Voice For Liberty

Tag: Kansas Policy Institute

  • Wichita Eagle labels hold a clue

    Wichita Eagle labels hold a clue

    How Wichita Eagle news stories label outside organizations is a window into the ideology of the paper’s newsroom.

    A Wichita Eagle op-ed references a report released by two think tanks, Institute on Taxation and Economic Policy and Kansas Center for Economic Growth. (Kansas tax system among the most regressive, January 18, 2015.)

    Here’s what readers can learn about the mindset of the Wichita Eagle. These organizations were named. Named and referenced without labels, adjectives, or qualifications that give readers clues about the ideology of the organizations.

    That wouldn’t be remarkable except for noticing the contrast in how the Eagle labels conservative and libertarian organizations, most notably Kansas Policy Institute. A quick use of Google finds these mentions of KPI in recent Eagle pieces:

    • “Dave Trabert, president of the Kansas Policy Institute and an outspoken advocate for conservative education reforms”
    • “The Kansas Policy Institute, a free-market think tank linked to Koch Industries”
    • “The Kansas Policy Institute, a conservative think tank”
    • “Dave Trabert, president of the Kansas Policy Institute, a conservative think tank in Wichita”
    • “The Kansas Policy Institute, a conservative think tank based in Wichita”
    • “The Kansas Policy Institute, a conservative Wichita nonprofit organization”
    • “parallel recommendations from the Kansas Policy Institute, a conservative small-government think tank”

    Always, a reference to Kansas Policy Institute includes a description of the organization’s politics. This is not inaccurate, as KPI is conservative and free-market.

    Contrast with these recent excerpts from Eagle stories:

    • “Duane Goossen is a senior fellow at the Kansas Center for Economic Growth”
    • “said Annie McKay, director of the Kansas Center for Economic Growth”
    • “The Kansas Center for Economic Growth recently surveyed districts and analyzed data from the Kansas State Department of Education”
    • “A study by the Institute on Taxation and Economic Policy that Laffer disputes”
    • “said Matt Gardner, executive director of the liberal-leaning Institute on Taxation and Economic Policy”
    • “according to an analysis by the Institute on Taxation and Economic Policy, which is based in Washington, D.C.”
    • “Wednesday’s report by the Institute on Taxation and Economic Policy says”

    You can see that one time the Eagle slipped and labeled ITEP as “liberal-leaning.” That’s actually a gentle characterization of ITEP, which in reality lies quite far on the left end of the political spectrum, as does Kansas Center for Economic Growth. But the use of a label shows that someone, at one time, was aware of ITEP’s politics.

    So why does the Eagle routinely label Kansas Policy Institute, but never or rarely label Institute on Taxation and Economic Policy and Kansas Center for Economic Growth?

    We know the editorial page of the Eagle is liberal, favoring progressive policies of more taxes and larger government over economic freedom almost without exception. We see too that the newsroom shares the same view, as shown by the sampling of references above. Labeling a source as conservative, free-market, and linked to Koch Industries is not meant by the Eagle to be a compliment.

    A note: The two outfits the op-ed relied upon produce much content that is demonstrably wrong. The Tax Foundation has found many serious problems with the report that is the subject of the Eagle op-ed. See Comments on Who Pays? A Distributional Analysis of the Tax Systems in All 50 States (Second Edition). For KCEG, see Kansas school teacher cuts, student ratios.

  • At risk school funding in Kansas

    From Kansas Policy Institute.

    At Risk School Funding 101

    by David Dorsey

    Note: this is the first blog in a series on the issue of at risk funding and accompanies a comprehensive KPI at risk research project.

    Funding for public schools is a complicated proposition.

    There are many factors that go into determining just how much money school districts will receive and where it will come from every year from state and local sources. There are property taxes, state equalization, local options, and so many more considerations that it takes 93 columns on the master spreadsheet used by the Kansas Department of Education to sort it all out! And that doesn’t even count federal money.

    One piece of this funding puzzle is the “weighting” formula the state uses to adjust (increase) the amount of money that will go to each district based on certain characteristics of a) students (e.g. the number in vocational education) and b) the district (e.g. low or high enrollment). I presented the weighting formula in an earlier blog where you can see the formula in its entirety.

    One part of that formula determines how much extra money goes to districts under the banner of “at risk.” So what is this at risk funding? It provides extra dollars to schools based on the number of economically disadvantaged students enrolled. It is rooted in a philosophy, and research has attempted to support, that it costs more to adequately educate poor students. That ideal is operationalized (quantified) by using the number of students who qualify for free lunch under the United States Department of Agriculture’s National School Lunch Program (NSLP). Some states also include the number of students who qualify for reduced lunch cost under NSLP. Nearly all states use the school lunch program in some form as a basis for determining their versions of at risk population.

    This graphic shows how it works under current Kansas law. Base state aid per pupil (BSAPP) is $3,852. A student who qualifies for a free lunch is presently weighted at anadditional 45.6% of BSAPP and generates $5,609. (I say presently because at risk weightings have increased over time — more on that in the next blog.) Additionally, if more than half the students in a district are free lunch students a supplementary 10.5% weighting is added ($6,013). Currently, that applies to 57 of the state’s 286 school districts. One hundred four districts get a smaller, sliding scale additional percentage because they have between 35% and 50% at-risk students (more than $5,609 but less than $6,013). One hundred twenty five districts get no additional at risk money. Then, in order to determine the exact dollar amount a district will receive, the total weighted percentage is multiplied by the current BSAPP ($3,852 per pupil for 2015).

    I told you it’s complicated.

    Coincidentally, it is actually simpler than previous years because the legislature passed a law that eliminated a small at risk category in the 2014 session.

    To show exactly how free lunch turns into at risk dollars, I present the following table that shows at risk funding for seven selected school districts that reveals the funding impact at risk dollars can have.

    At risk data for selected districts, 2014-2015, from Kansas Policy Institute

    Wichita, by far the biggest school district in the state, gets over $72 million per year. Pittsburg and Hays have virtually identical enrollments, but Pittsburg gets nearly $2.3 million more at risk money than Hays because Pittsburg has nearly twice the number of free lunch students, but more than twice as many weighted free lunch students. For the entire state the total at risk funding is just over $395 million.

    That’s a lot of money, even in government terms.

    One of the core issues associated with at risk funding is how it impacts student achievement, especially in light of the numerous and significant increases in at risk funding over the years (to be presented in the next blog). We will examine in depth what previous KPI research has shown to have limited positive effect.

    Next: How did we get here? A look at the research and realities of additional funding for educating the economically disadvantaged.

  • Year in Review: 2014

    Year in Review: 2014

    Here is a sampling of stories from Voice for Liberty in 2014.

    January

    A transparency agenda for Wichita
    Kansas has a weak open records law, and Wichita doesn’t want to follow the law, as weak as it is. But with a simple change of attitude towards open government and citizens’ right to know, Wichita could live up to the goals its leaders have set.

    New York Times on Kansas schools, again
    The New York Times — again — intervenes in Kansas schools. As it did last October, the newspaper makes serious errors in its facts and recommendations.

    Visit Wichita, and pay a tourism fee
    The Wichita City Council will consider adding a 2.75 percent tax to hotel bills, calling it a “City Tourism Fee.” Welcome to Wichita!

    Wichita’s growth in gross domestic product
    Compared to peer areas, Wichita’s record of growth in gross domestic product is similar to that of job creation: Wichita performs poorly.

    The death penalty in Kansas, a conservative view
    What should the attitude of conservatives be regarding the death penalty? Ben Jones of Conservatives Concerned about the Death Penalty spoke on the topic “Capital Punishment in Kansas from a conservative perspective: Is it a failed policy?”

    Kansas school test scores, the subgroups
    To understand Kansas school test scores, look at subgroups. Sometimes Kansas ranks very well among the states. In other instances, Kansas ranks much lower, even below the national average. It’s important for Kansans — be they citizens, schoolchildren, parents, education professionals, or (especially) politicians of any party — to understand these scores.

    The state of Wichita, 2014
    Wichita Mayor Carl Brewer delivered the annual State of the City address. He said a few things that deserve discussion.

    February

    In Wichita, why do some pay taxes, and others don’t?
    A request by a luxury development in downtown Wichita raises issues, for example, why do we have to pay taxes?

    Wichita considers policy to rein in council’s bad behavior
    he Wichita City Council considers a policy designed to squelch the council’s ability to issue no-bid contracts for city projects. This policy is necessary to counter the past bad behavior of Wichita Mayor Carl Brewer and several council members, as well as their inability to police themselves regarding matters of ethical behavior by government officials.

    Our Kansas grassroots teachers union
    Letters to the editor in your hometown newspaper may have the air of being written by a concerned parent of Kansas schoolchildren, but they might not be what they seem.

    Wichita’s legislative agenda favors government, not citizens
    This week the Wichita City Council will consider its legislative agenda. This document contains many items that are contrary to economic freedom, capitalism, limited government, and individual liberty. Yet, Wichitans pay taxes to have someone in Topeka promote this agenda.

    Wichita planning documents hold sobering numbers
    The documents hold information that ought to make Wichitans think, and think hard. The amounts of money involved are large, and portions represent deferred maintenance. That is, the city has not been taking care of the assets that taxpayers have paid for.

    In Wichita, citizens want more transparency in city government
    In a videographed meeting that is part of a comprehensive planning process, Wichitans openly question the process, repeatedly asking for an end to cronyism and secrecy at city hall.

    March

    Special interests struggle to keep special tax treatment
    When a legislature is willing to grant special tax treatment, it sets up a battle to keep — or obtain — that status. Once a special class acquires preferential treatment, others will seek it too.

    In Wichita, West Bank apartments seem to violate ordinance
    Last year the Wichita City Council selected a development team to build apartments on the West Bank of the Arkansas River, between Douglas Avenue and Second Street. But city leaders may have overlooked a Wichita City Charter Ordinance that sets aside this land to be “open space, committed to use for the purpose of public recreation and enjoyment.”

    In Wichita, pushing back at union protests
    A Wichita automobile dealer is pushing back at a labor union that’s accusing the dealer of unfair labor practices.

    Wichita City Council to consider entrenching power of special interest groups
    The Wichita City Council will consider a resolution in support of the status quo for city elections. Which is to say, the council will likely express its support for special interest groups whose goals are in conflict with the wellbeing of the public.

    State employment visualizations
    There’s been dueling claims and controversy over employment figures in Kansas and our state’s performance relative to others. I present the actual data in interactive visualizations that you can use to make up your own mind.

    State and local government employment levels vary
    The states vary widely in levels of state government and local government employees, calculated on a per-person basis. Only ten states have total government employee payroll costs greater than Kansas, on a per-person basis.

    April

    Wichita not good for small business
    When it comes to having good conditions to support small businesses, well, Wichita isn’t exactly at the top of the list, according to a new ranking from The Business Journals.

    Cronyism is welfare for rich and powerful, writes Charles G. Koch
    “The central belief and fatal conceit of the current administration is that you are incapable of running your own life, but those in power are capable of running it for you. This is the essence of big government and collectivism,” writes Charles G. Koch in the Wall Street Journal.

    Rich States, Poor States for 2014 released
    In the 2014 edition of Rich States, Poor States, Utah continues its streak at the top of Economic Outlook Ranking, meaning that the state is poised for growth and prosperity. Kansas continues with middle-of-the-pack performance rankings, and fell in the forward-looking forecast.

    Wichita develops plans to make up for past planning mistakes
    On several issues, including street maintenance, water supply, and economic development, Wichita government and civic leaders have let our city fall behind. Now they ask for your support for future plans to correct these mistakes in past plans.

    May

    Poll: Wichitans don’t want sales tax increase
    According to a newly released poll from Kansas Policy Institute, Wichitans may want more jobs and a secure water source but they certainly don’t support a sales tax increase as the means to get either. Reporting on this poll is available in these articles: In Wichita, opinion of city spending consistent across party and ideology, Few Wichitans support taxation for economic development subsidies, Wichitans willing to fund basics, and To fund government, Wichitans prefer alternatives to raising taxes.

    Contrary to officials, Wichita has many incentive programs
    Wichita government leaders complain that Wichita can’t compete in economic development with other cities and states because the budget for incentives is too small. But when making this argument, these officials don’t include all incentives that are available.

    In Wichita, the streetside seating is illuminated very well
    Wichita city leaders tell us that the budget and spending have been cut to the bone. Except for the waste, that is.

    Wichita seeks to form entertainment district
    A proposed entertainment district in Old Town Wichita benefits a concentrated area but spreads costs across everyone while creating potential for abuse.

    In Wichita, capitalism doesn’t work, until it works
    Attitudes of Wichita government leaders towards capitalism reveal a lack of understanding. Is only a government-owned hotel able to make capital improvements?

    Wichita, again, fails at government transparency
    At a time when Wichita city hall needs to cultivate the trust of citizens, another incident illustrates the entrenched attitude of the city towards its citizens. Despite the proclamations of the mayor and manager, the city needs a change of attitude towards government transparency and citizens’ right to know.

    Wichita per capita income not moving in a good direction
    Despite its problematic nature, per capita income in Wichita is used as a benchmark for the economy. It’s not moving in the right direction. As Wichita plans its future, leaders need to recognize and understand its recent history.

    Uber, not for Wichita
    A novel transportation service worked well for me on a recent trip to Washington, but Wichita doesn’t seem ready to embrace such innovation.

    For Kansas’ Roberts, an election year conversion?
    A group of like-minded Republican senators has apparently lost a member. Is the conservative voting streak by Pat Roberts an election year conversion, or just a passing fad?

    June

    Wichita property taxes compared
    An ongoing study reveals that generally, property taxes on commercial and industrial property in Wichita are high. In particular, taxes on commercial property in Wichita are among the highest in the nation.

    Government employee costs in the states
    The states vary widely in levels of state government and local government employees and payroll costs, calculated on a per-person basis. Kansas ranks high in these costs, nationally and among nearby states.

    With new tax exemptions, what is the message Wichita sends to existing landlords?
    As the City of Wichita prepares to grant special tax status to another new industrial building, existing landlords must be wondering why they struggle to stay in business when city hall sets up subsidized competitors with new buildings and a large cost advantage.

    Wichita city council schools citizens on civic involvement
    Proceedings of a recent Wichita City Council meeting are instructive of the factors citizens should consider if they want to interact with the council and city government at a public hearing.

    Forget the vampires. Let’s tackle the real monsters.
    Public service announcements on Facebook and Wichita City Channel 7 urge Wichitans to take steps to stop “vampire” power waste. But before hectoring people to introduce inconvenience to their lives in order to save small amounts of electricity, the city should tackle the real monsters of its own creation.

    July

    Wichita property taxes rise again
    The City of Wichita is fond of saying that it hasn’t raised its mill levy in many years. But the mill levy has risen in recent years.

    For Wichita leaders, novel alternatives on water not welcome
    A forum on water issues featured a presentation by Wichita city officials and was attended by other city officials, but the city missed a learning opportunity.

    For Wichita’s new water supply, debt is suddenly bad
    Wichita city leaders are telling us we need to spend a lot of money for a new water source. For some reason, debt has now become a dirty word.

    Pat Roberts, senator for corporate welfare
    Two years ago United States Senator Pat Roberts voted in committee with liberals like John Kerry, Chuck Schumer, and Debbie Stabenow to pass a bill loaded with wasteful corporate welfare.

    August

    Charles Koch: How to really turn the economy around
    Writing in USA Today, Charles Koch offers insight into why our economy is sluggish, and how to make a positive change.

    Wichita airport statistics updated
    As the Wichita City Council prepares to authorize funding for Southwest Airlines, it’s worth taking a look at updated statistics regarding the airport.

    Wichita sales tax hike would hit low income families hardest
    Analysis of household expenditure data shows that a proposed sales tax in Wichita affects low income families in greatest proportion, confirming the regressive nature of sales taxes.

    Welcome back, Gidget
    Gidget stepped away for a few months, but happily she is back writing about Kansas politics at Kansas GOP Insider (wannabe).

    September

    Wichita planning results in delay, waste
    Wichita plans an ambitious road project that turns out to be too expensive, resulting in continued delays for Wichita drivers and purchases of land that may not be needed.

    ‘Transforming Wichita’ a reminder of the value of government promises
    When Wichita voters weigh the plausibility of the city’s plans for spending proposed new sales tax revenue, they should remember this is not the first time the city has promised results and accountability.

    Fact-checking Yes Wichita: NetApp incentives
    In making the case that economic development incentives are necessary and successful in creating jobs, a Wichita campaign overlooks the really big picture.

    Arrival of Uber a pivotal moment for Wichita
    Now that Uber has started service in Wichita, the city faces a decision. Will Wichita move into the future by embracing Uber, or remain stuck in the past?

    Fact-checking Yes Wichita: Boeing incentives
    The claim that the “city never gave Boeing incentives” will come as news to the Wichita city officials who dished out over $600 million in subsidies and incentives to the company.

    Beechcraft incentives a teachable moment for Wichita
    The case of Beechcraft and economic development incentives holds several lessons as Wichita considers a new tax with a portion devoted to incentives.

    For Kansas budget, balance is attainable
    A policy brief from a Kansas think tank illustrates that balancing the Kansas budget while maintaining services and lower tax rates is not only possible, but realistic.

    To Wichita, a promise to wisely invest if sales tax passes
    Claims of a reformed economic development process if Wichita voters approve a sales tax must be evaluated in light of past practice and the sameness of the people in charge. If these leaders are truly interested in reforming Wichita’s economic development machinery and processes, they could have started years ago using the generous incentives we already have.

    For Wichita Chamber’s expert, no negatives to economic development incentives
    An expert in economic development sponsored by the Wichita Metro Chamber of Commerce tells Wichita there are no studies showing that incentives don’t work.

    Water, economic development discussed in Wichita
    Dr. Art Hall, Executive Director of the Center for Applied Economics at the University of Kansas School of Business, presented his “Thoughts on Water and Economic Development” at the Wichita Pachyderm Club Friday, September 19, 2014

    Stuck in the box in Wichita, part one
    To pay for a new water supply, Wichita gives voters two choices and portrays one as bad. But the purportedly bad choice is the same choice the city made over the last decade to pay for the last big water project. We need out-of-the-box thinking here.

    October

    Kansas economy has been underperforming
    Those who call for a return to the economic policies of past Kansas gubernatorial administrations may not be aware of the performance of the Kansas economy during those times.

    Union Station TIF provides lessons for Wichita voters
    A proposed downtown Wichita development deserves more scrutiny than it has received, as it provides a window into the city’s economic development practice that voters should peek through as they consider voting for the Wichita sales tax.

    A simple step towards government transparency in Wichita
    Kansas law requires publication of certain notices in newspapers, but cities like Wichita could also make them available in other ways that are easier to use.

    While Wichita asks for new taxes, it continues to spend and borrow
    The City of Wichita says it doesn’t have enough revenue for things like street maintenance and transit, but continues to borrow for spending on new projects.

    Wichita debt levels seen to rise
    As part of the campaign for a proposed Wichita sales tax, the city says that debt is bad. But actions the city has taken have caused debt levels to rise, and projections are for further increases.

    For Wichita, another economic development plan
    The Wichita City Council will consider a proposal from a consultant to “facilitate a community conversation for the creation of a new economic development diversification plan for the greater Wichita region.” Haven’t we been down this road before?

    In Wichita, pro-sales tax campaign group uses sales tax-exempt building as headquarters
    While “Yes Wichita” campaigns for higher sales taxes, it operates from a building that received a special exemption from paying sales tax.

    For Wichita Chamber of Commerce chair, it’s sales tax for you, but not for me
    A Wichita company CEO applied for a sales tax exemption. Now as chair of the Wichita Metro Chamber of Commerce, he wants you to pay more sales tax, even on the food you buy in grocery stores.

    Should Wichita expand a water system that is still in commissioning stage?
    Should we be concerned about rushing a decision to expand a water production system that has not yet proven itself?

    Wichita sends educational mailer to non-Wichitans, using Wichita taxes
    Why is the City of Wichita spending taxpayer money mailing to voters who don’t live in the city and can’t vote on the issue?

    Wichita to consider tax exemptions
    A Wichita company asks for property and sales tax exemptions on the same day Wichita voters decide whether to increase the sales tax, including the tax on groceries.

    November

    In election coverage, The Wichita Eagle has fallen short
    Citizens want to trust their hometown newspaper as a reliable source of information. The Wichita Eagle has not only fallen short of this goal, it seems to have abandoned it.

    Kansas school spending visualization updated
    There’s new data available from Kansas State Department of Education on school spending. I’ve gathered the data, adjusted it for the consumer price index, and now present it in this interactive visualization.

    In Kansas, school employment rises again
    For the fourth consecutive year, the number of teachers in Kansas public schools has risen faster than enrollment, leading to declining pupil-teacher ratios.

    Richard Ranzau, slayer of cronyism
    In Sedgwick County, an unlikely hero emerges in the battle for capitalism over cronyism.

    Kansans still uninformed on school spending
    As in the past, a survey finds Kansans are uninformed or misinformed on the level of school spending, and also on the direction of its change.

    In Kansas, voters want government to concentrate on efficiency and core services before asking for taxes
    A survey of Kansas voters finds that Kansas believe government is not operating efficiently. They also believe government should pursue efficiency savings, focus on core functions, and spend unnecessary cash reserves before cutting services or raising taxes.

    Kansas cities should not unilaterally grant tax breaks
    When Kansas cities grant economic development incentives, they may also unilaterally take action that affects overlapping jurisdictions such as counties, school districts, and the state itself. The legislature should end this.

    City of Wichita State Legislative Agenda: Cultural Arts Districts
    Wichita government spending on economic development leads to imagined problems that require government intervention and more taxpayer contribution to resolve. The cycle of organic rebirth of cities is then replaced with bureaucratic management.

    December

    City of Wichita State Legislative Agenda: Airfares
    The City of Wichita’s legislative agenda regarding the Affordable Airfares subsidy program seems to be based on data not supported by facts.

    Options for funding Wichita’s future water supply
    Now that the proposed Wichita sales tax has failed, how should Wichita pay for a future water supply?

    KU records request seen as political attack
    A request for correspondence belonging to a Kansas University faculty member is a blatant attempt to squelch academic freedom and free speech.

    Why is this man smiling?
    In Wichita, the chair of the Wichita Metro Chamber of Commerce crafts a sweetheart deal for his company to the detriment of Wichita taxpayers.

    Wichita Metro Chamber of Commerce: What is the attitude towards taxes?
    Does the Wichita Metro Chamber of Commerce support free markets, capitalism, and economic freedom, or something else?

    Will the next Wichita mayor advocate enforcing our ethics laws?
    Wichita has laws that seem clear. But the city attorney said they don’t mean what they seem to say. Will our next mayor stand up for ethics?

    Campaign contribution stacking in Wichita
    Those seeking favors from Wichita City Hall use campaign contribution stacking to bypass contribution limits. This has paid off handsomely for them, and has harmed everyone else.

    Economic development in Wichita: Looking beyond the immediate
    Decisions on economic development initiatives in Wichita are made based on “stage one” thinking, failing to look beyond what is immediate and obvious.

    Economic development in Sedgwick County
    The issue of awarding an economic development incentive reveals much as to why the Wichita-area economy has not grown.

  • Balancing the Kansas budget

    Dave Trabert, President of the Kansas Policy Institute, spoke at the December 12, 2014 Wichita Pachyderm Club meeting. His program was titled “Debunking False Claims about Kansas Budget and Economy and Kansas Policy Institute Budget Plan for Kansas — How to balance the state budget without service reductions or tax increases.”

    View video below, or click here to view at YouTube.

    The policy brief Trabert mentioned may be downloaded from KPI at A Five-Year Budget Plan for the State of Kansas: How to balance the budget and have healthy ending balances without tax increases or service reductions or alternatively from Scribd here (may work better on mobile devices). A press release from KPI announcing the policy brief is at 5 Year Budget Plan Outlines Path To Protect Essential Services and Tax Reform.

  • Kansas ‘Green Book’ released

    Kansas Policy Institute has published a book exploring the relationship between the size of government and economic growth.

    Kansas Policy Institute Green Book 2014 coverTo introduce its book of economic statistics for Kansas and the nation, Kansas Policy Institute writes:

    U.S. Supreme Court Justice Louis Brandeis saw states as “laboratories of democracy” conducting “experiments” in public policy. Today, more than eight decades after Brandeis coined the phrase, state experimentation with tax policy makes it abundantly clear that tax policy has a direct impact on economic growth. As shown on page 19, each of the eleven states that enacted an income tax since 1960 now has a smaller share of state GDP relative to the other 39 states and each one also has a smaller share of state and local tax revenue. That is a remarkable statistic; those eleven states enacted a new source of tax revenue and they lost revenue share to other states! To the contrary, states with low tax burdens and states without an income tax consistently outshine their higher-burden peers the on the key, tangible measures like private sector job, GDP, and wage growth. What’s more, citizens are taking notice and “voting with their feet” by flocking to low-burden states from higher-burden counterparts. Skeptics try to dismiss this definitive migratory trend by cherry-picking success stories like Texas and Florida and characterizing them as ‘’happy accidents” of favorable geography, climate, and/or resource abundance.

    The book is available in pdf form here.

  • WichitaLiberty.TV: The Wichita Eagle fails the city and its readers

    WichitaLiberty.TV: The Wichita Eagle fails the city and its readers

    In this excerpt from WichitaLiberty.TV: In its coverage of the recent election, the Wichita Eagle has failed to inform its readers of city and state issues. View below, or click here to view at YouTube.

    For more on this topic, see In election coverage, The Wichita Eagle has fallen short and For Wichita Eagle, no immediate Kansas budget solution.

  • WichitaLiberty.TV: Election results, Kansas school employment and spending, and government planning of the economy

    WichitaLiberty.TV: Election results, Kansas school employment and spending, and government planning of the economy

    In this episode of WichitaLiberty.TV: In Sedgwick County, an unlikely hero emerges after the November election. Then, what is the trend in Kansas school employment and spending, and what do voters think has happened? Finally, do you know how to make a simple lead pencil? View below, or click here to view at YouTube. Episode 66, broadcast November 23, 2014.

  • In Kansas, voters want government to concentrate on efficiency and core services before asking for taxes

    In Kansas, voters want government to concentrate on efficiency and core services before asking for taxes

    A survey of Kansas voters finds that Kansas believe government is not operating efficiently. The also believe government should pursue efficiency savings, focus on core functions, and spend unnecessary cash reserves before cutting services or raising taxes.

    This month Kansas Policy Institute produced a survey asking registered voters in Kansas questions on the topic of school spending. The final four questions asked voters’ opinion of government efficiency and how government should respond to budgetary issues.

    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    Question 9 asked this: “How much do you agree or disagree with this statement: Kansas state government operates pretty efficiently and makes effective use of my tax dollars.” As you can see in the nearby table and chart, 31 percent of voters agreed with this statement. 65 percent disagreed, including 39 percent who said they strongly disagree with the statement. That was the most common response.

    This result is similar with a survey of Wichita voters conducted by SurveyUSA for KPI in April. The first question in that survey asked “In the past few years, have Wichita city officials used taxpayer money efficiently? Or inefficiently?” Overall, 58 percent believed city spending was inefficient, compared to 28 percent believing spending was efficient.

    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    In question 10, the current survey of Kansas voters asked “How much do you agree or disagree with this statement: Kansas state government could run 5% to 10% more efficiently than it does now.” 74 percent of respondents agreed to some extent, with 42 percent indicating they strongly agree. Only six percent strongly disagreed.

    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    Question 11 asked voters how Kansas state government should react to an unbalanced budget: “How much do you agree or disagree with this statement: I believe the Kansas state government should pursue efficiency savings, focus on core functions, and spend unnecessary cash reserves before raising taxes and/or cutting government functions.” 68 percent agreed with this statement, with 40 percent strongly agreeing. 24 percent disagreed.

    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    Question 12 asked voters how to fix Kansas state budget problems: “What would be the single best way to fix state budget problems? Increasing the income tax? Increasing the sales tax? Cutting spending, even if it means reduced services? Or reducing spending by providing services more efficiently?”

    Reducing spending by being more efficient received a majority — 54 percent — of responses. 26 percent of voters responded that taxes should be increased, with income tax hikes more popular than sales tax.

    A press release announcing the survey is New Survey: Kansans Remain Misinformed Regarding K-12 Finance. The results of the survey from SurveyUSA are here. Coverage of questions from the survey on education funding is at Kansans still uninformed on school spending.

  • Kansans still uninformed on school spending

    Kansans still uninformed on school spending

    As in the past, a survey finds Kansans are uninformed or misinformed on the level of school spending, and also on the direction of its change.

    This month Kansas Policy Institute produced a survey asking registered voters in Kansas questions on the topic of school spending. The first two questions measured the level of knowledge of Kansas school spending.

    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    Question 1 asked: “How much state funding do you think Kansas school districts currently receive per pupil each year from JUST the state of Kansas?” As can be seen in the nearby table and chart, the most frequent response was less than $4,000 per year. 63 percent — nearly two-thirds — thought funding from the state was less than $5,000 per year.

    The correct answer is that for the most recent school year (2013 — 2014) Kansas state funding per student was $7,088. This is estimated to rise to $8,604 for the current school year.

    (The source of data for past school years is Kansas State Department of Education. Estimates for the current school year were obtained from Dale Dennis, who is Deputy Commissioner, Fiscal and Administrative Services.)

    In the last school year base state aid per pupil was $3,838. How, then, does the state spend $7,088 per pupil? The answer is that various weightings are applied for things like bilingual education and at-risk pupils.

    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    Question 2 asked about funding from all sources: “How much funding per pupil do you think Kansas school districts currently receive from ALL taxpayer sources per year, including State, Federal and Local taxpayers? The most common answer was less than $7,000. Two-thirds answered less than $10,000.

    The correct answer is per-pupil spending from all sources for the 2013 — 2014 school year was $12,960. The estimate for the current school year is $13,268.

    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    From Kansas Policy Institute public opinion survey, November 2014.
    Question 3 asked about the change in school funding: “Over the last 4 years, how much do you think total per-pupil funding has changed?” 65 percent — nearly two-thirds — thought spending had fallen over this period. Only 14 percent thought spending had risen, and only seven percent by more than five percent. That last category holds the correct answer, which is 8.02 percent.

    The findings of these three questions, which are that people are generally uninformed as to the level of school spending, are not able produce estimates that are in the same ballpark of actual values, and are wrong on the direction of change of spending, are not surprising. Past versions of similar surveys in Kansas have produced similar results. It’s not just a Kansas problem, as similar findings are found across the nation.

    Commenting on the survey, KPI president Dave Trabert remarked:

    It is impossible for citizens to develop informed opinions on education funding and state budget issues without accurate information. We continue to see that citizens who are accurately informed on K-12 funding have significantly different opinions than those who believe school funding is much lower than reality.” The number of Kansans who can correctly answer this question remains disturbingly low, but knowing how frequently funding is misrepresented by education officials and special interests, it’s not surprising. Instead of trying to low-ball school funding to justify increased aid, the focus should be on improving outcomes.

    Kansans are providing record funding levels that exceed adjustments for enrollment and inflation over the last ten years, but outcomes on independent national assessments are relatively unchanged. It will always cost a lot of money to provide public education but the data shows that it’s how the money is spent that matters — not how much. “Just spend more” is about funding institutions. The focus needs to shift to getting more of the record-setting funding into classrooms where it will best help students.

    Legislators and citizens cannot make good decisions about the challenges facing the state without good information. This survey confirms what we’ve known previously: Kansans are being misinformed and that cannot lead to good decision making. We encourage legislators and others to honestly examine facts without political bias. No finger pointing … no attempts to score political points … and no shading the facts … just civil discussion of the issues and facts.

    A press release announcing the survey is New Survey: Kansans Remain Misinformed Regarding K-12 Finance. The results of the survey from SurveyUSA are here.

    The problem with government spending

    Of interest is that when people make major — or even minor — purchases, many will expend considerable effort researching the possibilities. Spending their own money, automobile purchasers want to get a good deal on a car that meets their preferences. That’s human nature.

    But every two years, taxpayers spend on each student the amount that will buy a nice new car. In four years, taxpayers spend enough on each student to buy a new luxury car. The average taxpayer doesn’t pay that much tax for schools. But collectively, we all do.

    The lack of knowledge of government spending reminds me of a passage from Free to Choose: A Personal Statement, written by Rose and Milton Friedman. It explains why government spending is wasteful, how it leads to corruption, how it often does not benefit the people it was intended, and how the pressure for more spending is always present. Spending on public schools falls in either category III — spending someone else’s money on yourself (or your children) — or category IV — spending someone else’s money on someone else. It’s no wonder it hasn’t worked very well.

    Here’s a passage from Free to Choose.

    A simple classification of spending shows why that process leads to undesirable results. When you spend, you may spend your own money or someone else’s; and you may spend for the benefit of yourself or someone else. Combining these two pairs of alternatives gives four possibilities summarized in the following simple table:

    friedman-spending-categories-2013-07

    Category I in the table refers to your spending your own money on yourself. You shop in a supermarket, for example. You clearly have a strong incentive both to economize and to get as much value as you can for each dollar you do spend.

    Category II refers to your spending your own money on someone else. You shop for Christmas or birthday presents. You have the same incentive to economize as in Category I but not the same incentive to get full value for your money, at least as judged by the tastes of the recipient. You will, of course, want to get something the recipient will like — provided that it also makes the right impression and does not take too much time and effort. (If, indeed, your main objective were to enable the recipient to get as much value as possible per dollar, you would give him cash, converting your Category II spending to Category I spending by him.)

    Category III refers to your spending someone else’s money on yourself — lunching on an expense account, for instance. You have no strong incentive to keep down the cost of the lunch, but you do have a strong incentive to get your money’s worth.

    Category IV refers to your spending someone else’s money on still another person. You are paying for someone else’s lunch out of an expense account. You have little incentive either to economize or to try to get your guest the lunch that he will value most highly. However, if you are having lunch with him, so that the lunch is a mixture of Category III and Category IV, you do have a strong incentive to satisfy your own tastes at the sacrifice of his, if necessary.

    All welfare programs fall into either Category III — for example, Social Security which involves cash payments that the recipient is free to spend as he may wish; or Category IV — for example, public housing; except that even Category IV programs share one feature of Category III, namely, that the bureaucrats administering the program partake of the lunch; and all Category III programs have bureaucrats among their recipients.

    In our opinion these characteristics of welfare spending are the main source of their defects.

    Legislators vote to spend someone else’s money. The voters who elect the legislators are in one sense voting to spend their own money on themselves, but not in the direct sense of Category I spending. The connection between the taxes any individual pays and the spending he votes for is exceedingly loose. In practice, voters, like legislators, are inclined to regard someone else as paying for the programs the legislator votes for directly and the voter votes for indirectly. Bureaucrats who administer the programs are also spending someone else’s money. Little wonder that the amount spent explodes.

    The bureaucrats spend someone else’s money on someone else. Only human kindness, not the much stronger and more dependable spur of self-interest, assures that they will spend the money in the way most beneficial to the recipients. Hence the wastefulness and ineffectiveness of the spending.

    But that is not all. The lure of getting someone else’s money is strong. Many, including the bureaucrats administering the programs, will try to get it for themselves rather than have it go to someone else. The temptation to engage in corruption, to cheat, is strong and will not always be resisted or frustrated. People who resist the temptation to cheat will use legitimate means to direct the money to themselves. They will lobby for legislation favorable to themselves, for rules from which they can benefit. The bureaucrats administering the programs will press for better pay and perquisites for themselves — an outcome that larger programs will facilitate.

    The attempt by people to divert government expenditures to themselves has two consequences that may not be obvious. First, it explains why so many programs tend to benefit middle- and upper-income groups rather than the poor for whom they are supposedly intended. The poor tend to lack not only the skills valued in the market, but also the skills required to be successful in the political scramble for funds. Indeed, their disadvantage in the political market is likely to be greater than in the economic. Once well-meaning reformers who may have helped to get a welfare measure enacted have gone on to their next reform, the poor are left to fend for themselves and they will almost always he overpowered by the groups that have already demonstrated a greater capacity to take advantage of available opportunities.

    The second consequence is that the net gain to the recipients of the transfer will be less than the total amount transferred. If $100 of somebody else’s money is up for grabs, it pays to spend up to $100 of your own money to get it. The costs incurred to lobby legislators and regulatory authorities, for contributions to political campaigns, and for myriad other items are a pure waste — harming the taxpayer who pays and benefiting no one. They must be subtracted from the gross transfer to get the net gain — and may, of course, at times exceed the gross transfer, leaving a net loss, not gain.

    These consequences of subsidy seeking also help to explain the pressure for more and more spending, more and more programs. The initial measures fail to achieve the objectives of the well-meaning reformers who sponsored them. They conclude that not enough has been done and seek additional programs. They gain as allies both people who envision careers as bureaucrats administering the programs and people who believe that they can tap the money to be spent.

    Category IV spending tends also to corrupt the people involved. All such programs put some people in a position to decide what is good for other people. The effect is to instill in the one group a feeling of almost God-like power; in the other, a feeling of childlike dependence. The capacity of the beneficiaries for independence, for making their own decisions, atrophies through disuse. In addition to the waste of money, in addition to the failure to achieve the intended objectives, the end result is to rot the moral fabric that holds a decent society together.

    Another by-product of Category III or IV spending has the same effect. Voluntary gifts aside, you can spend someone else’s money only by taking it away as government does. The use of force is therefore at the very heart of the welfare state — a bad means that tends to corrupt the good ends. That is also the reason why the welfare state threatens our freedom so seriously.