Tag: Featured

  • AFP Foundation wins a battle for free speech for everyone

    AFP Foundation wins a battle for free speech for everyone

    Americans for Prosperity Foundation achieves a victory for free speech and free association.

    Must donors to non-profit organizations live in “fear of exercising their First Amendment right to support” any organization, which effect is to “diminish the amount of expressive and associational activity?” Should these people be denied the right to their speech? The constitution says, no.

    Non-profit organizations file a form known as IRS Form 990, Return of Organization Exempt From Income Tax. 1 The first part of this form is public information and may be obtained from the organization itself or from services like GuideStar. Also part of the filing is Schedule B, Schedule of Contributors. 2 This form holds the names and addresses of donors, along with the amount donated. This information is not public, and generally non-profits do not disclose it.

    But California Attorney General Kamala Harris wanted the names of AFP Foundation’s donors, and she demanded its Schedule B. AFP Foundation said no, and now a federal judge has ruled that “the Attorney General’s Schedule B disclosure requirement unconstitutional as-applied to AFP.”

    AFP Foundation Board Member Mark Holden said “Federal District Court Judge Manuel Real issued a permanent injunction to enjoin the Attorney General of California from demanding AFP Foundation’s donor list. After a full bench trial, the Court found the Attorney General’s disclosure requirement was an unconstitutional violation of the First Amendment as applied to AFP Foundation. The Court also found that the Attorney General’s demand chills the exercise of AFP Foundation donors’ First Amendment freedoms to speak anonymously and to engage in expressive association.”

    Holden added “From my perspective as an AFP Board member and a citizen is that it is a great day for First Amendment free speech and free association.”

    The case is Americans for Prosperity Foundation v. Kamala Harris, In Her Official Capacity as Attorney General of California. The final ruling is here.

    Anonymity

    Why might donors choose to be anonymous, and why is protecting that right important? In his decision, the judge wrote “During the course of trial, the Court heard ample evidence establishing that AFP, its employees, supporters and donors face public threats, harassment, intimidation, and retaliation once their support for and affiliation with the organization becomes publicly known.”

    Disclosure has been used as a political weapon, as the Wall Street Journal noted in its reporting: “The judge is an LBJ appointee who can recall when disclosure was used as a political weapon in the Jim Crow South.” (Judge Manuel L. Real was born in 1924 and appointed to the Court in 1966 by President Lyndon Johnson.) In his opinion, Judge Real wrote “[A]lthough the Attorney General correctly points out that such abuses are not as violent or pervasive as those encountered in NAACP v. Alabama or other cases from that era, this Court is not prepared to wait until an AFP opponent carries out one of the numerous death threats made against its members.”

    Today, those who advocate for free markets, limited government, and economic freedom are often verbally assaulted and threatened, and sometimes threats are physical and real. But it is not only those who this ruling benefits. Today, there are people who may want to donate to controversial matters such as supporting gay rights, but may still be “in the closet.” Conservatives who support issues like abolition of the death penalty, criminal justice reform, and legalization of drugs are often branded by their fellows as closet liberals who are soft on crime. Should these people be denied the right to their speech? The constitution says, no.


    Notes

    1. Form 990, Return of Organization Exempt From Income Tax. (2016). Irs.gov. Available at www.irs.gov/uac/About-Form-990.
    2. Schedule B (Form 990, 990-EZ, or 990-PF), Schedule of Contributors. (2016). Irs.gov. Available at www.irs.gov/uac/About-Schedule-B-(Form-990,-990EZ,-or-990PF).
  • Wichita property tax rate: Up again

    Wichita property tax rate: Up again

    The City of Wichita says it hasn’t raised its property tax mill levy in many years. But data shows the mill levy has risen, and its use has shifted from debt service to current consumption.

    Wichita mill levy rates. This table holds only the taxes levied by the City of Wichita and not any overlapping jurisdictions.
    Wichita mill levy rates. This table holds only the taxes levied by the City of Wichita and not any overlapping jurisdictions.
    In 1994 the City of Wichita mill levy rate was 31.290. In 2015 it was 32.686, based on the city’s Comprehensive Annual Financial Report and the Sedgwick County Clerk. That’s an increase of 1.396 mills, or 4.46 percent, since 1994. (These are for taxes levied by the City of Wichita only, and do not include any overlapping jurisdictions.)

    The Wichita City Council did not take explicit action to raise this rate. Instead, the rate is set by the county based on the city’s budgeted spending and the assessed value of taxable property subject to Wichita taxation.

    Wichita mill levy rates. Click for larger version.
    Wichita mill levy rates. Click for larger version.
    While the city doesn’t have control over the assessed value of property, it does have control over the amount it decides to spend.

    Change in Wichita mill levy rates, year-to-year and cumulative. Click for larger version.
    Change in Wichita mill levy rates, year-to-year and cumulative. Click for larger version.
    Also, while some may argue that an increase of 4.46 percent over two decades is not very much, this is an increase in a rate of taxation, not actual tax revenue. As property values rise, and as the mill levy rises, property tax bills rise rapidly.

    The total amount of property tax levied is the mill levy rate multiplied by the assessed value of taxable property. This amount has risen, due to these factors:

    • Appreciation in the value of property
    • An increase in the amount of property
    • Spending decisions made by the Wichita City Council

    Application of tax revenue has shifted

    Wichita mill levy, percent dedicated to debt service. Click for larger version.
    Wichita mill levy, percent dedicated to debt service. Click for larger version.
    The allocation of city property tax revenue has shifted over the years. According to the 2010 City Manager’s Policy Message, page CM-2, “One mill of property tax revenue will be shifted from the Debt Service Fund to the General Fund. In 2011 and 2012, one mill of property tax will be shifted to the General Fund to provide supplemental financing. The shift will last two years, and in 2013, one mill will be shifted back to the Debt Service Fund. The additional millage will provide a combined $5 million for economic development opportunities.”

    In 2005 the mill levy dedicated to debt service was 10.022. In 2015 it was 8.509. That’s a reduction of 1.513 mills (15.1 percent) of property tax revenue dedicated for paying off debt. Another interpretation of this is that in 2005, 31.4 percent of Wichita property tax revenue was dedicated to debt service. In 2015 it was 26.0 percent.

    This shift has not caused the city to delay paying off debt. This city is making its scheduled payments. But we should recognize that property tax revenue that could have been used to retire debt has instead been shifted to support current spending. Instead of spending this money on current consumption — including economic development spending that has produced little result — we could have, for example, used that money to purchase some of our outstanding bonds.

    Despite the data that is readily available in the city’s comprehensive annual financial reports, some choose to remain misinformed and/or uninformed. The following video from 2012 provides insight into the level of knowledge of some former elected officials and city staff. Based on recent discussions with city officials, things have not improved regarding present staff.

  • WichitaLiberty.TV: Trump and the Wichita Eagle, property rights and blight, teachers union, and capitalism

    WichitaLiberty.TV: Trump and the Wichita Eagle, property rights and blight, teachers union, and capitalism

    In this episode of WichitaLiberty.TV: Was it “Trump” or “Bernie” that incited a fight, and how does the Wichita Eagle opine? Economic development in Wichita. Blight and property rights. Teachers unions. Explaining capitalism. View below, or click here to view at YouTube. Episode 117, broadcast April 24, 2016.

  • GDP by state and industry

    GDP by state and industry

    An interactive visualization of gross domestic product by state and industry from the Bureau of Economic Analysis.

    Composition of GDP by State, Kansas and U.S. Click for larger version.
    Composition of GDP by State, Kansas and U.S. Click for larger version.
    The Bureau of Economic Analysis is an agency of the United States Department of Commerce. BEA describes its role as “Along with the Census Bureau, BEA is part of the Department’s Economics and Statistics Administration. BEA produces economic accounts statistics that enable government and business decision-makers, researchers, and the American public to follow and understand the performance of the Nation’s economy. To do this, BEA collects source data, conducts research and analysis, develops and implements estimation methodologies, and disseminates statistics to the public.”

    A relatively new series of data produced by BEA is gross domestic product (GDP) by state for 21 industry sectors on a quarterly basis. BEA defines GDP as “the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production.” It is the value of the final goods and services produced.

    In describing this data, BEA says “These new data provide timely information on how specific industries contribute to accelerations, decelerations, and turning points in economic growth at the state level, including key information about the impact of differences in industry composition across states.” This data series starts in 2005.

    I’ve gathered the data for this series for all states and present it in an interactive visualization using Tableau Public. I present the series in real dollars, meaning that BEA adjusted the numbers to account for changes in the price level, or inflation.

    Click here to open the visualization.

    Growth of gross domestic product of manufacturing for Kansas and the United States, illustrating volatility in Kansas. Click for larger.
    Growth of gross domestic product of manufacturing for Kansas and the United States, illustrating volatility in Kansas. Click for larger.
  • Kansas continues to snub school choice reform that helps the most vulnerable schoolchildren

    Kansas continues to snub school choice reform that helps the most vulnerable schoolchildren

    Charter schools benefit minority and poor children, yet Kansas does not leverage their benefits, despite having a pressing need to boost the prospects of these children.

    The CREDO studies at Stanford University are often cited as the most comprehensive and reliable research on charter schools. Opponents of charter school focus on a finding that some charter schools are worse than local traditional public schools, the figures being 19 percent for reading and 31 percent for math. Because of this, opponents of charter schools feel justified in keeping them out of Kansas. (Kansas does allow charter schools, but the law is so stacked against charter schools that there are very few, effectively none.)

    The findings from the Stanford CREDO National Charter School Study from 2013 contain much more information than this simple conclusion. In particular, here is a partial quote from its executive summary: “Enrollment and persistence in charter schools is especially helpful for some students, particularly students in poverty [and] black students …”

    Why would we not want to experience these benefits, especially for poor and minority students?

    This is important. While the Kansas public education establishment touts the state’s relatively high performance on national tests, when results are analyzed closely, we see some things that should cause all Kansans to embrace whatever we can do to correct this.

    Kansas students compared to national. Click for larger.
    Kansas students compared to national. Click for larger.
    Nearby is a chart of NAEP scores for Kansas and national public schools. It is an example from a visualization of NAEP scores that you may use yourself. I’ve circled some troubling results. An example of something that must be changed is this: For grade four math, 14 percent of Kansas black students are at the level “proficient” or better. For national public schools, the figure for the same population subgroup is 19 percent.

    Following, some findings from the CREDO study that show how charter schools help precisely the students that need the most help. But the Kansas school establishment does not want charter schools, and so far Kansas Republicans — including Governor Brownback and legislative leaders — have been unwilling to help the most vulnerable Kansas schoolchildren.

    “The 27 states in our study provide the widest angle view of the charter school sector to date. Across multiple measures, the students in these charter schools have shown both improved quality over the results from 2009 and an upward trend in their performance over the past five years.”

    “The average charter school student now gains an additional 8 days of learning each year in reading, compared to the loss of 7 days each year reported in 2009. In math, charter students in 2009 posted 22 fewer days of learning; now that gap is closed so their learning each year is on par with their peers in traditional public schools.”

    “Looking back to the demographics of the charter school sector in the 27 states, charter school enrollment has expanded among students in poverty, black students, and Hispanic students. These are precisely the students that, on average, find better outcomes in charter schools. These findings lend support to the education and social policies that focus on education as the mechanism to improve life chances for historically underserved students. Charter schools are especially beneficial learning environments for these students, as the following graphics illustrate in greater detail.”

    “Enrollment and persistence in charter schools is especially helpful for some students, particularly students in poverty, black students, and English language learners all of whom post significantly higher learning gains in both reading and math. Hispanic students are on par with their TPS peers in both reading and math. For students with multiple designations (such as being black and in poverty), the impacts of charter schooling are especially positive and noteworthy.”

  • Wichita doesn’t have this

    Wichita doesn’t have this

    A small Kansas city provides an example of what Wichita should do.

    For several years, the Kansas city of Lawrence has published an economic development report letting citizens know about the activities of the city in this area. The most recent edition may be viewed here.

    The Lawrence report contains enough detail and length that an executive summary is provided. This is the type of information that cities should be providing, but the City of Wichita does not do this.

    It’s not like the City of Wichita does not realize the desirability of providing citizens with information. In fact, Wichitans have been teased with the promise of more information in order to induce them to vote for higher taxes. During the campaign for the one cent per dollar Wichita city sales tax in 2014, a city document promised this information regarding economic development spending if the tax passed: “The process will be transparent, with reports posted online outlining expenditures and expected outcomes.” (This is what Lawrence has been doing for several years.)

    The “Yes Wichita” campaign promised, “Reports will be measured and reported publicly.” (But “Yes Wichita” was a campaign group and not an entity whose promises can be relied on, and can’t be held accountable for failure to perform.)

    These are good ideas. The city should implement them even though the sales tax did not pass. If it’s good for citizens to have this type of information if the sales tax had passed, it’s good for them to know in any circumstance, because the city (and other overlapping governmental jurisdictions) still spends a lot on economic development.

    Why is this information not available? Is the communications staff overwhelmed, with no time to provide this type of information?

    During the sales tax campaign Wichita city staff had time to prepare news releases with titles like “City to Compete in Chili Cook-off” and “Jerry Seinfeld Returns to Century II.”

    Since then the city has hired additional communications staff, adding a Strategic Communications Director last spring.

    Wichitans need to know that besides living in a city that doesn’t provide much information about its operations, the city believes it is doing a good job. Here is a Wichita city news release from 2013:

    “The City Council has stressed the importance of transparency for this organization,” City Manager Robert Layton said. “We’re honored to receive a Sunny Award and we will continue to empower and engage citizens by providing information necessary to keep them informed on the actions their government is taking on their behalf.”

    When I’ve expressed frustration with the process of asking for information from the city, communications staff told me this: “I should note that the City has won multiple awards for openness and citizen participation, but City leaders recognize this work is never done. They strive each and every day to become more open and transparent and will continue to do so.”

    Wichitans need to wonder:

    • Why can’t we have the same information about our city government that residents of Lawrence have?

    • Was transparency promised only to get people to vote for the sales tax?

    • Is transparency really a governing principle of our city?

  • Kansas school salaries

    Kansas school salaries

    Kansas school salaries for superintendents, principals, and teachers presented in an interactive visualization for each district, updated for 2016 data.

    Recently Kansas Policy Institute noted the discrepancy in salary increases for Kansas public school management as compared to teachers. See Pay raises to superintendents and principals far outpace those to teachers.

    In the article, David Dorsey writes: “A widely-shared solution to improving student outcomes is to put more money in the classroom. What does it say about the importance of student achievement to local school boards and administrations when pay increases are disproportionately higher to those who are not in the classroom?”

    And later: “Much has been documented about teacher shortages, especially due to those leaving after only a few years in the profession. One way to reverse that trend would be for districts to make spending choices that would support the commitment to keeping quality teachers.”

    Kansas State Department of Education has released salary figures for districts for the current school year, fiscal year 2016. Statewide, since 2008, the KSDE data shows these cumulative salary increases:

    Superintendents: 12.2 percent
    Principals: 11.8 percent
    Teachers: 8.8 percent

    If we start the comparison in 2009 the difference is larger, with increases of 8.2 percent for principals and 4.9 percent for teachers.

    It’s also useful to look at individual districts. For example, for the Wichita public school district, there are these cumulative salary increases since 2008:

    Superintendent: 53.9 percent
    Principals: 7.0 percent
    Teachers: 2.3 percent

    The Wichita district has just one superintendent, so no matter how much the salary rises, it’s still the salary for just a single person and has a negligible effect on total district payroll costs. There are, however, 89 principals, so the increase for this category of employee matters much more.

    But you have to wonder: What about the teachers?

    I’ve gathered the data and present it in an interactive visualization. You may select any single district, or use district 999 for statewide totals. Click here to open the visualization in a new window. Data is from Kansas State Department of Education. Figures include fringe benefits and are not adjusted for inflation. Visualization created using Tableau Public. There are several missing values which can make the percentage change invalid for a single year.

    Kansas school salaries. Click for larger.
    Kansas school salaries. Click for larger.
  • Economic indicators in the states

    Economic indicators in the states

    During this century the Kansas economy has not kept up with the national economy and most neighboring states.

    The Federal Reserve Bank of Philadelphia calculates two indexes that track and forecast economic activity in the states and the country as a whole.

    Economic Indicators in the States ExampleThe coincident index is a measure of current and past economic activity for each state. This index includes four indicators: nonfarm payroll employment, the unemployment rate, average hours worked in manufacturing, and wage and salary disbursements deflated by the consumer price index (U.S. city average). July 1992 is given the value 100. 1

    The leading index predicts the six-month growth rate of the state’s coincident index. In addition to the coincident index, “the models include other variables that lead the economy: state-level housing permits (1 to 4 units), state initial unemployment insurance claims, delivery times from the Institute for Supply Management (ISM) manufacturing survey, and the interest rate spread between the 10-year Treasury bond and the 3-month Treasury bill.” 2

    Positive values mean the coincident index is expected to rise in the future six months, while negative values mean it is expected to fall.

    I’ve created an interactive visualization of these two indexes. Examples appear nearby. Click here to use the visualization in a new window.

    1. Federal Reserve Bank of Philadelphia. State Coincident Indexes – a monthly coincident index for each of the 50 states. Philadelphiafed.org. Available at www.philadelphiafed.org/research-and-data/regional-economy/indexes/coincident.
    2. Federal Reserve Bank of Philadelphia. State Leading Indexes – current & future economic situation of 50 states with special coverage of Pennsylvania, New Jersey, & Delaware. Philadelphiafed.org. Available at www.philadelphiafed.org/research-and-data/regional-economy/indexes/leading.
  • WichitaLiberty.TV: Radio talk show host Andy Hooser

    WichitaLiberty.TV: Radio talk show host Andy Hooser

    In this episode of WichitaLiberty.TV: Andy Hooser of KQAM’s The Voice of Reason joins Bob Weeks to discuss presidential and Kansas politics. View below, or click here to view at YouTube. Episode 116, broadcast April 17, 2016.

    The Voice of Reason’s Facebook page is here.