“President Obama has settled on Gov. Kathleen Sebelius of Kansas, a key ally with a record of working across party lines, as his top choice for secretary of health and human services, advisers said Wednesday.”
Category: Kansas state government
Proposition K and TIF Districts Collide
A recent story in the Wichita Eagle by Dion Lefler (Tax plan could leave city with TIF debt) illustrates the some of the problems that can happen with complex economic development efforts.
The problem in this case lies in the interaction of Proposition K, an effort to reform property tax appraisals in Kansas, and tax increment financing, or TIF districts.
The idea behind TIF districts is that as property is developed, its value will rise enough that the increased property taxes will pay off bonds that the city issued to benefit the developer.
Proposition K, however, alters the way that appraised values rise. According to the Eagle’s analysis of the TIF district benefiting the Ken-Mar shopping center, under Proposition K this district will generate $4.3 million less than what is needed to pay off the bonds.
So what would the city do if faced with this shortfall? The Eagle article suggests “The city could cut spending elsewhere or raise the mill levy to fill the gap.”
That would be a huge windfall to the developer of this project, which is Wichita school board member and Methodist minister Kevass Harding.
But not so fast. The city requires beneficiaries of TIF financing to make up any difference between tax revenues and what’s needed to pay off the bonds. So it appears that the taxpayers may not be on the hook, after all.
The difference, I believe, is that the debt owed to the city would simply be an obligation of Harding and his ownership team. It’s only as good as their ability and willingness to pay. Without Proposition K, the monies needed to pay the bonds would be in the form of property taxes, and the city could take various measures to collect that wouldn’t be available otherwise.
Isn’t this a fine mess? Last summer when this TIF district was being considered, I wondered out loud to the city council “Why don’t we strip away all the confusion and obfuscation surrounding TIF districts and just give the developers $2.5 million?” (See Reverend Kevass Harding’s Wichita TIF District: A Bad Deal in Several Ways.)
I didn’t know then that the confusion and obfuscation would get worse.
Kansas Republican Assembly Newsletter Noticed
I just received the first issue (for me, anyway) of a newsletter from the Kansas Republican Assembly. Click here to sign up for free email delivery.
Kansas Governor Addresses Budget Crisis
Today Kansas Governor Kathleen Sebelius held a press conference at 4:30 pm.
She said she submitted a budget to the legislature five weeks ago, and that the bill just reached her desk today. But the budget she submitted back then, while meeting the requirements of law, didn’t meet the requirements of the situation. It was not a responsible budget. The legislature had to make the hard cuts. See Sebelius’ Proposed Cuts Not Likely Enough and Kansas Governor Not Facing Reality of Budget Crisis.
Today, after the Governor’s action, there is less reduction in K-12 education that what was in the bill sent to her. She said the cuts to K-12 education that the legislature made are unacceptable.
The problem going forward is that the 2010 budget will require even more cutting — more than twice as much — than what took five weeks of this session to accomplish.
Kansas Budget Crisis Heats Up
It’s hard to know who’s on the right side in this matter. Facts seem to be in short supply, with contradictory statements coming from Kansas Governor Kathleen Sebelius and Kansas House and Senate Republican Leadership.
The Wichita Eagle’s Wichitopekington blog contributes these posts: Talking points for legislative secretaries, Senate leaders urge governor to call council meeting today, and Governor sends message to state employees, which holds the text of an email message the Governor sent today. Blaming, naturally, Republicans.
The Kansas Democratic Party has a post titled Tell Republicans to Stop Blackmailing and Get to Work, in which you can sign a petition. This site is not shy from using scare tactics such as articles titled Republican Budget Cuts Could Forces Schools to Fire Teachers.
The Kansas Republican Assembly blog has the posts House leadership responds to Sebelius lies and Who will blink first?.
In the post KS GOP Blasts Governor for Playing Politics with State Employees, Christian Morgan of the Kansas Republican Party claims that the Governor has the ability to do what needs to be done, but will not do so. There also the Statement from House Republican Leadership Regarding the Kansas Budget.
The Kansas Jackass is on top of this all with posts like Walkout of State Employees Possible, Employees Threatened, At the Statehouse: Democratic Leadership Responds to GOP Blackmail of Sebelius, and GOP Leadership Blackmails Sebelius, Puts State Payroll in Jeopardy.
The Kansas Trunkline, the official blog of the Kansas Republican Party, has What You Need to Know About the Kansas Budget Crisis and Governor Playing Politics with State Employees.
Can you make sense of this?
Kansas minimum wage on Kansas Week
Bob Weeks discusses the Kansas minimum wage on the KPTS public affairs television program Kansas Week, February 13, 2009.
Kansas exempts itself from onerous regulation
Yesterday the Kansas Senate passed a sweeping state-wide smoking bill that prohibits smoking in nearly all indoor places in Kansas.
Except for casino gaming floors.
Why? The state hopes someday to generate a lot of revenue from gambling. Does the state realize that customers of some establishments may like to smoke while they’re there, and that banning smoking might be bad for business?
It’s outrageous that the state so desperately wants to earn as much as possible from gambling that it will tolerate smoking in casinos. It gives an unfair advantage to these casinos as compared to other places of business.
Kansas Taxes Outpace Inflation
Local and state taxes paid in Kansas, per capita, compared to the consumer price index:
Kansas Justice Selection
Some commentary from Americans For Prosperity — Kansas about a bill that would change the way Kansas chooses its justices: Lawyers are soooo smart.
More coverage of this issue:
Kansas Must Change Its Judicial Selection Method
Kansas has the appearance, without the reality, of judicial accountability
What Impact do Kansas Voters Have on Judges?
Here’s Why Kansans Need to Take Control
