Search results for: “Key Construction”

  • Affordable Airfares audit embarrassing to Wichita

    Last week’s release of a report produced by the Kansas Legislative Division of Post Audit is an embarrassment to City of Wichita elected officials and staff, the Kansas Regional Area Economic Partnership, and the Wichita State University Center for Economic Development and Business Research. The audit found that economic development claims of the Kansas Affordable Airfares program are significantly overstated. This program pays a subsidy to discount airlines providing service in Kansas, primarily Airtran Airways in Wichita.

    The primary finding of the report is this: “Overall, the program appears to have had the desired effect. Since Wichita’s original affordable airfare program (FairFares) began in 2002, fares have decreased, while the number of passengers and the number of available flights have increased. However, the Regional Economic Area Partnership’s (REAP) annual reports on the program contain numerous inconsistencies and inaccuracies. Further, the economic impact of the program has been significantly overstated. Specifically, the estimated number of jobs created and the State’s return on investment were overstated because of key methodological errors and the use of some inaccurate data. We also found that overall accountability for the State funds is lacking.”

    The audit may be read in its entirety at Affordable Airfares: Reviewing the Benefits Claimed As a Result of State Funding to Lower Airfare. A summary of highlights is here.

    Several news stories provide additional coverage. See Wichita Eagle: Audit: Airfare subsidies’ impact was overstated, Topeka Capital-Journal: Audit: Wichita air subsidy questioned, and Kansas Watchdog: Analysts and Elected Officials Ignored Flaws in Air Subsidy Claims .

    The airline subsidy program in Wichita has a long tradition of overreaching. In 2004, Troy Carlson, who was at the time chairman of Fair Fares, a group that sought to provide a guarantee of business and operating subsidy to a discount airline, wrote that a discount airline’s presence in Wichita had an annual economic impact of $4.8 billion for the state. His claims had their starting point in a WSU CEDBR study, although Carlson extended them in a way I’m sure the study’s authors hadn’t intended.

    In 2005, Sam Williams, who had taken over the role of chairman of Fair Fares from Carlson, testified to the Wichita City Council that Wichita’s leadership in providing subsidies to airlines was just like the role Kansas played when it entered the Union in 1861.

    Fortunately, these ridiculous claims fell by the wayside. Except gullible city council members and legislators believed them.

    Future of targeted economic development subsidies

    The big takeaway from the Affordable Airfares audit is that boosters of state-sponsored and funded economic development rely on figures that often vastly overstate the effect of the programs they’re promoting. Having made a large mistake like this, agencies like REAP and CEDBR need to be watched carefully.

    More fundamentally, we need to question the role of targeted economic development subsidies in Kansas. The day after the Affordable Airfares audit was released, Governor Sam Brownback released his economic development plan for Kansas. This plan calls for an end to present practices, especially the heavy-handed methods cities like Wichita use. While the plan and the governor’s budget include continued funding for Affordable Airfares, this decision was made before the audit’s findings were released to the public.

    There is an alternative method of funding the airline subsidy besides taxing everyone in the state, or City of Wichita for that matter. When government provides services that benefit everyone, such as police protection, most people agree that taxes to pay for these services should be broad-based. But we can precisely identify the people who benefit from cheap airfares: the people who buy tickets. Wichita could easily add a charge to tickets for this purpose. The mechanism is already in place.

    The charge wouldn’t have to be very much, either. With 1,549,395 passengers in 2010, and with the Affordable Airfares program costing $6.67 million, the charge would need to be just $4.30 per passenger, or double that for a round trip ticket.

    City and REAP officials will argue that low airfares benefit everyone. But as we’ve seen, these claims are overstated.

  • Kansas ‘Green Book’ released

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

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

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

    The book is available in pdf form here.

  • Kansas Employment Situation, October 2023

    Kansas Employment Situation, October 2023

    In Kansas for October 2023, the labor force was steady, the number of jobs rose, and the unemployment rate fell slightly when compared to the previous month. Over the year, Kansas is below the middle of the states in job growth. (more…)

  • Study looks at spending, strategy in cap and trade debate

    While those who advocate cap and trade legislation charge that conservatives, particularly Charles and David Koch, have outspent them, a study finds the opposite.

    According to American University Professor Matthew Nisbet, in 2009 environmental groups spent $394 million on climate change and energy policy efforts such as promoting cap and trade. Opposition groups spent $259 million. Information like this helps place the reports of conservative spending, including that of Charles and David Koch, in perspective. Without this, we’re left with the one-sided reports from Greenpeace and the New Yorker magazine, in which numbers are mentioned without — or with little — context.

    Nesbit’s report is Climate Shift: Clear Vision for the Next Decade of Public Debate.

    The report also looks at expenditures on lobbying. In this area, it’s less clear how much was spent lobbying for or against cap and trade legislation, as companies and organizations report their total spending on all lobbying activity, not the amount spent on specific bills. In this light, Nisbet reports that “environmental groups were able to forge a network of organizations that spent a combined $229 million on lobbying across all issues. In comparison, the network of prominent opponents of cap and trade legislation spent $272 million lobbying across all issues.”

    Spending on elections is mixed. Considering contributions to members of Congress, proponents of cap and trade legislation outspent opponents. But in independent expenditures, the situation is reversed. But on Proposition 23 in California, environmental groups spent the most.

    In conclusion to its chapter on spending, the report states: “… propelled by a wealthy donor base and key alliances with corporations and other organizations, the environmental movement appears to have closed the financial gap with its opponents among conservative groups and industry associations. Indeed, the effort to pass cap and trade legislation may have been the best-financed political cause in American history. The effort also demonstrates not only the vast revenue base and organizational capacity of the environmental movement, but also the movement’s enhanced ability to coordinate activities among its constituent members and to build partnerships.”

    Climate Change Advocacy: Revenues, Spending, and Activities

    By Matthew Nisbit

    After the failure of the Senate cap and trade bill in August 2010, many commentators blamed the bill’s demise on the massive spending by fossil fuel companies, industry associations and their conservative allies. Others, however, noted that environmental groups—joined by dozens of leading companies and organizations—had devoted record amounts of financial resources in an effort to pass the bill. As an unnamed Obama administration official said about environmental groups, “They spent like $100 million and they weren’t able to get a single Republican convert on the bill.”

    To better understand the influence of spending in the cap and trade debate, in this chapter I review the nature, composition and funding sources of the U.S. environmental movement and compare these factors to the opposing coalition of conservative think tanks and industry associations. Then, analyzing data compiled from tax returns, annual reports, and other sources, I systematically compare the revenue and forms of spending by both sides in the debate.

    Though most environmental groups are limited in how much money they can devote to direct lobbying, in the debate over cap and trade, they were able to spend heavily on efforts to educate the public and policymakers on the need for a mandatory emissions cap, hiring the country’s top political consultants. They also invested in partnerships with corporations and other organizations in a strategy aimed at counter-balancing the amount spent on lobbying by opposing industry associations and companies.

    As the analysis indicates, the environmental movement has made sizable gains in closing the spending gap with their conservative and industry opponents. Indeed, the effort to pass cap and trade legislation may have been the best-financed political cause in American history. The effort also demonstrates not only the vast revenue base and organizational capacity of the environmental movement, but also the movement’s enhanced ability to coordinate activities among its constituent members and to build alliances.

    Continue reading from Chapter 1 of Climate Shift: Clear Vision for the Next Decade of Public Debate

  • AFP-Kansas statement on 2013 legislative session

    Americans for Prosperity-Kansas remarks on the completion of the 2013 session of the Kansas Legislature.

    Americans for Prosperity

    TOPEKA, KAN. — The Kansas chapter of the grassroots group Americans for Prosperity released the following statement in response to the close of the 2013 Legislative Session:

    “In the last few years, legislators have made great strides to bring the state of Kansas on a path toward fiscal responsibility,” said AFP-Kansas state director Jeff Glendening. “The budget for the next fiscal year included a slight reduction in spending that certainly was a step in the right direction, but there is still work to be done in reducing the size and scope of our state government. The budget provision that limits the growth of state spending to 2 percent per year is an important step to keep spending under control.

    “With regard to the statewide sales tax rate, however, it is unfortunate that legislators chose to impose a higher sales tax rate on Kansans. While the Legislature showed respect for taxpayers by lowering the overly burdensome sales tax rate, it was only a partial victory for Kansans’ pocketbooks because the rate did not return to the previously promised level of 5.7 percent.

    “Additionally, we applaud work by legislators to make Medicaid expansion under ObamaCare more difficult to implement in Kansas. The passage of the proviso requiring legislative approval on any Medicaid expansion the Governor would wish to put in place simply adds a necessary layer of protection from the further expansion of ObamaCare.

    “It’s disappointing that legislators failed to defund Common Core, with so many Kansans expressing serious concerns with these federal standards. We look forward to legislators re-addressing this issue when they return to Topeka in 2014.

    “In the last weeks of the session, hundreds of Americans for Prosperity-Kansas activists sent emails to their elected officials. We applaud those legislators who listened to their constituents, and we send our sincere thanks to the citizens who spoke up throughout the session on overspending, paycheck protection, judicial selection reform and Medicaid expansion. Their efforts were instrumental in leading to legislative victories in these key areas.”

    Original is here.