Kansas Democrats: They don’t add it up — or they don’t tell us

Kansas Democrats (and some Republicans) are campaigning on some very expensive programs, and they’re aren’t adding it up for us.

A sampling of campaign literature from Kansas Democratic candidates in south and west Wichita for the Kansas Legislature1 reveals several common threads:

  • Few will identify themselves as Democrats.
  • Eliminating the LLC loophole is popular.
  • Eliminating or reducing sales tax on food is popular.
  • Eliminating the 2015 sales tax increase is popular.
  • Fully funding schools is popular.
  • None of these show the cost of these ideas, nor do they offer ideas on how to pay for these things, except for eliminating the LLC loophole.

What will these things cost? Here’s some figures.

LLC loophole and food sales tax: This year a bill was proposed in the Kansas Legislature to restore taxation of non-wage business income, that is, to eliminate the so-called “LLC loophole.” It would also reduce the sales tax on food from 6.5 percent to 2.6 percent. The fiscal note for this bill estimated an increase in tax revenue to the state of $260.9 million from the non-wage business income, and a loss of revenue to the state of $234.1 million for the sales tax reduction.2

Extrapolating the food sales tax figures implies that eliminating the sales tax on food would mean a loss of revenue to the state of $435 million, assuming no change in consumer behavior.

Rollback general sales tax: In 2015 when the legislature voted to raise the statewide sales tax from 6.15 percent to 6.50 percent on July 1, 2015, it was estimated that revenue to the state would increase by 164.2 million. For fiscal year 2017, by 186.7 million.3

(By the way, the tax on cigarettes was increased by an estimated $40.39 million. If we’re rolling back sales tax increases, we should roll back this 50 cent per pack increase, too. I haven’t seen any advocates for this.)

Fully funding schools: Who knows what “full funding” really means? The Kansas Supreme Court believes it — and it alone — has the ability to put a number on this. A consensus seems to be developing at around $450 million per year in additional school funding is what the court may order.

Adding up the costs (using some numbers a few years old): $260.9 million – $435 million – $164.2 million – $450 million equals -$1,310.1 million in changes to annual general fund revenue. ($-1,350.5 million if we want to be fair to smokers.)

This is the proposed change to Kansas general fund revenue that these candidates omit from their campaigns. It is the amount by which taxes must be raised, or spending be cut (or a combination of taxes and cuts). Some of these numbers are estimates that could be off by a lot. There can be some quibbling, such as reducing the food sales tax instead of eliminating it, which will change the numbers. But there’s no doubt that the plans Kansas Democrats propose will cost a lot of money.

Total revenue to the general fund in 2016 was $6,073.4 million. Major sources include:
Income taxes (individual, corporate, financial institution): $2,640.8 million
Excise taxes (sales, compensating use, cigarette, liquor, severance): $2,927.7 million

So if the state wanted to raise spending by, say, $1.310 billion dollars, it would have to raise income taxes by 49.7 percent, or excise taxes by 44.7 percent. Or a combination. Either way, that’s a lot.

When you see candidates for the Kansas Legislature — Democratic and Republican — mention these programs, ask if they know how much they will cost. Ask whose taxes will be raised or whose programs will be cut.

And ask this really important question: Just how will all this make Kansas a better state?

  1. Photographs of a number of pieces may be viewed in this folder at Flickr: https://flic.kr/s/aHskMJfGNc.
  2. Kansas Legislature. HB 2444. Eliminating the business non-wage income tax exemption and reducing the sales tax rate on food. http://www.kslegislature.org/li/b2015_16/measures/hb2444/.
  3. Kansas Legislature. Revenue Enhancements and Other Provisions; Senate Sub. for HB 2109, as amended by House Sub. for SB 270 and HB 2142. http://www.kslegislature.org/li/b2015_16/measures/documents/summary_hb_2109_2015.pdf.

WichitaLiberty.TV: Wichita and Kansas economics, and government investment

In this episode of WichitaLiberty.TV: Wichita sells a hotel, more subsidy for downtown, Kansas newspaper editorialists fall for a lobbyist’s tale, how Kansas can learn from Arizona schools, and government investment. View below, or click here to view at YouTube. Episode 131, broadcast October 30, 2016.

Shownotes

In Sedgwick County, Norton’s misplaced concern for an industry

In the campaign for Sedgwick County Commission, the incumbent Tim Norton touts his experience, judgment, “intellectual stamina, thirst for data and feedback,” and his efforts in economic development. Following, from January 2013, an example of how uninformed he is regarding basic facts about the Kansas economy.

In Sedgwick County, Norton’s misplaced concern for an industry

kansas-gdp-by-industry-for-2010Expressing concern about a large industry that he said is important to Sedgwick County and Kansas, Sedgwick County Commissioner Tim Norton spoke in favor of the need for comprehensive government planning. He cited the commonly-held belief that humans, with their desire for large suburban home lots, are depleting the stock of available farmland.

Specifically, Norton said “Agribusiness is the third largest economic driver in our community, in our region.”

But is this true? Using 2010 figures from the Kansas Statistical Abstract, these are the largest industries in Kansas in terms of gross domestic product:

Agriculture ranks below many other industries, contributing 3.7 percent of Kansas Gross Domestic Product. In most years agriculture would rank even lower, but because of high farm prices in recent years, it ranks higher than it has.

Norton also expressed concern that humans with large home lots would deplete the land available for agriculture. But he need not worry, as I show in Saving farms from people.

Wichita, give back the Hyatt proceeds

Instead of spending the proceeds of the Hyatt hotel sale, the city should honor those who paid for the hotel — the city’s taxpayers.

The City of Wichita has sold the Hyatt Regency Hotel for $20 million. Now, what should the city do with these funds? In a workshop this week, the city manager and council recognized that these funds should not be used for operating purposes. This is important. The Hyatt Hotel was paid for with long-term debt, which the city says has been retired. The proceeds from this sale should be used in a similar way: For long-term capital investment, not day-to-day operating expenses. But the council heard two proposals that are decidedly more like operating expenses rather than capital investment.

One proposal, presented by Public Works Director Alan King, is to spend $10 million on street repair over two years. Part of that expense is to purchase a new truck, which is a capital, not operating, expense. But King later revealed that the truck could be purchased out of the existing capital budget.

Street maintenance, however, is an operating expense.

A second proposal, from the Wichita Transit System, would use about $4 million to sustain and improve current bus service. It was presented to the council as a “bridge to a long term solution.”

This, too, is an operating expense.

As these proposals were presented in a workshop, no decision was made.

These two proposed uses of the $20 million Hyatt sales proceeds are contrary to the goal of not using the funds for operating purposes. If the city decides to use the sales proceeds in this way, a capital investment will have been sold in order to pay for day-to-day expenses.

Instead of spending on these two projects, the city should simply return the money to those who paid for the Hyatt in the first place. Those people are, of course, the taxpayers of Wichita. It would be difficult to give back the funds to individual taxpayers in proportion to the amount they supplied. So what the city should do is retire $20 million of the city’s long-term debt.

If not that, then the city should use the Hyatt proceeds to pay for another long-lived asset, perhaps the new downtown library. Either of these alternatives respects the principles of sound financial practice, and also respects the taxpayers.

Wichita MSA employment

An interactive visualization of Wichita-area employment by industry.

The Bureau of Labor Statistics, part of the United States Department of Labor, makes monthly employment statistics available. I’ve gathered them for the Wichita metropolitan area and present them in an interactive visualization.

This data comes from the Current Employment Statistics, which is a monthly survey of employers.1

The three tabs along the top of the visualization represent three different views of the data; one table and two charts. Employment figures are in thousands. All series except one are not seasonally adjusted.

Click here to access the visualization. The visualization was created by myself using Tableau Public.

Example from the visualization and instructions. Click for larger.
Example from the visualization and instructions. Click for larger.


Notes

  1. Bureau of Labor Statistics. Current Employment Statistics data and their contributions as key economic indicators. www.bls.gov/opub/mlr/2016/article/current-employment-statistics-data-and-their-contributions-as-key-economic-indicators.htm.

Tim Norton: Saving farms from people and their preferences

In the campaign for Sedgwick County Commission, the incumbent Tim Norton touts his experience, judgment, “intellectual stamina, thirst for data and feedback,” and his efforts in economic development. Following, from January 2013, an example of how uninformed he is. You also see his preference for government regulation over economic and personal freedom.

Tim Norton: Saving farms from people and their preferences

Last week at a meeting of the Sedgwick County Commission, Commissioner Tim Norton spoke in favor of the need for comprehensive government planning. In support, he cited the commonly-held belief that humans — especially with their desire for large suburban home lots — are depleting the stock of farmland to the point of being detrimental to agribusiness.

Here’s part of what Norton said (video below):

Now I know people don’t like the idea of sprawl and growth rings and all that, but the truth is there is a balance between where people live and preserving our good agricultural lands and how do you make that work. And that’s being able to sustain part of our economy. Agribusiness is the third largest economic driver in our community, in our region, and to say that we’re okay with every five acre tract being taken up by somebody’s rural residence sounds really good if you’re talking only property rights. But if you’re talking about preserving and sustaining agribusiness you gotta have the land and it’s got to be set aside for that enterprise.

Farms and ranches being driven out of existence by homeowners — that sounds like a problem that might threaten our food supply. But what are the facts?

First, there is an overabundance of farmland in America. There is so much farmland that we pay farmers billions each year to refrain from planting crops. We pay corn farmers billions in subsidies each year and then use their crops for motor fuel, instead of for making fine Kentucky bourbon and taco shells, as God intended.

Considering Sedgwick County, as that is what Norton represents: Despite being the second-most populous county in Kansas and home to its largest city and surrounding suburban communities, Sedgwick County ranks fourth among Kansas counties in the number of farms, thirty-fourth in farmland acres, seventh in total harvested cropland acres, thirty-third in market value of harvested crops, sixty-sixth in market value of livestock, and eighty-seventh in pasture acres. (Data from Kansas Farm Facts 2011, reporting on 2007 farm statistics.)

There’s something else that might ease Commissioner Norton’s concern, if he would only believe in the power of markets over government: That is the price system. If we were truly running short of farmland, crop prices would rise and farmland would become more valuable. Fewer people would be willing to pay the price necessary to have a five-acre home lot.

In fact, if crop prices were high enough, farmers would be buying back the five-acre lots, or perhaps paying homeowners to rent their yards for planting crops or grazing livestock.

In either case, markets — through the price system — provide a solution that doesn’t require politicians and bureaucrats. There are many other areas in which this is true, but government nonetheless insists on regulation and control.

From Pachyderm: Congressman Mike Pompeo

Voice for Liberty radio logo square 02 155x116From the Wichita Pachyderm Club: Congressman Mike Pompeo delivered an update on the issues of the day and answered questions. Over 100 Pachyderm Club members and guests attended. This audio presentation was recorded on October 21, 2016.

Congressman Mike Pompeo at the Wichita Pachyderm Club.
Congressman Mike Pompeo at the Wichita Pachyderm Club.

Kansas Governor Sam Brownback on myths and reality

Kansas Governor Sam Brownback addressed a luncheon gathering at the Wichita Pachyderm Club to set the record straight on what he called myths. Recorded on October 14, 2016.

Myths

  • The Kansas tax plan is failing.
  • Kansas schools have been cut.
  • State employee pensions are severely underfunded.
  • Kansas highways are crumbling.
  • Welfare numbers are down because we are kicking people off.
  • Vulnerable Kansans aren’t being served.
  • Kansans are fleeing to Missouri.

View below, or click here to view at YouTube.

In Wichita, developer welfare under a cloud

A downtown Wichita project receives a small benefit from the city, with no mention of the really big money.

Today the Wichita City Council approved a subsidy for a project in downtown Wichita.

The city will lend the developer of a project at 303 S. Broadway $620,000 to improve the building’s facade. The property must repay this amount through an assessment on its property tax. The benefit to the property is that the city is able to borrow money at a lower interest rate, and this reduces the cost of borrowing for the project.

The agenda packet for this item states: “The Office of Urban Development has reviewed the economic (“gap”) analysis of the project and determined a financial need for incentives based on the current market.” This stems from the city’s policy on facade improvement projects, which is that the project would not be feasible except for this loan.1

Upon inquiry to the city, I was told that the facade improvement program would increase the developer’s return on investment from 7.06 percent to 8.35 percent. This seemed a stretch; that a small savings on interest costs on a small portion of the project cost could have such a large effect on profitability.

I asked the city for supporting documents that hold the figures used to calculate these amounts, but the city believes the Kansas Open Records Act does not allow it to release the records. In the past, however, I have received this information on request.

So, we’ll have to trust the city on this matter. I’m not comfortable with that. This is another example of the city conducting business within a cloud of secrecy.

Here’s the real money

The cost savings on borrowing $620,000 is just a small portion of subsidy this project will receive. Through tax credits, this project likely will receive over two million dollars in a form equivalent to cash.

The property was listed on the Register of Historic Kansas Places in August. This entitles the project to a tax credit of 25 percent of qualified expenses.2 With a project cost of $5,000,000, according to city documents, this tax credit could be worth $1,250,000.

From the National Park Service, a credit of 20 percent may be awarded.3 With a project cost of $5,000,000, according to city documents, this tax credit could be worth $1,000,000. It is not known at this time whether this project has qualified for this tax credit.

Together, the tax credits are worth potentially $2,250,000. Not all citizens may be aware of the mechanism of tax credits. In the case of the state of Kansas, the Department of Revenue will — figuratively — print a certificate that says the holder of this certificate may use it to pay $1,250,000 of state tax liability. It costs the state nothing to create this certificate. When the Department of Revenue receives the certificate instead of cash, the state gains nothing of economic value. The net economic effect is that the holder of the tax credit has been enriched by $1,250,000, and the state misses out on the same amount of revenue.4 Unless the state reduces its spending by the amount of the tax credit, the taxpayers have to make up the lost revenue.

This is not all. The project may apply for Industrial Revenue Bonds. This is a mechanism whereby a project may avoid paying property taxes and sales taxes.5 This property is located within a TIF district, so it is ineligible for property tax abatements. But, a sales tax exemption could be possible, if the developer applies.

That application is likely, as this developer did just that on another downtown Wichita building, also located in a TIF district, but eligible for sales tax exemption on purchases related to the redevelopment.6

Of note: This developer actively campaigned for the proposed 2014 Wichita city sales tax, offering free office space to the effort.7 Should he apply for a sales tax exemption on this property, this is another example of low-income families in Wichita paying sales tax on groceries, but well-off developers escaping paying that same tax.

The council meeting

At the council meeting, a citizen remarked how this project is good for the tax base. But, being in a TIF district, the incremental property taxes from this property will go to the TIF district, not the city, until the TIF debt is retired.

Council Member Janet Miller (district 6, north central Wichita) noted that the city is not contributing to the project, that the developer pays all the costs of the facade improvement loan. But of a direct contribution to the project, she said “Although I wouldn’t probably complain if that was a request.” I’d suggest that Miller read up on the economics of tax credits, and of a possible sales tax exemption. She might be surprised to learn how much cash this project is receiving.


Notes

  1. “Owner shall provide financial information that substantiates the need for the City’s facade loan in order to complete the redevelopment project, including the overall sources and uses of funds and pro forma cash flow analysis that shows a reasonable return on owner’s investment.” City of Wichita. Facade Improvement Program Policies and Procedures. Available at www.wichita.gov/Government/Departments/Economic/EconomicDevelopmentDocuments/Facade%20Improvement%20Program%20Policy.pdf.
  2. Kansas Historical Society. State Historic Rehabilitation Tax Credit. Available at www.kshs.org/p/tax-credit-basics/14673.
  3. National Park Service. Tax Incentives for Preserving Historic Properties. Available at www.nps.gov/tps/tax-incentives.htm.
  4. Sometime the tax credits are sold to someone else. In this case the seller usually receives less than the face value of the credit.
  5. Weeks, Bob. Industrial revenue bonds in Kansas. Available at wichitaliberty.org/kansas-government/industrial-revenue-bonds-kansas/.
  6. Weeks, Bob. The Lux in Wichita: Taxpayer funding of lifestyle choices. Available at wichitaliberty.org/wichita-government/the-lux-in-wichita-taxpayer-funding-of-lifestyle-choices/.
  7. Weeks, Bob. In Wichita, pro-sales tax campaign group uses sales tax-exempt building as headquarters. Available at wichitaliberty.org/wichita-government/wichita-pro-sales-tax-campaign-group-uses-sales-tax-exempt-building-headquarters/.

Kansas school fund balances

  • Kansas school fund balances rose significantly this year, in both absolute dollars and dollars per pupil.
  • Kansans might wonder why schools did not spend some of these funds to offset cuts they have contended were necessary.
  • The interactive visualization holds data for each district since 2008.

As Kansans debate school funding, as the Kansas Supreme Court considers ordering more school spending, and as school spending boosters insisting that school spending has been slashed, a fact remains constant: Kansas schools don’t spend all the money they’ve been given. Fund balances grew in many years, and rose rapidly this year.

Fund balances are necessary for cash flow management. The issue is what levels of balances are necessary. Based on recent data from the Kansas State Department of Education, fund balances rose rapidly after 2008, remained largely level from 2011 through 2015, and rose for 2016.

For the school year ending in 2015, total cash balances were $1,745,557,046. (This total does not include non-school funds like museums and recreation center funds.) For 2016, the figure was $1,871,026,493. This is an increase of $125,469,450, or 7.2 percent.

Kansans might wonder why schools did not spend some of these funds to offset cuts they have contended were necessary.

I’ve gathered data about unspent Kansas school funds and presented it as an interactive visualization. You may explore the data yourself by using the visualization. Click here to open the visualization in a new window. Data is from Kansas State Department of Education. Visualization created using Tableau Public.

Kansas school fund balances, all districts. Click for larger.
Kansas school fund balances, all districts. Click for larger.

WichitaLiberty.TV: Radio host Andy Hooser

In this episode of WichitaLiberty.TV: Radio show host Andy Hooser visits the KGPT studios to talk about upcoming elections in Kansas and the presidential campaign. View below, or click here to view at YouTube. Episode 130, broadcast October 16, 2016.

Hooser’s radio show is The Voice of Reason with Andy Hooser. Its Facebook page is here, and the podcast is here.

Kansas revenue estimates

Kansas revenue estimates are frequently in the news and have become a political issue. Here’s a look at them over the past decades.

A favorite criticism of liberals and progressives across the nation is that in Kansas, actual revenues to the state’s general fund have fallen short of projections, month after month. Reading most newspaper reports and editorials, one might think that these negative variances are a new phenomenon, and one relished by the Left. As many as a dozen articles on this topic have appeared in the New York Times in the past two years.

The revenue estimates in Kansas are produced by a body known as the Consensus Revenue Estimating Group. It consists of one member each from the Division of the Budget, Department of Revenue, Legislative Research Department, and one consulting economist each from the University of Kansas, Kansas State University, and Wichita State University.

As described: “This group meets each spring and fall. Before December 4th, the group makes its initial estimate for the budget year and revises the estimate for the current year. By April 20th, the fall estimate is reviewed, along with any additional data. A revised estimate is published, which the Legislature may use in adjusting expenditures, if necessary.”1

The estimates are important because the legislature and governor are required to use them when formulating budgets and spending plans. If the estimates are high, meaning that revenue is less than expected, it’s possible that the legislature or (more likely) the governor will need to make spending cuts. (The other alternative is that leftover funds from prior years may be used, if available.)

If, on the other hand, the estimates are too low, meaning that revenue is higher than expected, the state has collected too much tax revenue. In this case, the state should refund the excess to taxpayers. Some states do that, notably Colorado, although residents may vote to let the state keep the excess.

Some states have true rainy day funds, and the excess revenue might be used to build that fund’s balance. In a true rainy day fund, the fund’s balances can be spent only under specific sets of circumstances.

But in Kansas, the excess revenue is simply called the “ending balance” and is available to spend at the legislature’s whim. That’s what happened in fiscal years 2014 and 2015, when the state spent $340 million and $308 million, respectively, of the ending balance rather than cut spending.

What has been the history of the revenue estimates compared to actual revenue? First, know that making these estimates is not easy. Some of the inputs to the process include the inflation rate in future years, interest rates in future years, and the prices of oil and natural gas in the future. If someone knew these values with any certainty, they could earn huge profits by trading in futures markets.

The state makes the revenue estimates available.2 I’ve presented the results since 1975 in a chart at the end of this article. For each year, two numbers are presented. One it the difference from the Original Estimate and actual revenue. The other is the difference from the Adjusted Final Estimate and actual revenue.

We can see that in fiscal years 2014 and 2016, the variance of the estimates is negative, meaning that revenue was lower than the estimates. The magnitude of these variances, however, is not out of line with the magnitude of the variances of other years, either positive or negative.

In fact, the negative variances — revenue shortfalls, in other words — in 2002 to 2003 and 2009 to 2010 were generally much larger in magnitude than those of recent years. This is of interest as Duane Goossen, who was budget director during these periods, is a prominent critic of the recent revenue shortfalls. Evidently he has forgotten the difficulty of creating these estimates.

While Goossen along with newspaper reporters and editorialists use the negative revenue estimate variances as a political weapon against the governor and conservatives, it is in the interest of the people of Kansas that revenue estimates be as accurate as possible. In an effort to produce more accurate revenue estimates, Governor Brownback created a commission to study the issue. That group released its report in October.3

Kansas revenue estimate errors. Click for larger.
Kansas revenue estimate errors. Click for larger.


Notes

  1. Consensus Revenue Estimating Group. Available at budget.ks.gov/cre.htm.
  2. Kansas Division of the Budget. State General Fund Receipt Revisions for FY 2016 and FY 2017. May 2, 2016. Available at: budget.ks.gov/files/FY2017/CRE_Long_Memo_April2016.pdf. Also Kansas Legislative Research for 2016 figures.
  3. Governor’s Consensus Revenue Estimating Working Group. Final Recommendations. Available at budget.ks.gov/files/FY2017/cre_workgroup_report.pdf.

Topeka Capital-Journal falls for a story

The editorial boards of two large Kansas newspapers have shown how little effort goes into forming the opinions they foist upon our state.

Here’s a quote from a recent opinion piece in the Topeka Capital-Journal, the second-largest newspaper in Kansas: “If the past year is any indication, Totten is right about the harmful effects of KDOT sweeps on the construction industry in our state. According to the Bureau of Labor Statistics, between July 2015 and July 2016, Kansas lost 4,400 construction jobs — a 7.3 percent decline. This means Kansas ranked 49th in the country for construction job growth.” 1

Here, the newspaper argues that transferring money from the state’s highway fund has led to a loss of construction jobs in the state. Fortunately, there are some institutions and people in our state that will actually look at statistics to see what they mean. And if the editorial board of the Capital-Journal had done this, they would have realized they were fed a line of hooey by a self-interested lobbyist. You see, the “Totten” the newspaper cited as an authority is Bob Totten, Executive Vice President of Kansas Contractors Assocation.2 His job is to agitate for as much spending as possible to benefit his members. It matters not if the spending is wise or needed. The members of Kansas Contractors Association would happily build the proverbial bridge to nowhere, as long as they were paid.

The Capital-Journal was not alone in believing what Totten told them. The editorial board of the Wichita Eagle did, too. It wrote a similar editorial, telling Kansans “Over the past six years, Brownback and the Legislature have taken $2.7 billion in transportation funding to help pay other state bills, Totten said. The loss of this funding has meant fewer projects and fewer jobs.”3

The statistics that are cited deserve further investigation, which is what Kansas Policy Institute did in its article Media and highway contractors mislead again. KPI’s Dave Trabert reported this:

Had the Eagle bothered to examine Mr. Totten’s claim, they would have learned that only 2 percent of the construction job decline was attributable to highway construction and that the loss of 100 jobs is less than 1 percent of total highway jobs.

In addition to learning that Mr. Totten was grossly exaggerating, they would have learned that employment for construction of new homes and non-residential buildings showed very nice growth and the real problem is in specialty trade contractors for non-highway projects.

I verified these statistics and reported them in my article Kansas construction employment. I built an interactive visualization that anyone can use to explore this data.

The upshot is that Kansas highway construction jobs declined slightly, but the bulk of the job loss in construction was in other types of construction. Not in highway construction, as the highway construction lobbyist told Kansas editorial writers.

This is a sad episode in Kansas newspaper journalism. The editorial boards of two newspapers — one the state’s largest — accepted as true the claims of a lobbyist, apparently without spending a moment in verification. Both newspapers have staffs of reporters, some of which I’m sure are capable of accessing the Bureau of Labor Statistics to gather a few statistics and perform an independent investigation.

But that didn’t happen. Instead, it appears that these two newspapers accepted the claims of the Kansas Contractors Association at face value because it fit the editorialists’ world view — that view being that Sam Brownback is bad, state spending on everything has been slashed, and the only thing to do is raise taxes.

That’s an opinion, which is what newspaper editorial boards produce. Now Kansans know just how uninformed are these opinions.


Notes

  1. Topeka Capital-Journal. Editorial: KDOT sweeps continue to harm our state. September 13, 2016. Available at cjonline.com/opinion/2016-09-13/editorial-kdot-sweeps-continue-harm-our-state.
  2. Kansas Contractors Assocation. Meet the Staff. Available at www.kansascontractors.org/aboutthekca/professionalstaff/.
  3. Highway fund raids affecting jobs. Wichita Eagle. August 31, 2016. Available at www.kansas.com/opinion/editorials/article98922052.html.

Kansas, a frugal state?

Is Kansas a frugal state, compared to others?

frugal-kansas-on-facebook-2016-10-12-excerptOn Facebook, a person wrote “We were already a frugal state …” (I’ve obscured the name to protect the uninformed.)

Is this true? What is the state and local government spending in Kansas, on a per-person basis? How does it compare to other states?

Every five years the U.S. Census Bureau conducts a census of governments. In its own words: “The Census of Governments identifies the scope and nature of the nation’s state and local government sector; provides authoritative benchmark figures of public finance and public employment; classifies local government organizations, powers, and activities; and measures federal, state, and local fiscal relationships.”1

I’ve gathered data from the 2012 census of governments — which is the most recent — and made it available in an interactive visualization. Nearby is a snapshot from the visualization, showing Kansas and nearby states, and a few others. (Using the visualization, you may select your own set of states to compare.)

In the visualization, you can see that Kansas spends quite a bit more than nearby states. Of special interest is Minnesota, which is often used as an example of a high-tax state, and a state with excellent schools and services. But Minnesota spends barely more than Kansas, on a per-person basis.

What about Colorado? It seems that Kansans often look to Colorado as a state full of bounty. But Kansas outspends Colorado. Same for New Mexico, Wisconsin, Texas, and — especially — Missouri.

So: Is Kansas a frugal state? It doesn’t seem it is.

Click here to access and use the visualization.

State and local government employment and costs, selected states. Click for larger.
State and local government employment and costs, selected states. Click for larger.


Notes

  1. U.S. Census Bureau. Census of Governments. Available at www.census.gov/govs/cog/.

Video in the Kansas Senate

A plan to increase visibility of the Kansas Senate is a good start, and needs to go just one or two steps farther.

The Kansas Republican Senatorial Committee has released a plan to make Kansas better. One plank concerns transparency, specifically this: “Under our plan, legislative meetings and Senate proceedings will be public and streamed live online for public viewing.”1

This is a good idea, and one that should have, and could have, been implemented long ago. But it doesn’t go quite far enough. The problem is that many people who might want to watch the proceedings can’t do so at the time the Kansas Senate meets. We need to have archived video.

This would require the Senate to capture the video rather than simply streaming it. Then, the video must be made available somewhere. YouTube is an obvious choice, and it is free.

Then, to make the experience complete, the Senate needs to make documents available to the public as they are made available to legislators. An example is an amendment to a bill that the chamber is debating.

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

On the Kansas Legislature website, each committee has its own page. On these committee pages there are links for “Committee Agenda,” “Committee Minutes,” and “Testimony.” But in most cases there is no data behind these links. In February 2015 I investigated and found that only about one-third of standing committees in the Kansas Legislature were providing written testimony online.2

Since then, several committees have used the commercial file-sharing service Dropbox to make testimony and documents available to everyone. This is a reasonable way to accomplish an important goal.


Notes

  1. betterkansasplan.com. Transparency in Government. Available at betterkansasplan.com/better/#1475545628382-66e77cef-bde5.
  2. Weeks, Bob. Availability of testimony in the Kansas Legislature. Available at wichitaliberty.org/kansas-government/availability-testimony-kansas-legislature/.

GDP by state and component

An interactive visualization of gross domestic product by state and industry.

The Bureau of Economic Analysis, a unit of the U.S. Department of Commerce, gathers data about economic output, known as gross domestic product. The visualization presented here presents this data in tabular and graphic form.

The GDP figures are real, meaning adjusted for inflation. They are annual numbers through 2015.

BEA industry classification, showing subtotal and total classifications
BEA industry classification, showing subtotal and total classifications
As illustrated below, the visualization has three tabs, meaning three different views of data. By using the controls at the right of the visualization, you may select one or more states, and one or more industries. By clicking on entries in the legend, you may highlight one or more series. (Use Ctrl+click to select more than one.)

As indicated in the nearby table, some of the “industries” are actually subtotals of several industry components. The industry “All industry total” is the total GDP of all industries.

Source of data is Bureau of Economic Analysis, an agency of the United States Department of Commerce. Click here to access this visualization.

GDP by state and components. Click for larger.
GDP by state and components. Click for larger.

Populations of the states

An interactive table and charts of populations in the states and regions, starting in 1929.

How have the states grown in population since 1929? Growth varies greatly.

In the accompanying visualization, one chart of the growth of population uses a logarithmic scale. This better shows a wide range of values. On this scale, negative values can’t be shown. The example shown in this article highlights Kansas against the other states.

Click here to access this visualization.

Source of data is Bureau of Economic Analysis, an agency of the United States Department of Commerce.

Population growth in the states, Kansas highlighted, using logarithmic scale. Click for larger.
Population growth in the states, Kansas highlighted, using logarithmic scale. Click for larger.

Kansas government spending

Kansas government spending, starting in 1967. Total spending and per capita spending, adjusted for inflation. Also spending as percent of Kansas GDP.

Sources of data:
* Kansas Fiscal Facts 2016
* 2016 and 2017 are approved figures, not actual spending
* 2015 and beyond population are my estimates
* CPI is Consumer Price Index – All Urban Consumers, CUUR0000AA0
* 2016 and later GDP is estimated

Click charts for larger versions.

kansas-spending-adjusted-for-cpi-2016-10

kansas-per-capita-spending-adjusted-for-cpi-2016-10

kansas-spending-as-percent-of-private-sector-gdp-2016-10

GDP by metropolitan area and component

An interactive visualization of gross domestic product by metro area and industry.

The Bureau of Economic Analysis, a unit of the U.S. Department of Commerce, gathers data about economic output, known as gross domestic product. The visualization presented here presents this data in tabular and graphic form.

The GDP figures are real, meaning adjusted for inflation. They are annual numbers through 2015.

BEA industry classification, showing subtotal and total classifications
BEA industry classification, showing subtotal and total classifications
As illustrated below, the visualization has three tabs, meaning three different views of data. By using the controls at the right of the visualization, you may select one or more metropolitan areas, and one or more industries. By clicking on entries in the legend, you may highlight one or more series. (Use Ctrl+click to select more than one.)

As indicated in the nearby table, some of the “industries” are actually subtotals of several industry components. The industry “All industry total” is the total GDP of all industries.

Source of data is Bureau of Economic Analysis, an agency of the United States Department of Commerce.

Click here to access this visualization.

Example from the visualization. Click for larger.
Example from the visualization. Click for larger.

WichitaLiberty.TV: Lawrence Reed of Foundation for Economic Education

In this episode of WichitaLiberty.TV. Lawrence W. Reed, who is president of the Foundation for Economic Education. Topics include free markets, education, trade, and arts.

View below, or click here to view at YouTube. Episode 129, broadcast October 9, 2016.

Shownotes

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