A look at some of the large economic development programs in Wichita and Kansas.
Here’s video of a presentation I gave at the Wichita Pachyderm Club this week on economic development incentives. The video was produced by Paul Soutar of Graphic Lens. View below, or click here to view at YouTube.
Following, articles that address some of the topics I presented:
- Industrial revenue bonds in Kansas: Industrial Revenue Bonds are a mechanism that Kansas cities and counties use to allow companies to avoid paying property and sales taxes.
- Wichita TIF projects: some background: Tax increment financing disrupts the usual flow of tax dollars, routing funds away from cash-strapped cities, counties, and schools back to the TIF-financed development. TIF creates distortions in the way cities develop, and researchers find that the use of TIF means lower economic growth.
- Community improvement districts in Kansas: In Kansas Community Improvement Districts, merchants charge additional sales tax for the benefit of the property owners, instead of the general public.
- STAR bonds in Kansas: The Kansas STAR bonds program provides a mechanism for spending by autopilot, without specific appropriation by the legislature.
- PEAK, or Promoting Employment Across Kansas: PEAK, a Kansas economic development incentive program, redirects employee income taxes back to the employing company.
- Historic preservation tax credits, or developer welfare: A Wichita developer seeks to have taxpayers fund a large portion of his development costs, using a wasteful government program of dubious value.
Is there anyway to add up the value of all the property in Wichita that is not paying taxes today because of IRB’s, and TIF’s. Don’t split hairs about TIF’s pay taxes, that money doesn’t go to government, but directly to the developers.
Also how many total sales taxes are being diverted from Star Bonds districts in Wichita to private developers.