Tag: Mark Parkinson

  • Josh Svaty named Secretary of Agriculture

    Today Kansas Governor Mark Parkinson appointed Josh Svaty, a member of the Kansas House of Representatives as acting agriculture secretary. Svaty is a Democrat from Ellsworth.

    His record as a legislator is clear: he’s in favor of big government taxation and spending.

    In 2003, Svaty earned a rating of 10% from the Kansas Taxpayers Network. He voted to raise income and sales tax by $230 million. He also voted to raise a number of fees for various licenses.

    In 2004, he voted for income, sales, and property tax hikes. He also voted against efforts to limit spending growth. This earned him a KTN rating of 0% for that year.

    In 2005, his KTN rating was 25%. he voted against protecting taxpayers from judicial spending edicts stemming from the Montoy school finance decision.

    2006, his rating from KTN was 30%. He voted in favor of protection from eminent domain seizure of property — a good vote for those concerned with individual liberties.

    In 2007, his KTN rating was 25%.

    His overall lifetime rating is 19%, making Josh Svaty not a friend of the Kansas taxpayer.

  • Watkins addresses Kansas budget, Republicans, schools

    Speaking at at the regular weekly meeting of the Wichita Pachyderm Club on May 22, 2009, Kansas House of Representatives member Jason Watkins addressed the Kansas budget, Kansas Republicans, and school spending.

    Watkins represents House district 105, which includes parts of west and northwest Wichita. He is Vice-Chair of the House Appropriations Committee, which was the center of some fast-paced legislative action this year as it worked on the Kansas budget.

    Regarding the budget during the past legislative session, which ended in May: Watkins felt there was an opportunity for reform that the legislature should have taken advantage of. The injection of federal stimulus money, however, reduced the urgency of the Kansas budget crisis, and no reform took place.

    Kansas received about $1.8 billion in federal stimulus, with about $1 billion under the control of the legislature or the governor. The rest went directly to state government agencies.

    About $50 million, Watkins said, went to the Kansas Weatherization Office. That office has one man on its staff, and he told Watkins he had no idea how to spend all that money.

    True budget reform has been delayed, but is needed.

    Watkins said that there’s no doubt that the Kansas National Education Association (KNEA, the teachers union) is the most powerful lobby in Kansas.

    In 2008, Watkins said he had four children in the public school system. “Based on what the KNEA and the other education lobbyists told us this year, my kids must have gotten a horrible education in 2008. … Because the cuts we were talking about making would have taken K-12 education back to 2008 levels.” But the spending lobby painted a picture of failing schools if these cuts were made. Schools could absorb no cuts, they said.

    As a result, Kansas was forced to make large cuts in spending on programs such as assistance for the mentally and physically disabled in order to “empire build” in the Kansas public school system system.

    Addressing the need for budget reform, Watkins said that the present system, where each year’s budget is based on the past year’s plus an increase, produces anomalies. He illustrated a case where an agency might be able to get some federal money if the state spends some if its own. It might be, say, a three-year program. So the legislature authorizes and appropriates the funds.

    Then three years later the federal money is gone, so the program ends because the state funding alone is not sufficient for continuation. But the money the state allocated is still in the agency’s base budget — even through the program no longer exists.

    We need either zero-based budgeting or performance-based budgeting, Watkins said. Every state that’s done zero-based budgeting, however, has backed away from it, he said. There must be some type of performance measure, however.

    Watkins also said Kansas needs a legislative budget office. Presently the legislature receives a budget from the governor and works from that.

    In 2012, Watkins said the Kansas budget will face a huge challenge, as that’s the first budget year without the federal stimulus money.

    The budget that finally passed this year is full of problems, Watkins said. The budget was not debated on the floor of the Kansas House of Representatives, as that body simply voted to concur with the bill that the Senate passed. A group of moderate Republicans decided to team with Democrats to accomplish this, he said.

    With Republicans controlling the legislature, how did that happen? Watkins said “We do have people in the Republican Party who are Republicans in name only.” Republicans can disagree on issues, he said, but they shouldn’t vote with the Democrats 95% of the time. There are a group of about 16 Republican House members that constantly vote with the Democrats, and that produces a number large enough to pass legislation.

    In responding to a question about new Kansas Governor Mark Parkinson, Watkins said that while Parkinson said he’s not going to run for governor is 2010, no one’s asked him whether he’s going to run for senate in 2010. The compromise on the coal plant that Parkinson agreed to may have laid the groundwork for a state-side campaign.

    A question asked how does the school spending lobby have so much power? Watkins told how his opponent last year had never even voted. The KNEA gave him $500 (the maximum amount allowed) for the primary election, and that amount again in the general election. Yet, Watkins said his opponent never campaigned.

    It’s also not just the KNEA. There are other allied special interest groups. If the Democrats need something, these are the groups they go to.

    Watkins said the school spending lobby has a powerful argument unless people are presented with the facts and figures. That is, of course: “I’m for kids. Why do you hate them?” Because we have a disengaged public, Watkins said, people go along with this argument, which helps to further the cause and power of the education lobby. There is no question this lobby is the “bully in the Capitol.”

    He also said that the media doesn’t want to fight the school system. He told how one spending advocacy group refused to speak out at a meeting because they didn’t want to get the “schools made at them.” This is more evidence of how powerful the school spending lobby is.

  • Kansas tax policy facts from AFP

    Americans For Prosperity — Kansas has prepared some information about Kansas tax policy.

    This information is timely, as there are people — including our new governor Mark Parkinson — who want to “adjust” our tax system in ways that will harm the Kansas economy. The result is what’s termed “revenue solutions.”

    Specifically, some want to delay the implementation of some tax reductions that were passed a few years ago by the Kansas legislature. It’s claimed that since these tax reductions are for Kansas businesses, it’s possible to take them back without harming the Kansas economy. This is false.

    Also, some want to decouple Kansas tax law from the federal tax code, so that when Congress grants a tax cut to Americans, the state of Kansas won’t be harmed.

    Kansas Tax Talking Points, April 2009

    Kansas Tax Policy Talking Points • • • • • In 2008, the Tax Foundation ranked Kansas as having the 21st highest state and local tax burden and 33rd overall business climate. Kansas already ranks 38th nationally in Business Tax Structure, behind all of its peer states except Iowa at 45th. Peer states include all surrounding states plus Iowa. (Growth Economics Inc. Annual Competitive Index 2009) Kansas also ranks 38th nationally in Business Tax Burden. (Growth Economics Inc Annual Competitive Index 2009) The truism of “if you want less of something, tax it more” applies. The state should be growing our way out of this recession, not exacerbating it and slowing our recovery by taxing businesses. Halting these reductions will perpetuate the “unstable tax climate” associated with the state. Estate Tax Phase-out Repeal (HB 2047): HB 2047 would repeal the estate tax phase out by permanently freezing the tax at 2008 rates. This tax was scheduled to go away completely after this year. • Under House Bill 2047, businesses with under $1 million in assets remain exempt from the estate tax; however, assets over $1 million would be taxed as follows: o $1 million – $2 million would pay a 1% tax o $2 million to $5 million would pay $10,000 plus 2% of excess over $2 million o $5 million to $10 million would pay $70,000 plus 5% of excess over $5 million o $10 million + would pay $320,000 plus 7% plus excess over $10 million • Kansas will remain at a competitive disadvantage unless we allow this tax burden to expire as scheduled. o Kansas is one of only 10 remaining states with an estate tax and only Iowa and Nebraska are our peer states with it. o However, even Iowa and Nebraska have exemptions for direct descendents, which Kansas does not. • The estate tax is an obstacle for small and family owned business owners leaving their businesses to family members. o Family businesses can lose up to 55% of all its assets when it passes from one generation to the next. o 70% of families choose to cash out or abandon their businesses after one generation, often laying off workers. o Only 13% survive into the 3rd generation. (Source: U.S. Chamber of Commerce) Franchise Tax Phase-out Repeal (HB 2028): The franchise tax is a tax on a companies’ net worth. Companies pay this tax just for the privilege of doing business in Kansas. There are no offsets for corporate subsidiaries, which must pay the full franchise tax and are thus penalized under Kansas law. • Under the bill passed in ’07, the rate went to .09375% in ’08 and would have gone to .0625% in ’09 and finally to .03125% in 2010 before being completely phased out for 2011 and subsequent tax years. • In a recession, the worst thing the state can do is increase taxes on Kansas businesses. Decoupling Federal & State Depreciation Schedule: Changes to federal depreciation calculations also affect state taxable income because states conform to federal rules on depreciation in the calculation of their business income taxes. Decoupling prevents immediate revenue losses at the state level, but it increases complexity for states and taxpayers as businesses must conform to different depreciation schedules in different tax jurisdictions. • Most states have coupled their depreciation rules with federal guidelines. If federal officials adopt temporary accelerated depreciation provisions as part of a stimulus package, states can either decouple from the federal system, or be forced to raise revenues or cut spending to counter the loss in business income tax revenue. • Lowering the cost of capital will help spur the Kansas economy. Entrepreneurs will be more likely to invest in capital equipment, which will create jobs, income and a more desirable destination for investment. • Many in the Statehouse frame this issue as merely as a “cost” for the state. In actuality, the higher the so called cost, the greater the investments being made in Kansas and its future. If indeed the state would “lose” $77 million (estimated fiscal note of NOT decoupling), this represents $77 million in investments that will help create better, higher paying jobs. Corporate Income Tax Phase-out Repeal: As passed in 2008, HB 2434 reduced the top corporate income tax rate (incomes over $50,000) to a flat 7%, phased in over time as follows: 7.35% to 7.10% in tax year 2008; 7.05% in tax years 2009 and 2010; and 7.00% in tax year 2011 and thereafter. • Employers throughout Kansas are the very entities that help the Kansas economy. Let’s not make matters worse and punish those who create jobs, make investment and grow the state’s tax base by levying higher taxes on them. The Case Against Decoupling Kansas Tax Law The American Recovery and Reinvestment Act of 2009 extended for one year the depreciation rules of the Economic Stimulus Act of 2008 of 50% bonus deprecation. Decoupling would mean trading off a key long run economic development strategy for short-term revenues that will be nowhere near sufficient to cover the budget gaps currently projected. Kansas’ long-term strategy is to make it one of the most investment friendly tax environments in the nation. However, consistency is a key element of any investment related goal. Decoupling goes in exactly the wrong direction. It sends the signal that investors will be the first targets when budget problems arise. And it is questionable whether it would provide the tax revenue legislators desire. It is very unwise tax policy to have small businesses bear the brunt of the budget gap – especially when everyone considers the gap to be driven by K-12 education spending. Why, as a policy matter, should that not be all taxpayers in the state? Kansas is consistently in the bottom ten of states with regard to business formation. Using small businesses as a cash source will not help that situation. Decoupling has the potential to place the highest burdens on smaller businesses. And the franchise tax is essentially a small business property tax. Stopping the phase out does promise about $15 million per year, but that is based on pre-recession net worth levels, not 2009 levels. Bottom line: If businesses do start investing again in 2009, decoupling could make other states even more attractive vs. Kansas. Economic Benefits of the Holcomb Power Plant Expansion • The Project will maximize the value of the existing Holcomb Station site for the benefit of Sunflower Electric’s Member systems for generations to come. • The benefits created by the Project for communities located in the region include job creation, new tax revenues, and an increased demand for goods and services. • Fiscal notes associated with the rate reductions for each year are as follows: o FY09 ($13.3 M); FY10 ($15.9 M); FY11 ($15.9 M); FY12 ($18.6 M); FY13 ($18.6 M); 5-year total ($82.3 M) o Total Project Impacts, Two Units Jobs Temporary Impacts Western Eastern Kansas Kansas Out-of-State Western Eastern Kansas Kansas Out-of-State 1,501 967 2,466 11,857 274 53 329 280 $42.3 $35.9 $78.3 $321.9 $14.8 $1.4 $16.1 $7.4 $1.2 $.453 $9.3 NA Earning s Local & State Taxes o Dr. Ralph Gamble, a noted economist and former professor at Fort Hays State University, conducted an economic impact study of the Project. He found that the average number of jobs available in western Kansas will grow by more than 1,500 during the construction period. These workers will earn more than $42 million per year. The taxes collected will increase by more than $1 million, and construction crew spending in Kansas is expected to be more than $56 million. ? At full operation, the Project will add more than 250 full-time equivalent positions in western Kansas, earning nearly $15 million per year. It is estimated that about 2,500 jobs (direct and induced) will be created in Kansas with an annual payroll of $78 million during the construction period. Permanent Impacts $.300 $.054 $.684 NA • ? The Project will also result in the purchase of many goods and services for the power plant and by the workforce. Certain construction materials will likely be obtained locally, while major equipment will be obtained nationally and internationally.
  • Steineger responds to critics. They’re not persuaded.

    Kansas State Senator Chris Steineger, a Democrat from Kansas City, has reached out to the “other side” several times this year. He spoke at Americans For Prosperity’s Defending the American Dream Summit in Wichita in January (see Kansas Senator Chris Steineger on Redesigning Kansas Government.). On April 15, he spoke at the tea party protest in Overland Park.

    Kansas blogger Jason Croucher in his Kansas Jackass post KS-Gov: Chris Steineger Takes in a Tea Party, mildly criticized Steineger for his tea party appearance. The comments left to this post, however, were vicious.

    Today Croucher publishes a message from Steineger in the post Steineger Addresses Concerns Over Tea Part [sic] Attendance. The senator might as well stop trying to reason with the rabid leftists who leave most of the comments on the Kansas Jackass blog. They weren’t persuaded.

    Here’s a comment that provides a sampling of the sentiment: “My understanding is he spends most of the time going after government spending, particularly the Statehouse renovations. I’m not sure how that builds the Democratic party.” At least this person is honest in recognizing the role that government spending plays for Democrats.

    As it happened, Senator Steineger had invited me to breakfast last Friday. He’s a reasonable person, I found, and we had agreement on some issues. I appreciate his efforts to reform Kansas government by reducing the number of counties and legislators, which I had written about in the posts Kansas Senator Chris Steineger on Redesigning Kansas Government and Redesigning Kansas County Government: Follow-up.

    Steineger has publicly expressed his interest in being appointed lieutenant governor. Mark Parkinson would do Kansas a favor by selecting him.

  • Articles of Interest

    Wichita TIF development, Kansas coal, Carl Brewer on downtown, Dick Coe on crash and recovery, Fox’s Glenn Beck

    Parkstone hits milestone: Building almost complete on four townhouses (Wichita Eagle) Describes progress and plans for a Wichita real estate development project. Let’s hope this project sells well and quickly, as the taxpayers of Wichita are on the hook, due to this project’s use of tax increment financing.

    Parkinson firm against coal (Tim Carpenter in the Topeka Capital-Journal) Kansas Lieutenant Governor Mark Parkinson has promised to veto a bill that authorizes a coal-fired power plant if he is governor. The Speaker of the Kansas House of Representatives says he has enough votes to override a veto by either Parkinson or present governor Kathleen Sebelius. Sources in the House and Senate tell me that few members — Democrats or Republicans — trust Parkinson.

    Mayor asks Wichitans to dream about downtown’s future (Bill Wilson in the Wichita Eagle) Says Wichita Mayor Carl Brewer: “I want to provide everything you want to possibly imagine.” More evidence of local government’s desire to plan everything for us. I’m really surprised that young people are in favor of this.

    J. Richard Coe: U.S. Paying Price for Overindulging (Wichita Eagle) The head of a Wichita financial services firm provides analysis of how the United States got in its current mess, and what must happen to recover. What happened? “Largely as a result of the Federal Reserve keeping interest rates too low for too long, there was a huge increase in borrowing (credit). Individuals, businesses and governments responded to an incentive to borrow, but the incentive was a temporary illusion.” Coe sees problems with the measures the administration is taking: “Massive government spending and increased regulation will make it more difficult for the private sector to recover.” He gives free markets their due: “Markets are more reliable than governments, and markets are in the process of correcting for government-incentivized excessive borrowing.”

    Fox News’s Mad, Apocalyptic, Tearful Rising Star (New York Times) A profile of new Fox News television show host Glenn Beck. “Mr. Beck presents himself as a revivalist in a troubled land.” Some see “sinister meanings in his commentaries” and say he’s “stirring up a revolution.” “Let me be clear,” Mr. Beck said. “If someone tries to harm another person in the name of the Constitution or the ‘truth’ behind 9/11 or anything else, they are just as dangerous and crazy as those we don’t seem to recognize anymore, who kill in the name of Allah.”

  • Green energy policies causing harm in Europe

    In their Washington Times article Lessons from Europe, Iain Murray, Gabriel Calzada, and Carlo Stagnaro warn us in the United States about “green” energy policies that have been implemented in Europe. These harmful policies are just like the ones we are considering here.

    The cap-and-trade system that’s been in place in Europe has done little to reduce greenhouse gas emissions. “The scheme has been repeatedly gamed and manipulated by industry and governments so that emissions have actually increased faster than the those of the United States, with none of the big reductions promised materializing.”

    Meanwhile, electricity bills are going up, and Europe has become more dependent on natural gas imports from Russia.

    Spain has gained experience with the costs of green jobs. Large government incentives meant that the renewable energy sector in Spain grew rapidly — at a large cost that taxpayers and consumers will continue to pay for a long time.

    Furthermore, it turns out that green jobs are expensive. Here’s what Bloomberg reported about a study released by one of the authors of the Times article:

    The premiums paid for solar, biomass, wave and wind power – – which are charged to consumers in their bills — translated into a $774,000 cost for each Spanish “green job” created since 2000, said Gabriel Calzada, an economics professor at the university and author of the report.

    “The loss of jobs could be greater if you account for the amount of lost industry that moves out of the country due to higher energy prices,” he said in an interview.

    The Times article notes that “most of these ‘green jobs’ were transitory, anyhow, mostly connected with construction, not operation.” This is a common criticism made of the proposal to build a coal-fired power plant in Kansas. Yes, thousands of jobs will be created, but only for a year or two, say the critics. It turns out that green jobs have the same life cycle.

    It turns out that cap-and-trade has not worked out well for Europe. Neither has heavy government subsidy worked to create jobs at a cost that we can afford.

    We have to wonder, then, why President Obama is so committed to cap-and-trade in the United States.

    Furthermore, have outgoing Kansas governor Kathleen Sebelius and soon-to-be governor Mark Parkinson thought of things like this?

  • Kansas Governor in 2010

    Larry Sabato of the Center for Politics at the University of Virginia has a great website and accompanying email newsletter. In its own words: “Larry J. Sabato’s Crystal Ball features analyses of presidential elections, Senate, House and gubernatorial races.” Here’s what he has to say about the gubernatorial race in Kansas next year:

    KANSAS — Gov. Kathleen Sebelius (D-KS), to be succeeded shortly by Lt. Gov. Mark Parkinson (D-KS): PROBABLE OPEN SEAT. This contest is in flux on the Democratic side, which in this case helps the GOP. Two-term Governor Sebelius has been popular but had to retire after she reached the two-term limit in 2010. She might have run for the Senate seat of retiring U.S. Sen. Sam Brownback (R)–who is leaving to run for Governor. But Sebelius recently accepted the nomination of President Obama to be his Secretary of Health and Human Services. As her successor as Governor, Sebelius had wanted to help her lieutenant governor, Mark Parkinson, who switched from the Republican party to run with her as a Democrat in 2006. But Parkinson earlier decided not to run for Governor, leaving state Treasurer Dennis McKinney (D) as the possible nominee. Now Parkinson will become Governor, and he is under renewed pressure to run for the Democrats in 2010. Surprisingly, Parkinson still says he won’t run, and one suspects it is because he knows how difficult it will be for any Democrat to defeat Brownback. Brownback easily won his 1996, 1998, and 2004 contests for Senate, though he has a primary challenge from Secretary of State Ron Thornburgh (R). The critical unknown is the identity of the new Democratic lieutenant governor, to be appointed by Gov. Parkinson. He or she could end up being the Democratic candidate for Governor in 2010. LEANS REPUBLICAN TURNOVER.

  • Academic Study Challenges Projections of Green Jobs

    Global warming alarmists often argue that transforming our economy to reliance on “green” sources of energy is good because millions of jobs will be created. These new green jobs, it is claimed, will drive our economy forward and create wealth.

    In Kansas, our governor believes in green jobs. She was a keynote speaker at a recent “Good jobs, green jobs” conference. Our likely incoming governor Mark Parkinson speaks the same language.

    A just-released study from the University of Illinois adds to the critical body of evidence that shows that many of the claims made about green jobs aren’t true. From the press release announcing this study:

    While acknowledging the importance of energy conservation and ongoing research and investment into new technologies, the authors set out to evaluate the fundamental soundness of green job claims. In aggregate, the academic team’s study concludes that a lack of sound research methods, erroneous economic assumptions and technological omissions have routinely been utilized to lend support, rather than provide legitimate analysis, to major public policies and government spending initiatives. Furthermore, the reports that were reviewed have been issued without the benefit of peer-reviewed analysis or transparency of their models and calculations. (emphasis added)

    Furthermore:

    Key findings of the study show that no definition for green jobs exists causing great discrepancy in how numbers are counted; that green job estimates often include huge numbers of clerical, bureaucratic and administrative positions that do not produce goods or services for consumption; and that problematic assumptions are made about economic predictions, prices and technology advancements leading some to ultimately favor mandates over free market realities. These serious flaws, as well as the failure to include technical data, render the prevailing green job estimates virtually unreliable.

    These are the myths identified by the authors:

    • Everyone understands what a “green job” is.
    • Creating green jobs will boost productive employment.
    • Green jobs forecasts are reliable.
    • Green jobs promote employment growth.
    • The world economy can be remade by reducing trade and relying on local production and reduced consumption without dramatically decreasing our standard of living.
    • Government mandates are a substitute for free markets.
    • Imposing technological progress by regulation is desirable.

    The study comes out of the University of Illinois College of Law. An article about the study with an easy-to-read (short) summary of the myths may be read by clicking on 7 Myths About Green Jobs. The full study is at Green Jobs Myths.

  • Mark Parkinson, Potential Kansas Governor

    A few items, present and past, about Mark Parkinson, who may be the governor of Kansas before long:

    Parkinson prepares to fill governor role (Wichita Eagle)

    Parkinson, former GOP rising star in Kansas, could become governor as Democrat. A look at Parkinson and his career by David Klepper of the Kansas City Star.

    Mark Parkinson Wikipedia entry. At one time this was a fawning testimonial, the background section opening with “A successful businessman and former legislator, Mark is a native Kansan who grew up in Wichita and now resides in Olathe. Mark’s family has its roots in Scott City, where they still operate a family farm.”

    Ex-Kansas GOP Chair Switches Affiliation

    Parkinson’s party switch causes debate: Conservatives don’t see move as sign of pendulum shifting

    Mark Parkinson’s ex-stepmom posed in Playboy

    Sebelius Names Parkinson as Lt. Governor Candidate. Coverage from the Kansas Democratic Party website.