I watched the information printed on the tape, and I don’t believe there is a concern.
The Sedgwick County Election Office reports that for the March 3, 2015 primary election there were 200,371 registered voters in the City of Wichita. 19,605 ballots were cast, for a turnout rate of 9.8 percent.
View a map of turnout by precinct below, or click here to open in a new window.
In this episode of WichitaLiberty.TV: Congressman Mike Pompeo talks about risks to America from overseas, Benghazi, congressional scorecards, the Grant Return for Deficit Reduction Act, and labeling food with genetically engineered ingredients. View below, or click here to view at YouTube. Episode 78, broadcast March 15, 2015.
From January 2012, how tax increment financing routes benefits to politically-connected firms.
The latest evidence we have is the construction of a downtown parking garage that benefits Douglas Place, especially the Ambassador Hotel, a renovation of a historic building now underway.
The flow of tax dollars Wichita city leaders had planned for Douglas Place called for taxpayer funds to be routed to a politically-connected construction firm. And unlike the real world, where developers have an incentive to build economically, the city created incentives for Douglas Place developers to spend lavishly in a parking garage, at no cost to themselves. In fact, the wasteful spending would result in profit for them.
The original plan for Douglas Place as specified in a letter of intent that the city council voted to support, called for a parking garage and urban park to cost $6,800,000. Details provided at the August 9th meeting of the Wichita City Council gave the cost for the garage alone as $6,000,000. The garage would be paid for by capital improvement program (CIP) funds and tax increment financing (TIF). The CIP is Wichita’s long-term plan for building public infrastructure. TIF is different, as we’ll see in a moment.
At the August 9th meeting it was also revealed that Key Construction of Wichita would be the contractor for the garage. The city’s plan was that Key Construction would not have to bid for the contract, even though the garage is being paid for with taxpayer funds. Council Member Michael O’Donnell (district 4, south and southwest Wichita) expressed concern about the no-bid contract. As a result, the contract was put out for competitive bid.
Now a winning bid has been determined, according to sources in city hall, and the amount is nearly $1.3 million less than the council was willing to spend on the garage. This is money that otherwise would have gone into the pockets of Key Construction. Because of the way the garage is being paid for, that money would not have been a cost to Douglas Place’s developers. Instead, it would have been a giant ripoff of Wichita taxpayers. This scheme was approved by Mayor Carl Brewer and all city council members except O’Donnell.
Even worse, the Douglas Place developers have no incentive to economize on the cost of the garage. In fact, they have incentives to make it cost even more.
Recall that the garage is being paid for through two means. One is CIP, which is a cost to Wichita taxpayers. It doesn’t cost the Douglas Place developers anything except for their small quotal share of Wichita’s overall tax burden. In exchange for that, they get part of a parking garage paid for.
But the tax increment financing, or TIF, is different. Under TIF, the increased property taxes that Douglas Place will pay as the project is completed won’t go to fund the general operations of government. Instead, these taxes will go to pay back bonds that the city will issue to pay for part of the garage — a garage that benefits Douglas Place, and one that would not be built but for the Douglas Place plans.
Under TIF, the more the parking garage costs, the more Douglas Place property taxes are funneled back to it — taxes, remember, it has to pay anyway. (Since Douglas Place won’t own the garage, it doesn’t have to pay taxes on the value of the garage, so it’s not concerned about the taxable value of the garage increasing its tax bill.)
Most people and businesses have their property taxes go towards paying for public services like police protection, firemen, and schools. But TIF allows these property taxes to be used for a developer’s exclusive benefit. That leads to distortions.
Why would Douglas Place be interested in an expensive parking garage? Here are two reasons:
First, the more the garage costs, the more the hotel benefits from a fancier and nicer garage for its guests to park in. Remember, since the garage is paid for by property taxes on the hotel — taxes Douglas Place must pay in any case — there’s an incentive for the hotel to see these taxes used for its own benefit rather than used to pay for firemen, police officers, and schools.
Second, consider Key Construction, the planned builder of the garage under a no-bid contract. The more expensive the garage, the higher the profit for Key.
Now add in the fact that one of the partners in the Douglas Place project is a business entity known as Summit Holdings LLC, which is composed of David Wells, Kenneth Wells, Richard McCafferty, John Walker Jr., and Larry Gourley. All of these people are either owners of Key Construction or its executives. The more the garage costs, the higher the profit for these people. Remember, they’re not paying for the garage. City taxpayers are.
The sum of all this is a mechanism to funnel taxpayer funds, via tax increment financing, to Key Construction. The more the garage costs, the better for Douglas Place and Key Construction — and the worse for Wichita taxpayers.
It’s no wonder Key Construction principals contributed $16,500 to Wichita Mayor Carl Brewer and five city council members during their most recent campaigns. Council Member Jeff Longwell (district 5, west and northwest Wichita) alone received $4,000 of that sum, and he also accepted another $2,000 from managing member David Burk and his wife.
This scheme — of which few people must be aware as it has not been reported anywhere but here — is a reason why Wichita and Kansas need pay-to-play laws. These laws impose restrictions on the activities of elected officials and the awarding of contracts.
An example is a charter provision of the city of Santa Ana, in Orange County, California, which states: “A councilmember shall not participate in, nor use his or her official position to influence, a decision of the City Council if it is reasonably foreseeable that the decision will have a material financial effect, apart from its effect on the public generally or a significant portion thereof, on a recent major campaign contributor.”
This project also shows why complicated financing schemes like tax increment financing need to be eliminated. Government intervention schemes like this turn the usual economic incentives upside down, and at taxpayer expense.
On February 19, 2015 the Sedgwick County Republican Party held a forum for Republican candidates for Wichita mayor. Attending, in the order of their appearance, were Sean Hatfield, Dan Heflin, Jeff Longwell, Sam Williams, and Jennifer Winn. Todd Johnson moderated. Jennifer Baysinger compiled questions from the audience and asked them of candidates. Sue Colaluca was the timing judge.
On February 17, 2015 Coalition for a Better Wichita sponsored a forum for the ten candidates running for Wichita mayor. Jennifer Baysinger is the moderator.
Kansas law overrides neighborhood covenants that prohibit political yard signs before elections.
Some neighborhoods have restrictive covenants that prohibit homeowners from placing any signs in their yard except signs advertising homes for sale. But a 2008 Kansas law overrides these restrictive covenants to allow for the placement of small political yard signs starting 45 days before an election. Still, residents of covenant neighborhoods may want to observe their neighborhood’s restrictions.
The bill was the product of then-Senator Phil Journey of Haysville. The bill passed unanimously in both the Kansas House and Senate.
According to the First Amendment Center, some 50 million people live in neighborhoods with homeowners associations. And laws like the 2008 Kansas law are not without controversy, despite the unanimous vote in the Kansas Legislature.
While the U.S. Supreme Court has ruled that governmental entities like cities can’t stop homeowners from displaying political yard signs, a homeowners association is not a government. Instead, it is a group that people voluntarily enter. Generally, when prospective homeowners purchase a home in a neighborhood with restrictive covenants, they are asked to sign a document pledging to comply with the provisions in the covenants. If those covenants prohibit political yard signs, but a Kansas law says these covenants do not apply, what should a homeowner do? Should state law trump private contracts in cases like this?
While Kansas law makes it legal for those living in communities with covenants that prohibit political yard signs, residents may want to observe these convents. Here’s why: If neighbors are not aware of this new Kansas law and therefore wrongfully believe that the yard signs are not allowed in your neighborhood, they may think residents with signs in their yards are violating the covenants. By extension, this could reflect poorly on the candidates that are being promoted.
Those who are not aware of the law allowing yard signs are uninformed. Or, they may be aware of the law but disagree with it and wish their neighbors would not display political yard signs. These people, of course, may vote and influence others how to vote. Whether to display yard signs in a covenant neighborhood is a judgment that each person will have to make for themselves.
K.S.A. 58-3820. Restrictive covenants; political yard signs; limitations. (a) On and after the effective date of this act, any provision of a restrictive covenant which prohibits the display of political yard signs, which are less than six square feet, during a period commencing 45 days before an election and ending two days after the election is hereby declared to be against public policy and such provision shall be void and unenforceable.
(b) The provisions of this section shall apply to any restrictive covenant in existence on the effective date of this act.
Or, as described in the 2008 Summary of Legislation: “The bill invalidates any provision of a restrictive covenant prohibiting the display of political yard signs, which are less than six square feet, 45 days before an election or two days after the election.”
While many believe that judges should not “legislate from the bench,” that is, make law themselves, the reality is that lawmaking is a judicial function. In a democracy, lawmakers should be elected under the principle of “one person, one vote.” But Kansas, which uses the Missouri Plan for judicial selection to its two highest courts, violates this principle.
A recent paper by Kansas University School of Law Professor Stephen J. Ware explains the problem with the process used in Kansas. The paper is titled Originalism, Balanced Legal Realism and Judicial Selection: A Case Study and may be downloaded at no charge. The Kansas courts that use the judicial selection described in the paper are the Kansas Court of Appeals and the Kansas Supreme Court.
At issue is whether judges are simply arbitrators of the law, or do they actually participate in the lawmaking process. Ware explains: “This realist view that statutory interpretation often involves ‘substantial judicial discretion’ and therefore constitutes ‘judicial lawmaking, not lawfinding,’ had by the 1950s, ‘become deeply rooted.'”
A “‘balanced realism,’ to use Brian Tamanaha’s appealing label, recognizes both that judges’ policy preferences have little or no influence on many judicial decisions and that judges’ policy preferences have a significant influence on other judicial decisions. Empirical studies tend to support this balanced view.” In other words, there is some role for ideology in making judicial decisions. Politics, therefore, is involved. Ware quotes Charles Gardner Geyh: “In a post-realist age, the ideological orientation of judicial aspirants matters.” And the higher the court, the more this matters.
Since judges function as lawmakers, they ought to be selected by a democratic process. In the Kansas version of the Missouri Plan, a nominating commission dominated by lawyers selects three candidates to fill an opening on the Kansas Court of Appeals or Kansas Supreme Court. The governor then selects one of the three, and the process is over. A new judge is selected. This process gives members of the state’s bar tremendous power in selecting judges.
Ware presents eleven examples of judges on the two highest Kansas courts engaging in lawmaking. In one, a workers’ compensation case, the employee would lose his appeal if the “clear” precedent was followed. Justice Carol A. Beier wrote the opinion. Ware explains:
But this is not, in fact, what Justice Beier and her colleagues on the Kansas Supreme Court did. Rather they did what Kansas Judges Greene and Russell say never happens. Justice Beier and her colleagues engaged in lawmaking. They changed the legal rule from one contrary to their ideologies to one consistent with their ideologies.
Justice Beier’s opinion doing this started by criticizing the old rule, while acknowledging that it was, in fact, the rule prior to her opinion by which the Supreme Court made new law. Here again is the above quote from Coleman, but now with the formerly omitted words restored and italicized: “The rule is clear, if a bit decrepit and unpopular: An injury from horseplay does not arise out of employment and is not compensable unless the employer was aware of the activity or it had become a habit at the workplace.”
Who decided that this rule is “decrepit and unpopular” and so should be changed? Was it the Kansas Legislature? No, it was the Kansas Supreme Court. It was judges, not legislators, who decided that this legal rule was bad policy. It was judges, not legislators, who changed the law to bring it in line with what the lawmaking judges thought was good policy.
Beier wrote in her opinion: “We are clearly convinced here that our old rule should be abandoned. Although appropriate for the time in which it arose, we are persuaded by the overwhelming weight of contrary authority in our sister states and current legal commentary.”
The result: New Kansas law, made by people selected through an undemocratic process.
In conclusion, Ware writes:
Non-lawyers who believe in the principle that lawmakers should be selected democratically need to know that judicial selection is lawmaker selection to be troubled by the Missouri Plan’s violation of this principle. Non-lawyers who do not know that judges inevitably make law may believe that the role of a judge consists only of its professional/technical side and, therefore, believe that judges should be selected entirely on their professional competence and ethics and that assessments of these factors are best left to lawyers. In short, a lawyer who omits lawmaking from a published statement about the judicial role is furthering a misimpression that helps empower lawyers at the expense of non-lawyers, in violation of basic democratic equality, the principle of one-person, one-vote.
In Kansas, the process for selecting judges to the Kansas Court of Appeals is governed by statute, and can be changed by the legislature and governor. Last year the House of Representatives passed a bill to reform the process, but it was blocked by Senate Judiciary Chair Tim Owens. He said “I think this is the first time I did not hear a bill because I thought it was so bad. This is a terrible, terrible bill that’s hated by the courts; it’s an attempt to take over control of the courts.”
Owens, who ranked as the least friendly senator to economic freedom in the 2012 edition of the Kansas Economic Freedom Index, lost his bid for re-election in the August primary election. Many of the other moderate Republicans who voted against reform also lost their primary election contest.
Owens, it should be noted, is an attorney, and is therefore a member of the privileged class that has outsize power in selecting judges.
Sometimes legislators are simply uninformed or misinformed on judicial selection. An example is Jean Schodorf, who lost a re-election bid in August. In an interview, she was quoted as saying “We thwarted changes to judicial selection that would have allowed the governor to have the final say in all judicial selections.”
The bill that the senate voted on, and the one that Owens killed the year before, called for Court of Appeals judges to be appointed by the governor, with the consent of the senate. It’s actually the senate that has the final say.
Newspaper editorial writers across Kansas are mostly opposed to judicial selection reform. An example is Rhonda Holman of the Wichita Eagle, who in 2010 wrote: “Some critics may have a beef with past court decisions, perhaps even a legitimate one — which is no surprise, given that judicial decisions pick winners and losers. But they also may be motivated by politics — which is a problem, given that the judiciary is supposed to be fair, impartial and independent. In the absence of a strong case for change, Kansas should stick with what works.”
With the change in composition of the Kansas Senate, the climate is more favorable for reform for the way judges are selected for the Kansas Court of Appeals. The law governing how judges for the Kansas Supreme Court are selected is in the Kansas Constitution, and would require an amendment to alter the process. Such an amendment requires a two-thirds vote in both chambers of the Kansas Legislature, and then a simple majority vote of the people.
By the way: For those who criticize the support for judicial selection reform as pure power politics, since Kansas has a conservative governor, remember this: When Professor Ware sounded the need for reform and convinced me of the need, our governor was the liberal Kathleen Sebelius. There was also a liberal senate at that time, one which would undoubtedly have rubberstamped any nominee Sebelius might have sent for confirmation.
Originalism, Balanced Legal Realism and Judicial Selection: A Case Study
By Stephen J. Ware
Abstract: The “balanced realist” view that judging inevitably involves lawmaking is widely accepted, even among originalists, such as Justice Scalia, Randy Barnett and Steven Calabresi. Yet many lawyers are still reluctant to acknowledge publicly the inevitability of judicial lawmaking. This reluctance is especially common in debates over the Missouri Plan, a method of judicial selection that divides the power to appoint judges between the governor and the bar.
The Missouri Plan is one of three widely-used methods of selecting state court judges. The other two are: (1) direct election of judges by the citizenry, and (2) appointment of judges by democratically elected officials, typically the governor and legislature, with little or no role for the bar. Each of these two methods of judicial selection respects a democratic society’s basic equality among citizens — the principle of one-person, one-vote. In contrast, the Missouri Plan violates this principle by making a lawyer’s vote worth more than another citizen’s vote.
This Article provides a case study of the clash between the inevitability of judicial lawmaking and the reluctance of lawyers to acknowledge this inevitability while defending their disproportionate power under the Missouri Plan. The Article documents efforts by lawyers in one state, Kansas, to defend their version of the Missouri Plan by attempting to conceal from the public the fact that Kansas judges, like judges in the other 49 states, inevitably make law. The case study then shows examples of Kansas judges making law. The Article concludes that honesty requires lawyers participating in the debate over judicial selection in the United States to forthrightly acknowledge that judges make law. Lawyers who seek to defend the power advantage the Missouri Plan gives them over other citizens can honestly acknowledge that this is a power advantage in the selection of lawmakers and then explain why they believe a departure from the principle of one-person, one-vote is justified in the selection of these particular lawmakers.
The complete paper may be downloaded at no charge here.
Moving spring elections to fall of even-numbered years would produce more votes on local offices like city council and school board.
Before each election, observers such as newspaper editorialists and others urge citizens to get registered and to vote. After the election — especially spring elections in Kansas — the same parties lament the usually low voter turnout.
There is a pattern that could be used if we want more voters in city and school elections. That pattern is that in Sedgwick County, on average, people vote in fall elections at nearly 2.5 times the rate of voting in spring elections.
I’ve gathered statistics for elections in Sedgwick County, and these numbers show that voter turnout in spring elections is much lower than in fall elections. (For these statistics I count the August primary as part of the fall election cycle.) Since 2000, turnout for fall elections, both primary and general, has been 44 percent. Over the same period, spring elections turnout has been 18 percent. There were two special elections during this period, one in spring, and one in the fall cycle. I did not include them in these statistics.
Remarkably, a special Wichita citywide election in February 2012 with just one question on the ballot had voter turnout of 13.7 percent. One year earlier, in April 2011, the spring general election had four of six city council districts contested and a citywide mayoral election. Turnout was 12.8 percent, less than for a single-question election.
The problem of low voter participation in off-cycle elections is not limited to Sedgwick County or Kansas. In her paper “Election Timing and the Electoral Influence of Interest Groups,” Sarah F. Anzia writes “A well developed literature has shown that the timing of elections matters a great deal for voter turnout. … When cities and school districts hold elections at times other than state and national elections, voter turnout is far lower than when those elections are held at the same time as presidential or gubernatorial elections.”
Since this paper, Anzia has written, and University of Chicago Press published, a book on this topic: Timing and Turnout: How Off-Cycle Elections Favor Organized Groups.
In the paper, Anzia explains that when voter participation is low, it opens the door for special interest groups to dominate the election: “When an election is separated from other elections that attract higher turnout, many eligible voters abstain, but interest group members that have a large stake in the election outcome turn out at high rates regardless of the increase in the cost of voting. Moreover, interest groups’ efforts to strategically mobilize supportive voters have a greater impact on election outcomes when overall turnout is low. Consequently, the electoral influence of interest groups is greater in off-cycle elections than in on-cycle elections. As a result, the policy made by officials elected in off-cycle elections should be more favorable to dominant interest groups than policy made by officials elected in on-cycle elections.” (Election Timing and the Electoral Influence of Interest Groups, Sarah F. Anzia, Stanford University, Journal of Politics, April 2011, Vol. 73 Issue 2, p 412-427, version online here.)
The Kansas House of Representatives, led by its Speaker, decides to retain the ability to cast votes in secret.
On the Joseph Ashby Show Kansas House of Representatives Speaker Ray Merrick appeared to discuss several issues, one being an issue regarding legislative procedure in Kansas. In particular, there is a movement to have all votes by members recorded, including those in committee. Ashby asked “Can we record all those committee votes and have that available online?”
In a response that held a chuckle by Merrick — you can tell he isn’t comfortable with this topic — the Speaker said that his chairs run their committees, and they have the ability to record the votes in their committees, if they desire. But he said there are a lot of “gotchas.”
The speaker also said that every vote on the House floor is recorded. He clarified that as “final action” votes that are all recorded. It’s good that he made that clarification, as there are many voice votes on the floor of the House that are not recorded, and no one knows who voted each way. Most are inconsequential, but many are not.
The move to have all votes recorded is popularly known as the “Rubin Rule,” promoted by Representative John Rubin.
What is troubling is the admission by Merrick that if all votes are recorded there could be “gotchas.” As Speaker of the House, he is the one person who can lead reform of the legislative process. And it needs reform.
The gotchas referred to are votes that may be taken for reasons other than genuine legislative intent. There may be votes that are for show only. There may be votes that are simply preening for advertisements, either positive or negative ads. Legislators may vote in a way other than what they really believe. None of this is good.
The gotcha votes are a symptom of a larger problem. When legislative proceedings are complicated, when votes don’t really mean what they seem to mean, when citizens can’t easily understand the proceedings, we lose confidence in government. The understanding of legislative process remains in the hands of politicians, staff, and lobbyists, plus a few journalists who try to explain it.
We see the “omnibus” bills, which cover many topics. A vote for or against such a bill means very little, because there may some things legislators agree with, and some they don’t. But the entire package is forced upon them. Maneuvers like this allow Kansas Governor Sam Brownback, on the campaign trail, to say that his opponent Paul Davis voted against increasing school funding. This is true, but only because the bill contained other subjects. Everyone knows that Paul Davis wanted more school spending. But he couldn’t — at least he didn’t — vote in favor of that because the spending legislation was mixed with other legislation that he didn’t support.
We are left with the realization that we don’t conduct politics in a straightforward manner, where what politicians do and say actually reflects their values, and that anyone can see these values. Today the tradition continues. The Kansas House of Representatives failed to pass an amendment offered by Rubin to require recorded votes on all but trivial matters. As a result, it will be easy to know how your representative voted on the state fish of Kansas, but on important matters like school choice, you may never know.
On roll call, the vote was: Yeas 51; Nays 67; Present but not voting: 0; Absent or not voting: 7. Those with leadership positions are in boldface.
Yeas: Anthimides, Becker, Bollier, Bradford, Bridges, Bruchman, Couture-Lovelady, Campbell, Carmichael, B. Carpenter, Clark, Clayton, DeGraaf, Dierks, Doll, Esau, Ewy, Finch, Finney, Gallagher, Garber, Grosserode, Hedke, Hibbard, Highberger, Hildabrand, Hill, Hineman, Houser, Houston, Jennings, K. Jones, Kiegerl, Lusk, Macheers, O’Brien, L. Osterman, Ousley, Peck, Read, Rhoades, Rooker, Rubin, Scapa, Sloan, Sutton, Swanson, Trimmer, Ward, Whipple, Whitmer.
Nays: Alcala, Alford, Ballard, Barker, Barton, Billinger, Boldra, Brunk, Burroughs, Carlin, W. Carpenter, Claeys, Concannon, Corbet, Curtis, Dannebohm, Davis, Estes, Francis, Frownfelter, Gonzalez, Hawkins, Hemsley, Henderson, Henry, Highland, Hoffman, Huebert, Hutchins, Hutton, Johnson, D. Jones, Kahrs, Kelly, Kleeb, Kuether, Lane, Lunn, Lusker, Mason, Mast, McPherson, Merrick, Patton, Pauls, Phillips, Powell, Proehl, Ruiz, Ryckman, Ryckman Sr., Schroeder, Schwab, Schwartz, Seiwert, Smith, Suellentrop, Thimesch, Thompson, Tietze, Todd, Vickrey, Victors, Waymaster, Williams, Wilson, Wolfe Moore.
Present but not voting: None.
Absent or not voting: Dove, Edmonds, Goico, Kelley, Moxley, Sawyer, Winn.
In this episode of WichitaLiberty.TV: We’ll take a look at how city government and council meetings operate. Then, there are city elections coming up. How can you get involved? How can you decide which candidates to support? View below, or click here to view at YouTube. Episode 71, broadcast January 18, 2015.
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:
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:
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.
How to reduce poverty and improve race relations by rethinking our justice system
By Charles G. Koch and Mark V. Holden
As Americans, we like to believe the rule of law in our country is respected and fairly applied, and that only those who commit crimes of fraud or violence are punished and imprisoned. But the reality is often different. It is surprisingly easy for otherwise law-abiding citizens to run afoul of the overwhelming number of federal and state criminal laws. This proliferation is sometimes referred to as “overcriminalization,” which affects us all but most profoundly harms our disadvantaged citizens.
Overcriminalization has led to the mass incarceration of those ensnared by our criminal justice system, even though such imprisonment does not always enhance public safety. Indeed, more than half of federal inmates are nonviolent drug offenders. Enforcing so many victimless crimes inevitably leads to conflict between our citizens and law enforcement. As we have seen all too often, it can place our police officers in harm’s way, leading to tragic consequences for all involved.
Continue reading at Politico.
An incentives agreement the Wichita city council passed on first reading is missing several items that city policy requires. How the council and city staff handle the second reading of this ordinance will let us know for whose interests city hall works: citizens, or cronies.
My presentation centered on the lack of an agreement by the developer to forgo appeals of the tax valuation of the property. The applicant had done this in the past, and it caused a shortfall of TIF revenue that the city had to makeup. The city manager had said that taxpayers would be protected in future deals, but the city did not include this protection in the Mosely agreement.
The omission of this taxpayer protection was not all that was missing. The Downtown Development Incentives Policy, revised by the council on June 10, 2014, calls for several items to be supplied when seeking incentives, including tax increment financing, which was the incentive requested for the Mosely project. As I show below, many significant items related to taxpayer protection were missing.
The council approved the project on first reading, noting that the development agreement would be finalized in time for second reading.
This is insufficient. The second reading of an ordinance is usually handled as part of the consent agenda. This is a grouping of items that are voted on as a group, in bulk. There is no discussion unless a council member specifically requests. The practice of the city is that the text of the ordinances on second reading is not made available in the agenda packet, even though changes may have been made between first reading and second reading. That will certainly be the case with this ordinance, as many things are missing from the development agreement.
It’s not clear why there is a first reading and a second reading of an ordinance. It may be so that details may be corrected. Or, perhaps council members would like to have a chance to reconsider their first vote. City code seems to give no guidance as to how much change to an ordinance is allowable between first and second reading.
The problem we face in Wichita is that the approval of a development plan in a TIF district has a mandated public hearing. It is not optional. But the motion passed by the council this week closed the public hearing. Yet, the city will need to make substantial changes to the ordinance and development agreement if it intends to follow the downtown incentives policy that it created. But the public will have no chance to comment on the new material. If past city practice is followed, the new material will not be made available to the public, and perhaps not to council members.
This is a conflict that I do not believe can be resolved unless the city reopens the public hearing for consideration of the revised ordinance and developer agreement on first reading. Anything else disrespects procedures that are designed to benefit and protect the public.
Except. As with many city council policies, there are loopholes. As outlined below, the council can simply vote to waive the requirements of the downtown incentives policy. That gives the council an easy out. But that makes another mockery of the city’s policies, if the council waives them whenever they are inconvenient.
When I presented the defect in the development agreement to the council I asked: Is this lack of taxpayer protection an oversight, or is it by design? There was no answer.
I did not ask this question, but didn’t any city council member notice the omission of significant items needed to comply with its own policies? What about the city manager? Economic development director? City attorney?
More importantly, who in city hall looking out for the interests of taxpayers? Could the generous campaign contributions of Burk and his wife be a factor in this missing taxpayer protection? Or the generous contributions of Key Construction and its executives? (Key Construction is frequently used by Burk.) This is one more incident illustrating the need for campaign finance reform in Wichita.
Section D of the incentives policy states “parties requesting Downtown Development Incentives must submit the information listed below.” Significant missing items included the following:
CEDBR Fiscal Impact Model
The idea behind the city’s use of economic development incentives is that the city receives more than it spends or forgoes in future tax revenue. An analysis performed by the Center for Economic Development and Business Research (CEDBR) at Wichita State University is used to make this decision. This appears to have not been done for this project.
Guarantee for a proportional share of public revenue shortfall
This was not present in the developer agreement.
Economic analysis confirms that the project is infeasible “but for” public investment
This was not present in the developer agreement.
Minimum private to public capital investment ratio of 2 to 1
Information necessary to make this judgment was not included in the agenda presentation.
The incentives policy states: “Pro Forma — The project pro forma will be evaluated on the following criteria:
a. Rate of private investment return
b. Rents/prices consistent with performance of comparables
c. Projected rate of absorption consistent with performance of comparables
d. Long-term project solvency”
It appears that this analysis was not performed.
“Gap” Financing Requirement
The downtown incentives policy states: “Approval of Downtown Development Incentives will require a financial analysis demonstrating that the project would not otherwise be possible without the use of the requested development incentive (“gap” analysis). Parties requesting Downtown Development Incentives will be required to provide the City pro forma cash flow analyses and sources and uses of funds in sufficient detail to demonstrate that reasonably available conventional debt and equity financing sources are not available to fund the entire cost of the project and still provide the developer a reasonable market rate of return on investment.”
There is no evidence that this analysis was performed and made available to the council.
The incentives policy contains a loophole. If the council believes it is “inappropriate to evaluate a particular request for Downtown Development Incentives” using the policy, it may vote to waive the requirements.
A bill to raise the minimum wage in Kansas will harm the most vulnerable workers, and make it more difficult for low-skill workers to get started in the labor market.
Legislation introduced by Representative Jim Ward of Wichita would raise the minimum wage in Kansas by one dollar per hour each year until it reaches $10.25 per hour in 2018. The bill is HB 2012, captioned “enacting the Kansas working families pay raise act.”
The caption of the bill, referencing “working families,” hints at the problem, as seen by progressives. The minimum wage does not generate enough income to raise a family. While the bill calls for raising the minimum wage, it makes no reference of whether workers are raising a family, or working part-time for pin money while in high school.
But aside from that, there is the important question to consider: Will raising the minimum wage help or harm low-wage earners? And are the policy goals — taken in their entirety — of the groups pressing for a higher minimum wage in the best interest of workers? The answer to these questions is that higher minimum wages harm low-wage workers and low-skilled people who would like to work.
The great appeal of a higher minimum wage mandated by an act of the legislature is that it seems like a wonderfully magical way to increase the wellbeing of low-wage workers. Those who were earning less than the new lawful wage and who keep their jobs after the increase are happy. They are grateful to the lawmakers, labor leaders, newspaper editorialists, and others who pleaded for the higher minimum wage. News stories will report their good fortune.
That’s the visible effect of raising the minimum wage. But to understand the entire issue, we must look for the unseen effects.
The not-so-visible effect of the higher wage law is that demand for labor will be reduced. Those workers whose productivity, as measured by the give and take of supply and demand, lies below the new lawful wage rate are in danger of losing their jobs. The minimum wage law says if you hire someone you must pay them a certain amount. The law can’t compel you to hire someone, nor can it compel employers to keep workers on the payroll.
The difficulty is that people with lose their jobs in dribs and drabs. A few workers here; a few there. They may not know who is to blame. Newspaper and television reporters will not seek these people, as they are largely invisible, especially so in the case of the people who are not hired because of the higher wage law.
In the real world, business owners have many things they can do when labor becomes more expensive. Some things employers do to compensate for higher labor costs include these:
If we are truly concerned about the plight of low-wage workers we can face some harsh realities and deal with them openly. The simple fact is that some people are not able to produce output that our economy values very much. They are not very productive. Passing a law that requires employers to pay them more doesn’t change the fact that their productivity is low. But there are ways to increase productivity.
One way to increase workers’ productivity is through education. Unfortunately, there is ample evidence that our public education system is failing badly.
Capital — another way to increase wages — may be a dirty word to some. But as the economist Walter E. Williams says, ask yourself this question: who earns the higher wage: a man digging a ditch with a shovel, or a man digging a ditch using a power backhoe? The difference between the two is that the man with the backhoe is more productive. That productivity is provided by capital — the savings that someone accumulated (instead of spending on immediate consumption or taxes) and invested in a piece of equipment that increased the output of workers and our economy.
Education and capital accumulation are the two best ways to increase the productivity and the wages of workers. Ironically, the people who are most vocal about raising wages through legislative fiat are also usually opposed to meaningful education reform and school choice, insisting on more resources being poured into the present system. They also usually support higher taxes on both individuals and business, which makes it harder to accumulate capital. These organizations should examine the effects of the policies they promote, as they are not in alignment with their stated goals.
If it were possible to increase the prosperity of everyone by simply passing a law, we should do it. But that’s not the way the world works regarding minimum wage laws.
Walter Williams explains who is most harmed by minimum wage laws, and also the politics:
How about the politics of the minimum wage? In the political arena, one dumps on people who can’t dump back on him. Minimum wages have their greatest unemployment impact on the least skilled worker. After all, who’s going to pay a worker an hourly wage of $10 if that worker is so unfortunate as to have skills that enable him to produce only $5 worth of value per hour? Who are these workers? For the most part, they are low-skilled teens or young adults, most of whom are poorly educated blacks and Latinos. The unemployment statistics in our urban areas confirm this prediction, with teen unemployment rates as high as 50 percent.
The politics of the minimum wage are simple. No congressman or president owes his office to the poorly educated black and Latino youth vote. Moreover, the victims of the minimum wage do not know why they suffer high unemployment, and neither do most of their “benefactors.” Minimum wage beneficiaries are highly organized, and they do have the necessary political clout to get Congress to price their low-skilled competition out of the market so they can demand higher wages. (Politics and Minimum Wage)
Labor unions favor higher minimum wages laws. Why? Here’s what one union said in making its argument: “However, not only is $9/hour a step in the right direction, it is also good for union members, who stand to seek even greater wage increases in their contracts, if they make more than the current minimum wage of $7.25.” ( United Food and Commercial Workers International Union (UFCW).)
We also need to examine the motivations of business firms that support a higher minimum wage. Sometimes they see a way gain a competitive advantage.
In 2005 Walmart came out in favor of raising the national minimum wage. Providing an example of how regulation is pitched as needed for the common good, Walmart’s CEO said that he was concerned for the plight of working families, and that he thought the current minimum wage of $5.15 per hour was too low. (“Working families.” That’s in the caption of the proposed Kansas law. It’s no coincidence.) If Walmart — a company progressives love to hate as much as any other — can be in favor of increased regulation of the workplace, can regulation be a good thing? Had Walmart discovered the joys of big government?
The answer is yes. Walmart discovered a way of using government regulation as a competitive weapon. This is often the motivation for business support of regulation. In the case of Walmart, it was already paying its employees well over the current minimum wage. At the time, some sources thought that the minimum wage could be raised as much as 50 percent and not cause Walmart any additional cost — its employees already made that much.
But its competitors didn’t pay wages that high. If the minimum wage rose very much, these competitors to Walmart would be forced to increase their wages. Their costs would rise. Their ability to compete with Walmart would be harmed.
In short, Walmart supported government regulation in the form of a higher minimum wage as a way to impose higher costs on its competitors. It found a way to compete outside the marketplace. And it did it while appearing noble.
In this episode of WichitaLiberty.TV: Rodney Wren is a debate and forensics coach. I asked him what can we do to improve the political process, particularly regarding candidate debates and the two major political parties? View below, or click here to view at YouTube. Episode 70, broadcast January 4, 2015.
In this episode of WichitaLiberty.TV: An episode this week at the Wichita city council meeting highlights the need for campaign finance reform in Wichita. We’ll examine a few incidents and see if there’s a way we can reform Wichita city government so that it is capitalism friendly instead of crony friendly. View below, or click here to view at YouTube. Episode 69, broadcast December 21, 2014.
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.
Not long ago a person who is politically active wrote a letter that was published in the Wichita Eagle. It criticized the role of campaign contributions in federal elections, noting “Corporations don’t spend money on politics because they are patriotic; rather, the companies expect a financial return.” Later the letter held this: “Locally, I understand that elections for the Wichita City Council underwent ideal, nonpartisan campaign-finance reform years ago, and that these limits are scrupulously practiced.”
The writer is correct, but only superficially. Our campaign contribution limits for city and school board offices are relatively small. What we find, however, is that the cronies, that is, the people who want stuff from city hall, stack contributions using family members and employees.
Here’s how a handful of cronies stack campaign contributions. In 2012 council members James Clendenin (district 3, southeast and south Wichita) and Lavonta Williams (district 1, northeast Wichita) were preparing to run again for their offices in spring 2013. Except for $1.57 in unitemized contributions to Clendenin, two groups of related parties accounted for all contributions received by these two incumbents for an entire year. A group associated with Key Construction gave a total of $7,000 — $4,000 to Williams, and $3,000 to Clendenin. Another group of people associated with movie theater owner Bill Warren gave $5,000, all to Clendenin.
The casual observer wouldn’t realize this stacking of campaign contributions by looking at campaign finance reports. That’s because for city offices, the name of the company a contributor works for isn’t required. Industry and occupation are required, but these aren’t of much help. Further, contribution reports are not filed electronically, so the information is not easy to analyze. Some reports are even submitted using handwriting, and barely legible handwriting at that.
So it’s not easy to analyze campaign contributions for Wichita city offices. It takes a bit of effort to unpack the stacking. You have to see a name and investigate who that person is. When you do that, you might find that a man from Valley Center who list his occupation and industry as Manager and Aviation Subcontractor is married to someone who lists her occupation and industry as Director of Marketing. Investigating her reveals that she is an executive of Key Construction.
That company, Key Construction, is a prominent company in Wichita. It is an example of a company that seeks to earn outsized profits through the political system rather than by meeting customer needs in the market. Profits through cronyism, that is. Here’s an example. In August 2011 the Wichita city council voted to award Key Construction a no-bid contract to build the parking garage that is part of the Ambassador Hotel project, now known as Block One. The no-bid cost of the garage was to be $6 million, according to a letter of intent. Later the city decided to place the contract for competitive bid. Key Construction won the bidding, but for a price $1.3 million less.
Let me make sure you understand that. Mayor Carl Brewer, Lavonta Williams, and James Clendenin were willing to spend an extra $1.3 million of your tax money to reward their benefactors through a no-bid contract. Since then reforms have been implemented to prevent this. Hopefully the reforms will work. I am skeptical.
In 2012 there was another incident involving Key Construction that show the need for campaign finance reform. Key and another construction company were engaged in a dispute as to who should build the new Wichita airport. The city council was tasked to act in a quasi-judicial manner to decide the issue. Given all the campaign contributions Key was making at the time, and given the mayor’s well-known friendship with Dave Wells of Key Construction, can you guess who was awarded the contract? And can you guess whose contract was more expensive for taxpayers?
So back to the letter in the newspaper, which held: “Corporations don’t spend money on politics because they are patriotic; rather, the companies expect a financial return.” I’m not going to defend cronyism at the federal level. It exists and it is harmful. But I would like to let the writer of the letter know that cronyism also exists in Wichita city government. In fact, it may be worse in Wichita. At the federal level, Congress usually passes laws that benefit an entire industry — say the sugar industry or banks — to the detriment of consumers and taxpayers. (Sometimes the benefits are quite specific. American Enterprise Institute reports that the just-passed omnibus bill contains a section that provides protection from an Obamacare provision for exactly one entity: Blue Cross Blue Shield. Conservative writer Yuval Levin explained: “This section is, simply put, a special favor for Blue Cross/Blue Shield allowing them to count ‘quality improvement’ spending as part of the medical loss ratio calculation required of them under Obamacare. And it’s made retroactive for four years, saving them loads of money.”)
That’s bad enough. Here in Wichita, however, the cronyism is more concentrated and personal. The links between campaign contributions and handouts from city hall is much more direct. We should insist that the city council stop picking the pocket of your fellow man so it can give the proceeds to campaign contributors. Campaign finance reform can help.
In this episode of WichitaLiberty.TV: While chair of the Wichita Metro Chamber of Commerce, a Wichita business leader strikes a deal that’s costly for taxpayers. A Kansas University faculty member is under attack from groups that don’t like his politics. Then, how can classical liberalism help us all get along with each other? View below, or click here to view at YouTube. Episode 68, broadcast December 14, 2014.
As Wichita enters campaign season for mayor and city council, will any candidates call for implementing a reform that we desperately need in Wichita? Following, from 2012, explains.
In the wake of scandals some states and cities have passed “pay-to-play” laws. These laws may prohibit political campaign contributions by those who seek government contracts, prohibit officeholders from voting on laws that will benefit their campaign donors, or the laws may impose special disclosure requirements.
Many people make campaign contributions to candidates whose ideals and goals they share. This is an important part of our political process. But when reading campaign finance reports for members of the Wichita City Council, one sees the same names appearing over and over, often making the maximum allowed contribution to candidates.
And when one looks at the candidates these people contribute to, you notice that often there’s no common thread linking the political goals and ideals of the candidates. Some people contribute equally to liberal and conservative council members. But then, when these people appear in the news after having received money from the Wichita City Council, it snaps into place: These campaign donors are not donating to those whose political ideals they agree with. Instead, they’re donating so they can line their own pockets. These donors are opportunists.
As another example, for the 2008 campaign for a bond issue for USD 259 (Wichita public school district), my analysis found that 72 percent of the contributions, both in-kind and cash, was given by contractors, architects, engineering firms, and others who directly stand to benefit from school construction. Do these companies have an especially keen interest in the education of children? I don’t think so. They are interested in themselves.
Some states and cities have taken steps to reduce this harmful practice. New Jersey is notable for its Local Unit Pay-To-Play Law. The law affects many local units of government and the awarding of contracts having a value of over $17,500, requiring that these contracts be awarded by a “fair and open process,” which basically means a contract process open to bidding.
Cities, too, are passing pay-to-pay laws. Notably, a recently-passed law in Dallas was in response to special treatment for real estate developers — the very issue Wichita is facing now as it prepares to pour millions into the pockets of a small group of favored — and highly subsidized — downtown developers who are generous with campaign contributions to almost all council members. Not that this is new to Wichita, as the city has often done this in the past.
Smaller cities, too, have these laws. A charter provision of the city of Santa Ana, in Orange County, California, states: “A councilmember shall not participate in, nor use his or her official position to influence, a decision of the City Council if it is reasonably foreseeable that the decision will have a material financial effect, apart from its effect on the public generally or a significant portion thereof, on a recent major campaign contributor.”
But Kansas has no such law. Certainly Wichita does not, where pay-to-play is seen by many citizens as a way of life.
In Kansas, campaign finance reports are filed by candidates and available to citizens. But many politicians don’t want campaign contributions discussed, at least in public. Recently Wichita Council Member Michael O’Donnell expressed concern over the potential award of a $6 million construction contract without an open bidding process. The contractor the city wanted to give the contract to was Key Construction, a firm that actively makes political contributions to city council members, both conservative and liberal.
For expressing his concern, O’Donnell was roundly criticized by many council members, and especially by Mayor Carl Brewer.
Here’s what’s interesting: Brewer and city council members say the campaign contributions don’t affect their votes. Those who regularly make contributions say they don’t do it to influence the council. Therefore, it seems that there should be no opposition to a pay-to-play law in Wichita — or the entire state — like the one in Santa Ana.
But until we get such a law, I can understand how Wichita city council members don’t want to discuss their campaign contributions from those they’re about to vote to give money to. It’s not about supporting political ideologies — liberal, moderate, or conservative. It’s about opportunists seeking money from government.
The practice stinks. It causes citizens to be cynical of their government and withdraw from participation in civic affairs. It causes government to grow at the expense of taxpayers. Pay-to-play laws can help reverse these trends.
You may download a printable copy of this article at Kansas Needs Pay-to-Play Laws.
Described as “An introduction to the core principles that define a free society,” I highly recommend this short book. It’s written by Eamonn Butler of the Adam Smith Institute and published by Institute of Economic Affairs, a British think tank whose mission is to “improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.” (Being written in British English, a few words are spelled wrongly now and then.)
The book may be purchased or downloaded at no charge at Foundations of a Free Society. Here is the summary of the book, as provided by the author: