Tag: Schaefer Johnson Cox Frey

  • Special interests will capture south-central Kansas planning

    Special interest groups are likely to co-opt the government planning process started in south-central Kansas as these groups see ways to benefit from the plan. The public choice school of economics and political science has taught us how special interest groups seek favors from government at enormous costs to society, and we will see this at play over the next few years.

    Sedgwick County has voted to participate in a HUD Sustainable Communities Regional Planning Grant. While some justified their votes in favor of the plan because “it’s only a plan,” once the planning process begins, special interests plot to benefit themselves at the expense of the general public. Once the plan is formed, it’s nearly impossible to revise it, no matter how evident the need.

    An example of how much reverence is given to government plans comes right from the U.S. Supreme Court in the decision Kelo v. New London, in which the Court decided that government could use the power of eminent domain to take one person’s property and transfer it to someone else for the purposes of economic development. In his opinion for the Court, Justice Stevens cited the plan: “The City has carefully formulated an economic development plan that it believes will provide appreciable benefits to the community.” Here we see the importance of the plan and due reverence given to it.

    Stevens followed up, giving even more weight to the plan: “To effectuate this plan, the City has invoked a state statute that specifically authorizes the use of eminent domain to promote economic development. Given the comprehensive character of the plan, the thorough deliberation that preceded its adoption, and the limited scope of our review, it is appropriate for us, as it was in Berman, to resolve the challenges of the individual owners, not on a piecemeal basis, but rather in light of the entire plan. Because that plan unquestionably serves a public purpose, the takings challenged here satisfy the public use requirement of the Fifth Amendment.”

    To Stevens, the fact that the plan was comprehensive was a factor in favor of its upholding. The sustainable communities plan, likewise, is nothing but comprehensive, as described by county manager Bill Buchanan in a letter to commissioners: “[the plan will] consist of multi-jurisdictional planning efforts that integrate housing, land use, economic and workforce development, transportation, and infrastructure investments in a manner that empowers jurisdictions to consider the interdependent challenges of economic prosperity, social equity, energy use and climate change, and public health and environmental impact.”

    That pretty much covers it all. When you’re charged with promoting economic prosperity, defending earth against climate change, and promoting public health, there is no limit to the types of laws you might consider.

    Who will plan?

    The American Planning Association praised the Court’s notice of the importance of a plan, writing “This decision underscores the importance for a community to have a comprehensive development plan formulated through a democratic planning process with meaningful public participation by everyone.”

    But these plans are rarely by and for the public. Almost always the government planning process is taken over and captured by special interests. We see this in public schools, where the planning and campaigning for new facilities is taken over by architectural and construction firms that see school building as a way to profit. It does not matter to them whether the schools are needed.

    Our highway planning is hijacked by construction firms that stand to benefit, whether or not new roads are actually needed.

    Our planning process for downtown Wichita is run by special interest groups that believe that downtown has a special moral imperative, and another group that sees downtown as just another way to profit at taxpayer expense. Both believe that taxpayers across Wichita, Kansas, and even the entire country must pay to implement their vision. As shown in Kansas and Wichita need pay-to-play laws the special interests that benefit from public spending on downtown make heavy political campaign contributions to nearly all members of the Wichita City Council. They don’t have a political ideology. They contribute only because they know council members will be voting to give them money.

    In Wichita’s last school bond election, 72 percent of the contributions, both in-kind and cash, was given by contractors, architects, engineering firms and others who directly stand to benefit from new school construction, no matter whether schools are actually needed. The firm of Schaefer Johnson Cox Frey Architecture led the way in making these contributions. It’s not surprising that this firm was awarded a no-bid contract for plan management services for the bond issue valued at $3.7 million. This firm will undoubtedly earn millions more for those projects on which it serves as architect.

    The special interest groups that benefit from highway construction: They formed a group called Economic Lifelines. It says it was formed to “provide the grassroots support for Comprehensive Transportation Programs in Kansas.” Its motto is “Stimulating economic vitality through leadership in infrastructure development.”

    A look at the membership role, however, lets us know whose economic roots are being stimulated. Membership is stocked with names like AFL-CIO, Foley Equipment Company, Heavy Constructors Association of Greater Kansas City, Kansas Aggregate & Concrete Associations, Kansas Asphalt Pavement Association, Kansas Contractors Association, Kansas Society of Professional Engineers, and PCA South Central Cement Promotion Association. Groups and companies like these have an economic interest in building more roads and highways, whether or not the state actually needs them.

    The planners themselves are a special interest group, too. They need jobs. Like most government bureaucrats, they “profit” from increasing their power and sphere of influence, and by expansion of their budgets and staffs. So when Sedgwick County Commissioner Jim Skelton asks a professional planner questions about the desirability of planning, what answer does he think he will get? It’s not that the planners are not honest people. But they have a vested economic and professional interest in seeing that we have more government planning, not less.

    And we have evidence that planners watch out for themselves. It is not disputed that this planning grant benefits Regional Economic Area Partnership (REAP). Sedgwick County Commissioner Richard Ranzau says that John Schlegel, Wichita’s Director of Planning, told him that “acceptance of this grant will take REAP to another level, because right now they are struggling, and this will help plot the course for REAP.” He said that REAP, which is housed at the Hugo Wall School of Public Affairs at Wichita State University, needs to expand its role and authority in order to give it “something to do.”

    We see that REAP is another special interest group seeking to benefit itself. In this case, our best hope is that REAP engages in merely make-work, that the plan it produces is put on a shelf and ignored, and that the only harm to us is the $1.5 million cost of the plan.

    By the way, did you know that Sedgwick County Commissioner Dave Unruh, who voted in favor of the plan that benefits REAP, is now chairman of REAP? Special interest groups know how to play the political game.

  • In Kansas, planning will be captured by special interests

    The government planning process started in south-central Kansas will likely be captured by special interest groups that see ways to benefit from the plan. The public choice school of economics and political science has taught us how special interest groups seek favors from government at enormous costs to society, and we will see this at play again over the next few years.

    This week the Sedgwick County Commission voted to participate in a HUD Sustainable Communities Regional Planning Grant. While some justified their votes in favor of the plan because “it’s only a plan,” once the planning process begins, special interests plot how to benefit themselves at the expense of the general public. Then once the plan is formed, it’s nearly impossible to revise it, no matter how evident the need.

    An example of how much reverence is given to government plans comes right from the U.S. Supreme Court in the decision Kelo v. New London, in which the Court decided that government could use the power of eminent domain to take one person’s property and transfer it to someone else for the purposes of economic development. In his opinion for the Court, Justice Stevens cited the plan: “The City has carefully formulated an economic development plan that it believes will provide appreciable benefits to the community.” Here we see the importance of the plan and due reverence given to it.

    Stevens followed up, giving even more weight to the plan: “To effectuate this plan, the City has invoked a state statute that specifically authorizes the use of eminent domain to promote economic development. Given the comprehensive character of the plan, the thorough deliberation that preceded its adoption, and the limited scope of our review, it is appropriate for us, as it was in Berman, to resolve the challenges of the individual owners, not on a piecemeal basis, but rather in light of the entire plan. Because that plan unquestionably serves a public purpose, the takings challenged here satisfy the public use requirement of the Fifth Amendment.”

    To Stevens, the fact that the plan was comprehensive was a factor in favor of its upholding. The sustainable communities plan, likewise, is nothing but comprehensive, as described by county manager Bill Buchanan in a letter to commissioners: “[the plan will] consist of multi-jurisdictional planning efforts that integrate housing, land use, economic and workforce development, transportation, and infrastructure investments in a manner that empowers jurisdictions to consider the interdependent challenges of economic prosperity, social equity, energy use and climate change, and public health and environmental impact.”

    That pretty much covers it all. When you’re charged with promoting economic prosperity, defending earth against climate change, and promoting public health, there is no limit to the types of laws you might consider.

    Who will plan?

    The American Planning Association praised the Court’s notice of the importance of a plan, writing “This decision underscores the importance for a community to have a comprehensive development plan formulated through a democratic planning process with meaningful public participation by everyone.”

    But these plans are rarely by and for the public. Almost always the government planning process is taken over and captured by special interests. We see this in public schools, where the planning and campaigning for new facilities is taken over by architectural and construction firms that see school building as a way to profit. It does not matter to them whether the schools are needed.

    Our highway planning is hijacked by construction firms that stand to benefit, whether or not new roads are actually needed.

    Our planning process for downtown Wichita is run by special interest groups that believe that downtown has a special moral imperative, and another group that sees downtown as just another way to profit at taxpayer expense. Both believe that taxpayers across Wichita, Kansas, and even the entire country must pay to implement their vision. As shown in Kansas and Wichita need pay-to-play laws the special interests that benefit from public spending on downtown make heavy political campaign contributions to nearly all members of the Wichita City Council. They don’t have a political ideology. They contribute only because they know council members will be voting to give them money.

    In Wichita’s last school bond election, 72 percent of the contributions, both in-kind and cash, was given by contractors, architects, engineering firms and others who directly stand to benefit from new school construction, no matter whether schools are actually needed. The firm of Schaefer Johnson Cox Frey Architecture led the way in making these contributions. It’s not surprising that this firm was awarded a no-bid contract for plan management services for the bond issue valued at $3.7 million. This firm will undoubtedly earn millions more for those projects on which it serves as architect.

    The special interest groups that benefit from highway construction: They formed a group called Economic Lifelines. It says it was formed to “provide the grassroots support for Comprehensive Transportation Programs in Kansas.” Its motto is “Stimulating economic vitality through leadership in infrastructure development.”

    A look at the membership role, however, lets us know whose economic roots are being stimulated. Membership is stocked with names like AFL-CIO, Foley Equipment Company, Heavy Constructors Association of Greater Kansas City, Kansas Aggregate & Concrete Associations, Kansas Asphalt Pavement Association, Kansas Contractors Association, Kansas Society of Professional Engineers, and PCA South Central Cement Promotion Association. Groups and companies like these have an economic interest in building more roads and highways, whether or not the state actually needs them.

    The planners themselves are a special interest group, too. They need jobs. Like most government bureaucrats, they “profit” from increasing their power and influence, and by expansion of their budgets and staffs. So when Sedgwick County Commissioner Jim Skelton asks a professional planner questions about the desirability of planning, what answer does he think he will get? It’s not that the planners are not honest people. But they have a vested economic and professional interest in seeing that we have more government planning, not less.

    And we have evidence that planners watch out for themselves. It is not disputed that this planning grant benefits Regional Economic Area Partnership (REAP). Sedgwick County Commissioner Richard Ranzau says that John Schlegel, Wichita’s Director of Planning, told him that “acceptance of this grant will take REAP to another level, because right now they are struggling, and this will help plot the course for REAP.” He said that REAP, which is housed at the Hugo Wall School of Public Affairs at Wichita State University, needs to expand its role and authority in order to give it “something to do.”

    We see that REAP is another special interest group seeking to benefit itself. In this case, our best hope is that REAP engages in merely make-work, that the plan it produces is put on a shelf and ignored, and that the only harm to us is the $1.5 million cost of the plan.

    By the way, did you know that Sedgwick County Commissioner Dave Unruh, who voted in favor of the plan that benefits REAP, is a board member of REAP, and may become the next chairman? Special interest groups know how to play the political game, that’s for sure.

  • Pay-to-play laws are needed in Wichita and Kansas

    In the wake of scandals, some states and cities have passed “pay-to-play” laws. These laws often prohibit political campaign contributions by those who seek government contracts, or the laws may impose special disclosure requirements.

    Many people make campaign contributions to candidates whose ideals and goals they share. This is an important part of our political process. But when reading campaign finance reports for members of the Wichita City Council, one sees the same names appearing over and over, often making the maximum allowed contribution to candidates. Their spouses also contribute.

    And 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.

    Some states and cities have taken steps to reduce this harmful practice. New Jersey is notable for its New Jersey Local Unit Pay-To-Play Law. In a nutshell, the law affects many local units of government and the awarding of contracts having a value of over $17,500. The law affects contracts awarded by other than a “fair and open process,” which basically means a contract process open to bidding. For other contracts, here is the summary of the law:

    A municipal or county government agency cannot award a contract without using a fair and open process if the contractor …

    • is a contributor to a candidate committee or a political party committee where a member of the party is serving in an elective public office of that municipality or county, and, either …
    • made “reportable” contributions (those in excess of $300) during the year prior to the award, and/or …
    • makes contributions during the life of the contract.

    The New Jersey law requires that businesses seeking government contracts certify they have not made contributions that would bar them from eligibility. It also contains provisions that contributions from a business owner’s spouse and children will be deemed to be from the business itself. For corporations, the contributions of principals, partners, officers, and directors, and their spouses, are considered to be from the corporation itself for purposes of the law.

    Alabama, Connecticut, Colorado, Hawaii, Illinois, Ohio, and South Dakota are other states with some form of pay-to-play laws. Some of these are being challenged in the courts.

    It’s not only states that have such laws. Cities, too, are passing them.

    In 2009 Dallas passed a law, as described in a post on the Pay to Play Law Blog: “The ethics package contains numerous changes to existing lobbyist registration and disclosure requirements, City Council zoning powers and the disclosure of gifts to Council members. Most relevant to the pay-to-play space is that anyone bidding on a city contract is now prohibited from making donations during the bid period. Additionally, ‘major’ zoning applicants can no longer make contributions to Council members during the window which begins on the date of public notice of the zoning case, and which ends 60 days after the zoning case is resolved. Such changes are not too surprising in this instance, given that the scandal involving Hill revolved around favorable treatment for developers.”

    Notably, the Dallas law was in response to special treatment for real estate developers — the very issue Wichita is facing now as it prepares to pour millions into the pockets of a small group of favored — and highly subsidized — downtown developers.

    Smaller cities, too, have these laws. A charter provision of the city of Santa Ana, in Orange County, California, states: “A councilmember shall not participate in, nor use his or her official position to influence, a decision of the City Council if it is reasonably foreseeable that the decision will have a material financial effect, apart from its effect on the public generally or a significant portion thereof, on a recent major campaign contributor.” The population of Santa Ana is 324,528, which is just a little smaller than Wichita.

    But Kansas has no such law. Certainly Wichita does not, where pay-to-play is seen by many citizens as a way of life. Those who want money from the council see it that way.

    And citizens may remember the 2008 campaign for a bond issue for USD 259, the Wichita public school district. In my reporting of the campaign contributions made in support of the bond spending, I wrote: “One analysis finds that 72% of the contributions, both in-kind and cash, was given by contractors, architects, engineering firms and others who directly stand to benefit from the new construction.”

    The firm of Schaefer Johnson Cox Frey Architecture was a standout contributor to the bond effort, both in terms of cash contributions and in-kind contributions. Not surprisingly, that firm was awarded a contract for plan management services for the bond issue. The value of this contract is one percent of the value of the bond issue, or $3.7 million, and the firm will undoubtedly earn millions more for those projects on which it serves as architect.

    In Kansas, campaign finance reports are filed by candidates and available to citizens, although some have problems with the timing of the filings. But many politicians don’t want these contributions discussed, at least in public. Recently Wichita Council Member Michael O’Donnell (district 4, south and southwest Wichita) expressed concern over the potential award of a $6 million construction contract, paid for with city funds, without an open bidding process. The contract is likely to go to Key Construction, a firm whose principals — and spouses — regularly appear on campaign finance reports, making the maximum allowed contribution to a wide variety of candidates.

    For expressing his concern, O’Donnell was roundly criticized by many other council members, and especially by Mayor Carl Brewer. Video of the mayor’s remarks may be viewed at Wichita Mayor Carl Brewer addresses critics.

    I can understand how council members don’t want to discuss their campaign contributions from those they’re about to give money to. It stinks. It causes citizens to be cynical of their government and withdraw from participation in civic affairs. It causes government to grow. It leads to more government planning of our lives, as is happening in Wichita. Pay-to-play laws can help.

  • Wichita BOE’s Nolan expresses concern

    At Monday’s meeting of the board of USD 259, the Wichita public school district, board members expressed frustration over the mishandling of a construction contract. It’s not clear where fault lies, or whether the board has any interest in finding where that fault should be laid.

    At the meeting, board member Lanora Nolan expressed dismay that none of the public speakers mentioned the kids. The school district has a larger responsibility than just the education of children, however. It needs to be responsible to taxpayers — the “adult issues” Nolan bemoans.

    She also said the delay of the fields is not in the best interest of kids. I hope she looks into who is responsible for this mishandling of this process.

    She wants to “get the legal boundaries changed” so that the board is never in the position of not being able to vote on what’s best for kids. It may not occur to her that if the process had been managed correctly from the start, the board probably could have voted at that meeting on a contract that would get new fields for the fall.

    Citizen comment about Nolan’s remarks that I received included these:

    “The mindset that what is best for the kids should override how much something costs, according to Nolan.”

    “The truth of the matter is, the Wichita school board approved the bidding process in a manner, as explained by their own attorney, that was in violation of state law, and therefore he advised the board to withdraw its approval of the turf contract. If the ‘kids’ were damaged in any way, it would appear to me that the responsibility for that damage should rest solely with the governing body that voted to approve what turned out to be a potentially legally flawed contract bid.”

    “Anyone who speaks up for the people who pay USD 259 taxes is subjected to anger and scorn from the board. I can’t recall any board member ever expressing any concern about the parents, grandparents, and/or other taxpayers who struggle to pay for the necessities of food, clothing, and shelter while facing ever increasing taxes courtesy of the USD 259 board. The board loves to talk about children from low income families in the district who are eligible for free or reduced lunches. … Did anyone on the board ever consider the possibility that high taxes might be a major cause of low family income and poverty?”

    “I believe Ms. Nolan’s rant should have been more appropriately directed towards herself, the school board, and the people the board holds responsible for creating or managing board contracts. The board approved what turned out to be a flawed and — what its own attorney confirmed — an illegal contract. Who was responsible with this error? Does the board’s attorney bear any responsibility for this error? Do the board’s attorneys have errors and omission insurance the board can levy against? Who was responsible for creating the turf project specifications? Was there an architectural firm responsible for this project? What responsibility do they bear?”

    Answering this question, I spoke with Joe Johnson of Schaefer Johnson Cox Frey Architecture, the firm that is managing the overall bond project. He told me that his firm wasn’t involved in this turf vendor selection process, and they’re not taking their 1% management fee for this. Perhaps if this firm had been involved this mess could have been avoided — an example where Nolan’s warning of “buying on the cheap” might apply.

  • Wichita school board members should not be re-elected

    Next Tuesday, four members of the board of USD 259, the Wichita public school district, seek to be elected again to their current posts.

    These members — Lanora Nolan, Lynn Rogers, Connie Dietz and Betty Arnold — are part of a board and school district that is increasingly out-of-step with education reforms that are working in other parts of the country. Their policies and actions are harmful to both Wichita schoolchildren and Wichita taxpayers.

    At the time when most of the country is starting to realize that quality teachers, not the number of teachers, is what makes the biggest difference in student outcomes, the Wichita school district is going the wrong way. The bond issue, with its focus on reducing class size, will force the district to hire more teachers. This makes it more likely that schoolchildren in Wichita will be taught by poorly-performing teachers.

    Its contract with its teachers union forbids any type of merit pay that might induce the best teachers to stay in teaching. Instead, all teachers are paid the same. Only length of service and extra education credentials allow teachers to earn more. Now researchers have found that length of service and the credentials earned at university schools of education make very little difference in student outcomes.

    Across the country parents can take advantage of school choices programs such as charter schools, vouchers, and tax credits. These programs give parents — instead of school administrators and politicians — choice as to where to send their children to school. In some cases, they allow parents to decide how their own tax dollars should be spent. The Wichita school district, including its board and the incumbent candidates that stand for election next week, are firmly against these type of programs that have benefited many students and parents. They prefer a government monopoly.

    The Wichita school district and its board are miles behind other school districts and governmental agencies regarding transparency and openness. Its recent search for a new superintendent was conducted in such a secretive manner that even the Wichita Eagle’s Rhonda Holman — one of the district’s several apologists at that newspaper — was critical.

    The district and board’s attitude towards citizens is nothing less than hostile. In particular, board member, now board president, Lynn Rogers has told citizens that records requests are a burden to the district. When citizens ask for evidence of claims the district makes, Rogers advises them to use Google to look things up for themselves.

    The board gets even little things wrong. For example, the board’s agenda that’s posted on the USD 259 website holds appendixes, which are usually attached files that hold additional information such as a Powerpoint presentation. But these files are removed quickly after the meeting. Most governmental agencies leave them available for eternity.

    Three board members, in their joint campaign materials, state they are proud of 11 years of rising test scores. Across the country school districts and states have watered-down testing standards in response to political pressure to produce rising test scores. Is this the case in Wichita and Kansas? We don’t know. But as scores rise on tests administered by the state, they remain unchanged on the national tests that are immune from local political pressures.

    The fact that all of the candidates facing election challenges have advertised jointly is evidence of another severe problem on the Wichita board of education: Rarely is there controversy or evidence of independent thought by board members. Consider the bond issue from last year, which passed narrowly (51 percent to 49 percent) when voted on by the public. Board members were unanimous in their support of the bond issue. What are the odds of that? (Well, board member Jeff Davis initially dissented, but only because he thought his district didn’t get its fair share. His straying from the board’s groupthink mentality was short-lived, however, as at the next meeting he changed his vote.)

    Then there’s the bond issue from last year. One analysis found that 72% of the contributions, both in-kind and cash, came from contractors, architects, engineering firms and others who directly stand to benefit from the new construction. The board rewarded Schaefer Johnson Cox Frey Architecture for its efforts in passing the bond issue with a no-bid $3.7 million contract to manage the bond issue.

    As large as the bond issue is, to board members it’s not enough. Board members started with a list of projects that totaled some $550 million. These projects are on the back burner, and as soon as this board senses the time is right, it will propose another bond issue. Count on it.

    We should remember the board’s conduct during the election. Calling a special election to be held in May, the board delayed it when it appeared the political landscape was not in their favor — after their opponents had mobilized and spent resources. The board appeared to rely on a hapless citizen group during the summer months for recommendations. Despite the district’s denials, huge amounts of district resources, all provided by taxpayers, were used to promote the bond issue.

    This Wichita school district and its board is an institution firmly rooted in and preferring a big-government style of education monopoly. It ignores evidence of reforms that work, preferring to remain beholden to special interests such as the teachers union, education bureaucrats, and firms that benefit from school construction. None of its members deserve re-election.

  • For Wichita school contracts, it helps to pay

    USD 259, the Wichita public school district, has recently decided on some architects to award contracts to for work funded by the 2008 bond issue.

    Citizens might have wondered why so many architectural and construction firms had such a high degree of interest in public schools. But these firms know that if you want to get contracts, it’s not required, but it sure helps to make some campaign contributions.

    The following chart shows that while the correlation isn’t perfect, it helps to make a large contribution if you want to get a large contract. The outlier data point is Schaefer Johnson Cox Frey Architecture. This firm made the largest campaign contribution. It also snagged the project management contract for the bond issue. This contract was awarded without any competitive bidding. This contact pays the firm 1% of the total value of all bond projects, and no doubt helps the firm obtain the most lucrative architecture contracts, too.

    And to think I was about to believe that it was all about the kids.

    USD 259 contributions and contracts

  • Wichita school bond finance report omits a big contribution

    Yesterday, Citizens Alliance for Responsible Education (CARE) filed their campaign finance report. This group was in favor of the bond issue to benefit USD 259, the Wichita public school district.

    There are some interesting details in this report, but there’s one glaring omission: there’s no mention of the campaign contribution made by the taxpayers of USD 259.

    The administration of USD 259 says they spent nothing on a campaign to pass the bond issue. They say what they did was merely an educational and informational campaign. But what USD 259 did had all the characteristics of a political campaign except the explicit appeal to vote “yes.” Anyone who saw the materials produced by USD 259 got the message loud and clear: vote yes for this bond.

    The assertion that USD 259 ran an educational and informational campaign is ridiculous. The campaign materials contained nothing that was negative or even neutral towards the bond issue. Is that because no such facts exist? Of course not. An honest informational campaign would have given consideration to them. But that’s not what the Wichita school district wanted to provide.

    Now I can understand architecture firms like Schaefer Johnson Cox Frey Architecture and construction companies making contributions to the bond issue campaign and not wanting negative or neutral information provided. These firms promoted the bond issue solely out of self-interest. They’ll design and construct buildings whether they’re useful or not.

    But schools — their mission being education instead of politics and self-interest — should be different. Schools should seek to teach the truth, and the only way to do that is to provide balance. That’s not what the Wichita school district provided the public during the bond issue campaign.

    We’ll probably never be able to learn how much USD 259 spent promoting the bond issue. In the future, when taxpayer-funded entities like USD 259 run informational campaigns, we’ll need a method for balanced information to get to the voters.

    Click here to download CARE’s campaign finance report.

  • Schaefer Johnson Cox Frey Architecture Wins. Who Lost?

    In what must be the most unsurprising news reported in Wichita this year, Schaefer Johnson Cox Frey Architecture was awarded the contract for plan management services for the USD 259 (Wichita public school district) bond issue. Their fee is one percent of the total of the bond issue, or about $3.7 million. If this contract is anything like the one from 2000, they can also bill expenses.

    This is the same role this firm played in the 2000 bond issue, as reported in Wichita School District’s Favorite Architect Stands to Win Big.

    It’s little too late to ask this question, but I wonder if any firm other than Schaefer Johnson Cox Frey Architecture was considered for this contract. Or, was there any thought given to competitive bidding for this contract?

    Given this firm’s role in promoting the bond issue (the Wichita school district effectively outsourced the campaign to Joe Johnson, the head of this firm), there was little doubt as to who would get this contract. This raises a few questions:

    First, did Joe Johnson and Schaefer Johnson Cox Frey Architecture believe this bond issue was in the best interests of Wichita’s schoolchildren and the citizens of the district, or is the bond issue just a way to earn fees?

    Second, did Joe Johnson and Schaefer Johnson Cox Frey Architecture always know they’d be awarded this contract if the bond issue passed? Were they worried that some other firm might make a bid?

    The close relationship between the Wichita school district and this firm raises suspicions that this is just another example of crony capitalism in Wichita.

  • Jeff Fluhr’s Decision

    At the December 2, 2008 meeting of the Wichita City Council, Jeff Fluhr, the new president of the Wichita Downtown Development Corporation, spoke on behalf of the expansion of the Center City South Redevelopment District, commonly known as the downtown Wichita arena TIF district.

    Attending the meeting with him were several members of that organization’s board of directors, headed by Joe Johnson of Schaefer Johnson Cox Frey Architecture. This board, emblematic of the “good ol’ boy” network, is stocked with those who seek to profit in the halls of government power rather than in the marketplace where consumers rule. It’s easier that way — no pesky consumers with their varied wants and desires.

    The problem Mr. Fluhr faces is that in order to lure developers to downtown Wichita, incentives must be offered. Now some on the Wichita city council act as though incentives come at no cost. The proceeds from TIF financing, they say, are used only for infrastructure, as though this is something the city is obliged to provide. But as I show in my post Many Wichita Developers Pay for Infrastructure, market-based developers pay for their infrastructure. The city doesn’t give away much to them.

    The TIF developers, they being the political entrepreneurs, are privileged to use their own property taxes to pay for their infrastructure, and for other things, too. This sets up a situation where the city, through its attempts at centralized planning, thwarts the will of the people by forcing Wichitans to subsidize developers who are lured — “incentivized,” as one city council member put it — to develop where politicians want them to.

    This sets up a tension. Citizens are starting to realize the reality of the transfer of wealth from taxpayers to the political entrepreneurs, and they don’t like it. They’re starting to realize that public/private partnerships mean the public takes the risk, and the “privates” earn the profits. This is far removed from capitalism, which is what we need to build the wealth of our city. “Crony capitalism” is a better term for the relationship between the TIF district developers and local government officials.

    Then there’s the defect in the process surrounding the public hearing before the Wichita city council. As Randy Brown wrote about this meeting: “Among other transgressions, we had a mockery of the public hearing process rather than an open and transparent discussion of a contentious public issue.” Mr. Fluhr needs to decide if he’s on the side of open and transparent government, or whether he’s in favor of crony capitalism and the good ol’ boy network. If he would request that the City of Wichita withdraw this TIF district until a proper public hearing is held, we’d get a good indication of his thinking. Of course, if he doesn’t make such a request, we’ll know just as well.

    Finally, Mr. Fluhr stated in his presentation to the Wichita city council: “[The TIF district] will greatly contribute to Wichita’s development as a destination river city, which will in turn enhance the economic vitality of downtown and the community at large.” (emphasis added)

    I would ask that Mr. Fluhr and the citizens of Wichita familiarize themselves with the research to the contrary. A number of studies tell us that TIF districts, while good for the subsidized developers, are not a good deal for the city as a whole. As economists Dye and Merriman (see below) found out: “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.”

    Kenneth A. Kriz: Tax Increment Financing: Its Effect on Local Government Finances
    Dye, Richard and David Merriman: Tax Increment Financing: A Tool for Local Economic Development
    Dye, Richard and David Merriman: The Effects of Tax Increment Financing on Economic Development
    Danny Santivasci: Tax Increment Financing: Private Investment at the Expense of Local Community