Tag: Kansas Governor

  • Reaction to Kansas State of the State Address, 2013

    Governor Sam Brownback delivered his State of the State Address on January 15, 2013. The as-prepared text of the address may be read here.

    Americans for Prosperity-Kansas:

    “Americans for Prosperity-Kansas continues to support the eventual elimination of the income tax in Kansas, and we applaud Gov. Brownback for making this a priority in 2013″” said AFP-Kansas state director Derrick Sontag. “We would support a trigger mechanism for future rate reductions in the proposal rather than legislators continuing to seek a reduction in the rate every year.

    “We have no doubt that continued reductions in the income tax rate will help create economic activity, expand the tax base and create jobs.

    “We’re coming off a years-long cycle in which excessive government spending stifled Kansas families and resulted in stagnant population growth, taxpayers migrating to other states, and the loss of tens of thousands of private sector jobs. The Governor said it best when he pointed out that some choose to grow spending rather than jobs.

    “We look forward to working with legislators and the Governor in the coming session on other important areas of reform such as judicial selection — giving citizens of Kansas more direct input in the judges who sit on the Kansas Supreme Court and Kansas Court of Appeals. Senate confirmation or elections of judges would certainly create a more transparent process that is accountable to the people.”

    Senate Democratic Leader Anthony Hensley and House Democratic Leader Paul Davis issued the following statement. Hensley is wrong about the school spending figures, as I report in Kansas Democrats wrong on school spending.

    “Governor Brownback’s $2.5 billion dollar self-inflicted budget shortfall, a result of his irresponsible tax policy, has brought Kansas to the edge of its own fiscal cliff. He has brought Washington, D.C. politics to Kansas, and they do not belong here,” said Hensley. “Four months into office, he signed the single largest cut to public education in Kansas history. In just three school years, statewide funding for K-12 education was cut nearly $442 million, or a cut of $620 per child. It is no surprise that a three-judge panel issued its ruling last Friday that the Legislature isn’t meeting its K-12 school funding duty under the Kansas Constitution. Members of the Legislature took an oath just yesterday swearing to uphold the Constitution of Kansas. What is our oath worth if we renege on our constitutional duty to adequately and fairly fund our schools?”

    The 2013 legislative session will likely be marked by three major issues: a budget deficit created by tax breaks for the wealthy and big corporations, a court order to restore funding to Kansas public schools and a fundamental debate over checks and balances in Kansas.

    “Democrats want to be part of the solution to this problem, but we cannot support proposals that make the gap between the rich and the middle class even wider. The most troubling part of the Brownback Agenda is the extent to which it brings Washington-style politics to Kansas. We need Kansas based solutions to our Kansas problems, which means funding for Kansas schools, lower property taxes, and proposals to create good paying jobs for middle class families,” said Davis.

    Some tweets:

    Someone doesn’t understand the difference between “deductible” and “refundable”:

  • Kansas traditional: the platform

    Will “traditional,” “reasonable,” “moderate” Kansan Republicans be defeated in the August 7, 2012 Kansas primary? Would that defeat be good or bad for Kansas?

    Kansas newspapers have featured an op-ed by H. Edward Flentje of the Hugo Wall School of Urban and Public Affairs at Wichita State University. (A referendum on Brownback, July 27 Winfield Courier.) His tone, as is that of many newspaper editorials appearing through the state, is that it is vital to preserve the “traditional” moderate Republican approach to Kansas government, as it is those who “believe government has a more affirmative role in assuring a high quality of life for Kansans.” The implication, made explicit later on, is that the rise of a conservative majority in the Kansas Senate would be bad.

    Here’s one area in which Flentje is incorrect. He characterizes the moderates as “Republican legislators who may exercise independent judgment on alliance issues.” He and others use the phrase “march in lockstep with [Kansas Governor Sam] Brownback” as criticism of conservative challengers, who they say will be merely puppets of Brownback, incapable of independent thought.

    But when we look at the record of “moderate Republican” legislators, we usually see them “marching in lockstep” with the Kansas National Education Association, labor unions — especially public employee unions, trial lawyers, and other assorted special interest groups.

    Following are the areas in which Flentje says Brownback wants legislators to “march in lockstep” and whether it would be good to maintain these policies that Flentje prefers.

    “Eliminating state income taxes and seeking higher sales and property taxes to address state obligations, consequently shifting the state tax burden to lower-income residents.” I’m not aware that conservatives are pressing for higher sales and property taxes. There has been some difference of opinion over ending the temporary statewide sales tax increase, and that may play out in the next legislative session. The best way we can address state spending — living up to the obligations Flentje alludes to — is to streamline Kansas government. But moderates oppose this. See Kansas reasonable: Government reform.

    The best way to pay for government services is to grow the economy and create jobs. But Kansas has performed poorly during the past decade under the reign of “traditional” moderate Republicans (and their coalition with Democrats) in the House and Senate. Just a few years ago, after a decade of moderate policies, Kansas was the only state to have a loss in private sector jobs over the past year.

    “Restraining state spending on public schools and shifting school funding to property taxes at the local level.” Moderates oppose one way we can save on schools: school choice through charter schools, vouchers, or scholarship tax credits. All these programs reduce the burden of school spending on both the state and school districts. Other than this, moderates “march in lockstep” with those who constantly call for more school spending, even to the point of suing the state’s taxpayers for more money. They join with the special interests who fight against accountability measures. They also fight against an honest assessment of the condition of public schools in Kansas, and when you look under the covers, it’s not the pretty picture that education bureaucrats paint. See Kansas reasonable: The education candidates.

    “Cutting funding for the arts and public broadcasting.” Those who seek money from government for arts are a special interest group. They make an economic case that government spending on the arts is good for the economy, but there’s no evidence that this form of government spending is different from any other. Instead, it takes tax money from people and forces them to spend it on things they may not want. Instead, government bureaucrats — listening to narrow special interest groups — decide how to spend money.

    “Shifting the funding of state universities to students and their families through higher tuition and fees.” What a novel idea! Expecting those who use a service to pay for it!

    “Challenging judicial independence and enacting measures that make state judges more susceptible to outside political influence.” Kansas judicial selection is highly politicized and undemocratic, with out-sized power concentrated in a special interest group: lawyers. Among the fifty states, Kansas is at the undemocratic extreme in the way we select judges, and moderates support this. See Kansas reasonable: Judicial selection.

    “Placing out-of-state, for-profit insurance companies in charge of managing aid to elderly, disabled and vulnerable residents.” Outsourcing is one way that governments can increase quality of service and reduce cost. There’s no reason to think that just because a service is presently provided by the state, that is the best way to provide it. In fact, waste and inefficiency are characteristic of government. Far from being a rip-off or waste of taxpayer monies, the profit motive — found only in the private sector — is a reliable motivator. The challenge of the state will be to make sure that companies profit when they provide good service, efficiently.

    “Spending more time finding ways to limit a woman’s access to abortion and targeting with legal action any group that supports such access.” My focus is primarily on issues of economic freedom. Others will have to weigh in on this issue.

    “Punishing party members who dare to cooperate with Democrats on legislation.” Both parties do this. Ask Senator Chris Steineger how the Kansas Democratic Party feels about those who don’t toe the party line.

    Whether the election is or is not a referendum on Kansas Governor Sam Brownback, Kansans need to reflect on the legacy of traditional Republican leadership and governance and realize this has not been the path to jobs and prosperity.

  • Kansas and Wichita quick takes: Monday January 16, 2012

    Tax cuts = extra income? Commenting on Kansas tax reform, Wichita Business Journal editor Bill Roy said “Certainly for business people, it’s the elimination of the income tax on business income. … They’ll appreciate having that extra income that they can use on other things in their business.” I don’t know how much thought Roy gave to these remarks, but his easy likening of lower taxes to extra income is symptomatic of the problem: We have become accustomed to government having a claim on our income. In the rare instances where government gives up part of that claim, we taxpayers are supposed to view it as a gift, as something extra. Roy’s remarks were broadcast on the KPTS television program Impact while discussing Kansas Governor Sam Brownback’s tax reform plan. … Similar lines of thinking are revealed whenever it is said that tax cuts “cost” the government. The proper way of thinking is that government is a cost to the people, and whenever the cost of government is reduced, we experience a benefit. That is, we the people, as contrasted to the political class. If the government cuts taxes, the government gives us nothing. It simply takes less of what is ours in the first place. … I’m also reminded of former Kansas Governor Kathleen Sebelius, who when commenting on a reduction of the Kansas business machinery tax, said “We’re not giving away money for the sake of giving it away.”

    Revenue-neutral tax reform. If Kansas tax reform is to be revenue-neutral, that — by definition — means that if one person pays less, someone else has to make up the difference. Peter Hancock of Kansas Education Policy Report has such an example in his post Winners and Losers in Brownback’s Tax Plan. A low-income family would experience a tax increase of $442 (mostly through loss of the Earned Income Tax Credit), while a middle class family with business income would save about $300. These examples were released by Kansas Democrats. … Hancock also reports that the Brownback administration’s projections assume 5.9 percent annual growth, instead of the standard 4 percent used by the Consensus Estimating Group. A common criticism of President Barack Obama’s administration is that its projections are based on an overly-optimistic rate of future economic growth. We shouldn’t do the same in Kansas.

    Peterjohn to speak. This Friday (January 20th) the Wichita Pachyderm Club features Sedgwick County Commissioner Karl Peterjohn. He says he will speak on “critical national problems we are facing with a historical perspective.” The public is welcome and encouraged to attend Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club. Upcoming speakers: On January 27, 2012: The Honorable Jennifer Jones, Administrative Judge, Wichita Municipal Court, speaking on “An overview of the Wichita Municipal Court.”

    Southwest to fly to Wichita. Since it gobbled up AirTran, the question has been: Will Southwest Airlines provide service in Wichita? Now we know the answer is yes. While the airline has recently started service in some markets without the large, ongoing subsidies that Wichita and the state provide, that won’t be the case in Wichita, according to news reports. … Last year I reported on Southwest starting service in Charleston, South Carolina, whose metropolitan area population is similar to that of Wichita: “In the Charleston situation, there evidently won’t be the massive state-supplied subsidy as we have in Kansas. But Southwest will still get a leg up: A USA Today story quotes a Charleston airport official saying ‘Southwest didn’t want a state subsidy, but was interested in the airport’s incentives a temporary waiver of landing fees, up to $10,000 to market new flights, and up to $150,000 for other start-up costs.’” That’s a lot less than what Wichita and Kansas offer. .. Will the need for subsidies last? About this time last year, Wichita City Manager Robert Layton said “The Southwest business model doesn’t require subsidies over a long period of time.” Of course, we were told that the subsidy for AirTran would be required for only a short period, but the program grew and grew until it is now considered part of our state’s transportation infrastructure.

    Kansas economic development incentives. In an Insight Kansas column, Professor Chapman Rackaway of Fort Hays State University concludes: “No state will abandon the tax-incentive recruitment strategy for fear of being the only business suitor with nothing to offer. But the tax-incentive strategy remains a risky one, and perhaps it is time for Kansas and other governments to re-evaluate the practice.” … Earlier in the article he cites the lack of oversight among the states: “States and localities are regularly in competition with one another for scarce jobs. However, a 2001 article in Economic Development Quarterly reported that, despite the billions distributed annually as incentives, states were doing little evaluation of incentives’ effectiveness or their return on investment.” (Kansas has done a little of this; see here. A quote from the Kansas audit: “Most studies of economic development incentives suggest these incentives don’t have a significant impact on economic growth. The literature we reviewed concluded that, thus far, negative and inconclusive findings are far more numerous than positive findings. Most reviews of economic development assistance find few results are achieved — a theme that audits in Kansas and other states commonly find, as well. Findings of ineffectiveness include promised jobs weren’t created, return on investment is low or negative, and incentives offered weren’t a determining factor.” But also: “The literature also suggests that economic development incentives must be offered to remain competitive with other states.”) … But I think there is a way out. In his paper Embracing Dynamism: The Next Phase in Kansas Economic Development Policy, Professor Art Hall of the Center for Applied Economics at the Kansas University School of Business wrote this regarding “benchmarking” — the bidding wars for large employers that are the subject of Rackaway’s article: “Kansas can break out of the benchmarking race by developing a strategy built on embracing dynamism. Such a strategy, far from losing opportunity, can distinguish itself by building unique capabilities that create a different mix of value that can enhance the probability of long-term economic success through enhanced opportunity. Embracing dynamism can change how Kansas plays the game.”

    Story is broken. “Prof. Art Carden responds to ‘The Story of Broke,’ a recent video by the creators of ‘The Story of Stuff.’ In ‘The Story of Broke,’ Annie Leonard claims that the government isn’t actually broke. Rather, the government just wastes resources on the wrong things like subsidies to the dinosaur economy and war. She claims that the government should change its ways, and instead, subsidize firms that will bring us the future we really want. Art Carden agrees with Leonard that war and subsidies are wasteful, but is skeptical of notion that there is one unified vision for the future. To Carden, everyone has a different vision for the future. Our path to the future, he argues, is determined by the interactions of billions of unique individuals pursuing their own objectives. … Carden concludes that government spending won’t buy a brighter future. A brighter future will emerge when people are allowed to spend money on things they care about. Put another way, positive change will come from billions of people cooperating freely and voluntarily with one another, not from pushing trillions of dollars through a broken political process.” This video is from LearnLiberty.org, a project of Institute for Humane Studies, and many other informative videos are available.

  • Kansas spending is the problem

    While Kansas Governor Sam Brownback has some good ideas in his State of the State address and tax reform plan, there are two important points that need to be made.

    First, the governor has said that tax reform is designed to be revenue neutral. That goal means that if one person pays less, someone else has to pay more. It also means that the state’s thirst for spending is not quenched. It is continued spending that prevents us from dramatically reducing or eliminating income tax rates in Kansas.

    Critics of lowering income tax rates point to the advantages that states with no income tax have. Texas is often mentioned, where it is said that the state’s oil wealth and the taxes it generates make it possible for Texas to have no income tax.

    There are two rebuttals to this argument. First, Kansas may have much new activity in oil and gas in the very near future. With the severance tax and taxes from other economic activity — as many as 25,000 jobs and $5 billion in investment over five years — new revenue may be flowing to the state. Brownback has called for limiting the growth of state spending to two percent annually, with revenue growth above that dedicated towards reducing income tax rates.

    The second rebuttal is that states with low or no income tax generally spend much less than Kansas. Using figures I compiled for 2010, Kansas state spending per person is $4,923, which ranks it 35th among the states. Only 15 states spend more than Kansas, on a per person basis.

    Texas, with no income tax, spends $3,703 per person. Florida, another state with no income tax, spends $3,300 per person.

    Kansas Democrats have called for restoring school spending, and increasing it in the future. They have other plans for state spending, too. That’s why it is important that Kansas implement something that 47 states have, but Kansas does not. Unfortunately, the governor didn’t mention it in his address. That missing ingredient in the Kansas state financial plan is a rainy day fund.

    Rainy day funds operate in different ways in the states that have them, but generally there are strict rules about spending the money in the fund. A rainy day fund would have helped Kansas whether a downturn in revenue without resorting to a tax increase. That’s vitally important, as once tax increases are in place, they are very difficult to remove. We have such an example of this now in Kansas: The increase in the statewide sales tax, promoted to last just three years, is now recommended to be permanent, according to the governor’s plan.

    (Shifting sands: Kansas Senator Carolyn McGinn, who voted for the sales tax increase, now wants it ended a year earlier than originally planned. That was a transparent response to her having to face a conservative challenger in her primary election this year. But now she finds herself opposing the governor on this issue.)

    Kansas has a requirement for a 7.5 percent ending balance in the general fund. That requirement is often waived by the legislature, as it has been for several years in a row. Rainy day fund legislation is often implemented in states’ constitutions, which can’t easily be waived or ignored by spending-happy legislature. The strict requirements as to how and when the fund balances can be spent is much different from a simple ending balance. Kansas Democrats, for example, are calling for spending the year’s ending balance.

  • Kansas and Wichita quick takes: Wednesday January 11, 2012

    A legislator would do this? In his At The Rail column, Kansas statehouse reporter Martin Hawver speculates that even routine procedural votes, as well as votes in committee, may be material for campaign ads and mailers in this election year. “You’ve seen the mailings in election years, you know, the ones with a photo of a few lines apparently ripped from the official journal of the House or Senate. The scrap is always tilted a bit to make it more visually interesting. And, by gosh, that bit of an official document almost always shows — usually with a swipe of yellow highlighter — that a candidate voted for or against something that the rest of the brochure deems politically or fiscally or culturally important. … So, we’re going to be watching closely, to see whether a vote in a committee on something relatively unimportant becomes the theme of a campaign or two out there, and whether the public will be much moved by a vote even when it is dramatically presented as a fact ‘ripped from the official record’ of some committee or another. Key might be that it’s the final votes, not necessarily some little acting-out behavior in a committee, that is the real indication of just where a legislator is on legislation that you care about.” … I should tell you this: I’m more than a little shocked to learn this goes on in Topeka.

    Where to see, listen to State of State Address. Tonight’s 6:30 pm address by Kansas Governor Sam Brownback can see seen on television by tuning in to KTPS (Wichita), KTWU (Topeka), or Smoky Hills Public Television. Radio coverage is on Kansas Information Network, KSAL-Salina 1150 AM, KANU-Lawrence/Topeka/Kansas City FM 91.5, KANH-Emporia FM 89.7, KANV-Olsburg/Junction City FM 91.3 and in Manhattan on FM 99.5, KANZ- Garden City FM 91.1, KZNA-Hill City FM 90.5, KHCC-Hutchinson/Wichita FM 90.1, KHCD-Salina/Manhattan FM 89.5, KHCT-Great Bend/Hays FM 90.9, KMUW-Wichita FM 89.1, KRPS-Pittsburg KS FM 89.9, KCUR-Kansas City Missouri FM 89.3, and online at www.KWCH.com, kslegislature.org, www.khi.org, and www.am580wibw.com.

    Kansas Policy Institute launches blog. In its newsletter, the Kansas Policy Institute announces the start of a blog: “We believe this will be a venue to have an open discussion on the challenges facing our state and advancing liberty and freedom. Of course, we will continue the work we’ve been doing, but this is an opportunity to provide more real time analysis, share videos and stories from around the web, and allow concerned Kansans can debate the issues of the day.” The blog is located at KPI Blog. … KPI’s primary communications with Kansans have been through policy analysis and reports, and through newspaper op-ed columns. The blog should make KPI a more familiar source of news and information.

    Kansas House Speaker criticized. “Continuous abuse of power and nepotism” along with his role in a lawsuit against the State of Kansas are the charges leveled against Speaker of the Kansas House of Representatives Mike O’Neal. The writer of the letter with the charges is Kansas Representative Owen Donohoe of the 39th district, which covers parts of Johnson, Leavenworth, and Wyandotte counties. … In 2010 O’Neal faced an legislative ethics panel investigation into his role as attorney for clients suing the state. The panel decided that O’Neal broke no rules, but that the legislature’s ethics rules should prohibit what O’Neal was doing, citing the “appearance of impropriety” such actions create. … In 2009, O’Neal faced a complaint relating to nepotism, and a panel found there was insufficient evidence to support the charges. … Last year O’Neal made several committee reassignments that were seen as motivated by a desire to silence critics of policies that O’Neal supported. These included Rep. Charlotte O’Hara for her position on health care issues, Rep. Kasha Kelly for her position on state spending, and Donohoe himself. Coverage is at More trouble brewing for House Speaker O’Neal and Kansas Republican legislator blasts House Speaker Mike O’Neal. … The public policy issue is this: Does legislative leadership — Speaker of the House, Senate President, Committee Chairs — have too much power? From my observation of the Kansas Legislature over the past few years, my answer is: Yes.

    Kansas presidential caucus. Kansas Republicans will hold their presidential nominating caucus on Saturday, March 10th. Participants must be registered as Republicans to participate, and the last day to register as such is February 17th. Photo ID will be required for admission.

    Democrats urged to help Republicans. In an email, Kansas National Education Association (KNEA), the teachers union, urges Kansas Democrats to help Republican select their nominees in the August primary elections. Writes the union to its minions: “Given the registration advantage that Republicans have over Democrats in Kansas, it is not surprising that many elections are decided in the August primaries. In many districts the Republican nominee will likely win. This means that unaffiliated and Democratic voters are very limited in the influence they can have on who will be their Representative or Senator. The reality is that, while it might feel good to register your disgust with both parties by registering as an unaffiliated voter, it dramatically reduces the influence of your vote in the election. … If you want your vote to have a greater influence this year, then we would urge you to consider your registration and participation in the primary election in August. If you live in a district that will likely elect a Republican in the general election, wouldn’t it be nice to have a say in which Republican that will be? If you want that voice, you will need to be a registered Republican by July 16, 2012.”

    Kansas health issues. The Kansas Health Institute News Service has identified the issues related to health that are important in this year’s legislative session. Medicaid reform and health care exchanges are the first two mentioned, with Medicaid reform a very large and important issue. The article is Health issues facing the 2012 Legislature.

    Separation of art and state. Kansas Governor Sam Brownback may be wavering on his opposition to state funding for the arts in Kansas, according to Lawrence Journal-World reporting. I recently urged legislators — borrowing a term from David Boaz — to respect the separation of art and state. In his book The Politics of Freedom: Taking on The Left, The Right and Threats to Our Liberties, Boaz explained why this is important: “It is precisely because art has power, because it deals with basic human truths, that it must be kept separate from government. Government, as I noted earlier, involves the organization of coercion. In a free society coercion should be reserved only for such essential functions of government as protecting rights and punishing criminals. People should not be forced to contribute money to artistic endeavors that they may not approve, nor should artists be forced to trim their sails to meet government standards. Government funding of anything involves government control.”

    Numbers trouble Americans. “Many Americans have strong opinions about policy issues shaping the presidential campaign, from immigration to Social Security. But their grasp of numbers that underlie those issues can be tenuous.” The Wall Street Journal article Americans Stumble on Math of Big Issues covers this topic. “‘It’s pretty apparent that Americans routinely don’t know objective facts about the government,’ says Joshua Clinton, a political scientist at Vanderbilt University. Americans’ numerical misapprehension can be traced to a range of factors, including where they live, the news they consume, the political rhetoric they hear and even the challenges of numbers themselves. And it isn’t even clear how much this matters: Telling people the right numbers often doesn’t change their views.”

    Capitalism. “The Occupy Wall Street movement expresses valid frustrations, but do the protesters aim their accusations in the wrong direction? Economics Professor Chris Coyne draws the distinction between crony capitalism and legitimate capitalism. Crony capitalism is government favoritism fueled by handouts and is responsible for the plight of the 99%. Legitimate capitalism, on the other hand, uses competition to align consumer and producer interests and serves to improve everyone’s standard of living. … Coyne says: “What we need is constraints on government … The minute you open the floodgates of government handouts, people are going to start lining up to grab them. And the people that are going to tend to get those handout are those that have money and political connections. So the solution to this is simple. Instead of spreading out losses, we need to do is to allow people to earn profits when they produce things that people value, and suffer losses when the fail to do so. When you have that type of system, the only way to earn wealth is to improve peoples’ standards of living.”… This video is from LearnLiberty.org, a project of Institute for Humane Studies, and many other informative videos are available.

  • Kansas and Wichita quick takes: Monday January 9, 2012

    Wichita City Council. This week the Wichita City Council will consider the formation of a STAR bond district in northeast Wichita. While this is a complex issue that will take some study to fully understand, the action the council will consider this week is only to set a public hearing for February 14th. A concern is that the developers for the proposed Wichita project are also responsible for the Village West project in Kansas City, Kansas. On November 22, I reported this regarding that project: “The Legends at Village West, a huge shopping development in Kansas City near the Kansas Speedway, has defaulted on its loan. According to reporting in Commercial Real Estate Direct, the property never met its cash flow projections, topping out at $10.3 million per year in 2008. The loan assumed it would generate $11.1 million. Since 2008 cash flow has fallen. The public policy interest is that this facility, along with the nearby racetrack, received millions in sales tax (STAR) bond financing, to be repaid by taxpayers through sales tax collections.”

    Kansas House Speaker speaking in Wichita. This Friday (January 13th) the Wichita Pachyderm Club features Speaker of the Kansas House of Representatives Mike O’Neal, speaking on “The untold school finance story.” The public is welcome and encouraged to attend Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club. Upcoming speakers: On January 20th: Sedgwick County Commissioner Karl Peterjohn. … On January 27, 2012: The Honorable Jennifer Jones, Administrative Judge, Wichita Municipal Court, speaking on “An overview of the Wichita Municipal Court.”

    Legislature starts. Today is the first day of the 2012 session of the Kansas Legislature.

    State of the State address. Kansas Governor Sam Brownback will deliver the “State of the State” address this Wednesday at 6:30 pm. It appears that public television and radio are the only way to experience this address. A much-anticipated portion of the address is the governor’s plan for tax reform. The plan has been in the works for several months, and requests for information about the process have been refused.

    Kansas State Sovereignty Rally. This Friday (January 13th) afternoon is the 4th Annual State Sovereignty Rally, held at the Kansas State Capitol. Topics include constitutional issues, health care reform, and the Kansas budget. A printable flier with details is here. There are transportation opportunities from Wichita; contact Larry Halloran at 316-777-9352 or LarryHalloran@aol.com.

    Making Economics Come Alive. Tonight the Americans for Prosperity monthly meeting will feature the topic “Making Economics Come Alive” with a video presentation by John Stossel. Topics include Government Spending, Deficits, and Debt, Are We Heading Toward a Debt Crisis?, Can Government Spending Be Cut?, Growth of Government, Spending, Taxes and the role of Government, International Trade and Trade Barriers, International Trade: Criticisms and Responses, Economics of Trade Deficits, Why Some Nations Prosper and Others Stagnate, Why Do Nations Prosper?, and Economic Freedom and Quality of Life. This meeting is at a different location: Central Branch Wichita Public Library, 223 S. Main (3rd Floor Meeting Room). The meeting starts at 7:00 pm. For more information on this event contact John Todd at john@johntodd.net or 316-312-7335, or Susan Estes, AFP Field Director at sestes@afphq.org or 316-681-4415.

  • Kansas needs pro-growth policies

    A theme of Kansas Governor Sam Brownback when he spoke in Wichita this week was jobs and opportunities, and how Kansas needs pro-growth policies to break out of a slump.

    The governor spoke at the annual dinner of the Kansas Policy Institute. He said: “We cannot continue on this path and hope that we are going to move forward and win in the future. It won’t work. We have got to change course, and we’ve got to be aggressive about it, or we’re doomed to a slow decline, which we’ve had for some period of time.”

    Brownback said we need to move to a pro-growth tax policy, although he wasn’t ready to release details at the time.

    Looking at a few charts of job growth in Kansas, we can easily see the problem Brownback referred to. A chart of the number of private sector jobs in Kansas as compared to a few surrounding states over the past ten years shows Kansas at or near the bottom.

    Kansas private sector job growth compared to other statesKansas private sector job growth compared to other states. Data is indexed, with January 2001 equal to 1. Source: Bureau of Labor Statistics

    Looking at year-to-year job changes over since January 2010, we again see Kansas at or near the bottom.

    Kansas private sector job change, year-to-year, compared to other statesKansas private sector job change, year-to-year, compared to other states.
  • Kansas and Wichita quick takes: Wednesday August 10, 2011

    Kansas House Appropriations Chair to speak. This Friday’s meeting (August 12th) of the Wichita Pachyderm Club Kansas Representative Marc Rhoades, Chair of the Kansas House of Representatives Committee on Appropriations, speaking on the topic “The impact of the freshman legislators on the 2011 House budgetary process.” The public is welcome and encouraged to attend Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club … Upcoming speakers: On August 19, Jay M. Price, Ph.D., Associate Professor and Director of the public history program at Wichita State University, speaking on “Clashes of Values in Kansas History.” His recent Wichita Eagle op-ed was Kansas a stage for “values showdowns.” … On August 26, Kansas State Representatives Jim Howell and Joseph Scapa speaking on “Our freshmen year in the Kansas Legislature.” … On September 2 the Petroleum Club is closed for the holiday, so there will be no meeting. … On September 9, Mark Masterson, Director, Sedgwick County Department of Corrections, on the topic “Juvenile Justice System in Sedgwick County.” Following, from 2:00 pm to 3:00 pm, Pachyderm Club members and guests are invited to tour the Sedgwick County Juvenile Detention Center located at 700 South Hydraulic, Wichita, Kansas. … On September 16, Merrill Eisenhower Atwater, great grandson of President Dwight D. Eisenhower, will present a program with the topic to be determined. … On September 23, Dave Trabert, President of Kansas Policy Institute, speaking on the topic Why Not Kansas,” an initiative to provide information about school choice. … On September 30, U.S. Representative Mike Pompeo of Wichita on “An update from Washington.”

    Sebelius responds to waivers inquiry. In June U.S. Representative Tim Huelskamp, who is in his first term representing the Kansas first district, along with others asked Secretary of Health and Human Services Kathleen Sebelius for information about the Obamacare waivers HHS has been granting. He got a response — except it’s not a response. In a statement, Huelskamp said “No details and no additional information about the Annual Limit Waivers were provided, so again we remain in the dark about this secretive process. Candidate Obama promised to be the most ‘open and transparent’ in history — a far cry from President Obama. The American people have a right to know why this new health care law is unfairly applied and what they can do to be exempted from ObamaCare. If one person, labor union, state, or business can get a waiver, then everybody should be able to get waivers.” … Huelskamp is not alone in noting the lack of transparency in the Obama administration.

    Brownback to Sebelius: No thanks. Speaking of Secretary Sebelius, Kansas Governor Sam Brownback has decided to return a grant the state received for being an “early innovator” in implementing portions of the Patient Protection and Affordable Care Act (PPACA), better known as Obamacare. A statement from the governor’s office reads: “There is much uncertainty surrounding the ability of the federal government to meet it’s already budgeted future spending obligations. Every state should be preparing for fewer federal resources, not more. To deal with that reality Kansas needs to maintain maximum flexibility. That requires freeing Kansas from the strings attached to the Early Innovator Grant. … “Federal Medicaid mandates have cost Kansans over 400 million in the past 2 years alone. Full implementation of the mandates in the President’s health care law would cost billions more,” said {Lieutenant Governor] Dr. [Jeff] Colyer. “We will work to find innovative Kansas based solutions to Kansas challenges and be very selective in the federal funds the state applies for and receives. We look forward to working with legislative leaders and Insurance Commissioner Praeger as we develop Kansas solutions.”

    ‘Nullify Now’ tour in Kansas City. The idea that states can nullify unconstitutional laws passed by Congress is gaining traction as a way to reign in the federal government. Next week an event in Kansas City will help citizens learn more about this possibility. Writes the event’s organizers: “Crushing debt, health care mandates, ‘super’ congress, and more. The list of constitutional violations from DC never seems to end. The good news is that we don’t have to wait for DC to fix itself. As Thomas Jefferson told us, state nullification is “THE RIGHTFUL REMEDY” to unconstitutional actions by the federal government. … At Nullify Now! Kansas City, you’ll hear nationally-renowned speaker Thomas Woods (and nine others) present the constitutional case for nullification. You’ll learn: the constitutional basis for nullification, how nullification has been used in history, how nullification is being called upon right now vs Obamacare, to protect gun rights, against the TSA, and more, and what YOU CAN DO RIGHT NOW to get your state to put a stop to the Feds.” The event is Saturday August 20, and tickets, ranging in cost from free to $75, are required. For more information click on Nullify Now! Kansas City.

    ‘Birth of Freedom’ screening. On Monday (August 15th) the film The Birth of Freedom will be shown for free in Wichita. The film is a product of the Acton Institute, whose mission statement describes the institute as “[promoting] a free and virtuous society characterized by individual liberty and sustained by religious principles.” This free event is Monday from 7:00 pm to 8:30 pm at the Lionel D. Alford Library located at 3447 S. Meridian in Wichita. The library is just north of the I-235 exit on Meridian. The event’s sponsor is Americans for Prosperity, Kansas. For more information on this event contact John Todd at john@johntodd.net or 316-312-7335, or Susan Estes, AFP Field Director at sestes@afphq.org or 316-681-4415. … I’ve been told by those who have viewed the film that it is a very moving presentation. A trailer or preview may be viewed below.

  • KDHE, Sunflower Electric, Earthjustice, Center for Climate Strategies: different peas in the same pod

    Evidence that a business seeking regulatory approval of its project enjoyed an apparently close relationship with the Kansas Department of Health and Environment should not be surprising.

    Reporting in the Kansas City Star leads with “Hundreds of emails document that officials of a Kansas power plant enjoyed a cozy relationship with the Kansas regulators who issued them a building permit in December.” (Kansas agency, utility worked closely on permit for plant)

    A press release from Earthjustice, the legal advocacy arm of the Sierra Club, proclaimed “A new report reveals Sunflower Electric (Sunflower) enjoyed a cozy relationship with Kansas regulators during the permitting process for the highly controversial coal-fired power plant Sunflower seeks to build in Holcomb.”

    This incident — the details are not important for understanding the broad lesson — may be looked on as an example of regulatory capture. As defined in Wikipedia, “regulatory capture occurs when a state regulatory agency created to act in the public interest instead advances the commercial or special interests that dominate the industry or sector it is charged with regulating.”

    In more detail, the Wikipedia article explains: “For public choice theorists, regulatory capture occurs because groups or individuals with a high-stakes interest in the outcome of policy or regulatory decisions can be expected to focus their resources and energies in attempting to gain the policy outcomes they prefer, while members of the public, each with only a tiny individual stake in the outcome, will ignore it altogether. Regulatory capture refers to when this imbalance of focused resources devoted to a particular policy outcome is successful at ‘capturing’ influence with the staff or commission members of the regulatory agency, so that the preferred policy outcomes of the special interest are implemented.”

    Regulatory capture — or at least the heavy-handed attempt by special interest groups to influence public policy to fit their interests — is a non-partisan sport. We shouldn’t be surprised to see this form of government failure taking place at all times, no matter which party or politicians are in power.

    As an example on point, the same type of activity happened during the administration of former Kansas Governor Kathleen Sebelius regarding the same electric plant that is the focus of controversy today. Her regulator, former KDHE Secretary Rod Bremby, denied the permit for the plant based on its carbon dioxide emissions, the first time that had been done in the United States.

    Radical environmentalists rejoiced. Sebelius was invited to speak at an Earthjustice conference held in Denver in June, 2008. Here are a portion of her written remarks, as supplied to me at that time by her press office, thanking Earthjustice for all it had done in Kansas to help Sebelius and mold her regulatory regime:

    When Big Coal pumped their money and politics into Kansas, EarthJustice was there to fight back:

    • Provided litigation and public support
    • Helped shape the media messaging and outreach
    • Rallied supporters and engaged the public to get involved

    It was a victory for all of us and I appreciate their help.

    About that time Sebelius established the Kansas Energy and Environmental Policy Advisory Group, or KEEP. The activities of this group were managed — at no cost to the state — by the Center for Climate Strategies, a group that expressly advocates for energy policies and regulations based on an extremist view of climate science.

    The invasion of Kansas — at least the Sebelius administration — by Earthjustice and Center for Climate Studies proves the point: Regulatory capture is a non-partisan opportunity.