Voice For Liberty

Tag: Wichita city council

  • Wichita city manager Robert Layton on the air

    Yesterday Wichita city manager Robert Layton appeared as a guest on the Gene Countryman Show on KNSS Radio in Wichita and spoke on a number of topics brought up by the host and callers.

    Several times host Gene Countryman referred to Wichita theater owner Bill Warren and his assessment of Layton as “best city manager the city’s ever had,” calling Warren’s assessment “high praise.” Warren has good reason to heap praise on Layton. He and his partners have benefited handsomely from actions the Wichita City Council has taken at Layton’s recommendation. Most recently Warren escaped paying property taxes on a new movie theater, and negotiated a deal in where the property tax on an existing property will increase at an agreed-upon rate that is likely lower than what would happen otherwise. Before Layton’s arrival in Wichita, the council heaped subsidy on Warren too, once bailing out the failing Warren Old Town Theater with an interest-free loan.

    Layton also said criticism causes him to “bristle a little bit,” but dismissed his critics as a small minority, although he said he doesn’t discount it.

    On the possible arrival of Southwest Airlines to Wichita, Layton said he feels “pretty good” about Wichita’s chances in receiving service from the popular discount airline. He said that we need to keep the Affordable Airfares Program to keep Southwest interested in Wichita. But later he said “The Southwest business model doesn’t require subsidies over a long period of time.”

    But as I wrote in 2006, we’ve been told before that the airfare subsidies were meant to be temporary: “From the beginning, we in the Wichita area have been told each year that the AirTran subsidy was intended as a temporary measure, that soon AirTran would be able to stand on its own, and there will be no need to continue the subsidy.” History has shown, however, that the subsidy has grown to the point where the entire state funds the subsidy for Wichita. It appears to be a permanent part of the state’s economic program, with Governor Brownback expressing support for continued funding for the program.

    On downtown, Layton said that the city doesn’t want to place businesses in downtown who will be on tax breaks or tax exempt for ten years. If the city is to achieve this goal, it will take a 180 degree change in the mindset in city hall where the mayor and vice-mayor Jeff Longwell complain that we don’t have enough “tools in the toolbox” to incentive businesses. In his State of the City address last week, one of the achievements Mayor Carl Brewer was proud of was the decision by Cargill to locate a facility in downtown Wichita. According to city documents, “The City has also offered a 100% five-plus-five year tax abatement on the new facility.” This is precisely the type of tax break Layton spoke against. Cargill, by the way, received many other forms of subsidy — let’s be clear — corporate welfare — for its decision.

    On the plan for how to handle Wichita’s trash, Layton said his intent was to start a community dialog on the subject, and that has happened. Layton praised Iowa’s bottle bill, which adds five cents to the price of items sold in bottles. He said it makes it easier for people to recycle.

  • Kansas and Wichita quick takes: Tuesday January 18, 2011

    Education reformer to speak in Kansas. Next week the Kansas Policy Institute hosts education reform expert Dr. Matthew Ladner at several events in Kansas. In Wichita, he will speak at a free breakfast event on Tuesday January 25th. Information on that event and those in Topeka and Overland Park can be found at Kansas Policy Institute Upcoming Events. Ladner, of the Goldwater Institute, will speak on the topic “Good to Great — Lessons for Kansas from Florida’s education revolution.” Florida has been at the forefront of education reform in recent years, according to a study by EducationNext. Kansas, on the other hand, ranks very low in studies that look at education reform among the states. An invitation to the Wichita event is here. RSVPs are requested by January 20th.

    Wichita council candidate websites spotted. This is not a comprehensive list of candidates. Instead, these are city council candidates’ websites that have been noticed. District 2, currently held by Sue Schlapp, who may not run due to term limits: Steve Harris, Paul Savage, Charlie Stevens. … District 3, currently held by Roger Smith on an interim basis: Clinton Coen, James Clendenin…. District 4, currently held by Paul Gray, who may not run due to term limits: Joshua Blick, Michael O’Donnell. … District 5, currently held by Jeff Longwell: Jeff Longwell, Lynda Tyler.

    Schools’ funding claims questioned. “Much of the increase in state spending for schools since 2005 has accumulated in cash reserve funds rather than being spent in classrooms, according to an analysis of unencumbered cash reserves held by districts.” The Kansas Watchdog story by Paul Soutar continues: “Carryover cash in accessible district funds has increased by $306 million since 2005, the year the Kansas Supreme Court’s Montoy decision went into effect. Cash in these funds grew to about $743 in 2010, up $187 million since 2008. The carryover, or unencumbered cash, is money appropriated in previous years but not spent and with no claims against it for unpaid bills or other obligations. The cash accumulates in more than 30 distinct funds.” … The balances in these funds rise when money is not spent as fast as it is put in. School districts argue that they need some fund balances — and they do — but the growing balances, year after year for most districts, undermines the claims of school spending advocates.

    Kansas schools rated. “Kansas elementary and secondary schools rose one spot in a new national performance ranking, but are still below the U.S. average and many other states, the publishers of Education Week reported this week. The publication’s 15th annual ‘Quality Counts’ survey of how precollegiate schools are faring across the nation, ranks Kansas’ performance 37th in the nation, up one place from last year’s assessment, but still lower than the national average.” The Kansas reporter story mentions state school board member Walt Chappell and his concern that Kansas’ state-controlled student achievement scores — which show rapidly rising performance — may not be valid or reliable: “Even so, the Education Week rankings and others like them are important, said Walt Chappell, a state board of education member who in the past has expressed skepticism about claims of educational excellence that he believes don’t square with students’ college entrance exams or the state’s double digit high school dropout rates. At the very least, ‘here is another outside observer taking another look at our schools and telling us there is room for improvement,’ Chappell said.”

    Insurance costs on the rise in Kansas. From Kansas Reporter: “Health insurance premiums have gone up 5 to 7 percent in Kansas because of the federal Patient Affordable Care Act, an underwriters’ group official told lawmakers Thursday.” Mandates for increased coverage are seen as a cause.

  • Kansas and Wichita quick takes: Monday January 17, 2011

    Kansas legislature website. While there has been some improvement to the Kansas Legislature website, major problems remain. Some calendars and journals are available, but not in time to be useful. … Documents like calendars and journals are presented in OpenDocument format. This is a document format that not all website visitors may be able to open on their computers. Generally, the ubiquitous Adobe pdf format is used for documents like these, as this is a useful format that nearly all computers, even mobile devices like an Iphone, can open and view. … Bills are presented in pdf format, although still in an unconventional viewing frame that reduces functionality and ease of use. … Some files are presented with file names like “sb1_00_0000.zip.odt” which might be an attempt to deliver an OpenDocument format file in zip format. If it is, the file is misnamed and can’t be handled by most computers in the usual fashion. It would be a silly exercise to compress such small files. … Contact information is still missing for many members. … The way the statutes are presented is unusable. … At this point it seems the best course is to bring back the old legislature website. That worked.

    Federal health care reform costs. Timothy P. Carney in The Washington Examiner: “In fighting against Obamacare repeal this week, Democrats portray their health care law as a money saver, claiming Republicans would add to the deficit by abolishing the legislation. But in their franker moments, the bill’s authors admit that ‘reform’ could be something of a time bomb that will cause exploding health care costs down the line. One top Senate aide plainly stated last summer, ‘This is a coverage bill, not a cost reduction bill.’ The time-bomb nature of Obamacare was presaged by Mitt Romney’s health care bill in Massachusetts, which also expanded health insurance coverage by mandating that all individuals buy insurance, prohibiting insurers from dropping customers, and subsidizing the insurance of those with difficulty affording it.” Carney goes on to draw on the lessons of Massachusetts. … Most people seem to forget that the fiscal score of Obamacare uses ten years of taxes to pay for six years of benefits.

    This week at Wichita City Council. There will be no meeting this Tuesday. It’s not a holiday, but the day after a holiday, so the council won’t meet.

    This week at Sedgwick County Commission. Wednesday’s meeting of the Sedgwick County Commission features two grant applications. One is from the Kansas Department of Transportation for a public transit assistance program. The second is also to KDOT for a rural general public transpiration program. From a quick look at the applications — they are lengthy — both require a local matching share. From a public policy perspective, this is the way governments control the levels of government below them: they tax, and then send back the tax money to be used for specific programs, while requiring that even more money be spent. … Also several appointments to boards such as Greater Wichita Economic Development Coalition will be made, marking a transition away from commission members who favor a free market approach to economic development to those who favor increased government activism in this area.

    Eisenhower on military industrial complex. President Dwight D. Eisenhower was concerned about the military industrial complex for two reasons, writes Christopher Preble in Eisenhower’s Lament. First, there was the opportunity costs of military spending. Then, there are the political and social costs of the U.S. becoming a “garrison state.” In conclusion, Preble writes: “But I suspect that the permanence of the MIC would be most disturbing to President Eisenhower, were he with us now. Twenty years after the collapse of the Soviet Union, Americans today spend more on the military than at any time since World War II, and more than twice as much — in inflation-adjusted dollars — than when Ike left office. The general-president clearly failed to convince his fellow Americans of the need to limit the military’s growth. For all practical purposes, the MIC won.”

    Rasmussen last week. “Support for repeal of the national health care law passed last year remains steady, as most voters continue to believe the law will increase the federal budget deficit.” See here. … A huge margin think that federal health care reform will cost more than official estimates. See 75% Think Health Care Law May Cost More Than Estimated. … Most don’t feel politics was motive for Arizona shootings. See here. … Few say stricter gun control laws would prevent such shootings; see here.

  • Kansas and Wichita quick takes: Tuesday January 11, 2011

    Legislature website still down. Last week visitors to the Kansas Legislature website were greeted with a message indicating that an upgrade would be forthcoming. As of this moment, that message is replace with a generic error message and the site is not working. In a phone call yesterday, a clerk said the site would — hopefully — be available yesterday afternoon. The legislature’s site needed an update, as parts of it were frustrating to work with. But with it not working at all, Kansans are missing out on vital information. For example, it is not possible to remotely retrieve the Legislature’s calendars and journals.

    Treasurer to ask for more information. In an effort to return more unclaimed property, new Kansas state treasurer Ron Estes will ask the legislature to allow him to obtain contact information from other state agencies. See Treasurer wants more data so office can return property.

    Wichita CID proposals delayed. Proposals for two Community Improvement Districts in Wichita have been delayed from consideration at today’s Wichita City Council meeting. More information about these two proposals is at In Wichita, two large community improvement districts proposed. Today’s action would have simply accepted the petitions, setting a public hearing and approval — or not — for a future date. … In editorializing against these CIDs, the Wichita Eagle’s Rhonda Holman wrote: “As it was, insufficient time had been allowed for staff vetting of the proposals and thorough consideration by the council and public.” Time and time again, city staff assures the public that they have thoroughly vetted developers and projects, but here is another example of why citizens need to be wary of city hall bureaucrats. … In summary, Holman writes: “The council needs to treat the CID designations as the hidden tax hikes that they are — and use them only where and when they are mission critical, such as to implementing the Goody Clancy downtown master plan.. … By that standard, these two proposals don’t even come close.”

    Longwell on citizen knowledge. My reporting on Wichita City Council member Jeff Longwell and his attitude towards citizen knowledge reminded me of a similar incident from the past. Recently, Longwell spoke in favor of signs telling shoppers that they’re about to enter a store that relies on Community Improvement District financing. But the signs would not tell shoppers how much extra tax they would be paying. Longwell said “So having something on the front door that says we are financing this with a CID tax, where they’re made well aware that it’s collected there, I think to try and include a percentage might even add some confusion as we collect different CID taxes around the city.” In other words, giving citizens too much information will confuse them. … In 2008, when a matter was rushed through the council with little time to study the issue, Longwell was quoted in The Wichita Eagle as saying: “It’s unlikely many residents would read the full contract even if it had been made public earlier.” … It doesn’t take many residents to read it. Just a few will usually be enough. … Not surprisingly, the matter Longwell wanted to rush through concerned taxpayer-funded welfare for Wichita theater owner Bill Warren. This is another example of how Longwell has been captured by special interests.

    State of the State tomorrow. On Wednesday, Kansas Governor Sam Brownback will deliver the State of the State Address. It will be carried in Wichita on KPTS channel 8 at 6:30 pm.

    This week at Sedgwick County Commission. Tomorrow’s meeting of the Sedgwick County Commission has a light agenda. It will be the first meeting for commissioners Richard Ranzau and Jim Skelton. At the end of the meeting, commissioners will elect a new chairman and chairman pro tem. Karl Peterjohn has been the chair for the last year. The chairman conducts the meetings and signs official documents. Speculation is that Dave Unruh, who is just starting his third term, has the inside track for election.

    Changes to Kansas campaign law recommended. Washburn University’s Bob Beatty writes about two “common sense bills” bills that the Kansas Legislature will consider this year, and which he recommends be passed “in order to help clarify for voters what they’re seeing when the political ad season begins anew.’ … The first measure would ban state officeholders from appearing in public service advertisements for a 60-day period before elections. The second would require candidates to state their approval of an advertisement. More at Fine-tuning political ads.

  • In Wichita, two large community improvement districts proposed

    On Tuesday (January 11) the Wichita City Council will decide whether to accept petitions calling for the formation of two Community Improvement Districts (CIDs) in Wichita. In both cases, city staff recommends that the council accept the petitions and set February first as the date for the public hearing. It is on that date that the council will accept public input and vote whether to form each of the CIDs.

    CIDs are a creation of the Kansas Legislature from the 2009 session. They allow merchants in a district to collect additional sales tax of up to two cents per dollar. The extra sales tax is used for the exclusive benefit of the CID.

    The districts proposed are two well-established Wichita shopping centers. Westway Shopping Center is at the southwest corner of West Pawnee Avenue and South Seneca Street. Eastgate Center is at the southeast corner of Kellogg and Rock Road.

    In the case of Westway, city documents indicate that the funds from the CID proceeds are to be used for “public and private improvements and the payment of certain ongoing operating costs.” At Eastgate, funds will be used for “renovation and modernization.”

    Both projects ask for one cent per dollar to be added to shoppers’ sales tax. Both ask to be implemented using the “pay-as-you-go” method, meaning that the city will not issue bonds. Instead, the city will send to the applicants the proceeds from the extra sales tax as it is collected.

    Both applicants are represented by Polsinelli Shughart, an Overland Park law firm that has represented other clients that have received approval for community improvement districts from the Wichita City Council.

    Signage discussion at city council

    At the December 7, 2010 meeting of the Wichita City Council, the council considered whether stores in CIDs should be required to post signs warning shoppers of the amount of extra tax being charged. Some, including myself, feel that shoppers should have this information before deciding to shop in such a store.

    At the meeting Korb Maxwell, a representative of Polsinelli Shughart, spoke to the city council in support of the CID legislation. While Maxwell spoke as though he was advocating for the public interest, he in fact works for a law firm that is representing the narrow interests of its clients.

    Speaking to the council, Maxwell denied that developers “have any interest in hiding something from the public, or keeping citizens from having full knowledge about these community improvement districts.”

    But he said — rather obliquely — that the retailers they are trying to bring to Wichita would be discouraged by full disclosure of the extra sales tax that citizens would pay in their stores. “We want to make sure that anything that we do, or anything that we implement within a policy is appropriate and will not counteract the very tool we’re creating here.”

    He provided a suggested sign design that states that community improvement district financing was used, but not that customers will pay a higher sales tax in CID stores. Retailers would accept this, he said.

    In discussion from the bench, Vice Mayor Jeff Longwell said it is important that we disclose these “types of collections” as they are taxing the public. But in a convoluted stretch of reasoning, he made a case that posting a sign with a specific sales tax would be confusing to citizens:

    “I was leaning to putting a percentage on there, but again if we have a website that spells out the percentage, I think that’s important. And number two, I guess I would be a little bit concerned how we would work through it — if you put a percentage on a development over here in downtown that’s only collecting one percent and someone walks in and sees a CID tax collected of one percent and just assumes every CID tax is one percent it would be confusing when they go to the next one, and it may scare them off if they see one that’s two percent, they’ll never go to one that’s maybe only one percent. So I think that proves an additional concern for some confusion. So having something on the front door that says we are financing this with a CID tax, where they’re made well aware that it’s collected there, I think to try and include a percentage might even add some confusion as we collect different CID taxes around the city.”

    I think this means that Longwell’s okay with telling people as they enter a store that they’re being taxed, but not how much tax they’re being asked to pay. We can summarize his attitude as this: Giving citizens too much information will confuse them.

    Council Member Sue Schlapp said she supported transparency in government:

    “Every tool we can have is necessary … This is very simple: If you vote to have the tool, and then you vote to put something in it that makes the tool useless, it’s not even any point in having the vote, in my opinion. Either we do it, and we do it in a way that it’s going to be useful and accomplish its purpose. … I understand totally the discussion of letting the public know. I think transparency is absolutely vital to everything we do in government. So I think we’re doing that very thing.”

    Schlapp understands and said what everyone knows: that if you arm citizens with knowledge of high taxes, they’re likely to go somewhere else.

    Mayor Brewer said he agreed with Schlapp and the other council members.

    In the end, the council unanimously voted for requiring signage that reads, according to minutes from the meeting: “This project made possible by Community Improvement District Financing and includes the website.”

    This sign doesn’t mention anything about extra sales tax that customers of CID merchants will pay. Contrary to Schlapp’s assertions, this is not anything like government transparency.

    This episode is a startling example of the council and staff being totally captured by special interests.

    Sales tax increase spreading across Wichita

    These two CIDs break new ground in that these shopping centers are not tourist destinations or trendy shops. Some council members like Longwell have justified past CIDs on the basis that since they are tourist destinations, much of the tax will be paid by visitors to Wichita. This is not a wise policy, but even it it was, it does not apply to these two shopping centers.

    Instead, these two applications are more indications that soon Wichita — its major retail centers and destinations, at least — is likely to be blanketed with community improvement districts charging up to an extra two cents per dollar sales tax. Currently, merchants in a CID are running the very real risk that once their customers become aware of the extra sales tax, they will shop somewhere else. But as CIDs become more prevalent in Wichita, this competitive disadvantage will disappear.

    Step by step, a sales tax increase is engulfing Wichita, and our city council and mayor are fine with that happening. This is on top of the statewide sales tax increase from last year, which, despite claims of its supporters and opposition by conservatives, is likely a permanent fixture.

  • Wichita’s vision, by the urbanist elites

    Why are some in Wichita so insistent on pushing their vision of what our city should look like, and why are they willing and eager to use the coercive force of government to achieve their vision? In the article below, Randal O’Toole, using a work by Thomas Sowell, provides much insight into understanding why.

    Reading this post, I couldn’t help think of Wichita: the “manufactured crisis” of too much driving and too little walking; the desire by many, including several Wichita City Council members — even self-styled conservative members — to expand the power and reach of government; and the denial of responsibility for obvious failures like Waterwalk.

    We should remember that the plan for downtown Wichita developed by Boston planning firm Goody Clancy is a plan developed by and for self-styled elites. We only need to remember when David Dixon, Goody Clancy’s principal, told Wichitans that in the future, Wichitans will be able to “enjoy the kind of social and cultural richness” that is only found at the core. That’s an insult to the vast majority of Wichitans, but the elites in Wichita evidently believe it, or are willing to tolerate this insult in order to achieve their vision.

    O’Toole visited Wichita last year and presented a fascinating lecture.

    The Vision of the Urbanites

    By Randal O’Toole

    As the Antiplanner has traveled and visited people all over the country, I’ve noticed an interesting phenomenon. Though I’ve met thousands of suburban and rural residents who are very happy with their homes and lifestyles, I’ve never met one who thinks the power of government should be used to force others to live in the same lifestyle. Yet I’ve met lots of urban residents who openly admit that they believe their lifestyle is so perfect that government should force more if not most people to live in dense, “walkable” cities.

    Do cities turn people into liberal fascists? Or do liberal fascists naturally congregate into cities, and if so, why?

    A general description of the phenomenon I’ve observed can be found in Thomas Sowell’s 1995 book, The Vision of the Anointed. Sowell says that America’s liberal elites view themselves as smarter or more insightful than everyone else, and thus qualified to impose their ideas on everyone else. The process of doing so, says Sowell, follows four steps (p. 8):

    First, the anointed identify or, more usually, manufacture a crisis. Sowell’s book reviews three such crises: poverty, crime, and teen pregnancy, all of which were declining in the 1960s when the liberals turned them into crises. The crises relevant to this blog include such things as urban sprawl (totally manufactured as in fact it is not a problem at all) and auto driving (while some of the effects of driving are negative, these are easily corrected while the overall benefits of driving are positive).

    Second, the anointed propose a solution that inevitably involves government action. Sowell makes it clear that the the leadership of the elites go out of their way to define or manufacture the crises in ways that make it appear the government action are the only solutions. In other words, their real goal is to make government bigger, not to solve problems. I don’t know if that is true or not, but it doesn’t really matter; what matters is they propose the wrong solutions to problems that often don’t really exist.

    Third, once the solution is implemented, the results turn out to be very different, and often far worse, than predicted by the anointed. Crime, poverty, and teen pregnancy went up, not down, when government stepped in to “fix” these problems in the 1960s. In the case of urban planning, anti-sprawl policies made housing unaffordable and led to the recent mortgage crisis. Anti-automobile policies make congestion worse and therefore waste even more energy and produce more pollution.

    The final stage is one of denial, in which the elites claim that their policies had nothing to do with the worsening results. Other factors were at work, they claim; in fact, the results might have been even worse if their enlightened policies had not been put into effect.

    Sowell notes that the anointed use several tactics to promote their ideas. For example, “empirical evidence itself may be viewed as suspect, insofar as it is inconsistent with that vision” (p. 2). Whenever the Antiplanner uses data to show that there is no urban sprawl crisis or rail transit doesn’t work in a debate with an urban anointed, the inevitable response is some version of “figures don’t lie but liars figure.” “Statistics can be used to show anything you want,” is another version. These comforting words leave the anointed free to dismiss any data and all that conflict with their vision.

    A second fundamental tactic is to presume that they have the moral high ground. “Those who accept this vision are deemed to be not merely factually correct but morally on a higher plane,” says Sowell. “Put differently, those who disagree with the prevailing vision are seen as being not merely in error, but in sin” (pp. 2-3). The term “smart growth” is a classic example of this tactic, used solely to bludgeon any dissenters with the claim that they must favor “dumb growth.”

    Relying on tactics like these, the anointed avoid confronting the fraudulent nature of their crises and the failures of their solutions. “What is remarkable is how few arguments are really engaged in, and how many substitutes for arguments there are,” says Sowell (p. 6).

    While The Vision of the Anointed describes the situation, it doesn’t answer the fundamental question of why people think that way. A partial answer is provided by Sowell’s 1987 book, A Conflict of Visions, in which Sowell traces two different world views back to the late eighteenth century. One view, expressed by Adam Smith, is that humans are imperfect and so we should design institutions that work even if the face of these imperfections. The other view, proposed by William Godwin, is that humans are perfectable, which suggests that the benign hand of government authority should be used to guide people to that perfection.

    Today, the Tea Party represents the descendants of Adam Smith, while urban planners are descendants of Godwin. As University of California planners Mel Webber and Fred Collignon wrote more than a decade ago, urban planners were “heir to the postulates of the Enlightenment with its faith in perfectibility.”

    The question still remains: why are urbanites more susceptible to the vision of the anointed? Perhaps part of the answer is that the constant friction between strangers that cities impose on their residents leads to a desire for government authority to protect people from those frictions. But a larger part of the answer may be that the role of government is far more visible in cities than elsewhere, and far larger in cities today than in the past, so residents of those cities cannot imagine living without it — and those who want more government are attracted to those cities. In any case, everyone in general and urbanites in particular should be wary of any ideas that make government bigger, as they are probably just part of some elitist scheme to coercively impose their vision on everyone else.

    The link to this article at O’Toole’s site is The Vision of the Urbanites.

  • Kansas and Wichita quick takes: Monday January 3, 2011

    This week at Wichita City Council. Roger Smith will be sworn in to take the place of Jim Skelton. Smith’s term will end in April, when the voters will select a permanent member of the council from district 3. Of course, Smith could be that person. … The council will hear from an independent fact-finder regarding the firefighters. See Wichita Eagle Wichita firefighters union stresses staffing in contract requests with city. … Also improvement of two south Wichita intersections will be considered. See Wichita City Council to consider $4 million in street work on S. Broadway.

    Last meeting for two commissioners. This Wednesday will be the last meeting for two members of the Sedgwick County Commission, Gwen Welshimer and Kelly Parks. New members will be sworn on this Sunday.

    Legislators to hear from citizens. The South-Central Kansas Legislative Delegation will be taking public comments Tuesday January fourth from 7:00 pm to 8:30 pm in the Jury Room of the Sedgwick County Courthouse, 525 N. Main in Wichita. (Use the north entrance to the courthouse). This is your opportunity to let local legislators know your wishes on issues that will be considered during the 2011 legislative session. In the past, each person wishing to talk has been limited to between three and five minutes depending on the number of people wishing to speak.

    State GOP chief to speak in Wichita. This Friday (January 7th) Amanda Adkins, who is Chair of the Kansas Republican Party, will speak at the Wichita Pachyderm Club. The topic is “Conservative Leadership Now — 2020: Building Long-term Political Infrastructure for the State of Kansas.” The public is welcome and encouraged to attend Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club. Upcoming speakers include Bob Lamke, Director of the Sedgwick County Division of Public Safety on January 14th, and Ed Flentje, Professor at the Hugo Wall School of Urban and Public Affairs at Wichita State University, will be discussing a book he co-authored titled “Kansas Politics and Government” on January 21.

    Repeal of sales tax. Many of the new members of the Kansas House of Representatives ran on opposition to the statewide sales tax increase that took effect in July. I had speculated in an appearance on This Week in Kansas that the House would entertain a bill to repeal the sales tax, while another — more experienced, I might add — observer of Kansas politics felt that leadership would tamp down such an effort. Today David Klepper of The Kansas City Star takes a look at the prospects for legislative action on this issue. Some would like to repeal the sales tax right away, while others say that repeal needs to be part of a broader, long-term look at Kansas tax policy. Senate Vice President John Vratil — not a supporter of limited government and economic freedom — is quoted as saying tax reform is a “multi-year project.”

    Net neutrality advances. Almost lost in all the congressional activity before Christmas was the fact that the Federal Communications Commission voted to pass new rules on net neutrality. Writing in The Wall Street Journal, John Fund says: “The Federal Communications Commission’s new ‘net neutrality’ rules, passed on a partisan 3-2 vote yesterday, represent a huge win for a slick lobbying campaign run by liberal activist groups and foundations. The losers are likely to be consumers who will see innovation and investment chilled by regulations that treat the Internet like a public utility.” Fund explains the radical political views of those behind the net neutrality campaign. He also explains that President Barack Obama is ignoring the will of Congress and court rulings, seeking to impose internet regulation through the executive branch.

    Wichita noticed in Boston. A writer from the Boston Globe visits Wichita and writes on his tourist experiences. It follows a predictable template: First, put away the Toto jokes and overlook the city’s problematic reputation. Then — I found public art, lattes, and a restaurant! Wow! Who would have figured?

  • Government is not business, and can’t be

    As Wichita begins its implementation of the plan for the revitalization of downtown Wichita, stakeholders like to delude themselves that the plan is “market-driven,” that the city will make prudent use of public “investment,” and that the plan’s supporters really do believe in free markets after all. It’s a business-like approach, they say.

    But government is not business. The two institutions are entirely different. Government cannot act as a business does — the incentives and motivations are wrong. But some refuse to accept the distinction between the two, insisting that just because an organization — say the Wichita Downtown Development Corporation — is entirely supported (except for a little private fundraising one year) by taxpayer funds, it’s not the same as a government institution.

    The City of Wichita suffers from all the problems cited in this excerpt from Central Planning Comes to Main Street by Steven Greenhut, which appeared in the August 2006 issue of The Freeman: Ideas on Liberty. As our city moves away from development based on markets to development based on government planning, and away from a dynamic free market approach to economic development towards political and bureaucratic management of our destiny, we can expect these problems to become more ingrained.

    Problems with Incentives

    By Steven Greenhut

    Most city managers and economic-development officials that I’ve talked to fancy themselves as CEOs of companies, and they argue that what they are doing is no different from what private companies do: maximizing revenues. “Why wouldn’t a libertarian support what we’re doing given that you value private business and understand the importance of profit?” I’ve often been asked.

    The answer is simple. Cities are not businesses. They take the tax dollars of residents and make decisions about land use that are backed by police powers. They do not operate in a market; they do not have voluntary stockholders. Despite the delusions of city managers, the city staff usually is not as sophisticated or as skilled as corporate staff, which means cities often get a poor deal when negotiating with rent-seeking corporations.

    When cities insert themselves into the economic development game, either with carrots or sticks, they:

    • Shift decision-making from individuals to governments;
    • Take money from taxpayers and redistribute it to individuals and companies;
    • Undermine property rights and other freedoms;
    • Encourage a class of rent-seekers, who learn to lobby city officials for favors and special financial benefits;
    • Put unfavored businesses at a competitive disadvantage with those who are favored; and
    • Stifle political dissent, as companies that are dependent on the city for lucrative work become reluctant to speak their minds about any number of city issues.

    Despite what city managers will tell you, the choice is not between economic development and letting a city rot. The choice is between central planning, empowering officials to decide which businesses are worthy of their help, and the good old free market, which lets free people decide which business should succeed or fail.

    City officials like to be “proactive,” as they say, and help with economic development. There is something they can do. They can get out of the way, by lowering tax rates, deregulating, ending zoning restrictions, and eliminating exclusive contracts with utilities and developers. It’s not out of the question. The city of Anaheim is doing just that, with remarkable results.

    Mackinac’s LaFaive puts it well in a 2003 article: “The best business climate is one in which government ‘sticks to its knitting’ and does its particular assignments well, at the lowest possible cost while creating a ‘fair field with no favors’ environment for private enterprise.”

    Not a bad template. Sure beats a world of central planning, where city officials can choose who gets handouts and even who gets driven out of town.

  • North Dakota TIF video reminiscent of Wichita

    The North Dakota Policy Council has a video on YouTube that explains the mechanics of tax increment financing (TIF) districts and the public policy problems associated with TIF.

    The video is presented in three sections. The material in the first section is different from the way TIF districts work in Kansas, but the other two sections are very similar to the way the law works in Kansas.

    At the start of part 3 (“Problems with TIFs”) the narrator states the problem succinctly: “Tax increment financing negatively affects everybody’s property tax bill by taking the tax revenue from increased taxable valuations on the properties in the TIF areas and putting that into TIF accounts.”

    She then presents an illustration showing how the property taxes for non-TIF properties have to rise to make up for the fact that taxes from TIF properties do not go towards paying for city, county, or school district services. While Wichita doesn’t use the term “TIF accounts” as used in this video, the economic effect is the same.

    The video also mentions politically-favored developers being the beneficiaries of TIF districts, specifically mentioning “a friend of the city who might own property that is struggling.” I wonder: is the North Dakota Policy Council aware of the situation in Wichita, where many feel that the city has bailed out Real Development (also known as the “Minnesota Guys”) by not only granting TIF financing to them, but increasing the amount of TIF financing against the recommendation of its independent consultant?

    Compounding the problem is the obvious lack of understanding of the economic effects of TIF districts by members of the Wichita City Council, and possibly by city hall bureaucrats, too. Wichita vice mayor Jeff Longwell has complained to the Wichita Eagle that the public doesn’t understand tax increment financing. We should be questioning Longwell’s own understanding, and that of council member Janet Miller, too.

    Longwell and Miller — the rest of the council too, for that matter — are aided by newspaper reporters like the Wichita Eagle’s Bill Wilson, who is dismissive and hostile towards free markets and those who advocate for them, calling reliance on markets “intellectually shallow” and a “thin ideological argument.”