Voice For Liberty

Tag: Cronyism

  • Why is business welfare necessary in Wichita?

    A company in Wichita requires business welfare in order to capture a new business opportunity. What’s wrong with this picture?

    stop-35069_640

    Our local and state economic development regime wanted Sedgwick county commissioners to approve a grant to a company without the commissioners knowing the entire spectrum of benefits the company will receive. Wichita city council members likely would have found themselves in the same position.

    But we now know the details of economic development incentives approved and proposed for Triumph Aerospace Systems in Wichita. Press releases from Kansas Department of Commerce and Greater Wichita Economic Development Coalition didn’t give specifics. But based on the agreement between the Department of Commerce and Triumph, the state will give Triumph $100,000 immediately, and then $25,000 at the end of each of the next two years if job creation targets are met.

    This $150,000 is in addition to two forgivable loans of $78,000 each expected to be granted by Sedgwick County and the City of Wichita. (Forgivable loans are like conditional grants. The loan is not repaid as long as targets are met.) That’s a total of $306,000.

    This type of economic development action is routine in Wichita and Kansas. But, as measured in a variety of ways, Wichita economic growth and job creation is slow. So we ought to ask a few questions before proceeding.

    First, what is wrong with Wichita’s business environment that in order for a company to expand, it must receive business welfare? I realize that “business welfare” is a harsh term. But how else do we describe these grants paid for through taxation?

    Second: If there is no problem with Wichita’s business environment, and if these incentives are not necessary for the company to expand, why are we granting them?

    Third, how were these amounts determined? Why $306,000? Why not $206,000 or $406,000? If we gave the company a bigger grant, could it hire more people?

    Fourth: An analysis performed for Sedgwick County indicates a benefit-cost ratio of 1.31, meaning that for every $1.00 the county invests in this forgivable loan, it expects to receive $1.31. This inspires a question: If we really believe in this benefit to the county (and similar benefits to the city and state), why is the county investing only $78,000? And why doesn’t the county make more investments like this? Surely there are other worthy companies that need capital for expansion. If it really is so easy to induce economic growth and job creation, we should be doing things like this at every county commission meeting. Several times each meeting, I would say.

    Fifth: Not all companies that expand receive incentives. How are other companies in Wichita able to expand or start without the aid of incentives?

    Finally: A continuing goal in Wichita is to diversify our economy, to reduce the proportion of jobs and income earned in aviation and aerospace. Triumph, the company expanding, is in that industry. It’s not bad that the company is expanding. But the costs of these incentives are a burden to other companies that are starting and trying to establish themselves. Instead of diversifying our economy, this action further concentrates our economic base in a way that is deemed undesirable. Was this considered when evaluating this incentive opportunity versus others?

    I’m just asking.

    What to do, and not to do

    Politicians and bureaucrats promote programs like these grants as targeted investment in our economic future. They believe that they have the ability to select which companies are worthy of public investment, and which are not. It’s a form of centralized planning by the state that shapes the future direction of the Wichita and Kansas economy.

    These targeted economic development efforts fail for several reasons. First is the knowledge problem, in that government simply does not know which companies are worthy of public investment. This lack of knowledge, however, does not stop governments from creating policies for the awarding of incentives. This “active investor” approach to economic development is what has led to companies receiving grants or escaping hundreds of millions in taxes — taxes that others have to pay. That has a harmful effect on other business, both existing and those that wish to form.

    Embracing Dynamism: The Next Phase in Kansas Economic Development Policy

    Professor Art Hall of the Center for Applied Economics at the Kansas University School of Business is critical of this approach to economic development. In his paper Embracing Dynamism: The Next Phase in Kansas Economic Development Policy, Hall quotes Alan Peters and Peter Fisher: “The most fundamental problem is that many public officials appear to believe that they can influence the course of their state and local economies through incentives and subsidies to a degree far beyond anything supported by even the most optimistic evidence. We need to begin by lowering expectations about their ability to micro-manage economic growth and making the case for a more sensible view of the role of government — providing foundations for growth through sound fiscal practices, quality public infrastructure, and good education systems — and then letting the economy take care of itself.”

    In the same paper, Hall writes this regarding “benchmarking” — the bidding wars for large employers: “Kansas can break out of the benchmarking race by developing a strategy built on embracing dynamism. Such a strategy, far from losing opportunity, can distinguish itself by building unique capabilities that create a different mix of value that can enhance the probability of long-term economic success through enhanced opportunity. Embracing dynamism can change how Kansas plays the game.”

    In making his argument, Hall cites research on the futility of chasing large employers as an economic development strategy: “Large-employer businesses have no measurable net economic effect on local economies when properly measured. To quote from the most comprehensive study: ‘The primary finding is that the location of a large firm has no measurable net economic effect on local economies when the entire dynamic of location effects is taken into account. Thus, the siting of large firms that are the target of aggressive recruitment efforts fails to create positive private sector gains and likely does not generate significant public revenue gains either.’”

    There is also substantial research that is it young firms — distinguished from small business in general — that are the engine of economic growth for the future. We can’t detect which of the young firms will blossom into major success — or even small-scale successes. The only way to nurture them is through economic policies that all companies can benefit from. Reducing tax rates is an example of such a policy. Abating taxes for specific companies through programs like IRBs is an example of precisely the wrong policy.

    We need to move away from economic development based on this active investor approach. We need to advocate for policies — at Wichita City Hall, at the Sedgwick County Commission, and at the Kansas Statehouse — that lead to sustainable economic development. We need political leaders who have the wisdom to realize this, and the courage to act appropriately. Which is to say, to not act in most circumstances.

  • Could Wichita be the next Detroit?

    That Detroit has declared bankruptcy: Does this mean anything for Wichita? From time to time we see news stories wondering if there is a parallel between these two cities — one known as Motor City, and the other as the Air Capital.

    wichita-detroit-job-industry-concentration

    The similarity is the concentrated nature of the economies of the two cities. Both have, as can be seen in the nearby chart, a greater percentage of jobs in manufacturing than does the United States as a whole.

    Furthermore, when considering the dominant manufacturing industry in each city, we see that Wichita is more concentrated in aviation than Detroit is in automobiles. Much more concentrated, 13 percent to six percent.

    [powerpress url=”http://wichitaliberty.org/audio/joseph-ashby-show-2013-07-19-excerpt.mp3″]Joseph Ashby on Wichita and Detroit.

    On his radio show, Joseph Ashby talked about the business of making airplanes. He’s an aerospace engineer. The complexity of airplane manufacturing, he says, has protected the domestic industry from foreign competition. But that can change. I would say that change is likely.

    Ashby also noted that our economic development programs heavily favor the aviation industry, which makes it more difficult for aspiring companies in other diverse industries to start and thrive. He isn’t the first to wonder about this. In 2010 Alan Cobb wrote:

    What can we do to prevent Wichita from falling into the hole that is Detroit?

    A simple answer is to continue throwing money and other goodies to keep the aviation companies. A better answer is we need to get rid of the notion that our elected officials and others have so much forethought to know what will or won’t be successful in 20 or 50 years. They don’t. …

    While state and local government poured incentives into the Big Three’s trough, the marginal costs of doing business for everyone else crept up. …

    It‘s the classic example of the seen vs. the unseen. We see the new factory Pontiac builds. We don’t see the businesses that reduce their size, close or just move. The irony is we will still see the Pontiac factory after it is closed and boarded up.

    For each tax dollar given to the auto industry, one is taken one away from entrepreneurs trying to create the next GM, Ford, Google or Apple. This may not be too bad the first time or the second time, but over years and decades, the results can be significant. The “next big thing” will be created in a state with a better tax and regulatory climate. (Detroit, corporate welfare and Wichita’s future)

    This week the Sedgwick County Commission will be asked to make a forgivable loan — in essence, a grant of free money — to an aerospace company. The City of Wichita will likely be asked to do the same. The State of Kansas is probably offering additional business welfare, although the state won’t say. These actions increase the cost of business for the firms that we need to diversify our economy, and makes it more difficult for them to survive.

    Here’s something else: Wichita has a lot of debt. Not Detroit levels, thankfully. But we can’t borrow even $30 million to build a new library without swelling debt ratios over acceptable limits.

    How does Wichita have so much debt? Here’s an example. Recently the city spent $400,000 on a project to analyze aging fire stations with the aim of planning future projects. Fire stations are a long-lived capital asset, which is the type of asset and spending spending that is commonly financed with long-term debt. But an analysis to see if the spending is necessary and what type of spending is needed? This is current consumption and should not be paid for by long-term debt. Yet, the city paid for this with borrowed funds. This type of borrowing is common.

    Finally, a big problem that contributed to Detroit’s problems is corruption. Wichita isn’t Detroit when it comes to corruption. But we could be headed that way. We have serious problems like overpriced no-bid contracts for the mayor’s fishing buddy, mysterious campaign contributions from a Michigan company involved in a large contract before the council, and a Methodist minister’s foray into real estate development and politics. We have city ordinances regarding ethics that seem to have a clear meaning, but the city attorney says they don’t apply.

    Warren Theater Brewer's Best 2013-07-18

    Notwithstanding these serious issues, it’s darkly comical to note this: Wichita Mayor Carl Brewer has voted several times to grant various forms of business welfare to movie theater owner Bill Warren and his partners. Then — and I swear I am not making this up — when Brewer started manufacturing and selling barbeque sauce, it was sold at Warren’s theaters. It still is, as of last week.

    Are there no adults in the room?

  • WichitaLiberty.TV July 21, 2013

    WichitaLiberty.TV logo

    In this episode of WichitaLiberty.TV, host Bob Weeks recommends the Crony Chronicals website and explains the harm of cronyism. Westar, our electric utility, is asking for a rate increase, and cronyism is part of the application. Finally, Wichita Mayor Carl Brewer feels he can’t shop for his personal car in Wichita, but dishes out no-bid contracts and millions in subsidies to his cronies. Episode 5, broadcast July 21, 2013.

  • Paying taxes, but not quite

    TaxesA complicated economic development mechanism used in Wichita hides the true business welfare transaction.

    In today’s Wichita Eagle “serial entrepreneur” and hotelier Jack DeBoer talks about a new apartment project to be built in downtown Wichita, just across the Arkansas River from the WaterWalk development.

    In the article, the reporter writes:

    The Wichita apartments are expected to be complete by spring 2014, DeBoer said. They will be on 4.4 acres of city-owned land, which Value Place is leasing for $1 a year for 93 years. That agreement was approved by the Wichita City Council last September. DeBoer noted that Value Place is not receiving any other incentives. “We’ll pay full taxes.”

    Two things: First, DeBoer gets to use 4.4 acres of land for 93 years for a total cost of $93.00. The city paid $919,695 to acquire the land in 1994 and 1995. The city did, however, require DeBoer to pay the full $93 in advance.

    Second, the claim of paying full taxes: This project is located within a tax increment financing (TIF) district. The entire purpose of TIF is to capture the property taxes being paid and divert the funds to the benefit of the payer.

    (Strictly, only the increment in property tax is routed back to the payer. Usually almost all the property tax paid falls in the increment. For more about this particular development, see Wichita WaterWalk apartment deal not good for citizens.)

    So, when we narrowly construe DeBoer’s claim, he’s correct. But in the larger context, when we follow the money and look at the true economic transactions, he’s wrong. And the Wichita Eagle doesn’t notice, or doesn’t care.

    TIF is great for those who get it. But what about the rest of us? Regarding the effect of tax increment financing (TIF) districts on economic development, economists Richard F. Dye and David F. Merriman have studied tax increment financing extensively. Their paper The Effects of Tax Increment Financing on Economic Development bluntly states the overall impact of TIF: “We find clear and consistent evidence that municipalities that adopt TIF grow more slowly after adoption than those that do not.”

    Later in the same paper the authors conclude: “These findings suggest that TIF trades off higher growth in the TIF district for lower growth elsewhere. This hypothesis is bolstered by other empirical findings.”

    Summarizing, the authors write:

    In summary, the empirical evidence suggests that TIF adoption has a real cost for municipal growth rates. Municipalities that elect to adopt TIF stimulate the growth of blighted areas at the expense of the larger town. We doubt that most municipal decision-makers are aware of this tradeoff or that they would willingly sacrifice significant municipal growth to create TIF districts. Our results present an opportunity to ponder the issue of whether, and how much, overall municipal growth should be sacrificed to encourage the development of blighted areas.

    In their later article Tax Increment Financing: A Tool for Local Economic Development, Dye and Merriman further explain the results of their research:

    TIF districts grow much faster than other areas in their host municipalities. TIF boosters or naive analysts might point to this as evidence of the success of tax increment financing, but they would be wrong. Observing high growth in an area targeted for development is unremarkable.

    So TIFs are good for the favored development that receives the subsidy — not a surprising finding. It’s what elected officials, bureaucrats, and newspaper editorial writers can see and focus on. But what about the rest of the city? Continuing from the same study:

    If the use of tax increment financing stimulates economic development, there should be a positive relationship between TIF adoption and overall growth in municipalities. This did not occur. If, on the other hand, TIF merely moves capital around within a municipality, there should be no relationship between TIF adoption and growth. What we find, however, is a negative relationship. Municipalities that use TIF do worse.

    We find evidence that the non-TIF areas of municipalities that use TIF grow no more rapidly, and perhaps more slowly, than similar municipalities that do not use TIF. (emphasis added)

    So if we are concerned about overall growth in Wichita, we need to realize that TIF simply shifts development from one place to another. The overall impact, according to uncontroverted research, is negative: less growth, not more.

  • Concern over state office building decision politics

    Speculation that politics might influence a decision over the location of State of Kansas offices is amusing, given that one of the players has a history of awarding campaign contributors and friends. Will he now advocate for keeping politics out of governmental decision-making?

    When the State of Kansas said it is going to move offices from its downtown location, a local politician expressed concern to the Wichita Eagle:

    “It raises a red flag,” says Rep. Jim Ward (D-Wichita). “I have a concern there is a history of the governor rewarding financial contributors with state contracts. I know he has contributors in Wichita that own (buildings) that fall into that category. … I don’t want that to be the reason we’re moving.”

    In another Eagle article, Ward said his second priority is “to find out who owns the building where the departments may move ‘to make sure this isn’t going to help a political contributor.’”

    I welcome Rep. Ward’s concern regarding politicians rewarding financial contributors with government contracts. Of course, he might have taken a moment to find out who actually owned the building before making charges of political payback.

    It would be interesting to know if Wichita Mayor Carl Brewer shares Ward’s concern about political payback as he intervenes and tries to keep the state offices in their current location.

    Will Brewer argue that the state should keep politics out of this decision? If so, this will be the same Carl Brewer who operates in this fashion:

    Votes for no-bid overpriced contracts to political contributors: In August 2011 the Wichita City Council voted to award Key Construction a no-bid contract to build the parking garage that is part of the Ambassador Hotel project, now known as Block One. The no-bid cost of the garage was to be $6 million, according to a letter of intent. Later the city decided to place the contract for competitive bid. Key Construction won the bidding, but for a price $1.3 million less.

    Wichita mayor Carl Brewer with major campaign donor Dave Wells of Key Construction.

    The no-bid contract for the garage was just one of many subsidies and grants given to Key Construction and Dave Burk as part of the Ambassador Hotel project. Both of these parties are heavy campaign contributors to nearly all city council members. Brewer and the head of Key Construction are apparently friends, embarking on fishing expeditions. Then Brewer was willing to spend an extra $1.3 million of taxpayer money to reward a politically-connected construction firm that makes heavy campaign contributions to him and many other council members.

    Sits in judgment of campaign contributors: In July 2012 Brewer participated in a decision to award the large contract for the construction of the new Wichita airport to Key Construction, despite the fact that Key was not the low bidder. The council was tasked to act in a quasi-judicial manner, to make decisions whether discretion was abused or whether laws were improperly applied. Brewer’s judgment was in favor of Key Construction, even though its bid had the same defect as the lower bid. This decision cost taxpayers and airport users an extra $2 million, to the benefit of a major campaign donor and fishing buddy.

    Recommends his cronies, even when they’ve harmed city finances: In a Wichita Eagle story that reported on “city-financed downtown parking garages that spiraled well over budget” we learned this: “The most recent, the 2008 WaterWalk Place garage built by Key Construction, an original partner in the WaterWalk project, came in $1.5 million over budget at almost $8.5 million. That’s the biggest parking garage miss, according to figures from the city’s office of urban development, although the 2004 Old Town Cinema garage built by Key Construction came in almost $1 million over budget at $5.225 million.” Despite the city’s experience with this company, Brewer wrote a letter recommending Key Construction (and only Key), observing “Key is known for their consistent quality construction, budget control and on schedule delivery.”

    warren-theater-brewers-best-bbq-sauce-small

    Entangles business welfare and personal business: In 2008 the Wichita City Council approved a no- and low-interest loan to movie theater owner Bill Warren and his partners. Reported the Wichita Eagle: “Wichita taxpayers will give up as much as $1.2 million if the City Council approves a $6 million loan to bail out the troubled Old Town Warren Theatre this week. That’s because that $6 million, which would pay off the theater’s debt and make it the only fully digital movie theater in Kansas, would otherwise be invested and draw about 3 percent interest a year.”

    Warren’s theaters have received other financial benefits from the city under Brewer’s leadership. Then when Brewer started manufacturing and selling barbeque sauce, it was sold at Warren’s theater.

    Given this history, it’s difficult to imagine Brewer arguing that the office location decision should be made free from political considerations. His behavior — and that of some other council members as well — shows that making investments in Wichita politicians is highly lucrative.

    This decision is being made in Topeka at the state level, not at Wichita City Hall. It’s still amusing, however, to see Rep. Ward express concern over political campaign contributions influencing Wichita government.

  • WichitaLiberty.TV July 14, 2013

    WichitaLiberty.TV logo

    In this episode of WichitaLiberty.TV, host Bob Weeks explains the attitude of the Wichita City Council regarding ethical behavior and reports on incidents that illustrate the need for campaign finance reform and pay-to-play laws in Wichita and Kansas. Also, Bob notices a document produced this year titled “Wichita Area Future Water Supply: A Model Program for Other Municipalities” and wonders why the city boasts of expensive water projects and long-term planning at the same time it’s forcing an austerity campaign on its citizens. Episode 4, aired July 14, 2013.

  • Economic freedom ads debut in Wichita

    This week the Wichita Eagle reports that Charles Koch, chairman of the board and CEO of Wichita-based Koch Industries, is starting a local campaign to educate people on the benefits of economic freedom and the harm of government overreach. (Charles Koch launching Wichita campaign about economic freedom, government overreach, July 9, 2013)

    So far one video advertisement is available, shown at the end of this article.

    In announcing this effort, a statement at the Charles Koch Foundation reads:

    “We believe the best way to promote progress and societal well-being is through free societies,” said CKF founder Charles G. Koch. “The spot was developed as part of our ongoing work to support the kind of scholarship and analysis that examines how to ensure opportunities for earned success while sharing compassion for the vulnerable.”

    Koch is not shying away from important issues related to economic freedom such as the minimum wage. The common belief, fiercely held and believed by those who say they want to help the poor, is that a high minimum wage is needed. In a video on another site sponsored by the Charles Koch foundation, it is argued that “And among the least skilled, least educated workers, increases in the minimum wage significantly increase unemployment. The minimum wage may be a well-intentioned policy, but it often hurts the very workers who are in most need of our help.” The video is Does the minimum wage hurt workers? at the site Economic Freedom.

    Recently Koch has contributed several articles on the importance of economic freedom and the harm of cronyism, including Charles Koch: The importance of economic freedom, and in the Wall Street Journal, Charles G. Koch: Why Koch Industries is speaking out.

  • The speck and the logs

    car-lot-calls-cops-shopper-wichita-mayor

    When Wichita Mayor Carl Brewer recently shopped for a car, it made the front page of the newspaper, and for a reason that doesn’t seem very newsworthy. Buried in the story, however, is a short passage that holds actual news. Carrie Rengers reports in the Wichita Eagle:

    [Brewer] says he knows a lot of dealers in Wichita … but he says he has to be careful about trying to get a good deal while shopping in the city.

    “I don’t want to be accused of getting any type of special deals or anything else,” he says. “You have that handful of people that’s always searching for some type of conspiracy.”

    It’s good to know that this mayor is concerned about ethical behavior when shopping for a car. But I’m surprised, as this concern for virtue doesn’t match the behavior of the mayor and many members of the Wichita City Council.

    Do we need to run down the list?

    Exhibit 1: In August 2011 the Wichita City Council voted to award Key Construction a no-bid contract to build the parking garage that is part of the Ambassador Hotel project, now known as Block One. The no-bid cost of the garage was to be $6 million, according to a letter of intent. Later the city decided to place the contract for competitive bid. Key Construction won the bidding, but for a price $1.3 million less.

    Wichita mayor Carl Brewer with major campaign donor Dave Wells of Key Construction.

    The no-bid contract for the garage was just one of many subsidies and grants given to Key Construction and Dave Burk as part of the Ambassador Hotel project. Both of these parties are heavy campaign contributors to nearly all city council members. Brewer and the head of Key Construction are apparently friends, embarking on fishing expeditions.

    What citizens need to know is that Brewer and the Wichita City Council were willing to spend an extra $1.3 million of taxpayer money to reward a politically-connected construction firm that makes heavy campaign contributions to council members. Only one council member, Michael O’Donnell, voted against this no-bid contract. At the time, no city bureaucrats expressed concern about this waste of taxpayer money.

    Exhibit 2: In July 2012 Brewer participated in a decision to award the large contract for the construction of the new Wichita airport to Key Construction, despite the fact that Key was not the low bidder. The council was tasked to act in a quasi-judicial manner, to make decisions whether discretion was abused or whether laws were improperly applied. Brewer’s judgment was in favor of Key Construction, even though its bid had the same defect as the lower bid. This decision cost taxpayers and airport users an extra $2 million, to the benefit of a major campaign donor and fishing buddy.

    Exhibit 3: In a Wichita Eagle story that reported on “city-financed downtown parking garages that spiraled well over budget” we learned this: “The most recent, the 2008 WaterWalk Place garage built by Key Construction, an original partner in the WaterWalk project, came in $1.5 million over budget at almost $8.5 million. That’s the biggest parking garage miss, according to figures from the city’s office of urban development, although the 2004 Old Town Cinema garage built by Key Construction came in almost $1 million over budget at $5.225 million.”

    Despite this personal experience, Brewer wrote a letter recommending Key Construction (and only Key), observing “Key is known for their consistent quality construction, budget control and on schedule delivery.”

    Exhibit 4: In 2008 the Wichita City Council approved a no- and low-interest loan to movie theater owner Bill Warren and his partners. Reported the Wichita Eagle: “Wichita taxpayers will give up as much as $1.2 million if the City Council approves a $6 million loan to bail out the troubled Old Town Warren Theatre this week. That’s because that $6 million, which would pay off the theater’s debt and make it the only fully digital movie theater in Kansas, would otherwise be invested and draw about 3 percent interest a year.”

    warren-theater-brewers-best-bbq-sauce-small

    Warren’s theaters have received other financial benefits from the city under Brewer’s leadership, too. Then — and I swear I am not making this up — when Brewer started manufacturing and selling barbeque sauce, it was sold at Warren’s theaters.

    Really. It happened.

    What can we say about a mayor who is concerned about the appearance of impropriety when shopping for his personal automobile, but is not able to understand the problems with his own behavior in office?

    That he feels he needs to shop for a car outside the city, but at the same time has no problem voting for overpriced no-bid contracts for campaign contributors and friends?

    That he’s worried that a car dealer might feel he can gain something by giving the mayor a “special deal,” but votes to give millions to a campaign contributor, and then sells his barbeque sauce in that person’s business?

    It’s difficult to understand or reconcile these two behaviors: Hyper-sensitivity to ethics when buying his personal car, as contrasted to total numbness to unethical cronyism that is against the law in some states and cities.

  • Wichita mayor said to be ‘under lockdown’

    When Wichita ABC affiliate KAKE Television ran a news story critical of Wichita Mayor Carl Brewer, reporter Jared Cerullo wasn’t able to interview Brewer to get his reaction to his critics. The mayor refused to talk to Cerullo.

    [powerpress url=”http://wichitaliberty.org/wp-content/uploads/2013/05/jeff-herndon-2013-05-17-excerpt1.mp3″]Jeff Herndon, KAKE Television news anchor, speaking at Wichita Pachyderm Club, May 17, 2013. Herndon is speaking for himself, and not on behalf of KAKE.

    Speaking last week at the Wichita Pachyderm Club, KAKE news anchor Jeff Herndon said that KAKE has “repeatedly” tried to get an on-camera interview with Brewer. But the mayor is always busy, Herndon said: “They’ve got him on lockdown. He’s not going to answer that.”

    Herndon was speaking for himself, and not for his employer. In his talk to the Pachyderms, he was critical of Wichita news media — both television and print — for not covering city government rigorously, telling the audience: “We need more reporters on that city government beat, and not just on decisions they make. We need to hold them accountable for the decision. We don’t do that.”

    Brewer is sometimes mentioned as a candidate for higher office, perhaps challenging Kansas Governor Sam Brownback next year. Brewer’s term as mayor ends in April 2015. He is not eligible for election to another term as mayor because of Wichita’s term limits law.

    KAKE Television news story: Controversy over hotel sales tax vote

    Notes:

    • The KAKE news story referred to is Wichita Mayor Scrutinized For Controversial Vote. Both text and video are available.
    • On his radio program, Joseph Ashby had an interesting take on Herndon’s remarks and Wichita new media.
    • Video of the city council meeting that was the subject of the KAKE news story is here.
    • Explanation of the public policy angle that drove citizens to testify at the April 16 city council meeting is here.
    • The original article that identified the problem and to solutions is Pay-to-play laws are needed in Wichita and Kansas. In that article I wrote: “When one looks at the candidates these people contribute to, you notice that often there’s no commonality to the political goals and ideals of the candidates. Some people contribute equally to liberal and conservative council members. Then, when these people appear in the news after having received money from the Wichita City Council, it snaps into place: These campaign donors are not donating to those whose ideals they agree with. They’re donating so they can line their own pockets.”