Tag Archives: Sedgwick county government

WichitaLiberty.TV July 2, 2014

WichitaLiberty.TV: Wichita’s blatant waste, Transforming Wichita, and how you can help

In this episode of WichitaLiberty.TV: Let’s ask that Wichita trim its blatant waste of tax dollars before asking for more. We’ll look back at a program called Transforming Wichita. Then: We need to hold campaigns accountable. I’ll give you examples why, and tell how you can help. View below, or click here to view at YouTube. Episode 57, broadcast September 7, 2014.

Intrust Bank Arena, Wichita, KS

Wichita arena sales tax not a model of success

Supporters of a new sales tax in Wichita use the Intrust Bank Arena as an example of successful application of a sales tax.

As Wichita debates the desirability of a sales tax, a former sales tax is used as a model of success. Let’s take a look at a few of the issues.

Ongoing vs. capital expenses

A portion of the proposed sales tax will be used for operational expenses, and the demand for this spending will not end when the sales tax ends.

The sales tax for the Intrust Bank Arena was used to build a capital asset and establish a small reserve fund. Spending on capital assets is characterized by a large expense in a short period of time as the asset is constructed. Then, the spending is over — sort of.

For the proposed Wichita sales tax, 63 percent is scheduled for capital asset spending on an enhanced water supply. The remainder, 37 percent, is for operation of the bus transit system, street repair, and economic development. These three items are operational in nature, meaning they are ongoing expenses. It’s not likely that after five years the bus system will be self-sustaining, or that streets will no longer need repair, or that there will be no more clamoring for economic development.

There is a large difference, then, between the arena sales tax and the proposed Wichita sales tax. While sales tax boosters say the tax will end in five years, the likelihood is that because much of it will have been paying for operational expenses, there will be great pressure to continue the tax and the spending it supports. That’s because the appetite for tax revenue by government and its cronies is insatiable. An example: As the arena sales tax was nearing its end, Sedgwick County Commissioner Tim Norton “wondered … whether a 1 percent sales tax could help the county raise revenue.” (“Norton floats idea of 1 percent county sales tax,” Wichita Eagle, April 4, 2007)

Intrust Bank Arena economics

Having promoted a false and incomplete picture of the economics of the Intrust Bank Arena, civic leaders now use it as a model of success.

The building of a new arena in downtown Wichita was promoted as an economic driver. So far, that hasn’t happened. There have been spurts of development near the arena. But the arena is also surrounded by empty lots and empty retail space, and there have been months where no events took place at the arena.

Regarding the accounting of the profits earned by the arena, we need to realize that civic leaders are not telling citizens the entire truth. If proper attention was given to the depreciation expense of Intrust Bank Arena, that would recognize and account for the sacrifices of the people of Sedgwick County and its visitors to pay for the arena. This would be a business-like way of managing government — something we’re promised. But that hasn’t happened.

Civic leaders and arena boosters promote a revenue-sharing arrangement between the county and the arena operator, referring to this as profit or loss. But this arrangement is not an accurate and complete accounting, and it hides the true economics of the arena. An example of the incomplete editorializing comes from Rhonda Holman of the Wichita Eagle, who earlier this year wrote “Though great news for taxpayers, that oversize check for $255,678 presented to Sedgwick County last week reflected Intrust Bank Arena’s past, specifically the county’s share of 2013 profits.”

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

This agreement specifies a revenue sharing mechanism between the county and SMG. For 2103, the accounting method used in this agreement produced a profit of $705,678, to be split (not equally) between SMG and the county. The county’s share, as Holman touted, was $255,678. (Presumably that’s after deducting the cost of producing an oversize check for television cameras.)

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

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

A much better reckoning of the economics of the Intrust Bank Arena can be found in the 2013 Comprehensive Annual Financial Report for Sedgwick County. The CAFR, as described by the county, “… is a review of what occurred financially at Sedgwick County in 2013. In that respect, it is a report card of our ability to manage our financial resources.” Regarding the arena, the CAFR states:

The Arena Fund represents the activity of the INTRUST Bank Arena that opened on January 9, 2010. The facility is operated by a private company; the county incurs expenses only for certain capital improvements or major repairs and depreciation, and receives as revenue only a share of profits earned by the operator, if any. The Arena had an operating loss of $4.7 million. The loss can be attributed to $5.3 million in depreciation expense.

Financial statements in the same document show that $5,295,414 was charged for depreciation in 2013, bringing accumulated depreciation to a total of $21,190,280.

Depreciation expense is not something that is paid out in cash. Sedgwick County didn’t write a check for $5,295,414 in depreciation expense. Instead, depreciation accounting provides a way to recognize the cost of long-lived assets over their lifespan. It provides a way to recognize opportunity costs, that is, what could be done with our resources if not spent on the arena.

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

Effect on sales and jobs

Taxes have an impact. Definitely.

Boosters of the proposed Wichita sales tax say that since it is so small — “just one cent,” they say — its effect won’t be noticed. I wonder: If increasing prices by one percent has no effect, why don’t merchants raise their prices by one percent right now and pocket the profit?

Taxes have an impact. The problem with assessing the impact is that the results of the tax are usually concentrated and easy to see — a new arena, water supply, repaved streets, more buses, etc. But the consequences of the tax are usually spread out over a large number of people and collected in small amounts. The costs are dispersed, and therefore more difficult to detect. But there has been an analysis performed of a situation parallel to the Intrust bank Arena tax.

A paper titled “An Assessment of the Economic Impact of a Multipurpose Arena” by Ronald John Hy and R. Lawson Veasey, both of the University of Central Arkansas, (Public Administration & Management: An Interactive Journal 5, 2, 2000, pp. 86-98) looked at the effect of jobs and economic activity during the construction of the Alltel Arena in Pulaski County, Arkansas. This arena cost $50 million. It was funded in part by a one percent increase in the county sales tax for one year (1998). The sales tax generated $20 million.

In the net, considering both jobs lost and jobs gained due to sales tax and construction effects, workers in the wholesale and retail trades lost 60 jobs, and service workers lost 52 jobs. There was a net increase of 198 jobs in construction.

The fact that jobs were lost in retail should not be a surprise. When a sales tax makes nearly everything sold at retail more expensive, less is demanded. It may be difficult to estimate the magnitude of the change in demand, but it is certain that it does change.

The population of Pulaski County in 2000 was 361,474, while Sedgwick County’s population at the same time was 452,869, so Sedgwick County is somewhat larger. The sales tax for the arena lasted 2.5 times as long, and our arena was about three times as expensive. How these factors affected the number of jobs is unknown, but it’s likely that the number of jobs lost in Sedgwick County in retail and services was larger that what Pulaski County experienced.

WichitaLiberty.TV July 2, 2014

WichitaLiberty.TV: Primary election results, and a look forward

In this episode of WichitaLiberty.TV: We’ll take a look at some of the primary elections results this week. What did voters say, and what should we look for in the November general election and the future past that? View below, or click here to view at YouTube. Episode 54, broadcast August 10, 2014.

Sedgwick County Courthouse 2014-03-23

Sedgwick County elections: Commissioners

In Sedgwick County, two fiscally conservative commission candidates prevailed.

This year three of the five positions on the Sedgwick County Board of Commissioners are up for election. Unlike the Wichita city Council, Sedgwick County commissioners run as members of a party, and compete in both primary and general elections. There can be independent and third-party candidates too. This year for one of the Sedgwick County commission districts the incumbent Republican ran unopposed. But in two other districts, there were spirited contests.

Sedgwick County Commission, district 4In district four, which covers north-central and northwest Wichita, Maize, Valley Center, and Park City, incumbent Richard Ranzau was challenged by Carolyn McGinn. She had held this position in the past, and then served in the Kansas Senate, an office she still holds. Ranzau is well known — notorious, we might say — for his tough line on spending taxpayer dollars. The McGinn campaign had about twice as much money to spend. A lot of that came from the people we know as Wichita’s crony capitalists, that is, people and companies who actively seek handouts from government. The Wichita Metro Chamber of Commerce endorsed McGinn. Now, you may think of your local chamber of commerce as pro-business. And, the chamber is pro-business, no doubt about it. But pro-business is not the same as pro-capitalism. Being pro-business is not the same as being in favor of economic freedom. Being pro-business is not the same as supporting a limited, constitutional, government that protects our freedoms and property rights.

I want to stress this point. Just this week Wichita’s own Charles Koch wrote an op-ed for USA Today. After expressing concern for the weak economy and its effect on workers, he offered a plan forward. He wrote “First, we need to encourage principled entrepreneurship. Companies should earn profits by creating value for customers and acting with integrity, the opposite of today’s rampant cronyism.”

Concluding his article, Koch wrote: “Our government’s decades-long, top-down approach to job creation has failed. Its policies have made our problems worse, leaving tens of millions chronically un- or underemployed, millions of whom have given up ever finding meaningful work. In doing so, our government has not only thwarted real job creation, it also has reduced the supply and quality of goods and services that make people’s lives better and undermined the culture required to sustain a free society. When it comes to creating opportunities for all, we can do much better. It’s time to let people seek opportunities that best suit their talents, for businesses to forsake cronyism, and for government to get out of the way.”

While Charles Koch was writing primarily about the United States government, the same principles apply to local government. And Wichita’s cronies — those who seek profits through politicians and bureaucrats rather than customers — they lined up behind Carolyn McGinn in a big way. By using their generous funding, she ran a negative campaign against Richard Ranzau. He forcefully and truthfully responded to her negative ads, and I’m pleased to say that I helped in that effort.

What was the result of the election? Ranzau won with 54 percent of the vote. He now moves on to face Democrat Melody McRae-Miller in the November general election. She held this county commission seat before McGinn, and she also served in the Kansas legislature, in the House of Representatives.

Sedgwick County Commission, district 5There was also a contest in district 5, which is Derby and parts of southeast Wichita. The one-term incumbent Jim Skelton declined to run for re-election. The two Republican candidates were Jim Howell and Dion Avello. Howell has represented parts of Derby in the Kansas House of Representatives for four years. Avello has been mayor of Derby for many years. The Wichita Chamber endorsed Howell in this race. Campaign funds were close in this race, with Howell having a small edge. The result of the election was Howell winning with 63 percent of the vote. He moves on to face the Democrat in the general election, former Rose Hill Mayor Richard Young.

22-CommissionWhat do the results of these elections mean? First, there may be a shift of power on the Sedgwick County commission. Currently, commissioners Ranzau and Karl Peterjohn are often in a minority of two against the other three commissioners. It’s thought that it Howell is elected, he would often join Ranzau and Peterjohn to form a working majority of three. That could cause a change in policy at the County commission, and that’s something that the Wichita chamber and Wichita’s cronies don’t want. It will be interesting to see who the chamber and the cronies support in the general election, Ranzau or the Democrat. In 2008, when Peterjohn ran for his first term, the Wichita chamber campaigned against him, making it their most important priority in that election.

For this shift to materialize, both Ranzau and Howell must win their November elections.

Wichita Chamber of Commerce 2013-07-09 004Ranzau’s victory is a defeat for the Wichita Chamber of Commerce. Besides endorsing McGinn, it made independent expenditures in her favor. This has broader implications than just one county commission district. This week the Wichita City Council voted in favor of placing a sales tax issue on the November ballot. The Wichita Chamber is strongly behind the sales tax in Wichita, and I would expect to see the chamber devote a lot of resources campaigning for its passage. Richard Ranzau is opposed to the sales tax increase. While his county commission district encompasses a lot of territory that is outside the City of Wichita, and it is only Wichita voters who will decide the sales tax issue, I think we can safely conclude that his victory paints a gloomy forecast for approval of a sales tax.

Looking even farther to the future. Ranzau’s county commission district overlaps part of Wichita city council district 5. That is currently represented by Jeff Longwell. He can’t run again because of term limits. Longwell is firmly in the grasp of Wichita’s cronies. Could Ranzau’s victory pave the way for a fiscally conservative city council candidate in district 5? That election will be next spring.

Also next spring Wichita will elect a new mayor. There are many names mentioned as candidates, including Longwell. What do the victories of Ranzau and Howell mean? What impact will the sales tax campaign and election result have on the spring elections?

24-Carolyn McGinn Key Construction 2014-07-02 01bThe Wichita Chamber and the Wichita cronies campaigned hard for Carolyn McGinn against Richard Ranzau. Well, I should clarify: They spent a lot of money on the campaign. Richard himself, his family, and his volunteers worked hard. The desire for economic freedom by Richard Ranzau and his volunteers was a more powerful force than the greed of the Wichita Chamber of Commerce, Key Construction, David Burk, and Bill Warren.

Keep this in mind. The Sedgwick County Commission has very little power to initiate the type of economic development incentives that the Wichita Chamber and the cronies want. That power rests almost totally at the Wichita City Council and the Kansas Department of Commerce. Also, the county commission has limited power to stop or object to incentives. Their main voice is the ability to cancel the formation of a tax increment financing district.

So if the Wichita Chamber and the cronies are willing to intervene to such extent in the campaign for county commissioner, think what they will be willing to do in city council or mayoral contests, if they see that their grip on the really big cookie jar might be in doubt. Since the departure of Michael O’Donnell for the Kansas Senate there has been no one on the Wichita city council who questions anything the Chamber and the cronies want. Not in any serious manner, that is. We see council members making false displays of pretense now and then, but that’s all they do.

For McGinn, a liberal voting record is a tradition

Based on votes made in the Kansas Senate, the advertising claims of Sedgwick County Commission candidate Carolyn McGinn don’t match her record.

Kansas CapitolIn a radio advertisement, Carolyn McGinn says she is conservative. In a mailer, she touts her “fiscal conservative leadership” in the Kansas Senate.

But voting records don’t match these claims.

Several voting scorecards in recent years show Senator McGinn ranking low in terms of voting for economic freedom issues. These issues generally concern taxation, wasteful spending, and unnecessary regulation. In recent years, a freedom index has been produced by Kansas Policy Institute. In 2012 the Kansas Economic Freedom Index was a joint product of Americans for Prosperity-Kansas, Kansas Policy Institute, and myself. In 2010 I produced an index by myself. All tabulations show McGinn rarely voting in favor of economic freedom.

In the 2014 formulation, McGinn scored 25.8 percent. Four senators (Kansas has 40 senators) had lower scores. Some Wichita-area legislators that had higher scores than McGinn include Senator Oletha Faust-Goudeau and Representatives Ponka-We Victors, Gail Finney, Jim Ward, Tom Sawyer, and Brandon Whipple. All these are Democrats, by the way, and they voted more in favor of economic freedom than did Carolyn McGinn.

In 2013, McGinn scored 40 percent. Eight senators had lower scores.

In 2012 the scores were calculated in a different manner. McGinn scored -6, with 16 senators scoring lower.

There was no index for 2011.

In 2010, on an index that I produced, McGinn scored seven percent. Three other senators had the same score, and one had a lower score.

At a recent forum, McGinn criticized the concept of a vote index, telling the audience: “The economic freedom index, I just find that interesting. Because it’s based on amendments after we’re out of session, so you can pick and choose what you want for who.”

She’s right, in a way. I don’t know what she meant by “amendments,” but the organizations that construct voting scorecards choose votes that they believe distinguish candidates along some axis. Usually the votes are chosen after they’re made, although sometimes organizations “key vote” an issue. That means they alert legislators in advance of a vote that the vote will be included on their scorecard.

There are organizations that are in favor of more spending, less accountability, and fewer choices for Kansas parents and schoolchildren. They produce scorecards, too. In particular, Kansas Association of School Boards found that McGinn never voted against their position from 2009 to 2012. Kansas National Education Association, while not making a scorecard public, recommended that its members vote for McGinn.

Voice for Liberty radio logo for featured posts 01

Voice for Liberty Radio: Sedgwick County Commission Candidates

In this episode of Voice for Liberty Radio: Candidates for Republican party nominations in two districts for Sedgwick County Commission spoke at the Wichita Pachyderm Club on June 20, 2014.

In district 4, which is parts of northeast, north and northwest Wichita and the towns of Park City, Valley Center, and Maize, Kansas Senator Carolyn McGinn is challenging the incumbent Richard Ranzau. In district 5, which is parts of south and southeast Wichita and the town of Derby and surrounding area, Derby Mayor Dion Avello is facing Kansas Representative Jim Howell. The format of the meeting was an opening statement by each candidate followed by questions from the audience and a brief closing statement.

Here are candidates for Republican party nominations for Sedgwick County Commission at the Wichita Pachyderm Club on June 20, 2014.

Shownotes

Candidates in district 4:
Carolyn McGinn | Working For Kansas
Vote Richard Ranzau for County Commission

Candidates in district 5:
Dion Avello
State Representative Jim Howell for Sedgwick County Commissioner

Wichita City Budget Cover, 1992

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.

Tomorrow the Wichita City Council considers whether to grant property and sales tax exemptions to a proposed speculative industrial building in north central Wichita. If approved, this will be the second project undertaken under new economic development policies that allow for this type of tax exemption.

Those with tax abatementsCity documents estimate that the property tax savings for the first year will be $312,055. This exemption will be granted for five years, with a second five year period possible if performance goals are met.

The city documents also state that the project will also apply for a sales tax exemption, but no estimate of these tax savings are given. It’s common for a project of this type to have about half its cost in purchases subject to sales tax. With “site work and building” at $10,350,000, sales tax in Wichita on half that amount is $370,012. Undoubtedly a rough estimate, it nonetheless gives an idea of how much sales tax the developers will avoid paying.

(If city hall has its way, the sales tax in Wichita will soon increase by one cent per dollar, meaning the developers of this project would save $421,762 in sales tax. While others will hurry to make purchases before the higher sales tax rate takes effect — if it does — these developers will be in no hurry. Their sales tax is locked in at zero percent. In fact, once having a sales tax or property tax exemption, these developers are now in a position to root for higher sales and property tax rates, as that increases costs for their competitors, thereby giving these tax-exempt developers a competitive advantage.)

City documents give the benefit-cost ratios for the city and overlapping jurisdictions:

City of Wichita General Fund 1.30 to one
Sedgwick County 1.18 to one
USD 259 1.00 to one
State of Kansas 12.11 to one

It’s not known whether these ratios include the sales tax forgiveness.

Wichita City Budget Cover, 1992While the City of Wichita insists that projects show a benefit-cost ratio of 1.3 to one or better (although there are many exceptions), it doesn’t apply that standard for overlapping jurisdictions. Here, Sedgwick County experiences a benefit-cost ratio of 1.18 to one, and the Wichita school district (USD 259) 1.00 to one. These two governmental bodies have no input on the decision the city is making on their behalf. The school district’s share of the forgiven taxes is 47.4 percent.

When the city granted a similar tax exemption to a speculative warehouse in southwest Wichita, my estimates were that its landlord has a cost advantage of about 20 percent over other property owners. Existing industrial landlords in Wichita — especially those with available space to rent and those who may lose tenants to this new building — 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 property taxes

Property taxes in Wichita are high for industrial buildings, and even higher for commercial buildings. See Wichita property taxes compared. So it’s difficult to blame developers for seeking relief. But instead of offering tax relief to those who ask and to those city hall approves of, it would be better to have lower taxes for everyone.

Targeted economic development incentives

The targeted economic development efforts of governments like Wichita fail for several reasons. First is the knowledge problem, in that government simply does not know which companies are worthy of public investment. In the case of the Wichita, do we really know which industries should be targeted? Is 1.3 to one really the benchmark we should seek, or would we be better off by insisting on 1.4 to one? Or should we relax the requirement to 1.2 to one so that more projects might qualify?

This assumes that these benefit-costs ratios have validity. This is far from certain, as follows:

1. The benefits that government claims are not really benefits. Instead, they’re in the form of higher tax revenue. This is very different from the profits companies earn in voluntary market transactions.

2. Government claims that in order to get these “benefits,” the incentives must be paid. But often the new economic activity (expansion, etc.) would have happened anyway without the incentives.

3. Why is it that most companies are able to grow without incentives, but only a few companies require incentives? What is special about these companies?

4. If the relatively small investment the city makes in incentives is solely responsible for such wonderful outcomes in terms of jobs, why doesn’t the city do this more often? If the city has such power to create economic growth, why is anyone unemployed?

Do incentives work?

The uncontroverted peer-reviewed research tells us that targeted economic development incentives don’t work, if we consider the entire economy. See: Research on economic development incentives. Some of the conclusions of the studies listed there include:

No evidence of incentive impact on manufacturing value-added or unemployment”

Small reduction in employment by businesses which received Ohio’s tax incentives”

No evidence of large firm impacts on local economy”

No permanent employment increase across a quasi-experimental panel of all Cabela’s stores”

“Employment impact of large firms is less than gross job creation (by about 70%)”

These research programs illustrate the fallacy of the seen and the unseen. It is easy to see the jobs being created by economic development incentives. It’s undeniable that jobs are created at firms that receive incentives, at least most of the time. But these jobs are easy to see. It’s easy for news reporters to find the newly-hired and grateful workers, or to show video footage of a new manufacturing plant.

But it’s very difficult to find specific instances of the harm that government intervention produces. It is, generally, dispersed. People who lose their jobs usually don’t know the root cause of why they are now unemployed. Businesses whose sales decline often can’t figure out why.

But evidence tells us this is true: These incentives, along with other forms of government interventionism, do more harm than good.

Let’s create something special and unique

Following, Sedgwick County Commissioner Karl Peterjohn explains something that the county could do to boost economic growth that doesn’t require government intervention, doesn’t need fleets of bureaucrats, reduces cronyism and corruption, increases economic freedom, respects property rights, reduces the power of government to control its subjects, and doesn’t give politicians opportunities to inflate their egos and boost their electoral prospects by being photographed at ground-breaking and ribbon-cutting ceremonies taking credit for spending your money on something you don’t want and which does not work to create jobs and prosperity. For these reasons — especially the latter — this won’t be popular with the political class.

I’ve gathered data from the property tax study that Peterjohn mentions and presented data specific to Wichita at Wichita property taxes compared. A version of this commentary appeared in the Wichtia Eagle.

Let’s create something special and unique

By Karl Peterjohn

This community as well as our country is still in an economic crisis. Our community needs a boost, or a comparative growth advantage. Creating a one (1) cent city sales tax in Wichita won’t create economic growth.

In fact, raising taxes would put our community on the same path trail blazed by many other communities across our country. That is the path to fiscal perdition: Detroit.

Sedgwick County Courthouse 2014-03-23This community can create a special and unique comparative advantage by eliminating one of the major disadvantages that this state in general, and Wichita and Sedgwick County face: high property taxes. The high property tax problem for Wichita was once again identified in a national study by the Lincoln Institute on Land Policy and the Minnesota Center for Fiscal Excellence’s, “50 State Property Tax Comparison Study,” issued in March. In this study it identified the fact that Wichita’s property tax on commercial property was 38% above the national average.

High taxes mean less economic growth. This is particularly true for property taxes.

The unique and special approach this community needs is instead of raising the sales tax to expand city spending, the focus should be on eliminating the county’s property tax. Currently the county imposes a 29.3 mill property tax county wide. This mill levy could be eliminated with about a 1.5 cent increase in the sales tax on a revenue neutral basis.

This type of property tax competitiveness would be beneficial on several levels. First, it would provide a unique selling proposition to help attract business to this county and Wichita.

Eliminating the county property tax would provide benefits to all property taxpayers and not just a select few getting special subsidies contained within the city’s sales tax hike plan. Eliminating the county’s property taxes would reduce most county taxpayers’ property tax bills by roughly 25 percent.

Let’s move away from the subsidy model whose odious examples include the failed Solyndra national subsidy boondoggle.

Instead of dangling subsides, which everyone else in the eco-devo game is doing, let’s try a unique incentive: Sedgwick County just eliminated its property tax! We should try this because it can work.

In 1995 Kansas eliminated its state unemployment tax because the fund had developed a large cash balance. This five year tax moratorium created a unique economic advantage for Kansas business. Within a couple of years, the Kansas economy enjoyed a substantial surge in economic growth. Kansas became a leader enjoying some of the fastest economic growth between 1997 to 1999. Eventually, the unemployment fund’s cash balance shrank. By 1999 the unemployment tax was restored. This unique tax advantage was eliminated.

As a county commissioner I am focused on creating a special advantage for everyone in Sedgwick County. Eliminating the county’s property tax is an idea whose time has come.

WichitaLiberty.TV set 2014-04-29 01 800

WichitaLiberty.TV: Government accounting, Government ownership of infrastructure, and Wichita commercial property taxes

In this episode of WichitaLiberty.TV: Government leaders tell us they want to run government like a business. But does government actually do this, even when accounting for its money? Then, is it best for government to own all the infrastructure? Finally, taxes on Wichita commercial property are high, compared to the rest of the nation. Episode 46, broadcast June 8, 2014. View below, or click here to view at YouTube.

man-digging-coins

What is the record of economic development incentives?

On the three major questions — Do economic development incentives create new jobs? Are those jobs taken by targeted populations in targeted places? Are incentives, at worst, only moderately revenue negative? — traditional economic development incentives do not fare well.

Money GrabberJudging the effectiveness of economic development incentives requires looking for the unseen effects as well as what is easily seen. It’s easy to see the groundbreaking and ribbon cutting ceremonies that commemorate government intervention — politicians and bureaucrats are drawn to them, and will spend taxpayer funds to make sure you’re aware. It’s more difficult to see that the harm that government intervention causes.

That’s assuming that the incentives even work as advertised in the first place. Alan Peters and Peter Fisher, in their paper titled The Failures of Economic Development Incentives published in Journal of the American Planning Association, wrote on the effects of incentives. A few quotes from the study, with emphasis added:

Given the weak effects of incentives on the location choices of businesses at the interstate level, state governments and their local governments in the aggregate probably lose far more revenue, by cutting taxes to firms that would have located in that state anyway than they gain from the few firms induced to change location.

On the three major questions — Do economic development incentives create new jobs? Are those jobs taken by targeted populations in targeted places? Are incentives, at worst, only moderately revenue negative? — traditional economic development incentives do not fare well. It is possible that incentives do induce significant new growth, that the beneficiaries of that growth are mainly those who have greatest difficulty in the labor market, and that both states and local governments benefit fiscally from that growth. But after decades of policy experimentation and literally hundreds of scholarly studies, none of these claims is clearly substantiated. Indeed, as we have argued in this article, there is a good chance that all of these claims are false.

The most fundamental problem is that many public officials appear to believe that they can influence the course of their state or local economies through incentives and subsidies to a degree far beyond anything supported by even the most optimistic evidence. We need to begin by lowering their expectations about their ability to micromanage economic growth and making the case for a more sensible view of the role of government — providing the foundations for growth through sound fiscal practices, quality public infrastructure, and good education systems — and then letting the economy take care of itself.

Following is the full paper, or click here.

Intrust Bank Arena commemorative monument

Intrust Bank Arena: Not accounted for like a business

Proper attention given to the depreciation expense of Intrust Bank Arena in downtown Wichita recognizes and accounts for the sacrifices of the people of Sedgwick County and its visitors to pay for the arena. It’s a business-like way of accounting, but a well-hidden secret.

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

An example of the incomplete editorializing comes from Rhonda Holman of the Wichita Eagle, who opined “Though great news for taxpayers, that oversize check for $255,678 presented to Sedgwick County last week reflected Intrust Bank Arena’s past, specifically the county’s share of 2013 profits.”

Earlier reporting on this topic in the Eagle did not mention depreciation expense, either.

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

This agreement specifies a revenue sharing mechanism between the county and SMG. For 2103, the accounting method used in this agreement produced a profit of $705,678, to be split (not equally) between SMG and the county. The county’s share, as Holman touted, was $255,678. Presumably that’s after deducting the cost of producing an oversize check for the television cameras.

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

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

A much better reckoning of the economics of the Intrust Bank Arena can be found in the 2013 Comprehensive Annual Financial Report for Sedgwick County. This document holds additional information about the finances of the Intrust Bank Arena. The CAFR, as described by the county, “… is a review of what occurred financially at Sedgwick County in 2013. In that respect, it is a report card of our ability to manage our financial resources.”

Regarding the arena, the CAFR states:

The Arena Fund represents the activity of the INTRUST Bank Arena that opened on January 9, 2010. The facility is operated by a private company; the county incurs expenses only for certain capital improvements or major repairs and depreciation, and receives as revenue only a share of profits earned by the operator, if any. The Arena had an operating loss of $4.7 million. The loss can be attributed to $5.3 million in depreciation expense.

Financial statements in the same document show that $5,295,414 was charged for depreciation in 2013, bringing accumulated depreciation to a total of $21,190,280.

Depreciation expense is not something that is paid out in cash. Sedgwick County didn’t write a check for $5,295,414 in depreciation expense. Instead, depreciation accountingit provides a way to recognize and account for the cost of long-lived assets over their lifespan. It provides a way to recognize opportunity costs, that is, what could be done with our resources if not spent on the arena.

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

Intrust Bank Arena commemorative monument
Intrust Bank Arena commemorative monument
The contention of Unruh and other arena boosters such as the Wichita Eagle editorial board is that the capital investment of $183,625,241 (not including an operating and maintenance reserve) on the arena is merely a historical artifact, something that happened in the past, something that has no bearing today. There is no opportunity cost, according to his view. This attitude, however, disrespects the sacrifices of the people of Sedgwick County and its visitors to raise those funds.

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

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

WichitaLiberty.TV set 2014-04-29 01 800

WichitaLiberty.TV: Old Town, Economic development incentives, and waste in Wichita

In this episode of WichitaLiberty.TV: A look at a special district proposed for Old Town, the process of granting economic development incentives and a cataloging of the available tools and amounts, and an example of waste in Wichita. Episode 43, broadcast May 18, 2014. View below, or click here to view on YouTube.

In Wichita, citizens want more transparency in city government

Wichita city hallIn 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.

As part of the Wichita-Sedgwick County Comprehensive Plan, the City of Wichita held a number of focus groups meetings. Their purpose, according to city documents, was to provide “information on the components of the Plan and provide input on a draft survey.”

(Some indication of the reverence given to the plan to city planners may be inferred by the city’s use of capitalization when referring to it.)

The community meetings were structured in a way reminiscent of the Delphi method, described in Wikipedia as “a structured communication technique, originally developed as a systematic, interactive forecasting method which relies on a panel of experts.” Others have a more skeptical view, believing that the Delphi technique leads citizens to believe they have participated in community democratic decision-making when in reality, that is not the goal of the process.

In October Americans for Prosperity-Kansas invited the city to hold a focus group meeting. Video from the meeting is below, or click here to view at YouTube.

Dave Barber, who is Advanced Plans Manager at Wichita-Sedgwick County Metropolitan Area Planning Department, facilitated the meeting. Susan Estes of AFP was the meeting organizer and host. Mike Shatz is the videographer. His description of the meeting is “The City of Wichita is holding a series of meetings to gain input from the public on future spending plans. The meetings are based off a survey the city conducted, which, by all accounts, was full of loaded questions geared towards promoting the programs that city officials want to see. In this meeting, one of the first in the series, citizens openly question the process and repeatedly ask for an end to cronyism and secrecy at city hall.”

Sedgwick County illustrates inefficiency of tax credit mechanism

Sedgwick County Kansas sealTax credits can be an inefficient way for government to distribute benefits, as illustrated by action the Sedgwick County Commission will consider today.

A tax credit is, conceptually, a certificate with a dollar amount written on it. That certificate can be used instead of cash for payment of taxes. So when the State of Kansas issues a tax credit for $100, the state gives up that same amount in tax revenue, as someone will submit that certificate instead of a hundred dollar bill in payment of taxes. The certificate, of course, has no value to the state.

Sedgwick County received Kansas income tax credits under the state’s historic preservation program. Since the county doesn’t pay income tax, it can’t use them as payment for taxes. But since the credits are transferable, the county can sell them to someone who does need to pay taxes. And if that person can buy the tax credits for less than face value, such as paying $90 for a tax credit that’s worth $100, there’s motivation for buyers and sellers to make a deal.

This is what the county is doing. In an auction it sold three tax credits for a total of $507,066.74. This is described by county documents as representing $0.9025 per dollar of value. Working backwards, this means that the tax credits have a face value of $507,066.74/.9025 = $561,847 in face value. Someone will submit these credits to the state instead of a check for that amount when they pay their taxes.

This means that the State of Kansas gives up $561,847 in order to grant a benefit worth $507,067 to Sedgwick County. This is the inefficiency of using tax credits as a mechanism for distributing benefits.

You may be wondering: Why does this state use this inefficient method? One reason is that tax credits operate more or less on autopilot. Once the program is authorized and put in place, people or organizations that qualify for the credits receive them without action by the legislature. This has happened in downtown Wichita on a number of projects such as the renovation of the Broadview and Ambassador Hotels. Both received millions under historic preservation tax credit programs. (See In Wichita, historic preservation tax credits an inefficient form of developer welfare.)

Can you imagine the legislature having to vote to give millions of dollars to specific hotel developers? That probably wouldn’t be popular. But the tax credit program accomplishes the same result, and mostly under the radar without scrutiny.

Tax credits are a direct transfer of money from taxpayers to private parties. But being accomplished through the tax system shrouds the process in mystery. And, no direct action is required by any legislative body. The legislature creates the tax credit program. The developer applies, and if accepted, the credits are granted. No one — at least no one elected by and accountable to voters — votes to grant the specific credits.

The Kansas historic preservation tax credit program, in a short time, has grown from a program designed to help spruce up a few old buildings here and there to a developer welfare program on steroids.

Commissioner’s questions halt county’s plan to remove trees on private land

Sedgwick County Kansas seal

Good job, Sedgwick County Commissioner Richard Ranzau. It’s always good to put the kibosh on unneeded government spending.

At stake was about $47,000, just less than the annual median household income in Sedgwick County.

County Manager William Buchanan had signed off on spending $46,685 to clear out trees on private property along Central Avenue from the entrance of housing development St. Andrew’s Place east to 143rd Street. Work was to start next week.

But questioning by County Commissioner Richard Ranzau put the kibosh on the project, and the Minneha Township now will have to pay the tab if it wants the trees gone.

“We got out in front of ourselves without doing much critical thinking, and I take full responsibility for that,” Buchanan said.

Continue reading at the Wichita Eagle.

Readers may remember my op-ed in that same newspaper from 2009:

Last year a political science professor who is a keen observer of Kansas politics told me that city or county managers shouldn’t be in their jobs more than four or five years. After that, he said, they gain too much power.

If managers are to serve their councils or commissions — instead of the other way around — sometimes a change needs to be made, just for the sake of change.

This alone is enough reason for change in the Sedgwick County manager’s office after 18 years of County Manager William Buchanan.

Continue reading this at Commission has cause to want a new manager.

WichitaLiberty.TV September 15, 2013

WichitaLiberty.TV logo

In this episode of WichitaLiberty.TV, host Bob Weeks reviews chapter 4 of “Economics in One Lesson,” about how public works mean taxes, and efforts to create jobs through spending on public works do more ham than good, if the public asset is not truly needed. The tax used to build the Instrust Bank Arena in Wichita is analyzed in this light. Then on to chapter 5, “Taxes Discourage Production.” Amanda BillyRock illustrates, and Bob explains that notwithstanding inventions like the powdered orange drink Tang, innovation and progress comes primarily from the private sector, not from government programs. Episode 13, broadcast September 15, 2013. View below, or click here to view at YouTube.

WichitaLiberty.TV September 1, 2013

WichitaLiberty.TV logo

In this episode of WichitaLiberty.TV, host Bob Weeks presents an analysis of the delinquent real estate tax list and wonders why our institutions don’t provide this simple enhancement. Then, a review of the first two chapters of “Economics in One Lesson” with application to situations in Wichita. Finally, Amanda BillyRock illustrates Chapter 3: Blessings Of Destruction, and examples in Wichita are noted. Episode 11, broadcast September 1, 2013. View below, or click here to view on YouTube.

Sedgwick County delinquent taxes, the useful version

The Wichita Eagle has devoted newsprint to deliver the data, and you can obtain it as pdf on your computer, too. Neither of these options for delivering the Sedgwick County delinquent tax list for 2012 is very useful.

I’ve created a Google Docs sheet that holds this data. You can access it below, but it’s probably best to open it in a new window by clicking here. There are three tabs: an introduction, the data, and a pivot table that summarizes the data. Have fun.

Do economic development incentives work?

Government takes and gives

Judging the effectiveness of economic development incentives requires looking for the unseen effects as well as what is easily seen. It’s easy to see the groundbreaking and ribbon cutting ceremonies that commemorate government intervention — politicians and bureaucrats are drawn to them, and will spend taxpayer funds to make sure you’re aware. It’s more difficult to see that the harm that government intervention causes.

That’s assuming that the incentives even work as advertised in the first place. Alan Peters and Peter Fisher, in their paper titled The Failures of Economic Development Incentives published in Journal of the American Planning Association, wrote on the effects of incentives. A few quotes from the study, with emphasis added:

Given the weak effects of incentives on the location choices of businesses at the interstate level, state governments and their local governments in the aggregate probably lose far more revenue, by cutting taxes to firms that would have located in that state anyway than they gain from the few firms induced to change location.

On the three major questions — Do economic development incentives create new jobs? Are those jobs taken by targeted populations in targeted places? Are incentives, at worst, only moderately revenue negative? — traditional economic development incentives do not fare well. It is possible that incentives do induce significant new growth, that the beneficiaries of that growth are mainly those who have greatest difficulty in the labor market, and that both states and local governments benefit fiscally from that growth. But after decades of policy experimentation and literally hundreds of scholarly studies, none of these claims is clearly substantiated. Indeed, as we have argued in this article, there is a good chance that all of these claims are false.

The most fundamental problem is that many public officials appear to believe that they can influence the course of their state or local economies through incentives and subsidies to a degree far beyond anything supported by even the most optimistic evidence. We need to begin by lowering their expectations about their ability to micromanage economic growth and making the case for a more sensible view of the role of government — providing the foundations for growth through sound fiscal practices, quality public infrastructure, and good education systems — and then letting the economy take care of itself.

Following is the full paper, or click here.

Change in needed in Wichita

A version of this op-ed by John Todd appeared in the Wichita Eagle.

John Todd, American PatriotChange is desperately needed in Wichita — change to allow exceptionalism and end failed economic subsidies.

Once again, several of the favored downtown development group partners have lined up outside City Hall with outstretched palms to receive prime city owned Arkansas River corridor land for bargain basement prices layered with generous incentives.

I heartily support private real estate development downtown and across Wichita. It creates jobs, enhances quality of life, expands the tax base and provides economic uplift. However, projects involving generous taxpayer funded “economic development” incentive handouts transfer the risk and tax burden from developers back to taxpayers who rarely realize any direct benefits from the projects.

The downtown WaterWalk project essentially gave away 20 acres of prime city owned land with a reported $41 million incentive package that included diverting tax revenue to the developer with unknown benefits to taxpayers. Compare this with the Waterfront development at 13th and Webb Road that received no subsidy and generates an estimated $2.5 million in annual tax revenues for the public treasury.

To paraphrase a thought attributed to several authors: “A Democracy cannot survive as a permanent form of government, because, when people discover they can vote money for themselves out of the public treasury, they will bankrupt it.”

I believe it is time for the citizens of Wichita to move forward by putting a new marketing program in place titled, “Capitalizing on Exceptionalism: A New Chapter in Wichita.”

To make it work, we must enlist the support of key, wealth producing, connected people of influence in our community as well as the everyday hard working citizen entrepreneurs and craftsmen, and provide the marketing forum for them to recognize and realize that Wichita can be exceptional, and that we don’t have to embrace a “follow the herd” mentality that will lead us to economic destruction and mediocrity.

We must change the “entitlement” mentality that permeates the social and the business segments of our whole country, starting in particular with our own community. Wichita can become the exceptional example of economic prosperity others will strive to emulate.

If we can move away from the entitlement attitude and get government out of the way, our private sector entrepreneurs and craftsmen can match anyone in the country; and all of this can be achieved by rejecting the corporate welfare trap we have fallen into.

John Todd
Wichita

More illumination of Wichita City Council ethics

Today on the Joseph Ashby Show, the host shines additional light on problems with the Wichita City Council.

Joseph Ashby Show, August 8, 2013 (excerpt).

Some background material:

Joseph Ashby on Wichita City Council

Kansas Affordable Airfares program: Benefits and consequences

Wichita airport statistics: The visualization

Wichita Airport statistics: The video

Wichita Eagle: Wichita City Council rejects conservative blogger for airport advisory board

WE Blog: Peterjohn’s comment was inappropriate

Joseph Ashby Show: Upcoming Wichita City Council meeting

It will be a busy Tuesday in Wichita

Fish, sauce, and the law: You make the call

The harm of business welfare

What is the effect of the issuance of business welfare in Wichita, of the intervention in the economy by politicians? Based on an article by Bob Weeks, Amanda BillyRock illustrates — literally — the harm caused when government intervenes in the economy. Thanks also to Henry Hazlitt for the insights in his simple but imposing book Economics in One Lesson.

Wichita airfares, on the rise

Airplane

A survey by travel website CheapFlights.com shows that airfares in Wichita have both fallen and risen in recent years, even though the City of Wichita, Sedgwick County, and the State of Kansas collectively spend millions each year to keep airfares low.

The survey, according to a news release, ranks airports by “averaging the prices our users found during the month of June when searching for flights to popular domestic and international destinations like Miami, Honolulu, London and Cancun.”

The news release warns that “These rankings can shift dramatically from year to year and prices fluctuate frequently on specific routes.”

Since this is the fourth year for this survey, I thought it would be interesting to see how airfares in Wichita have fared over the timeframe of this survey. An interactive visualization is presented below.

wichita-airfares-compared-2013-07

Here is an illustration of Wichita airfares compared to the other airports included in the survey, which for 2013 included the 101 most popular airports. You can see that based on the data gathered for this study, the average airfare declined, but then rose. Wichita’s rank among airports rose, accordingly. (In the airfare rankings in this survey, a higher rank means higher airfares, relative to other airports.)

This data should inspire us to re-examine whether the taxpayer-funded effort to reduce airfares in Wichita has produced the desired result.

There have been other audits or studies which have questioned the efficacy of Wichita’s airport subsidy program. See Affordable Airfares audit embarrassing to Wichita for an example.

I’ve created an interactive visualization from this data. Use the visualization below, or click here to open the visualization in a new window, which may work better for some users. Click on an airport name to highlight its fares against other airports. Use Ctrl+click to add other airports.

Data is from CheapClights.com. Visualization created by myself using Tableau Public.

Local economic development incentives: The economic perspective

Recently Russell S. Sobel, Ph.D., who is Visiting Scholar in Entrepreneurship in the School of Business Administration at The Citadel spoke in Wichita on the topic “Economic Development Incentives: A Necessary Evil?” A video presentation of his talk follows.

Sobel is the author of many books and publications, including Unleashing Capitalism and the popular university textbook Economics: Private and Public Choice, 14th edition. Video production is by Paul Soutar.

Sedgwick is a red county in a pink state

Translation: Sedgwick County is bleeding income.

This is according to IRS and U.S. Census Bureau data examined by Travis Brown and presented online at HowMoneyWalks.com. This is a website that is companion to the book How Money Walks — How $2 Trillion Moved Between the States, and Why It Matters.

According to the publisher:

Between 1995 and 2010, millions of Americans moved between the states, taking with them over $2 trillion in adjusted gross incomes. Two trillion dollars is equivalent to the GDP of California, the ninth largest in the world. It’s a lot of money. Some states, like Florida, saw tremendous gains ($86.4 billion), while others, like New York, experienced massive losses ($58.6 billion). People moved, and they took their working wealth with them. The question is, why? Why did Americans move so much of their income from state to state? Which states benefited and which states suffered? And why does it matter? Using official statistics from the IRS, How Money Walks explores the hows, whys, and impact of this massive movement of American working wealth.

sedgwick-county-money walks-2013-07

Kansas, as a state, lost $3.15 billion in income during the period covered by the book. That colors Kansas a moderate shade of pink on a map of all states. Pink, or red, in this case, means like it does in accounting: A loss of money.

Looking at a map of Kansas counties, we see that Sedgwick County is a bright shade of red. From 1992 to 2010, Sedgwick County lost $1.12 billion in annual AGI (adjusted gross income).

To put these numbers in perspective, in 2009 AGI in Kansas was $61.7 billion, and in Sedgwick County, $10.6 billion. So Sedgwick County has lost some ten percent of its income. And that’s on an annual basis.

Wichita needs more, and willing, taxpayers

What is the goal of Wichita/Sedgwick County Community Investments Plan?

And what of its companion websites for the South Central Kansas Prosperity Plan: Think Tomorrow Today and Let’s Talk Prosperity?

Here’s an excerpt from “Citizen Attachment: Building Sustainable Communities,” which appeared in Government Finance Review. Authors are Mark A. Glaser, Misty R. Bruckner, and Corinne Bannon, all associated with the Hugo Wall School of Urban and Public Affairs at Wichita State University. HWS is facilitating the planning process for the city and county.

citizen-attachment-cover

(Nearby is the illustration used for the cover of this paper (click on it for a larger version). Does anyone else think this looks like citizens rallying to send money to the shining government headquarters high on the hill?)

Increasingly, citizens are retreating from their responsibilities to community and demanding more from government than they are willing to pay for. But changes in local government behavior can be instrumental in reversing this trend, by strengthening citizens’ commitment to the well-being of their communities. Citizens who are committed to community are more willing to accept responsibility for the well-being of their fellow citizens and are also more likely to join with government and other parties to improve their communities. Citizens who are committed to community are also more willing taxpayers — that is, when government demonstrates that it can be trusted to invest public resources in ways that strengthen the community. The central thrust of this model is getting citizens and governments to work together, but realistically, many communities will require new revenue — including additional tax dollars — if they are to assemble the critical mass of resources necessary for meaningful change. Accordingly, citizens who are willing to pay increased taxes are an important component of building sustainable communities.

More willing taxpayers.

Citizens who are willing to pay increased taxes.

I recommend you read this paper. Click on Citizen Attachment: Building Sustainable Communities.

Visioneering asks for money. Let’s ask these questions.

Sedgwick County Kansas seal

When Visioneering Wichita asks the Sedgwick County Commission for funds this week, commissioners may want to ask a few questions about how well the Wichita-area economy has performed, compared to the peers that Visioneering has selected.

Here’s some data that merits consideration and begs a few questions: Compensation paid. In the nearby chart (click on it for a larger version) I present this data divided into four data series: Wichita vs. its peers as selected by Visioneering, and private sector vs. government. (Data is from U.S. Bureau of Economic Analysis. Visualization created by myself using Tableau Public.)

Compensation, Wichita and Visioneering Peers

What conclusions should we draw from this data? First, compensation paid to government employees (left chart) has risen faster than that paid to private sector employees. Much faster.

Second, when looking at government employment compensation, Wichita tracks almost exactly the same path as the average of our Visioneering peers.

Third, and this is what is most important: Wichita lags far behind our Visioneering peers in private sector compensation.

There’s other data that tells a similar story. In the article Wichita job growth and Visioneering peers, we can see that Wichita has set ambitious goals in job growth, but it doesn’t seem that the Visioneering program has produced results. But apparently Wichita government officials are satisfied. (For coverage of council members’ reactions, see Wichita city council reacts to Visioneering presentation.)

In Wichita and peer GDP growth: we find that compared to its peers, the government sector in Wichita is growing fairly quickly, but the private sector is growing slowly.

In Wichita personal income growth benchmark we see more of the same. Private sector growth in Wichita is slow, compared to our peers.

When Visioneering asks the Sedgwick County Commission for funds, commissioners might want to take a moment and inquire about these issues:

Is Visioneering satisfied with the performance of Wichita, as measured by these benchmarks?

Is Wichita’s trend in these benchmarks moving in the right direction, or is Wichita falling farther behind?

Are these the correct benchmarks we should be using?

Is it possible that Visioneering is making the Wichita economy better than it would be without Visioneering? Or is it making it worse, or is there no difference?

Does Visioneering need additional resources to fulfill its mission?

Visioneering News, captured June 5, 2013

On the Visioneering website, why are no future events listed? Are none planned?

On the Visioneering website, under the “News” section, is it true that there has been no news to post since August 2011 or September 2012 (there are two streams of news)?

REAP: We’ll plan for you, like it or not

Democracy is the theory that the common people know what they want, and deserve to get it good and hard.
— H.L. Mencken

We’ve learned that the government planners will plan for you, whether or not you want it. Despite having voted against participation, two Kansas counties are still included in a regional planning consortium.

South Central Kansas Prosperity

The new website thinktomorrowtoday.org promotes and supports the sustainable communities government planning process in South-Central Kansas. The planning effort has been rebranded as “South Central Kansas Prosperity.”

In the logo, on a map, and in narrative, Butler and Sumner counties are listed as participants. But these newspaper headlines say something else about what the elected officials in these counties thought about joining the plan:

Sumner County isn’t on board with fed’s sustainable communities planning grant

Sumner County isn’t on board with fed’s sustainable communities planning grant (Wichita Eagle, July 30, 2012): “One of the counties served by a sustainable communities planning grant recently declined to be a partner in the effort, expressing concerns about federal intrusion in local government.”

Butler County decides not to support REAP planning grant

Butler County decides not to support REAP planning grant (El Dorado Times, August 23, 2012): “The issue at the center of the Butler County Commission’s discussion about a sustainable communities planning grant was local control.”

I can understand why these counties decided to opt out of the planning process and why two Sedgwick County Commissioners voted against participation.

Cato Institute Senior Fellow Randal O’Toole, in his book The Best-Laid Plans: How Government Planning Harms Your Quality of Life, Your Pocketbook, and Your Future, explains the danger and harm of government plans. I remember two passages in particular:

Somewhere in the United States today, government officials are writing a plan that will profoundly affect other people’s lives, incomes, and property. Though it may be written with the best intentions, the plan will go horribly wrong. The costs will be far higher than anticipated, the benefits will prove far smaller, and various unintended consequences will turn out to be worse than even the plan’s critics predicted.

And this:

The worst thing about having a vision is that it confers upon the visionary a moral absolutism: only highly prescriptive regulation can ensure that the vision overcomes an uncaring populace responding to a free market that planners do not really trust. But the more prescriptive the plan, the more likely it is that the plan will be wrong, and such errors will prove extremely costly for the city or region that tries to implement the plan.

We see the vision of moral absolutism on display: Despite two counties voting against participation, their overseers will, nonetheless, create a plan for them.

It’s for their own good, after all.

Wichita personal income growth benchmark

When Visioneering Wichita recently presented its annual report to the Wichita City Council, Wichita City Council members received benchmark documents. Whether the mayor and council members actually looked at and considered these measurements is unknown.

We do know that Wichita Mayor Carl Brewer, as memorialized in the official meeting minutes, praised Visioneering: “Mayor Brewer stated this is one of the smartest moves that the City of Wichita has done because it was the primary catalyst that pulled the public and the private together and laid out a vision for our City.”

Other council members also expressed enthusiastic approval for Visioneering.

As shown in Wichita job growth and Visioneering peers, the benchmark data for Wichita as compared to its peer cities shows poor relative performance of the Wichita economy. That article looked at job growth, which is one of the areas Visioneering is benchmarking.

Another area Visioneering benchmarks is per capita income. The chart provided by Visioneering is difficult to read and recognize emerging trends. I’ve prepared an interactive visualization of Wichita and the peer areas that Visioneering uses.

Wichita and peer per capita income, 1969 to 1989

To the left is a chart of Wichita and peer personal income per capita, from 1969 to 1989. (Click for a larger version.) During this time period, Wichita compares well to the peer metropolitan areas that Visioneering uses.

Wichita and peer per capita income, 1990 to 2011

To the left is a chart of of the same data, but from 1990 to 2011. (Click for a larger version.) It’s during this stretch that Wichita starts to fall behind its peers in per capita income, until finally Wichita ranks last in this measure, as it also does in job growth.

Soon Visioneering will make a presentation to members of the Sedgwick County Commission. Perhaps commissioners will ask a few questions about these benchmarks. If I were a commissioner, I might ask these questions:

Is Visioneering satisfied with the performance of Wichita, as measured by these benchmarks?

Is Wichita’s trend in these benchmarks moving in the right direction, or is Wichita falling farther behind?

Are these the correct benchmarks we should be using?

Is it possible that Visioneering is in fact making the Wichita economy better than it would be without Visioneering?

Does Visioneering need additional resources to fulfill its mission?

Visioneering News, captured June 5, 2013

On the Visioneering website, why are no future events listed? Are none planned?

On the Visioneering website, under the “News” section, is it true that there has been no news to post since August 2011 or September 2012 (there are two streams of news)?

Citizens might also wonder why no members of the Wichita City Council asked any questions like these.

Explore the data yourself by using the visualization below, or click here to open it in a new window, which may work better for some people. Use Ctrl+Click to highlight metropolitan areas for comparison. Data is from U.S. Bureau of Economic Analysis. Visualization created by myself using Tableau Public.

Do economic development incentives work?

Economic development

Judging the effectiveness of economic development incentives requires looking for the unseen effects as well as what is easily seen. It’s easy to see the groundbreaking and ribbon cutting ceremonies that commemorate government intervention — politicians and bureaucrats are drawn to them, and will spend taxpayer funds to make sure you’re aware. It’s more difficult to see that the harm that government intervention causes.

That’s assuming that the incentives even work as advertised in the first place. Alan Peters and Peter Fisher, in their paper titled The Failures of Economic Development Incentives published in Journal of the American Planning Association, wrote on the effects of incentives. A few quotes from the study, with emphasis added:

Given the weak effects of incentives on the location choices of businesses at the interstate level, state governments and their local governments in the aggregate probably lose far more revenue, by cutting taxes to firms that would have located in that state anyway than they gain from the few firms induced to change location.

On the three major questions — Do economic development incentives create new jobs? Are those jobs taken by targeted populations in targeted places? Are incentives, at worst, only moderately revenue negative? — traditional economic development incentives do not fare well. It is possible that incentives do induce significant new growth, that the beneficiaries of that growth are mainly those who have greatest difficulty in the labor market, and that both states and local governments benefit fiscally from that growth. But after decades of policy experimentation and literally hundreds of scholarly studies, none of these claims is clearly substantiated. Indeed, as we have argued in this article, there is a good chance that all of these claims are false.

The most fundamental problem is that many public officials appear to believe that they can influence the course of their state or local economies through incentives and subsidies to a degree far beyond anything supported by even the most optimistic evidence. We need to begin by lowering their expectations about their ability to micromanage economic growth and making the case for a more sensible view of the role of government — providing the foundations for growth through sound fiscal practices, quality public infrastructure, and good education systems — and then letting the economy take care of itself.

Following is the full paper, or click here.

Language makes a difference

No longer is it “Sustainable Communities.” Now it’s “South Central Kansas Prosperity Plan.” Either way, the program is still centralized government planning, with great potential to harm our economy and liberties.

South Central Kansas Prosperity Plan

The newly-renamed planning initiative has a new website set to launch in a few days — Let’s Talk Prosperity.

But no matter how politicians and bureaucrats dress it up, we need to remember the roots of this program. It took from 1987 to 2012, but Sedgwick County actually adopted the language of the United Nations regarding sustainability.

Those critical of sustainability planning are concerned that engaging in the practice has the potential to import harmful policies and practices originating from the United Nations. Critics of these critics say this is nonsense and overreacting. Tin-foil hat stuff, they say. Examples as reported in the Wichita Eagle come from Commissioner Dave Unruh and Commission Chair Tim Norton:

Unruh said he sees the grant simply as an “effort to make decisions about our future for us and our future generations that will save money, conserve resources and be the best solutions for all the folks in our region.” …

Norton said he sees the grant as a way to “look to the future, try to figure out best possible outcomes and make decisions today that will be good for tomorrow.”

“We’re all in this together. You may not like the federal government. You may not like the state government. You may not even like the local government. But I like being at the table and being involved in the future.”

He dismisses any connection to Agenda 21.

“It was a non-binding agreement passed during the first Bush era,” he said of former president George H.W. Bush. “I don’t rail on President Bush because it happened on his watch. I’m not twitchy about it. I’m not worried about it.”

It’s instructive to notice, however, that the language Sedgwick County uses when considering sustainability comes directly from the United Nations. General Assembly Resolution 42/187: Report of the World Commission on Environment and Development holds this language: “Believing that sustainable development, which implies meeting the needs of the present without compromising the ability of future generations to meet their own needs, should become a central guiding principle of the United Nations, Governments and private institutions, organizations and enterprises.” (emphasis added)

Sedgwick County’s Sustainability Page holds this: Definition of Sustainability for Sedgwick County … Meeting the needs of the present without compromising the ability of future generations to meet their needs … (emphasis added)

Sedgwick County left out the word “own,” but otherwise the language is identical. This definition was repeated on the county’s 2012 Employee Sustainability Survey.

The Sedgwick County page — and other county documents — mention economic development, environmental protection, institutional and financial viability, and social equity as “the four core factors that Sedgwick County considers when making community policy and program management decisions.” These goals are often mentioned in Agenda 21 documents, especially social equity.

Government planning, itself, is dangerous

The very existence of a government plan is dangerous, as its construction creates powerful constituencies that have shaped it to fit their needs and are highly motivated to see it implemented.

Planning

In Sunday’s Wichita Eagle, Sedgwick County Commissioner Tim Norton defended the regional community planning initiative underway in south-central Kansas. (Tim Norton: Planning effort helps shape region’s future)

Much of the Commissioner’s article simply described the program and the need for it in vague generalities that are neither correct or incorrect, and which do little to advance understanding of what is really likely to happen.

But Norton did write something useful when he attempted to deflect the fact that this is a government plan, backed by the ability of government to compel compliance (or make it very expensive to avoid). He wrote: “This is not about any one governing body or level of government imposing or mandating what we should do. It is about what we decide collectively is best for our region and then choosing to make it happen.”

When the Sedgwick County Commission voted to participate in this HUD Sustainable Communities Regional Planning Grant, some commissioners justified their votes in favor of the plan because “it’s only a plan.” If we develop a plan, and then we find we don’t like it, we can shelve it. Problem solved.

This meme of “it’s only a plan” that can be shelved is likely to be repeated. Watch for it.

Except: By shelving time, millions will have been invested in the plan. Reputations like Norton’s will depend on adopting the plan. Bureaucratic jobs will be at stake (See Sedgwick County considers a planning grant for an explanation of how planning help make work for bureaucrats and academics.)

Besides boosting the interests of politicians and bureaucrats, the government planning process started in south-central Kansas will likely be captured by special interest groups that see ways to benefit from the plan. The public choice school of economics and political science has taught us how special interest groups seek favors from government at enormous costs to society, and we will see this at play again over the next years.

Once the planning process begins, special interests plot to benefit themselves at the expense of the general public. We saw this at work in the first project to emerge after the Wichita downtown planning process (Project Downtown), where public policy was shaped on the fly to meet the needs of politically-connected special interests, at detriment to the public.

Most importantly: The very existence of a government plan is dangerous, as the plan itself becomes a reason to proceed, contrary to reason and harm to liberty and economic freedom.

An example of how much reverence is given to government plans comes right from the U.S. Supreme Court in the decision Kelo v. New London, in which the Court decided that government could use the power of eminent domain to take one person’s property and transfer it to someone else for the purposes of economic development. In his opinion for the Court, Justice Stevens cited the plan: “The City has carefully formulated an economic development plan that it believes will provide appreciable benefits to the community.” Here we see the importance of the plan and due reverence given to it.

Stevens followed up, giving even more weight to the plan: “To effectuate this plan, the City has invoked a state statute that specifically authorizes the use of eminent domain to promote economic development. Given the comprehensive character of the plan, the thorough deliberation that preceded its adoption, and the limited scope of our review, it is appropriate for us, as it was in Berman, to resolve the challenges of the individual owners, not on a piecemeal basis, but rather in light of the entire plan. Because that plan unquestionably serves a public purpose, the takings challenged here satisfy the public use requirement of the Fifth Amendment.”

To Stevens, the fact that the plan was comprehensive was a factor in favor of its upholding. The sustainable communities plan, likewise, is nothing but comprehensive, as described by county manager Bill Buchanan in a letter to commissioners: “[the plan will] consist of multi-jurisdictional planning efforts that integrate housing, land use, economic and workforce development, transportation, and infrastructure investments in a manner that empowers jurisdictions to consider the interdependent challenges of economic prosperity, social equity, energy use and climate change, and public health and environmental impact.”

That pretty much covers it all. When you’re charged with promoting economic prosperity, defending earth against climate change, and promoting public health, there is no limit to the types of laws you might consider. This likely to be the argument to follow whatever emerges from Commissioner Norton’s planning process.

Intrust Bank Arena depreciation expense is important, even today

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

Sedgwick County Working for You

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

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

This agreement specifies a revenue sharing mechanism between the county and SMG. For 2102, the accounting method used in this agreement produced a profit of $703,000, to be split (not equally) between SMG and the county.

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

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

A much better reckoning of the economics of the Intrust Bank Arena can be found in the county’s Comprehensive Annual Financial Report for 2012. It states: “The Arena had an operating loss of $4.8 million. The loss can be attributed to $5.3 million in depreciation expense.”

Depreciation expense is not something that is paid out in cash. Sedgwick County didn’t write a check for the $5.3 million in depreciation expense. Instead, it provides a way to recognize and account for the cost of long-lived assets over their lifespan. It provides a way to recognize opportunity costs, that is, what could be done with our resources if not spent on the arena.

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

The contention of Unruh and other arena boosters such as the Wichita Eagle editorial board is that the capital investment of $183,625,241 (not including an operating and maintenance reserve) on the arena is merely a historical artifact, something that happened in the past, something that has no bearing today. This attitude, however, disrespects the sacrifices of the people of Sedgwick County and its visitors to raise those funds.

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

Without frank and realistic discussion of numbers like these and the economic facts they represent, we make decisions based on incomplete and false information. This is especially important as civic leaders such as Wichita Mayor Carl Brewer ask for a dedicated revenue stream for economic development, or for another sales tax or other taxes to pay for more public investment.

As Southwest arrives in Wichita, something else happens

Airplane

Wichita officials are proud that Southwest Airlines is starting service in Wichita soon. Great economic benefit is anticipated. But at the same time Southwest arrives, AirTran Airways leaves.

It’s true that Southwest is adding five new flights, as Wichita officials are quick to remind. (City officials are equally diligent at overlooking the end of the AirTran flights.) But it’s unknown what impact the loss of the Atlanta AirTran flights will have on Wichita travelers.

In 2012, 73,980 passengers enplaned AirTran jets in Wichita. In total, there were 147,101 AirTran passengers in Wichita, out of 1,509,206 total passengers in Wichita. This means that the routes that 9.7 percent of Wichita passengers used will no longer be available after June 2.

Whatever the impact, it’s difficult to see Southwest producing the touted economic benefits. The city has a report prepared by Wichita State University Center for Economic Development and Business Research that forecasts traffic increases of around 35 percent and the creation of 7,000 jobs.

That’s a lot, and it would be great if it happened. But we have to remember that at the same time Southwest arrives, AirTran leaves. It’s difficult to see how merely a different discount carrier could make such a difference.

We have to be very careful when evaluating job creation projections such as the one prepared by CEDBR for the arrival of Southwest. Consider the 2003 study prepared by CEDBR (Wichita Mid-Continent Airport Economic Impact) on the economic impact of the Wichita airport, which concluded that the airport had an impact on employment of 41,634 jobs, with payroll of $1,630,079,797.

In its calculations, the report included all the employees of Cessna and Bombardier — 12,134 in total — in determining the economic impact of the airport. Why? To quote the study: “While it might appear that manufacturing businesses could be based anywhere in the area, both Cessna and Bombardier require a location with runways and instrumentation structures that allow for flights and flight testing of business jet airplanes.” This is true, but it is quite a stretch to attribute all the economic impact of these employees solely to the airport.

For one thing, if we count the economic impact of the income of these employees as belonging to the airport, what then do we say about the economic impact of Cessna and Bombardier? We would have to count it as very little, because the impact of their employees’ earnings has been assigned to the airport. This is, of course, assuming that we count the impact of these employees only once.

This double-counting of the economic impact is a problem. Since this report was released, both Cessna and Bombardier have asked the state, city, and county for incentives and subsidies. Companies use the economic impact of their employee payroll as justification for the subsidies. But these dollars will have already been used, as they were attributed to the airport.

Does anyone at city hall track this, that the purported economic impact of employees has already been claimed by the airport?

Further: Suppose that Cessna tires of being on the west side of town, so it moves east and starts using Jabara Airport. Would Cessna’s economic impact on the City of Wichita, Sedgwick County, or State of Kansas be any different? I think it wouldn’t. But its impact on the Wichita airport would now be zero, or very nearly so.

The CEDBR study does provide some figures with the manufacturing employees excluded. The impact without the manufacturing employees included is estimated at $183 million, or about 11 percent of the $1.6 billion claimed earlier.

It is a convenient circumstance that these two manufacturers happen to be located near the airport. To credit the airport with the economic impact of these companies — as though the airport was involved in the actual manufacture of airplanes instead of providing an incidental (but important) service — is to grossly overstate the airport’s role and its economic importance.

Of course the airport is important to Wichita. We should seek to measure its impact sensibly instead of stretching to attribute every dollar possible to it. When advocates of any cause manufacture figures like the $1.6 billion economic impact, it casts doubt on other arguments they advance.

Similarly, we need to be realistic about the economic impact of Southwest Airlines in Wichita.

In Wichita, community needn’t be government

Wichita, Kansas logo

Kansas Policy Institute offers commentary on the Wichita/Sedgwick County Community Investment Plan.

In The Righteous Mind: Why Good People Differ on Politics and Religion, renowned psychologist Jonathan Haidt describes how the human mind is dual in nature: “We live most of our lives in the ordinary world, but we achieve our greatest joys in those brief moments of transit to the sacred world, in which we become ‘simply a part of a whole.'”

A recent survey by the City of Wichita capitalized on this innate human tendency by equating community with government. Our natural desire to become “simply a part of a whole” manifests itself in our jobs, churches, softball leagues, clubs, dinner parties and recently pride in WSU’s success in the NCAA tournament. Our citizenship in Wichita is one of many communities that define us as individuals, one of many communities we make sacrifices for, one of many communities we call upon to solve problems.

Wichita/Sedgwick County Community Investment Plan

The survey respondents provide a list of wishes, all with the goal of improving our lives, many of which can and should be provided by city and county governments. Allowing businesses to openly compete to build water and street infrastructure, with competitive bidding for contracts, would strengthen the community by precluding any unfairness that weakens trust in the city.

Survey respondents showed a plea for business formation and young talent. The city could promote a sense of community by creating a welcoming culture for all businesses, one that does not pick favorites. 71.8 percent of respondents do not have faith that most people are willing to put community interests above personal interest — perhaps because so often city hall is called upon to hand out special tax treatment.

The survey also tries to identify challenges to the community; respondents were asked one question about Boeing and two questions about political divisions. Overwhelmingly respondents believe political divisions are negatively impacting our community’s ability to respond to global challenges.

We live in the biggest city in the state which brings with it many challenges; solutions to those challenges come in many forms, giving rise to the vast diversity of opinion borne out in the survey. That diversity may be trying but we should not allow the aspiration for political unity to squelch debate. Ultimately it is our ability to engage and debate these issues that unites us as a community.

Wichita survey questions based on false premises

The recently-released Wichita/Sedgwick County Community Investment Plan survey results provide another opportunity to look at the survey process to see if the results will be useful as our city looks to the future.

(Good luck trying to find this document on the newly-redesigned City of Wichita website. I’ve placed it here for your convenience.)

Here are two examples of questions that have such severe problems that the results are not likely to be a reliable indicator of what citizens believe and what they want government to do.

One problematic question survey participants answered is this: “Local government should … continue to use public resources to encourage airlines to increase the number and reduce the cost of flights through Wichita Mid-Continent Airport.”

Reading this question, you would assume that public resources have increased the number of flights, wouldn’t you?

Another related question: “Recommended Change in Investment [to] Increase the number of flights and decrease the cost to fly into and out of the Wichita Mid-Continent Airport.”

Again, it would be natural for survey respondents to assume that investment has been successful in increasing the number of flights.

Here’s the problem: If we consider the number of monthly departing flights, Wichita isn’t doing well compared to the nation. The chart at the end of this article illustrates.

(Since this data is highly seasonal, I present a 12-month moving average, so that each point plotted is the average of the previous 12 months data. Also, I index January 2000 to 100.)

Of particular note is that over the past two or three years, the trend of flights nationally is level, while the trend of flights available in Wichita is declining.

This trend is an example of unintended consequences of government intervention and regulation. The Affordable Airfares program imposes a rough form of price control on airfares in Wichita. If the program didn’t do that — and it appears it succeeds at this goal — then there would be no point in having the program. The inevitable effect of price controls is that less is supplied, compared to what would have been supplied. This economic phenomenon is reliable and predictable.

While travelers prefer low air fares to high, this is not the only consideration. For those who need to travel on short notice, the availability of flights is very important.

The problem we have regarding the survey is that the questions would lead survey participants to assume that the city has been successful in increasing the number of flights available in Wichita. But the data doesn’t support the premises to these two questions. The questions are based on inaccurate facts. This, in turn, casts doubt over the reliability and usefulness of these questions.

(For more about flights in Wichita, see In Wichita, confusion over air traffic statistics.)

(For a critique of the survey instrument by Sedgwick County Commissioner Karl Peterjohn, click here.)

Monthly flights, Wichita Airport and nationally.

Sedgwick County begins legislative updates sharing

In a move sure to help citizens learn more about government, Sedgwick County has started posting legislative updates from its lobbyist in Topeka. Correction: These reports are from our taxpayer-funded lobbyist.

The reports can be found on the Government Relations page.

This program was started at the initiative of Commissioner Karl Peterjohn. Other local units of government should follow this example. These reports, after all, are paid for by taxpayers.

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