Author: Bob Weeks

  • The Decline of Kansas Documented By Census

    By Karl Peterjohn, Kansas Taxpayers Network

    Kansas is in a decline. This state is shrinking relative to its peers in the other 49 states. However, some might say, and with some degree of accuracy, that this trend is nothing new. It is clear that the size and impact of this decline is likely to shape this state throughout the first part of the 21st century.

    April 21 the U.S. Census Department issued projections for population growth showing that Kansas population will grow at less than 1/3 of the rate of the rest of the country over the next 25 years. This followed Census data showing that over 3/4 of the Kansas counties have lost population since the 2000 census.

    The relative decline of Kansas is continuing and this is most vividly demonstrated in the declining numbers of Kansans serving in the U.S. House of Representatives. It is a little known fact that over a 40 year period ending after the 1930 census, there were eight members of the U.S. House of Representatives from Kansas. At one time, Kansans represented over two percent of the national population.

    Recently, Kansas slid and became just under one percent of the national population and if the census population trends occur, Kansas will soon see that number drop by 1/4 in the next 25 years. As the population has declined with the rest of the country so has the congressional delegation.

    Kansas lost members of congress following the 1930, 1940, 1960, and 1990 censuses and is shrinking like a Florida glacier. In mid-April an Associated Press report quoted Xan Wedel, a researcher at K.U.’s Policy Research Institute, saying the state was at risk of losing another member in the house in 2010. If you think the big first congressional district is large today when there are four members, let your imagination consider how large it will be if there are only three, or later in this century only two. If the census forecast is correct the decline in Kansas, as represented by our shrinking congressional delegation, is continuing.

    Kansas would be on track for a decline that could shrink this state’s delegation down to the size of Idaho or Rhode Island during the next 50 or 60 years. At the same time Kansas’ population declines, the states in our region that have placed limits on state and local government taxes and spending growth are growing faster. Colorado, which once

    lagged behind Kansas in congressional representation but now has seven, will grow more than 3.5 times faster than Kansas. Missouri and Oklahoma will grow 50 percent faster than Kansas while Arkansas will pass Kansas too. Arkansas is growing more than twice as fast as Kansas. Only higher tax Nebraska is projected to grow at a lower rate than Kansas among our four adjacent states at only 6.4 percent.

    Nationally, states without state income taxes will be growing much faster than the states that penalize income earners. The nine states without personal income taxes are projected to grow at twice the rate of the rest of the country. There is a wide variance between these nine states’ projected growth rates but Texas and Florida are both projected to gain three additional members each to their congressional delegations following the 2010 census. Florida is also projected to overtake struggling New York to become the third largest state in population in 2010. Texas, which is the number one state that Kansans are moving to when they leave, is already the second largest nationally.

    These census figures demonstrate that Kansans can and do vote with their feet. As business and industry move to more competitive parts of the country Kansas is being left behind and the political and judicial leadership in Kansas is busy trying to raise income, sales, and other Kansas taxes. The tax and spend formula for state government in Kansas is leading to an economic failure that will destroy our future.

  • Wichita Eagle Says “AirTran Subsidies Foster Competition”

    In an editorial in The Wichita Eagle published on April 19, 2005, Randy Scholfield writes: “Wichita should stick to its subsidies. They’re fostering competition, not stifling it, and paying off big-time for the community by lowering airfares and boosting economic development.”

    Competition, if it is to be meaningful, needs to be fair. It is not fair when one participant has a huge head start in the form of a government subsidy. The Eagle recognizes this when it suits their purpose. When endorsing Sam Brownback for reelection, this newspaper said “He includes in the former his stepped-up fight against the European subsidies of Airbus that have put Boeing and its workers in Wichita at competitive disadvantage.”

    Competition occurs when independent decision-makers, looking at the array of choices available to them, freely make their own decisions. With the AirTran subsidy, we have the City of Wichita (and now apparently Sedgwick County), by using their power to tax, making a decision for us in favor of AirTran. This is not competition.

    Mr. Scholfield, the one subsidy I might support is one that would provide an alternative to the Wichita Eagle! Would you consider that to foster competition in the market for daily newspapers in Wichita?

  • Kansas Faces Challenges for Growth

    By Alan Cobb, Americans For Prosperity Kansas State Director

    Many would describe that much of rural Kansas is in decline. Nearly 60 percent of the counties in Kansas have lost population just since 1990. Over half of Kansas’ counties have fewer residents today than 1900.

    Just this week the Associated Press reported that stated Kansas is in real danger of losing a Congressional seat during the next reapportionment because of anemic population growth. Kansas population growth from 2000 to 2004 was only 1.7 percent while the nation as a whole grew 4.3 percent. Kansas’ annual growth of less than one-half of one percent should startle anyone concerned about the future of our fine State.

    No matter how you measure growth, Kansas is struggling, particularly when compared to the other 50 states. Kansas is in the bottom ten among states in population growth, income growth and job growth. While I do not like to scream crisis, we, as a State, clearly have urgent needs that must be addressed soon.

    The solutions to our growth problems will take time. There are no overnight fixes. Thus, we need to get started immediately.

    For most Kansas communities, if they do not grow, they die. We might like to think the quaint small Kansas town depicted in Hollywood never grows or shrinks, but stays the same. That isn’t reality.

    The changes and population decline are gradual but unmistakable.

    I have heard a Kansas legislator comment that that’s just the way it is; Kansas is a rural, Great Plains state and rural, Great Plains states aren’t growing. That is not the case, but even if it were, I am not ready to accept that. It simply isn’t a fact that Kansas can not grow.

    So, what are we to do about it? How can we encourage real economic development? How can we encourage population and income growth? Do we want population growth and economic development?

    There are those who don’t want growth and the problems associated with it. They want their town to stay the same as it has for years. They like the comfortable and familiar feel.

    Kansans move to places that provide economic and professional opportunities for themselves and their families. While the residents of a small Kansas town appear to enjoy their seemingly unchanging community, the most capable leave for places providing better economic possibilities and their former hometown slowly decays. These place Kansans move to are frequently in other states, but certainly are not in rural Kansas.

    What are we to do about this? First we must decide that the lack of economic growth is a problem. And we must be brutally honest about the solutions. Are government grants the solution? Is the new convention center for the county seat a key for reversing the fortunes of the community?

    We must take a hard look at systemic change to Kansas to being reversing the alarming trend.

    Recently the Center for Applied Economics at the University of Kansas compared every Kansas County that borders another State. Except for the Kansas counties bordering Nebraska, the Kansas counties fared worse than their neighbors in Missouri, Colorado and Oklahoma when measuring economic activity, income growth and population growth.

    Clearly the Colorado counties of Cheyenne and Kiowa are no different that Greeley and Wallace Counties in Kansas, yet the Colorado counties have experienced more growth than their Kansas counterparts. Are Texas and Beaver County, Oklahoma really any different than Morton, Seward and Meade Counties in Kansas? Why are the Oklahoma counties growing faster than their Kansas neighbors?

    Overall, more people are moving out of Kansas than moving in to Kansas. If not for our birth rate exceeding our death rate, we would actually have negative population growth. And without the growth in Johnson County, our State would not be growing at all.

    Why is that? Are we, as a State, willing to honestly assess our State’s strengths and weaknesses and make the necessary policy changes needed for growth?

    Without any changes to the path we’re on, rural Kansas faces a bleak future.

    I am not willing to accept the declining status quo as the best we can do, and I don’t think most Kansans are either.

    What are we prepared to do?

  • Democrats dominate in top Kansas court

    By Karl Peterjohn

    There are three numbers that everyone at the statehouse knows who follows Kansas government: 63, 21, and one. You must have 63 votes to pass a bill out of the Kansas House of Representatives, 21 votes to pass a bill out of the Kansas Senate, and the governor’s signature to turn a bill into law.

    In the Kansas House you have 83 Republicans and 42 Democrats out of 125 elected members. In the Kansas Senate you have 30 Republicans and 10 Democrats out of 40 elected members. All 165 legislators were elected in 2004. Governor Sebelius was elected in 2002.

    Yet there is now a much more important number that is growing in power in Kansas government: the six appointed judges on the Kansas Supreme Court. The Kansas Supreme Court normally has seven members but the recent death of Judge Robert Gernon has temporarily reduced the number of judges serving on this court to six. The key political number that no one is talking about has been researched and posted by the Kansas Meadowlark web log site: www.efg2.com/Meadowlark/2005/03-25.htm. Four of the six judges on Kansas Supreme Court voter registrations indicate that they are Democrats. Based upon the judicial activism demonstrated in the school finance and death penalty cases you have a Democratic majority that is now dominating this court.

    The seven judges on the Kansas Supreme Court issued a ruling January 3, 2005 that school finance in Kansas needed additional spending. Now, the judges’ opaque ruling did not say how much or exactly how additional spending was needed according to the Kansas Constitution. The court did clearly rule that more tax funds must be spent on bilingual schooling. This ridiculous notion that this state’s constitution requires spending less on children of Kansas citizens than spending upon the children of the substantial, but not well documented, number of illegal aliens attending Kansas public schools is absurd. The court ruled that the Kansas Constitution has some sort of hidden provision requiring additional state spending for children unable to speak English. The authors of the Kansas Constitution would be amazed and are rolling in their graves that we would spend less on the children of Kansas citizens than on children whose parents have already flouted state and federal laws. The Kansas Supreme court gave the legislature until April 12 to revise school finance and these appointed judges could issue a final edict at any time.

    This January court decision came only a few days after this activist court threw out the Kansas death penalty and removed a number of odious murderers from death row. This same court had ruled on the constitutionality of the death penalty in 2001.

    Only a tiny percentage of Kansans know who is on the Kansas Supreme Court. Long serving Kansas Supreme Court Judge Donald Allegrucci’s wife is the governor’s chief of staff. Judge Allegrucci’s son has been a high level official in the Kansas Department of Commerce. If this was a politically powerful Republican family, instead of a Democrat, the mainstream Kansas press would be raising questions about whether this judge, who ran for Congress as a Democrat, when Kansas had a fifth congressional district, should recuse himself because of his family connections and ties to Governor Sebelius’ administration. Sebelius continues to be adamant about getting the large statewide tax hike imposed on Kansans. This is despite the fact that her tax hike was soundly rejected by the legislature in 2004 and more strongly this year.

    It is fortunate that the internet now provides a way for bloggers like the Kansas Meadowlark (www.kansasmeadowlark.com) to provide public record information to web surfers about these appointed judges who are unrepresentative of the rest of this state. The fact that today four out of six judges, and soon to be five out of seven, after the governor’s next Supreme Court appointment, will be filled with Democrats is important since barely 1/4 of the registered voters in Kansas are Democrats.

    This is a fact that has not been reported during the news coverage of the school finance lawsuits. Kansans need to know about the growing power of the appointed appellate Kansas courts dominated by appointed, activist, liberal Democratic judges and the diminishing power of elected officials and the people who elect them in Kansas.

    #####

    Karl Peterjohn is a former journalist, California state budget analyst, and executive director of the Kansas Taxpayers Network.

  • AirTran Subsidy Remarks

    Following are remarks I am delivering to several groups, including the Wichita City Council, in April 2005.

    AirTran Subsidy is Moving in Wrong Direction

    We were persuaded to accept the AirTran subsidy in 2002 as a temporary measure, to allow AirTran to build a presence here, and that the subsidy would no longer be needed at some time. But now we see that the situation is moving in the opposite direction, as AirTran asks for even a larger subsidy.

    Economic Impact Overstated

    The argument that many Fair Fares supporters make is flawed. They are grossly — I would say even speciously — overstating the importance of the airport to our local economy.

    As an example, Mr. Troy Carlson, then Chairman of Fair Fares, wrote a letter that was published on September 16, 2004 in the Wichita Eagle. In that letter he claimed $2.4 billion economic benefit from the Fair Fares program ($4.8 billion for the entire state). I was curious about how these figures were derived. Through correspondence With Mr. Steve Flesher, air service development director for the city of Wichita, I learned that the basis for them is a study by the Center for Economic Development and Business Research at Wichita State University that estimates the economic impact of the airport at $1.6 billion annually. In this study, the salaries of the employees of Cessna and Bombardier, because these companies use the airport’s facilities, are counted as economic impact dollars that the airport is responsible for generating.

    To me, this accounting doesn’t make sense on several levels. For one thing, if we count the economic impact of the income of these employees as belonging to the airport, what then do we say about the economic impact of Cessna and Bombardier? We would have to count it as very little, because the impact of their employees’ earnings has been assigned to the airport.

    Or suppose that Cessna tires of being on the west side of town, so it moves east and starts using Jabara Airport. Would Cessna’s economic impact on Sedgwick County be any different? I think it wouldn’t. But its impact on the Wichita airport would now be zero. Similar reasoning would apply if Cessna built its own runway.

    Or it may be that someday Cessna or Bombardier will ask Sedgwick County for some type of economic subsidy, and they will use these same economic impact dollars in their justification. But these dollars will have already been used, as they were attributed to the airport.

    It is a convenient circumstance that these two manufacturers happen to be located near the airport. To credit the airport with the economic impact of these companies — as though the airport was involved in the actual manufacture of airplanes instead of providing an incidental (but important) service — is to grossly overstate the airport’s role and its economic importance.

    To its credit, the WSU CEDBR study does provide some figures with the manufacturing employees excluded. The impact without the manufacturing employees included is estimated at $183 million, or about 11 percent of the $1.6 billion claimed earlier.

    Structural Changes in Airfares

    In the past few months, most American airlines have simplified their fare structures. Notably they have dramatically cut last-minute walk-up fares, which are the type of high fares that AirTran was supposed to provide an alternative to. In light of these structural changes in airfares, we do not know what would happen to airfares in Wichita if AirTran left.

    Fares to the West May Hold Clue

    Since AirTran doesn’t fly to the west, it may be that looking at westbound fares could give us a clue as to what eastbound fares would be in AirTran’s absence. I took three eastern cities (all served by AirTran) and three western cities and compared airfares for a Tuesday through Thursday trip booked two days in advance. The westbound tickets averaged $74 higher than eastbound — an increase, but not anywhere near the magnitude that subsidy supporters claim fares would rise by if AirTran leaves. I would welcome someone with more experience than me researching this.

    Subsidies Distort Markets

    The subsidy distorts the market process through which individuals and businesses decide how to most productively allocate capital.

    Subsidies Create Dependence on Government

    When government pays a subsidy to one company or industry, it creates an environment where others expect a subsidy, too. For example, we shouldn’t expect any other airline to start service to Wichita unless they receive a subsidy like AirTran does.

    Companies in other industries see local government as a source of subsidy, so they ask for subsidies to locate to Wichita. Even local established companies threaten to leave Wichita unless they receive subsidies. This creates an environment where, year after year, local governments make investment decisions for us instead of relying on the collective judgment of free market allocation of resources. This corporate welfare — which is what the AirTran subsidy is, plain and simple — is very harmful.

    Other Articles

    “The Downside of Being the Air Cap” by Harry R. Clements at wichitaliberty.org/wichita-government/the-downside-of-being-the-air-cap/. Mr. Clements’s article makes a striking conclusion as to why airfares in Wichita were so high.
    “Stretching Figures Strains Credibility” at wichitaliberty.org/wichita-news-media/stretching-figures-strains-credibility/. This article contains a link to the WSU CEDBR study.
    “Letter to County Commissioners Regarding AirTran Subsidy” at wichitaliberty.org/sedgwick-county-government/letter-to-county-commissioners-regarding-airtran-subsidy/
    “End Corporate Welfare, Starting with Industrial Revenue Bonds” at wichitaliberty.org/role-of-government/end-corporate-welfare-starting-with-industrial-revenue-bonds/

  • Poetry: Welcome New Council Members

    Contributed by Kenneth Kindler


    WELCOME NEW COUNCIL MEMBERS

    I AM OLD AND SICK AND GETTING GRAY
    I DON’T KNOW WHERE I WILL GET THE MONEY THAT THE CITY WANTS ME TO PAY.

    I WONDER ABOUT THIS TOWN THAT WE LIVE IN.
    WHERE THE MAYOR SPENDS HIS TIME DOWN IN OLD TOWN FIGHTING SIN.

    WE SUBSUDIZE A AIRLINE THAT MANY OF US CANNOT AFFORD TO FLY.
    WE HAVE SPENT MILLIONS DOWNTOWN, I WONDER WHY.

    HOW MANY OF US CAN AFFORD TO PAY
    FOR PLACES THAT ONLY A FEW CAN PLAY.

    DO WE NEED A DOWNTOWN ARENA?
    A WATER WALK.
    NOW WE ARE GOING TO SELL CENTURY II OR IS THAT JUST TALK.

    OUR LEADERS HAVE HAD MANY MONEY LOSING SCEMES IN THE PAST.
    EXPLORATION PLACE AND THE ICE RINK WERE A COUPLE
    BUT THEY WERN’T THE LAST.

    WHEN WILL IT STOP THIS INSANE PLAN
    TO EMPTY OUR POCKETS AS FAST AS THEY CAN.

    WE HAVE BEEN BULLYED, LIED TO AND RAN INTO THE GROUND.
    NOW IS THE TIME FOR US TO REBOUND.

    SO COUNCIL MEMBERS WE WANT YOU TO KNOW
    IF THIS KEEPS UP YOU ARE GOING TO GO.

    SO NEW MEMBERS WE HOPE THAT YOU WILL TAKE HEED
    AND PUT YOUR COMMUNITY AHEAD OF YOUR GREED.

    Kenneth Kindler

  • Tax funds finance Kansas school finance lawsuit

    Contributed by Kansas Taxpayers Network


    By Karl Peterjohn

    There might not be funds for public school classrooms but for 15 Kansas school districts there is money for financing lawsuits. Since the 1998-99 school year, $2,095,020 has been spent in public funds to pay for the school finance litigation and lawsuit.

    This outrage is a classic case of the school districts biting the state’s hand that fed the 300 Kansas school districts with over $2.7 billion in state funds. Of course, the state does not have any money that it has not taken from taxpayers so you and I pay our taxes to the schools and to the state paying for both the plaintiffs and defendants in this legal battle.

    A portion of that money is taken by these school districts and then used to sue for more spending that will require higher taxes. Sadly, Kansas already has the highest property taxes on business in our five state region as well as the second highest taxes on homeowners too so this litigation worsens our tax climate.

    This is not a new event. The school finance lawsuits stretch back into the late 1980’s. The lead attorney on the most recent lawsuit, Alan Rupe, has been involved in all of these cases going back to the 1980’s. The 15 school districts misusing their tax funds to finance these lawsuits are led by the Salina and Dodge City public schools. The other school districts financing this litigation are: Arkansas City, Augusta, Derby, El Dorado, Emporia, Fort Scott, Great Bend, Hays, Independence, Leavenworth, Manhattan, Newton, and Winfield (For a listing of the tax dollars spent for these lawsuits between 1998-to-2005 see www.kansastaxpayers.com).

    If the legislative conservatives were serious about addressing the litigation crisis in Kansas public schools these expenditures would be stopped. This misuse of tax funds for trial attorneys should stop immediately. Any school finance legislation passed by the Kansas legislature that does not address this abuse of taxpayer funds is a disgrace.

    Last year the Topeka public schools faced a financial scandal when it was revealed that roughly $1/2 million had been paid to pay fraudulent checks in central Asia. The schools had such lax financial controls that numerous bogus checks got paid. The schools continued to operate despite this long distance financial flim-flam. Sadly, the mainstream Kansas press outside of Topeka has largely ignored this scandal and treated it as an isolated event.

    This is another indication that there are plenty of funds available for financing Kansas public schools. The latest federal data indicate that Kansans, despite having lower than average incomes, are paying substantially more than the national average for our public schools. Kansans are paying more per pupil than for public schools in our neighboring states too. Higher expenditures mean higher taxes. Being a high tax state is one of the reasons that Kansas has suffered the largest reduction in private sector jobs during this century according to federal data.

    If the school districts can continue to litigate their way to higher taxes and spending by misusing tax dollars, the future of this state will be grim. Lawsuits promoting higher government spending and higher taxes will drive jobs and businesses to taxpayer friendlier states.

  • The downside of Being the Air Cap

    Harry R. Clements of Wichita contributed this article, which is a summary of a larger study he performed. Click here to read the full study in pdf format.

    Mr. Clements’s article makes a striking conclusion as to why airfares in Wichita were so high. I would be curious as to whether any of our government leaders have read the study. We should also ask why our government leaders are not performing research like this when they propose to spend large sums of taxpayer money.


    Wichita State’s Center for Economic Development and Business Research recently placed a guest article of mine on their website. It concerns a statistical study based on the level of air travel generated at Wichita’s Mid-Continent Airport compared to five other cities in the region, in which the data shows Wichita is ranked dead last, and an attempt to figure out why we do so poorly in this type of “competition.” It further questions whether our city’s substantial airline subsidy is worth the money spent. Since the article was written for consumption by professionals and is based on what might be considered obscure econometric techniques, it isn’t very suitable for reading by the lay readers of this paper. But I think the results are important enough that they should be seen by our town’s citizens, the decision making politicians that represent them, and the local media that should air such issues.

    The cities compared are Des Moines, Oklahoma City, Kansas City, Omaha, Tulsa and our own, over a recent six year period. The important factors affecting airline traffic generation were determined by slimming down a list obtained from the airline industry’s primary trade organization, the Airline Transport Association, with a couple of additions that together with theirs explain the greatest part of the differences in passenger results among these cities. These most important factors are population and per capita income (the more the better for these two) and a novel one, the number of pilots in the city’s population (in this case the lower the better). Wichita not only ranks next to last in population and income among the six — not favorable — but has an astounding more than twice the number of pilots, per capita, than the other cities’ which is really unfavorable. If Wichita were, so to speak, more like these other cities we could expect our airline passenger traffic to double. This is certainly a reason why other cities in our region do not have to rely on subsidies to generate their traffic.

    Wichita’s effort to maintain its aircraft industry and attract other high income new businesses — for instance bio-technology, but not call centers and specialty retailers — will tend to increase per capita income, and population, but is it possible for an airline subsidy to overcome that which comes with being the Air Capital of the World — a high concentration of pilots, with charter and corporate fleets available, able to fly people wherever they need to go? Should we, if we could figure out how, have a policy to decrease the number of pilots? That problem is the downside of being the Air Cap.

  • Why government spending is (mostly) bad

    Government spending replaces the judgment of the market with the judgment of politicians. The judgment of the market refers to the billions of decisions that we collectively make each day, decisions that we freely make, that we believe will advance our self-interest. That is to say, the market is characterized by mutual agreement and voluntary consent.

    What about the judgment of politicians? In a free market, in order to effect a transaction with someone, each side has to please the other. But politicians have the tax system, which allows them to take money from us by force. Then, when they decide how to spend money, decisions are often made to satisfy those who seek political favoritism instead of participating in meaningful economic activity. So government spending, then, grossly distorts the free market system.

    The more government makes spending decisions for us, the poorer we become.

    There is a limited set of things that government does well and should spend money to do. At the national level, we know that there are those who wish to do us harm, so we need a national defense. Locally we need police, courts, and prisons to keep us safe from criminals. There may be cases involving infrastructure where government is more efficient than private industry.

    At the federal level, though, about two-thirds of the budget consists of the government taking money from one person and giving it to someone else to whom it does not belong. Both major parties are equally guilty of this. This type of government spending is wrong, no matter who does it. As the economist Walter E. Williams says:

    Can a moral case be made for taking the rightful property of one American and giving it to another to whom it does not belong? I think not. That’s why socialism is evil. It uses evil means (coercion) to achieve what are seen as good ends (helping people). We might also note that an act that is inherently evil does not become moral simply because there’s a majority consensus.