Voice For Liberty

Tag: Mark Parkinson

  • Hawker Beechcraft deal not proud moment for Kansas

    This week the State of Kansas, City of Wichita, and Sedgwick County struck a deal with Hawker Beechcraft that allows Hawker to stay in Wichita rather than moving to another state.

    While outgoing Governor Mark Parkinson and other leaders praise the deal, it was not a good day for Kansas.

    It’s difficult to blame Hawker. That company saw similar Wichita-based companies receive corporate welfare, most recently Bombardier Learjet. Who can blame Hawker for wanting the same? In fact, when the state and local governments are willing to readily hand out corporate welfare, you can make a case that Hawker has a fiduciary duty to its shareholders to seek the same.

    Therein lies the problem: Kansas’ approach to economic development is piecemeal. We respond to problems, as in the case of Hawker. But the state’s response gives more companies the incentive to come up with their own “problems” that require state intervention.

    When recruiting or retaining companies, the state and its local governments presume they have the ability to select which companies are deserving of public subsidy.

    What we have is a situation where a relatively small number of companies receive help from the state and its taxpayers, which only serves to increase the cost of business for everyone else.

    Nonetheless, politicians and bureaucrats call this making an investment in, say, Hawker Beechcraft or whatever company is asking for handouts or tax breaks. The problem is that we don’t know if investing in these companies is the right investment, if government should be making these investments at all. (In the case of Hawker Beechcraft, there is some evidence that this company may need to shrink substantially in order to survive, handouts notwithstanding. See Report: Hawker should divest all but King Air.)

    We need economic development policies that nurture all companies. Somewhere in Wichita or Kansas there is a small unknown company that has half a dozen or so employees — maybe more, maybe less — that is working on some innovation. If we’re lucky, we have many such companies. These companies could be working on a new technology, manufacturing process, computer software, video game, internet site, food processing technology, retail concept, chemical process, restaurant idea, engineering methodology, agricultural process, airplane wing — we just don’t know. Many will fail. But some will succeed, and few will, hopefully, succeed in a big way.

    But these small startup companies may not fit in to the economic development programs the city and state have. Any of these now-small companies could become the next Cessna, LearJet, Beechcraft, or Pizza Hut. We just don’t know — we can’t know — which small companies will succeed. But these companies, when in small startup stage, struggle to pay the taxes that large companies are able to escape. Being small, they may also be disproportionally impacted by regulation. It’s not necessarily the case that a small startup aviation company is competing directly with Hawker Beechcraft and is handicapped by the larger company’s tax advantages and handouts. But these two companies could be competing for the same employees, for example, and that puts the smaller company at a disadvantage.

    How can we identify which companies are deserving of government subsidy? Which companies should have their tax burden softened at the expense of others? Allocating resources — deciding what to do — in the face of uncertainty is the crux of entrepreneurship. It’s something that government is not equipped to do, as its incentives and motivations are all wrong.

    In order to succeed, Kansas needs to embrace dynamism in its approach to economic development. For more on this see Kansas economic growth policy should embrace dynamism and Embracing Dynamism: The Next Phase in Kansas Economic Development Policy.

    Unfortunately, the Hawker Beechcraft deal, along with most of the policies of the state and the City of Wichita move in the opposite direction: towards more state-controlled economic development.

  • Kansas and Wichita quick takes: Friday November 26, 2010

    Bill Gates on school reform. Microsoft Chairman and founder Bill Gates, in an effort to help the states save money on schools, recently gave a speech, as reported by the New York Times: “He suggests they end teacher pay increases based on seniority and on master’s degrees, which he says are unrelated to teachers’ ability to raise student achievement. He also urges an end to efforts to reduce class sizes. Instead, he suggests rewarding the most effective teachers with higher pay for taking on larger classes or teaching in needy schools.” This is a refreshing take on the issue of class size. For more background on these issues from Voice for Liberty, click on Focus on class size in Wichita leads to misspent resources, Wichita public school district’s path: not fruitful, In public schools, incentives matter, and Wichita school district policy is misguided. For what it’s worth, incoming Kansas governor Sam Brownback doesn’t seem to have these issues on his agenda for education reform.

    Now the schools look for savings. The Lawrence Journal-World reports on an initiative to save on utility costs in the Lawrence public school system. “Teachers are unloading their refrigerators, flipping off computer monitors and unplugging their coffee pots — all to help the Lawrence school district save a few bucks over the Thanksgiving break. It’s all part of an ongoing program to trim utility costs, thus far saving the district at least $3.6 million.” I wonder: why hasn’t the school district been doing this already? This is more evidence that spending can be cut in ways that won’t harm children, despite the shrill claims of school spending advocates when they, like Wichita Representative Jim Ward or outgoing governor Mark Parkinson, claim that spending has already been “cut to the bone.” Lawrence, USD 497, contributed to the 2005 Kansas schools lawsuit, but is not a member of this year’s group suing taxpayers for more money. Give a small measure of credit to this district, that they’re trying to cut costs first instead of suing taxpayers.

    Business climate under Brownback. A poll by the Wichita Business Journal indicates that Kansans think the state’s business climate will improve under incoming governor Sam Brownback — barely. 53 percent of respondents clicked on “Yes, it will get better.” The rest thought the business climate will remain the same or get worse. This is not a scientific poll, but represents the sentiment of those readers who chose to participate.

    The parent trigger. A law in California allows parents whose children are in failing public schools to petition the school to become a charter school, close down, other undergo other reform. Called the “parent trigger,” the law was promoted from the political left, unlike most reform proposals which come from the political right. The Center for School Reform at the Heartland Institute explains in the policy brief The Parent Trigger: A Model for Transforming Education. As the full report states: “America’s $400 billion public education system exists primarily to serve grown-ups — bureaucrats, unions, and other special interests — not kids.” The primary opposition to this measure comes from — naturally — the teachers union: “Because many parents will likely choose to have their schools convert to charters and most charter schools are not unionized, powerful unions like the California Teachers Association view parental empowerment as a threat.” Anyone who has read much about school reform knows that the teachers unions and schools spending advocacy groups are the greatest threat to any meaningful reform. In Kansas, the two groups that consistently oppose meaningful reform are Kansas National Education Association (KNEA, the teachers union) and the Kansas Association of School Boards (KASB).

    Public or private parks? John Stossel asks whether parks should be public or privately owned. A video clip shows several interviewees insisting that parks must be public. Unknowing to these people, they were all interviewed in a privately-owned park. In this video clip, Stossel explains the tragedy of the commons and the benefits of private property. His written article concludes: “What private property does — as the Pilgrims discovered — is connect effort to reward, creating an incentive for people to produce far more. Then, if there’s a free market, people will trade their surpluses to others for the things they lack. Mutual exchange for mutual benefit makes the community richer.”

    Kansas Rep. Jim Morrison. Kansas Representative Jim Morrison of Colby has died. Services are pending.

    Kansas City Mayor not happy with job poaching. The flow of jobs from Kansas City Missouri across the border to Kansas needs to stop, says Kansas City Mayor Mark Funkhouser. The Promoting Employment Across Kansas (PEAK) program is to blame, he says. This program allows companies to use nearly all the payroll withholding taxes its employees pay for its own benefit instead of supporting the Kansas budget. In urging Missouri to step up its ability to offer incentives, Funhouser used the term “nuclear deterrence.” He seems to indicate that the ability of one state to counter another state’s incentives might stop companies from moving just to get incentives. See Kansas City Star article Loss of jobs to Kansas irks Kansas City’s mayor. It’s a little ironic to hear Missouri complain about generous Kansas incentives, as Kansas politicians like Wichita Mayor Carl Brewer often complain about the incentives other states offer that Kansas can’t match, and how they wish they had other “tools in the toolbox.” Also, Star columnist Mary Sanchez is wrong when she writes “Present-day market realities call for upfront capital incentives for companies to relocate.”

  • Kansas and Wichita quick takes: Wednesday November 17, 2010

    Kansas Senator Lee to tax court. State of the State KS reports that Kansas Senator Janis Lee has been appointed by Governor Mark Parkinson to the Kansas State Court of Tax Appeals. Lee is a Democrat from Kensington in northwest Kansas. This action opens another position in the senate — another three pending vacancies need to be filled due to senators who won election to other offices — and others are likely to follow as incoming governor Sam Brownback fills his cabinet. Lee scored 13 percent on the Kansas Economic Freedom Index for this year, which is a voting record more in favor of economic freedom than some other Senate Democrats — and some Republicans such as Senate President Steve Morris, for that matter. Lee’s replacement will be selected by the Democratic Party precinct committeemen and committeewomen in that senate district.

    Saving is good. A letter in today’s Wichita Eagle holds this observation: “Rich people don’t spend money in hard times. Give them a tax break, and they will stash it away. That’s why they are rich.” This letter contains a misconception that news media mistakenly repeats over and over: that consumer spending is good and saving is bad. What happens to savings — the “stash it away” the letter writer refers to? Few people stuff cash in the mattress or in a safe. Instead, they do several things with they money they decide not to spend on immediate consumption, which is the definition of savings. If put it in a bank, the bank lends it to others who will spend it. If used to pay down debt, that frees up funds for others to spend. If used to buy stocks and bonds, that provides funds for business to invest. Importantly, these funds usually go into increasing the nation’s stock of capital. This capital spending is especially desirable, as it supports current economic activity — that is, the people and companies that work today to produce capital goods — but it sets up the country to produce even more wealth in the future.

    Voters express pessimism. Consistent with other recent Rasmussen polls, voters are not optimistic that Congress will be able to accomplish very much in the next two years. See Voters Hold Little Hope for What New Congress Is Likely To Achieve.

    KDOT seeks public comment on public involvement policy. This seems almost like circular reasoning, but the Kansas Department of Transportation seeks public comment on a document titled “Sharing the Future — Public Involvement in the Kansas Transportation System.” The document — all 113 pages — may be found on this page. Comments should be directed to Kansas Department of Transportation, Bureau of Public Involvement, 700 S.W. Harrison, Topeka, 66603-3754, (785) 296-3526, fax (785) 368-6664, or maggiet@ksdot.org.

    Texas stimulus spending — not. Texas Watchdog takes a look at federal stimulus spending in Texas and finds some disturbing results. An example: “A closer look at spending by each agency shows wild differences in the amount of money spent and the number of jobs created. At least eight agencies have reported spending $500,000 or more for every job claimed. In the case of the Texas State Library and Archives Commission, its $883,993 per job is an estimate because more than a year after it was awarded nearly $8 million for a statewide library broadband upgrade project, nothing has been spent and none of its projected nine employees have been hired.”

    Who stole Election Day? A candidate for Maine governor wonders whether the rise of advance voting — “convenience voting,” he calls it — is good for the country. Besides meeting a voter who expressed regret in having already voted for his opponent, Eliot Cutler writes this of convenience voting: “At a time when sea changes are roiling our democracy, political parties are in decline, and public confidence in the political system is plummeting, convenience voting is having all the wrong effects. In Maine, at least, it appears to be discouraging voter engagement, providing life support to withering political parties, and undermining one of our most enduring and important institutions.” More in the Wall Street Journal at Who Stole Election Day? Too many voters are making decisions when horse-race coverage dominates the news, attention to issues is limited, and key debates haven’t taken place.

    Adapt, don’t overreact to climate change. Bjorn Lomborg — The Skeptical Environmentalist — of the Copenhagen Consensus Center argues in the pages of the Washington Post that mankind has shown that it can adapt to climate change. This record, he argues, means we should not panic about climate change. We can afford a long-term perspective: “… when it comes to dealing with the impact of climate change, we’ve compiled a pretty impressive track record. While this doesn’t mean we can afford to ignore climate change, it provides a powerful reason not to panic about it either.” He cites the example of the Netherlands: “Keeping Holland protected from any future sea-level rises for the next century will cost only about one-tenth of 1 percent of the country’s gross domestic product.” Concluding, he writes: “[adaption] will enable us to get by while we figure out the best way to address the root causes of man-made climate change. This may not seem like much, but at a time when fears of a supposedly imminent apocalypse threaten to swamp rational debate about climate policy, it’s worth noting that coping with climate change is something we know how to do. ”

  • Kansas and Wichita quick takes: Tuesday November 9, 2010

    Wichita city inspection staffing. Sunday’s Wichita Eagle carries a story detailing problems some southeast Wichita homeowners have with their homes. I’m not sure whether the story is being critical of the city inspection process, so I’ll quote the article: “[Central inspection superintendent Kurt] Schroeder said he can’t say for sure that the city did everything possible to prevent these problems. City inspectors granted building permits and conducted inspections at the houses at various stages of building. But he said the city has no records of final approvals for two houses in the neighborhood. It could be that the inspector signed off but didn’t enter it into the computer system, Schroeder said, but he can’t be sure.” … It’s not as though city inspectors are in short supply. In July, Wichita real estate developer Colby Sandlian spoke to the Wichita Pachyderm Club. As part of his talk, Sandlian said that during the 1950’s, when he started in the real estate business, Wichita was building about 2,600 to 3,000 houses per year, in what he described as some of the nicest neighborhoods in the city. At that time, there were three people in the city’s zoning department, and seven in the building inspection department. Today, Sandlian said Wichita added 1,568 houses in 2007, 1,032 in 2008, and 752 in 2009. Despite the small number of homes being built, staff has swelled: Sandlian said today there are seven in planning (up from three), and 61 in building inspection (up from seven). “Those people, in order to justify their existence, have to find problems with what you’re doing,” he said. But it appears that even with greatly increased numbers, inspectors may not have been looking hard enough, at least in the cases of these southeast Wichita homes.

    Kansas Prosperity Summit. This Friday (November 12) FairTaxKS is holding an event designed “to create a collaborative environment to create awareness, express support, offer solution, and launch the passing of the Kansas Jobs Plan 2011.” The main event is from noon to 4:00 pm at the Topeka Performing Arts Center (TPAC), 214 SE 8th Ave., and will feature speakers Kris Kobach (Kansas Secretary of State-Elect), Jonathan Williams (co author of “Rich States, Poor States“, Arlen Siegfreid (Speaker Pro Tem of the Kansas House of Representatives), and Dave Trabert (President, Kansas Policy Institute). An optional morning session will observe a meeting of the Special Committee on Assessment and Taxation. See Kansas Prosperity Summit 2011 for complete details.

    Government cheese. “When sales of Domino’s Pizza were lagging, a government agency stepped in with advice: more cheese. This is the same government that, for health reasons, is advising less cheese.” The New York Times continues in While Warning About Fat, U.S. Pushes Cheese Sales: “Domino’s Pizza was hurting early last year. … Then help arrived from an organization called Dairy Management. It teamed up with Domino’s to develop a new line of pizzas with 40 percent more cheese, and proceeded to devise and pay for a $12 million marketing campaign. … Dairy Management, which has made cheese its cause, is not a private business consultant. It is a marketing creation of the United States Department of Agriculture — the same agency at the center of a federal anti-obesity drive that discourages over-consumption of some of the very foods Dairy Management is vigorously promoting.” I’m starting to lose track of the contradictions here: Government promoting the very food it blames for health problems it often ends up paying for, and an agency partly funded by tax funds developing marketing programs for a private firm. When the New York Times complains that something is amiss with a government program, you know it’s really bad.

    Kansas budget profiled. John Hanna of Associated Press takes a look at the Kansas budget and issues surrounding. Key facts: For the next budget (fiscal year 2012, which starts July 1, 2011, and is the budget the legislature will work on during the upcoming session), there is no more federal stimulus money. That money was a key part in balancing the last two budgets. The deficit for FY 2012 is projected at $492 million. Tax collections are projected to grow by 4.3 percent in FY 2012. By transferring highway funds and gambling revenues to the general fund, the state could balance the budget without cutting services by much, but there will likely have to be some cuts.

    Kansas judicial selection. Foundation Watch, a publication of the Capital Research Center, features an article titled George Soros’s Plan to Seize State High Courts. Kansas is mentioned several times in this article. As readers may remember, Kansas judicial selection gives extreme power to members of the bar, more so than does any other state. The state’s elites — outgoing Kansas Governor Mark Parkinson, newspaper editorial writers, and of course the lawyers — are fine with this undemocratic system. But we should be cautious. The article’s summary is: “In some states supreme court judges are elected by the people. In others the governor appoints judges from a list of recommendations compiled by a commission composed mainly of lawyers. Arguments can be made for either process. But George Soros knows what he wants: appointed supreme court judges recommended by lawyer-driven commissions. Call us knee-jerk, but that may be one good reason why this is not a good idea.”

  • Kansas and Wichita quick takes: Friday November 5, 2010

    Political attacks on tap at Pachyderm. Wichita State University political science professor Mel Kahn will be the presenter at today’s (November 5) meeting of the Wichita Pachyderm Club. The always-interesting professor will speak on the topic “Do Political Attacks Help or Harm our Republic?” This seems like a timely topic given the recent general and primary elections. The public is welcome at Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club.

    Hold the celebration “A new Rasmussen Reports national telephone survey finds, in fact, that 59% of Likely U.S. Voters think it is at least somewhat likely that most voters will be disappointed with Republicans in Congress before the next national elections. That includes 38% who say it is Very Likely.” More at Most Voters Think House GOP Likely To Disappoint By 2012. Is this evidence of a deeply-ingrained cynicism by American voters? I hope not — but I can’t blame people for thinking so.

    We understand, that’s why we resist. The incredibly insightful George Will discusses in the Washington Post what he calls the “nationwide recoil against Barack Obama’s idea of unlimited government” and explains why progressives (the people who used to be called liberals) are so confused and unable to accept the political reality of the day: “The progressive agenda is actually legitimated by the incomprehension and anger it elicits: If the people do not resent and resist what is being done on their behalf, what is being done is not properly ambitious. If it is comprehensible to its intended beneficiaries, it is the work of insufficiently advanced thinkers.” I added the emphasis to make sure we grasp the essence of Will’s description of the progressive mindset: that we regular people are just not capable of understanding what is in our own best interests. That is the working belief of Obama and the progressives. As an aside, it’s amazing the the Post can have a columnist as good as Will and as corrupt as Dana Milbank at the same time.

    Obama really doesn’t get it. In a preview of a 60 Minutes interview to be broadcast on Sunday, CBS News reports: “After a [sic] suffering a ‘shellacking’ in the midterm elections, President Obama acknowledges what many have seen as his chief weakness — failing to sell the importance of several legislative milestones to the American people. … ‘Making an argument that people can understand,’ Mr. Obama continued, ‘I think that we haven’t always been successful at that.’” In other words, it’s a marketing problem for Obama. Others have said the same. Recently Jonathan Alter wrote “It’s a sign of how poorly liberals market themselves and their ideas that the word ‘liberal’ is still in disrepute despite the election of the most genuinely liberal president that the political culture of this country will probably allow.” But I think that people understand perfectly well the liberal or progressive agenda — if not at a deeply intellectual level than by instinct — and I agree with George Will: “Is political power — are government commands and controls — superseding and suffocating the creativity of a market society’s spontaneous order? On Tuesday, a rational and alarmed American majority said ‘yes.’”

    Kansas Republicans a spry bunch. After January, ten of the 12 Kansas statewide or federal offices will be held by people under the age of 55. Exceptions are Insurance Commissioner Sandy Praeger and Senator Pat Roberts. Roberts has indicated he’ll run again in 2014.

    Kansas Senate after the election. The Kansas Senate, unlike the House, was not up for election this year, although there were two special elections. In one, the appointed incumbent was elected, and in another, a replacement for Jim Barnett was selected. While the composition of the Senate remains 31 Republicans and nine Democrats, not all the Republicans are conservatives. Quite a few — including the Senate leadership and two Wichita-area members — have voting records indistinguishable from many Democrats. A good guess at the number of conservative-voting senators is 17, short of a majority. Upcoming: There will be at least three new senators selected. In two cases — to replace Tim Huelskamp and Jeff Colyer — the likely replacements will be conservative, as are the two resigning members. In the third case, to replace majority leader Derek Schmidt, it is likely that the replacement will be more fiscally conservative, although Schmidt did vote against the big-spending budget and sales tax increase this year. With a conservative governor taking office and the House controlled by conservatives, might a few senators decide to adopt a more conservative view? Those left-leaning members who are looking to run for reelection in 2012 have a decision to make.

    Kansas City Star on Parkinson’s pollution. The Kansas City Star laments outgoing Kansas Governor Mark Parkinson‘s decision to fire Kansas Department of Health and Environment chief Rod Bremby. The issue is Parkinson’s desire to get a coal-fired electricity plant in Kansas permitted before new rules come into effect. There are several problems with the Star’s editorial. First, cabinet secretaries like Bremby serve at the pleasure of the executive. If they don’t do what the boss wants, they’re gone. Second, the Star refers to the “tons of new pollution” that will “drift eastward across Kansas.” The editorialist should remember that Bremby denied the permit for the plant based on its carbon dioxide emissions, not for emissions of actual pollutants like sulfur dioxide. To the extent that carbon dioxide is harmful, it is because of its (alleged) impact on global warming, and that impact is disputed. Carbon dioxide is not a pollutant in the sense that it is poisonous or harmful to those who breath it, as it is naturally abundant in the atmosphere. By the way, Bremby’s decision to deny the permit was entirely political, as he was apparently willing to approve a permit for an oil refinery that would emit 17 million tons of carbon a year, when he denied the power plant solely because of its emissions of 11 million tons. See Rod Bremby’s action drove away the refinery.

  • Kansas and Wichita quick takes: Thursday October 14, 2010

    Wichita mayor to lead LKM. City press release: “Wichita Mayor Carl Brewer was elected as the 81st president of the League of Kansas Municipalities (LKM) during the organization’s annual conference Tuesday morning in Overland Park. … He also urged his fellow local leaders to restore the public’s confidence in government. ‘We need to have our citizens recognize the value of competent government, and why our freedoms and security depend on it,’ he said.” As noted a few days ago on these pages, the League of Kansas Municipalities is a special interest group working in favor not of the citizens who live in Kansas towns and cities, but the politicians and bureaucrats that run them — and their cronies — who benefit from the LKM’s advocacy of things like TIF districts, STAR bonds, tax abatements, and eminent domain for economic development. So I don’t know if we should be proud that our mayor is the president of this group.

    Goody Clancy in Topeka, too. The Topeka Capital-Journal reports that Goody Clancy, the planning firm working for Wichita is also working in Topeka.

    FactFinder 12: Pompeo campaign ad. Analysis of an advertisement by Kansas fourth Congressional district candidate Republican Mike Pompeo by Michael Schwanke of KWCH 12 Eyewitness News concludes that Pompeo used some of the techniques that he and Republicans strongly criticized Democrat Raj Goyle for using. Schwanke concludes: “Goyle made those statements, but the ad doesn’t provide complete context.” This is the same issue that got Republicans riled up a few weeks ago.

    Pompeo poll released. The Pompeo campaign has released a poll that was commissioned and paid for by the campaign. The results are Pompeo with 58 percent of the vote, and Goyle with 31 percent. Two minor party candidates get three percent each, and undecided voters are at 16 percent. In its analysis the polling firm notes “the confrontational attacks by Goyle have backfired and have resulted in Goyle’s negative rating increasing substantially.” Candidate-produced polls need to be considered carefully. Goyle’s campaign has released their own polls in August and September which showed a smaller Pompeo lead than public polls. FiveThirtyEight indicates it flags polls which meet its definition of a partisan poll, which it defines as a poll conducted [on behalf of] any current candidate for office. It also says “Nevertheless, they are included in the ratings. If a pollster releases a poll into the public domain, we assume that they are interested in doing their best and most accurate work, regardless of whom the poll is conducted for.” The firm that conducted this poll for Pompeo conducted a poll for the same campaign July 6th through 8th, about a month before the August primary election, with results of Pompeo leading Wink Hartman 27 percent to 21 percent. The actual results were Pompeo 39 percent, Jean Schodorf 24 percent, and Hartman 23 percent. Public polls underestimated Pompeo’s actual vote total, too.

    Kansas legislator Merrick honored. American Legislative Exchange Council, described as a “nonpartisan individual membership organization of state legislators which favors federalism and conservative public policy solutions” has recognized Kansas Representative and Majority Leader Ray Merrick with its highest award. “The American Legislative Exchange Council (ALEC) is pleased to announce that Representative Ray Merrick of the Kansas House of Representatives recently received the highest honor that a setting legislator can receive from the organization — Legislator of the Year. Rep. Merrick received the award at ALEC’s 37th Annual Meeting, held in San Diego, Cal., August 5 — 8, 2010. Nearly 1,500 state legislators, policy experts, and private-sector leaders from across the United States attended three days of intensive discussions on the critical issues facing the states and our nation. This award is given to state legislators who are ALEC members in good standing and have distinguished themselves by advancing, introducing, and/or enacting policies based on the fundamental Jeffersonian principles of free markets, limited government, federalism, and individual liberty.”

    Education reform setback. Wall Street Journal Review & Outlook: “Michelle Rhee described her decision yesterday to step down as Washington, D.C., schools chancellor after 3½ years as ‘heartbreaking.’ We share the sentiment. That one of the nation’s most talented school reformers was forced out does not bode well for students … Ms. Rhee’s resignation ‘won immediate support from the Washington Teachers’ Union,’ a strong signal that her departure is a victory for the adults who run public education, not the kids in failing schools. … One reason education reform is so difficult is because unions believe their political influence and money will outlast even the bravest reformers in the end — which is why they’re cheering today in the District of Columbia.”

    Wichita Eagle voter guide available. Click here. You can get a list of the candidates, along with their responses to questions, customized for your address. The first advance voter ballots were mailed yesterday.

    Kansas Jackass blogger guilty. Kansas Watchdog reports: “Former blogger Jason Croucher entered a plea of guilty to 3 counts of child pornography on Wednesday morning at the U.S. Court House. Croucher’s progressive ‘Kansas Jackass’ blog was widely read by members of the Kansas Legislature and others in Kansas in 2009. The blog is no longer online.” Croucher operated anonymously until “outed” by Earl Glynn and myself, although he planned to become known on his own at some time. His style was to poke fun at his opponents, using anything negative about them as material for his attacks. Rarely was public policy discussed in a meaningful and serious way.

    Wichita Eagle Opinion Line. “Gov. Mark Parkinson: I have six employees. I need to expand my business or quit. Please loan me $1 million to be paid back with my employees’ income tax. Thank you.” A fine example of government intervention crowding out private investment and initiative.

  • Kansas and Wichita quick takes: Tuesday October 12, 2010

    Wichita Visioneers in Louisville. The Wichita Business Journal’s Emily Behlmann reports on a trip by Wichitans to Louisville to get ideas on transforming Wichita’s downtown. Hopefully they won’t get this idea, as reported yesterday by the Louisville Courier-Journal: “The heavily subsidized 4th Street Live entertainment district has come under criticism from locally owned businesses for receiving millions of dollars in tax breaks and government subsidies — including a controversial, $950,000 city loan that won’t necessarily have to be repaid.” According to Wichita planner Goody Clancy, heavy subsidy isn’t supposed to be necessary in Wichita. And, I hope all the planners read Jack Cashill’s take on Louisville’s planning: Good intentions, and planners, can sap a city’s soul.

    Lynn Jenkins: Don’t try to make Koch Industries a scapegoat. From today’s Wichita Eagle: “Koch management is dedicated to keeping the company growing. It reinvests 90 percent of company profits back into the businesses, allowing them to expand product lines and hire more employees. That is good for consumers and for workers. However, the company has come under fire because its owners support free-market principles inconsistent with the current Democrat leadership.”

    Should candidates bother to debate? Rasmussen finds that nearly half of likely voters have watched at least one debate, and about half find them informative.

    Costly approach to Kansas economic development — or defense. “Insiders were still not talking Wednesday about the potential cost of saving 6,000 aircraft workers’ jobs in Wichita. Outsiders say that some circumstances at their employer, Hawker Beechcraft, are so different from other companies Kansas has fought to keep that it may be impossible to gauge what it might cost to help prevent the 80-year-old Wichita firm from moving lock, stock and avionics to Baton Rouge, La., and cashing in on Louisiana incentive packages rumored to be worth as much as $400 million.” From Kansas Reporter.

    FiveThirtyEight. More about the political site FiveThirtyEight, which I took a look at on Sunday, especially its coverage of Kansas races. Here, James Taranto discusses FiveThirtyEight, concluding: “The recent acquisition of Nate Silver’s FiveThirtyEight.com makes for a striking contrast with the paper’s uneven news reporting and dreadful op-ed columnists.”

    No Wichita city council today. It’s the League of Kansas Municipalities conference in Overland Park this week. LKM is a special interest group working in favor not of the citizens who live in Kansas towns and cities, but the politicians and bureaucrats that run them — and their cronies — who benefit from the LKM’s advocacy of things like TIF districts, STAR bonds, tax abatements, and eminent domain for economic development.

    County commissioner forum tonight. Tonight at 7:00 pm at Gloria dei Lutheran Church, 1101 N. River Blvd. Oletha Faust-Goudeau and Richard Ranzau will appear.

    Parkinson is moderate — he says again. Kansas Governor Mark Parkinson — yet again — engages in self-congratulation over “how Kansas has weathered the economic recession by setting politics aside and working together to find moderate, common-sense solutions.” He’s done this several times since the legislative session was over — so many times that I’ve lost count. Evidence of a guilty conscience, perhaps? Parkinson’s abandonment of the Kansas Democratic Party by not choosing to run for reelection has put that party at a tremendous disadvantage in this year’s elections.

    Bureaucracy vs. Bureaucracy? “Andrew Gray, Libertarian Candidate for Kansas Governor, says that simplifying or repealing unnecessary statutes and regulations is a key part of his administration’s plan to empower the private sector to create jobs and prosperity in Kansas. He also says he’s pleased that Senator Brownback is at least talking about similar actions. However, Gray finds it ridiculous that Senator Brownback is actually planning to create more bureaucracy in order to cut bureaucracy.” I think he’s got a point. But anything that is necessary to reduce the size of government is what we need to do.

    The impossibility of an informed electorate. D.W. MacKenzie writing for Mises Daily, reacting to a John Stossel suggestion that uninformed people have a duty not to vote: “The problem with voting in modern America is that we have a politicized society, and modern society is extraordinarily complex. Stossel suggests that only people who follow politics should vote. However, even those who follow politics very closely do not understand the implications of changes in public policy. The lesson here is that efforts to incrementally reform government policies and programs through the democratic process are futile. To the extent that we vote at all, rational people should vote to depoliticize the economy. … What this means is that we need to reintroduce the price system as the primary method of economic communication, and the profit-and-loss sorting mechanism as the primary method of social reform.”

    Gallup: Americans negative towards federal government. “More than 7 in 10 Americans use a word or phrase that is clearly negative when providing a top-of-mind reaction to the federal government.” Details here: Americans’ Image of “Federal Government” Mostly Negative.

    A minority opinion, or a delusion? Paul Krugman in the New York Times: “Here’s the narrative you hear everywhere: President Obama has presided over a huge expansion of government, but unemployment has remained high. And this proves that government spending can’t create jobs. Here’s what you need to know: The whole story is a myth. There never was a big expansion of government spending. In fact, that has been the key problem with economic policy in the Obama years: we never had the kind of fiscal expansion that might have created the millions of jobs we need.”

  • Kansas and Wichita quick takes: Monday October 11, 2010

    Moran at Wichita Pachyderm: This Friday’s speaker at the Wichita Pachyderm Club is current United States Representative and Republican Party Senate nominee Jerry Moran. As a large audience is expected, please arrive by 11:45 to get your buffet lunch in time for the noon start (the larger meeting room will be used). Cost is $10, which includes lunch.

    Wichita, get control of incentives: Rhonda Holman’s lead editorial in yesterday’s Wichita Eagle urged caution and restraint in Wichita’s use of tax incentives — a welcome message not expected from the Eagle. One conservative wrote to me: “I am stunned to find myself to be largely in agreement with today’s editorial by Rhonda Holman. Wow.” The editorial was critical of past city policy and practice, with Holman referring to special taxing districts as “tax tricks.” On the need for public investment in downtown, she wrote “the city must ensure its use of special taxing districts is strategic, fair, farsighted and defensible.” Whether our present political and bureaucratic leadership can accomplish this is, in my opinion, unlikely.

    Rasmussen key polls from last week: California Senate moves from “leans Democrat” to “toss-up” … Most Americans feel Nobel prizes are political … Harry Reid’s son trails in race for Nevada governor … Cyber bullying seen equally dangerous as physical bullying.

    Kansas initiative and referendum: The Wichita Eagle takes a look at initiative and referendum. A focus of the article is Secretary of State candidates Chris Biggs and Kris Kobach, which is a little misplaced, as they don’t have a say in whether Kansas has I&R, although they would administer the process and Kobach has made it a campaign issue. Key takeaways: “States with initiatives spend and tax less than states without them.” Politicians of both stripes hate I&R, with Kansas Senate President Steve Morris — a big-spending, big-taxing, liberal Republican — hating the idea, according to the article. Same for Speaker of the Kansas House of Representatives Mike O’Neil, a conservative. Not reported in the article is one of the first things the people may do in states that have I&R: impose term limits on their elected officials, an idea most of the political class hates.

    China Emerges as a Scapegoat in Campaign Ads: The New York Times reports: “With many Americans seized by anxiety about the country’s economic decline, candidates from both political parties have suddenly found a new villain to run against: China. … Democrats and Republicans are blaming one another for allowing the export of jobs to its economic rival.” Kansas fourth district Congressional hopeful Democrat Raj Goyle is mentioned as one of 29 candidates using China as a foil in campaign ads, just in case you thought Goyle’s attacks were novel. But the issue is murky, as the Times notes: “Never mind that there is hardly any consensus as to what exactly constitutes outsourcing and how many of the new overseas jobs would have stayed in American hands.”

    Regulation — Baptists and Bootleggers: “Here is the essence of the theory: durable social regulation evolves when it is demanded by both of two distinctly different groups. ‘Baptists’ point to the moral high ground and give vital and vocal endorsement of laudable public benefits promised by a desired regulation. Baptists flourish when their moral message forms a visible foundation for political action. ‘Bootleggers’ are much less visible but no less vital. Bootleggers, who expect to profit from the very regulatory restrictions desired by Baptists, grease the political machinery with some of their expected proceeds. They are simply in it for the money. The theory’s name draws on colorful tales of states’ efforts to regulate alcoholic beverages by banning Sunday sales at legal outlets. Baptists fervently endorsed such actions on moral grounds. Bootleggers tolerated the actions gleefully because their effect was to limit competition.” From Bruce Yandle, Bootleggers and Baptists in Retrospect. A podcast on the topic is Bruce Yandle on Bootleggers and Baptists.

    Obama fails education: From Three Reasons Obama’s Education Vision Fails at Reason: “While he brags constantly about his Race to the Top initiative, in which states competed for $4 billion to fund innovative programs, he’s spent more than $80 billion in no-strings-attached stimulus funds to maintain the educational status quo.” Obama also killed a school choice program in Washington, and has snuggled up to the teachers unions with a stimulus bill to preserve and add union teacher jobs “despite the fact that there are already more teachers per student than ever.” The status quo describes outgoing Kansas Governor Mark Parkinson and his education “vision.” Not that presumptive incoming governor Sam Brownback is a radical on school reform, however. His education plans are quite tepid and not likely to produce the results Kansas schoolchildren need.

    Wichita Eagle Opinion Line: “If Kansans want lower taxes and less government, why are there so many homeowners’ associations here?” I guess the distinction between government and voluntary action escapes this person.

  • Texting bans haven’t worked

    In an attempt to increase highway safety, many states have passed bans on texting while driving. But the bans haven’t worked, and some states have experienced an increase in crashes.

    A news release from the Highway Loss Data Institute summarizes the finding of a new study: “It’s illegal to text while driving in most US states. Yet a new study by researchers at the Highway Loss Data Institute (HLDI) finds no reductions in crashes after laws take effect that ban texting by all drivers. In fact, such bans are associated with a slight increase in the frequency of insurance claims filed under collision coverage for damage to vehicles in crashes. This finding is based on comparisons of claims in 4 states before and after texting ban, compared with patterns of claims in nearby states.”

    The study does not claim that texting while driving is not dangerous. Rather, the realization by drivers that texting is illegal may be altering their behavior in a way that becomes even more dangerous than legal texting. Explains Adrian Lund, president of both HLDI and the Insurance Institute for Highway Safety: “If drivers were disregarding the bans, then the crash patterns should have remained steady. So clearly drivers did respond to the bans somehow, and what they might have been doing was moving their phones down and out of sight when they texted, in recognition that what they were doing was illegal. This could exacerbate the risk of texting by taking drivers’ eyes further from the road and for a longer time.”

    When Kansas passed its texting ban this year, newspapers editors praised the legislature and Governor Mark Parkinson for passing the law. In an editorial, the Wichita Eagle’s Rhonda Holman wrote “But it’s nice to know the state finally has a law against this brainless and dangerous practice.” In his written statement, Parkinson said “I am pleased to sign this legislation that will encourage more aware drivers and save Kansas lives.”

    While Kansas was not included in the HLDI study, there’s no reason to think that Kansas will experience anything different from the states that were studied: Kansas drivers may be under greater risk of being in a crash after the passage of this law. Stricter enforcement of this law and higher fines will simply encourage the dangerous law-evading texting behavior.

    The texting ban was included in my Kansas Economic Freedom Index for 2010 for the Kansas Senate. Senators who voted against the ban increased their scores in favor of freedom.

    While I did not know the results of this study at that time, this is another example where instinctive distrust of government regulation was the correct diagnosis.