Tag Archives: Kansas state government

Articles about Kansas, its government, and public policy in Kansas.

Kansas personal income

Personal income in Kansas rose in 2017 at a rate one-third that of the nation.

Personal income in Kansas for 2017 was $138,673 million, according to preliminary estimates released today by the Bureau of Economic Analysis, an agency of the United States Department of Commerce.

Change in personal income, 2016 to 2017. Click for a larger version and the BEA press release.
That is an increase of 1.0 percent from 2016, when personal income was $137,305 million. These are current dollars, not adjusted for inflation. 1

The growth for Kansas — 1.0 percent — ranked 47th among the states. For the nation, personal income rose by 3.1 percent, and for the Plains states, it rose by 1.7 percent.

BEA gives the population of Kansas as 2,913,000, with per capita personal income at $47,603. That ranks 24th among the states, and is 94 percent of the value of personal income for the entire nation, which is $50,392.

Personal income, according to BEA, is “the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or losses.” 2

For Kansas, there were these notable changes in earnings:
Farm: Down by 0.66 percent
Non-durable goods manufacturing: Up by 0.23 percent
Wholesale trade: Up by 0.11 percent
Transportation and warehousing: Up by 0.15 percent
Management of companies and enterprise: Up by 0.15 percent
Health care and social assistance: Up by 0.23 percent
State and local government: Up by 0.21 percent


  1. Bureau of Economic Analysis. State Personal Income: 2017. Available at https://www.bea.gov/newsreleases/regional/spi/sqpi_newsrelease.htm.
  2. Ibid.

From Pachyderm: Can Wichita Elect a Governor?

From the Wichita Pachyderm Club: Dr. Russell Arben Fox, who is Professor of Political Science at Friends University. His topic was “Can Wichita Elect a Governor? Musings on the Kansas Political Landscape.”

This is an audio presentation. The accompanying slides are available here. Recorded on March 9, 2018 before a live audience at the Wichita Pachyderm Club.

WichitaLiberty.TV: What Was Really the Matter with the Kansas Tax Plan

In this episode of WichitaLiberty.TV: Dave Trabert of Kansas Policy Institute joins Bob and Karl to discuss his new book What Was Really the Matter with the Kansas Tax Plan –- The Undoing of a Good Idea. View below, or click here to view at YouTube. Episode 186, broadcast March 3, 2018.


What Was Really the Matter with the Kansas Tax Plan

From Kansas Policy Institute.

What Was Really the Matter with the Kansas Tax Plan

New Book Outlines Tax Lessons from Kansas “Experiment”

Tax relief opponents have repeatedly pointed to the 2012 Kansas tax plan as their primary example of why tax cuts do not work. But, other states like North Carolina, Indiana, and Tennessee contemporaneously, and successfully, cut taxes. What was different about the Kansas experience?

The answer to that question is multi-dimensional according to a new book from Kansas Policy Institute, entitled What Was Really the Matter with the Kansas Tax Plan — The Undoing of a Good Idea. The book covers the six years between the conception of Brownback’s tax cuts in 2011, the tax package being signed into law in 2012 and later repealed with the largest tax hike in state history in 2017. It documents the many mistakes that occurred, a toxic political undercurrent, and several unrelated economic circumstances that negatively impacted the budget and multiple misconceptions along the way.

Author and KPI president Dave Trabert says, “Much of what went wrong was avoidable. We hope citizens and legislators across the nation can learn from the mistakes made in Kansas as they strive to create the best path forward for everyone to achieve prosperity with lower taxes.”

The final chapter of the book is “Lessons Learned” and includes these big lessons:

  1. Don’t cut revenue and increase spending.
  2. Explain why tax relief is necessary (i.e., what are the consequences of not reducing the tax burden).
  3. Develop a comprehensive plan to balance the budget on less tax revenue, with room for the unpredictable but inevitable misfortunes (like plummeting oil and farm commodity prices).
  4. Have the right systems in place, including performance-based budgeting and a reliable revenue estimating process.

To ensure that lawmakers have this information as they work in statehouses around the country, nearly 8,000 complimentary copies are being distributed to every state legislator across the country in partnership with The Heartland Institute.

Danedri Herbert, an experienced journalist currently writing for the online publication “The Sentinel,” co-authored the book and former U.S. Senator Tom Coburn of Oklahoma wrote the Foreword. Coburn writes, “This is a very important book, not only for state and national legislators who try to represent citizens instead of special interests, but also for taxing and spending watchdogs in the press and those involved with good government citizen activist groups.”

What Was Really the Matter with the Kansas Tax Plan is published by Jameson Books, Inc. and copies will be available on Amazon.

Trabert concludes, “Kansas could have successfully cut taxes as other states have done. The undoing of a very good idea—allowing citizens to keep more of their hard-earned money—gets to the crux of the serious state and national challenges we face: policy takes a back seat to politics. The efforts of many elected officials are not on solving problems in ways that create the best path forward for all Americans to achieve prosperity, but on maintaining and consolidating power.”

WichitaLiberty.TV: Danedri Herbert, Editor of The Sentinel

In this episode of WichitaLiberty.TV: The Sentinel’s Danedri Herbert joins Bob Weeks to discuss the upcoming gubernatorial debate, the Kansas Legislature’s website and transparency, and accountability in government. View below, or click here to view at YouTube. Episode 184, broadcast February 17, 2018.


Unemployment in Kansas

New Kansas Governor Jeff Colyer proudly cites the low Kansas unemployment rate, but there is more to the story.

In his recent speech to the legislature, Kansas Governor Jeff Colyer said, “There’s some good news to report here. According to the most recent data, the Kansas unemployment rate is 3.4%. That’s one of the lowest in the country, and the lowest our state has seen in more than seventeen years!”

Data from the Bureau of Labor Statistics, part of the United States Department of Labor shows changes to Kansas employment. The recent peak of the unemployment rate in Kansas was in 2009, when the rate reached 7.3 percent, averaging 6.9 percent for the entire year. In December 2017 it was 3.4 percent, just as the governor said. But since the unemployment rate is a ratio of two numbers, it can change for several reasons, and not all reasons are good news.

As shown in the nearby table, the unemployment rate since 2009 is down, and down a lot. Similarly, the number of unemployed persons is down, too, by nearly half. Good news.

But the number of employed persons has barely changed since 2009, rising by just one percent. At the same time, the labor force has fallen by 2.4 percent. The contracting labor force is the largest factor in the declining Kansas unemployment rate, and that is not good news.

Kansas labor statistics. Click for larger.

Kansas GDP growth

Kansas ranks low among the states in growth of gross domestic product (GDP) for the third quarter of 2017.

This week the Bureau of Economic Analysis, an agency of the United States Department of Commerce, released gross domestic product (GDP) figures for the states for the third quarter of 2017. 1

For the third quarter, GDP for the nation grew at the annual rate of 3.4 percent. For Kansas, growth was 2.1 percent. Kansas ranked 41st among the states.

The nearby table shows GDP change by industry group and compares Kansas to the country, Plains states (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota), and nearby states.

Click for larger.


  1. Bureau of Economic Statistics. Gross Domestic Product by State: Third Quarter 2017. Available at https://www.bea.gov/newsreleases/regional/gdp_state/qgdpstate_newsrelease.htm.

WichitaLiberty.TV: Radio Host Andy Hooser

In this episode of WichitaLiberty.TV: Radio Host Andy Hooser of the Voice of Reason appears with Karl Peterjohn to discuss the simulcast of his radio show on KGPT 26, the legislative session, and whether President Trump’s tax breaks can save Kansas from the recent tax hike. Bob Weeks is still out. View below, or click here to view at YouTube. Episode 180, broadcast January 20, 2018.


WichitaLiberty.TV: Kansas State of the State for 2018

In this episode of WichitaLiberty.TV: Vice president and policy director of Kansas Policy Institute James Franko joins Karl Peterjohn to discuss Governor Brownback’s State of the State Address for 2018. Topics include schools and Medicaid expansion. Bob Weeks hopes to be back next week. View below, or click here to view at YouTube. Episode 179, broadcast January 13, 2018.


WichitaLiberty.TV: Radio Host Andy Hooser

In this episode of WichitaLiberty.TV: Radio Host Andy Hooser of the Voice of Reason appears with Bob Weeks to discuss issues in state and national political affairs. View below, or click here to view at YouTube. Episode 177, broadcast December 23, 2017.


From Pachyderm: Local legislative priorities

From the Wichita Pachyderm Club: Local government officials present their legislative priorities. Appearing are James Clendenin for the City of Wichita, Dave Unruh for Sedgwick County, and Sheril Logan for the Wichita Public School District. This was recorded December 22, 2017.

WichitaLiberty.TV: Judicial selection in Kansas

In this episode of WichitaLiberty.TV: Attorney Richard Peckham joins Karl Peterjohn and Bob Weeks to discuss judicial selection and other judicial issues in Kansas. View below, or click here to view at YouTube. Episode 176, broadcast December 16, 2017.


Spirit expands in Wichita

It’s good news that Spirit AeroSystems is expanding in Wichita. Let’s look at the cost.

While it is good news that Spirit AeroSystems is expanding its Wichita operations, it is not without cost to several governmental agencies. Here’s a summary of what is publicly available so far.

First, a new “entity” will be formed in order to facilitate the construction and ownership of a new building on the Spirit campus. 1

This entity will be funded with $7 million in cash from Sedgwick County and $3 million cash from the City of Wichita. Further, the city will forgive Spirit’s debt of $3.5 million associated with a water project. 2

Second, through the mechanism of Industrial Revenue Bonds,3 Spirit receives a property tax exemption of one hundred percent for five years, with renewal for another five years if goals are met. Despite the use of the term “bond,” no governmental entity is lending money to Spirit, and no one except Spirit is liable for bond repayment.

Third: The bonds confer another benefit to Spirit: According to city documents, “IRBs will, pursuant to STATE law, provide for a sales tax exemption on materials and labor subject to sales tax necessary to construct and equip FACILITY.” 4 City documents give no dollar amount is given for the sales tax exemption. But in the analysis conducted by Center for Economic Development and Business Research at Wichita State University these figures are used for the amount of sales tax exemption: City of Wichita: $279,445. Sedgwick County: $137,354. State of Kansas: $5,370,270. Total: $5,787,069. 5

Fourth, this project will undoubtedly qualify for PEAK, or Promoting Employment Across Kansas. This is a State of Kansas program that allows companies to keep the state income taxes their employees pay through paycheck withholding, less a small fee. 6 It isn’t possible to know in advance how much PEAK benefit the company will receive, because the individual circumstances of each employee determine the income tax withheld. The following calculation, however, gives an indication of the magnitude of the amount of PEAK benefits Spirit can expect:

$56,000 annual salary / 26 pay periods = $2,154 per bi-weekly pay period. For a married worker with two children, withholding tables show $55 to be withheld each pay period, or $55 * 26 = $1,430 per year. For 1,000 employees, the PEAK benefit is $1,430,000 per year. 7

There may be other programs that this project qualifies for.

Are these incentives necessary?

Taxpayers might be wondering if these incentives are necessary for Spirit to be able to expand its operations, and for it to select Wichita as the site. Spirit says it has received generous offers from other locations. If so, Spirit could do itself a favor by revealing these offers. So too, could other Wichita companies that have claimed intense courtship by other cities. But the economic development industry operates in darkness.

One thing that would also increase the credibility of economic development efforts is for Wichita Mayor Jeff Longwell (and others) to stop making claims of “no more cash incentives.” The city explicitly offers cash in this proposal. The city also offers to cancel a debt, which is just like cash. Forgiveness of future taxes is as good as cash, too.

For years we’ve been told that Wichita needs to diversify its economy, meaning that it relies too heavily on the aircraft industry. This expansion by Spirit will undoubtedly heighten that concentration. We should not turn down this expansion of our local economy. But the incentives that are offered have a cost, and that cost is paid — partly — by other business firms in other industries that are trying to grow in Wichita.

Many will undoubtedly cheer the Spirit announcement as an economic development win on a large scale. It will add many jobs. But the Wichita-area economy is so far behind it will take much more growth than this to catch up with the rest of the nation. In fact, the Wichita-area economy shrank last year. 8 And while many cheer our low unemployment rate, sole reliance on that number hides a shrinking labor force. 9

Also, let’s be appropriately humble when boasting about this expansion. A region’s largest employer deciding to expand in the same city: This is the minimum level of competence we ought to expect from our economic development machinery.

Further, economists caution us to look beyond any single project, no matter how large, and consider the entirety of the local economy. As economist Art Hall has noted, large-employer businesses have no measurable net economic effect on local economies when properly measured. “The primary finding is that the location of a large firm has no measurable net economic effect on local economies when the entire dynamic of location effects is taken into account. Thus, the siting of large firms that are the target of aggressive recruitment efforts fails to create positive private sector gains and likely does not generate significant public revenue gains either.” 10

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

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

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

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


  1. “The CITY, COUNTY and COMPANY would each take action to establish a new legal entity separate and apart from the CITY, COUNTY and COMPANY for development of the PROJECT (the “ENTITY”) which will take such form as the PARTIES may approve.” Memorandum of Understanding for Project Eclipse, Section I.A. Contained within agenda packet for Wichita City Council meeting for December 13, 2017.
  2. “The COUNTY participation of $7 million US is anticipated to be available cash; the CITY participation would consist of cash in the amount of $3 million US, forgiveness of $3.5 million US in future COMPANY payments associated with the CAPITAL COMPONENT and an agreement to make additional capital improvements relating to the WATER AGREEMENT in an approximate cost of $1 million US.” Memorandum of Understanding for Project Eclipse, Section I.B
  3. Weeks, Bob. Industrial revenue bonds in Kansas. Available at https://wichitaliberty.org/kansas-government/industrial-revenue-bonds-kansas/.
  4. Memorandum of Understanding for Project Eclipse, Section I.3.E
  5. Project Eclipse – ROI calcs plus author’s calculation. Available at https://drive.google.com/file/d/1uGaxTgrctYpBjkG7PR6bP81SxgFjpzjo/.
  6. Weeks, Bob. PEAK, or Promoting Employment Across Kansas. Available at https://wichitaliberty.org/kansas-government/peak-promoting-employment-across-kansas/.
  7. Kansas Department of Revenue Withholding tables. Available at https://www.ksrevenue.org/pdf/whtables2017.pdf.
  8. Weeks, Bob. Wichita economy shrinks. Available at https://wichitaliberty.org/economics/wichita-economy-shrinks/.
  9. “It is possible that the unemployment rate falls while the number of people employed falls or rises slowly. This is the general trend in Wichita for the past seven years or so.” Weeks, Bob. Wichita employment up. Available at https://wichitaliberty.org/wichita-government/wichita-employment-up/.
  10. William F. Fox and Matthew N. Murray, “Do Economic Effects Justify the Use of Fiscal Incentives?” Southern Economic Journal, Vol. 71, No. 1, 2004, p. 79. A

Kansas tax receipts

News about Kansas tax receipts for November 2017, along with an interactive visualization.

Following is a press release from the Kansas Department of Revenue regarding November 2017 tax receipts. For an interactive visualization of this data, see Visualization: Kansas tax receipts.

December 1, 2017
Tax receipts show promise of improved economy

TOPEKA–The state has collected $258.75 million over last fiscal year at this time, totaling over 11 percent growth in collections according to data from the latest revenue report released Friday.

So far this fiscal year that started in July, the state has collected $1.09 billion in total individual income tax, which amounts to $176.74 million over last year. In the same time, sales tax collections total $985.71 million, putting it $41.64 million over last year or over 4 percent growth. Corporate income tax continues the multi month trend of outperforming the previous year, hitting a value of $30.51 million over last year’s cumulative collections.

“Sales tax receipts have reached what appears to be stable growth above last year’s collections,” Revenue Secretary Sam Williams said. “Individual income tax collections are also above last year by a wide margin, but it’s difficult to distinguish the impact of the recent tax increase versus economic growth, and we won’t be able to discern that until April.

November tax receipts totaled $463.50 million, which is $62.23 million over November last year. Individual income tax collections totaled $207.62 million for the month, while sales tax revenue came in at $192.63 million. Corporate income tax totaled $379,518.

Example from the visualization. Click for larger.

PEAK benefits across Kansas

The use of PEAK, a Kansas economic development incentive program, varies widely among counties.

An economic development incentive program in Kansas is PEAK, or Promoting Employment Across Kansas. This program allows companies to retain 95 percent of the payroll withholding tax of employees. 1

Data is available for fiscal years 2010 through 2015. For this period, we can see that the application or use of PEAK varies widely among counties. Here is data for the two largest counties in Kansas:

Johnson County: 135 projects, 17,643 new or retained jobs, $36,085,527 cumulative annual benefits.
Sedgwick County: 8 projects, 1,113 new or retained jobs, $1,858,516 cumulative annual benefits.

According to the U.S. Census Bureau American Fact Finder, the 2016 population of Sedgwick County was 511,995. Johnson County population was 584,451. So Johnson County has 1.14 times the population of Sedgwick County, but it receives some 16 to 19 times the PEAK benefits as Sedgwick County.

Of note, this data is available on Kanview, the state’s data download portal. The data is from a spreadsheet compiled in August 2015. It contains data through fiscal year 2015, which ended on June 30, 2015. Upon my inquiry, it appears no similar data compilations were created in August 2016 or August 2017. I have asked for the data and it is taking some time to prepare it, which leads us to wonder how diligently the state collects data regarding economic development programs.

You can access an interactive visualization of PEAK data here.


  1. Weeks, Bob. PEAK, or Promoting Employment Across Kansas Available at https://wichitaliberty.org/kansas-government/peak-promoting-employment-across-kansas/.

Promoting Employment Across Kansas, or PEAK

An interactive visualization of data regarding PEAK (Promoting Employment Across Kansas), an economic development incentive program.

PEAK, or Promoting Employment Across Kansas, is an economic development program administered by the Kansas Department of Commerce. Information about PEAK from that department may be found at Promoting Employment Across Kansas. Other information about PEAK is available from the Department of Revenue and from Voice for Liberty.

I’ve gathered information about PEAK projects and present the data in an interactive visualization. The List table is a simply list of the available data.

The table shows the count of PEAK projects, the sum of new or retained jobs, and the sum of the annual benefits for the projects.

In the table view, you may select which counties appear. Also, a slider lets you choose the minimum number of projects a county must have in order to appear. This is helpful as there are many counties with just one or two projects.

Click here to access the visualization.

Source of data is Kanview, specifically this page: Promoting Employment Across Kansas (PEAK) Program.

Example from the visualization.

WichitaLiberty.TV: Kansas Representative John Whitmer

In this episode of WichitaLiberty.TV: Kansas Representative John Whitmer joins Karl Peterjohn and Bob Weeks to discuss current issues in state government, and why he supports Wink Hartman for governor. View below, or click here to view at YouTube. Episode 173, broadcast November 18, 2017.


PEAK, or Promoting Employment Across Kansas

PEAK, a Kansas economic development incentive program, redirects employee income taxes back to the employing company.

An economic development incentive program in Kansas is PEAK, or Promoting Employment Across Kansas. This program allows companies to retain 95 percent of the payroll withholding tax of employees.

Flow of tax dollars under normal circumstances, and under PEAK.
Flow of tax dollars under normal circumstances, and under PEAK.
PEAK incentive payments can be a substantial sum. Tables available at the Kansas Department of Revenue indicate that for a single person with no exemptions who earns $40,000 annually, the withholding would be $27 per week (for weekly payroll), or $1,404 annually. For a married person with two children earning the same salary, withholding would be $676 annually. Under PEAK, the company retains 95 percent of these values. (These illustrations are based on 2016 tax rates.)

There are requirements regarding the minimum number of jobs to be created or retained. Also, companies must pay wages greater than or equal to the median county wage. 1

Then, the Secretary of Commerce has “discretion to approve applications of qualified companies and determine the benefit period.”

Legislators and public officials like programs like PEAK partly because they can promote these programs as self-financing. That is, the state isn’t subsidizing a company. Instead, the company is paying its own way with its own taxes (actually, its employees’ taxes). PEAK supporters say the state is not sending money to the company. Instead, the company is just holding on to 95 percent of its employees’ withholding taxes instead of sending the funds to the state.

Schemes like PEAK call into question one of the fundamental principles of taxation: That tax funds be used to fund the operations of government, not to enrich one particular person or company. But continually, states and local government use programs like PEAK — and others like tax increment financing (TIF) districts, Community Improvement Districts (CIDs), Industrial Revenue Bonds, and others — that turn over a public function to private interests.

Illustration of a shortfall under PEAK
Illustration of a shortfall under PEAK
Here’s another consideration regarding the PEAK program. The amount of money withheld from a worker’s paycheck is not the same as the amount of tax the worker actually owes the state. Withholding is only an approximation, and one that is biased in favor of the state. Many Kansas workers receive an income tax refund from the state. This is in recognition that the sum of the withholding taxes paid by a worker is larger than the actual tax liability. Therefore, the state is returning money that the state was not entitled to.

Now, what about workers who are employed at a company that is in the PEAK program and who receive a state income tax refund? Their withholding taxes — 95 percent, anyway — have already been given back to their employer.

So: What is the source of the money used to pay these refunds? How much money is paid in refunds to employees working at PEAK-participating companies?

We should note that the funds don’t come from the PEAK company’s employees, as the employees receive credit for all their withholding taxes, even though 95 percent never contributed to the state treasury.

Inquiry to the Department of Revenue revealed that there are no statistics on actual income tax liability of PEAK employees vs. the amount of withholding tax credited to that employee that was retained or refunded to the PEAK employer. The Department of Commerce referred inquiries to the Department of Revenue.

If we wanted to know how much money was paid in refunds to PEAK-company employees, I believe we would need to examine the account of each affected employee. I’m sure it’s not possible to come up with an answer by making assumptions, because the circumstances of each taxpayer vary widely.

Whatever the amount, it represents state tax revenue being used to fund an economic development incentive program that is pitched as being self-funded.


  1. “PEAK requires the qualified company to commit to creating five new jobs in non-metropolitan counties or ten (10) new jobs in the metropolitan counties of Shawnee, Douglas, Wyandotte, Johnson, Leavenworth and Sedgwick over a two-year period. The qualified company must also pay wages to the PEAK jobs/employees, that when aggregated, meet or exceed the county median wage or North American Industry Classification System (NAICS) average wage for their industry.” Kansas Department of Commerce. Promoting Employment Across Kansas (PEAK) Program. Available at http://kansascommerce.gov/141/Promoting-Employment-Across-Kansas-Progr.