Voice For Liberty

Tag: Smoking bans

  • Kansas fiscal policy is stifling the state’s economy

    Dave Trabert of Kansas Policy Institute explains that Kansas economic policies are leading to the growth of government at the expense of private sector economic activity. Separately, KPI released figures showing that it will be very difficult for the state to meet the revenue projections made for the current fiscal year, which ends on June 30, 2011. Kansas tax collections in March were below projections, meaning even more trouble balancing the current year budget.

    State Fiscal Policy is Stifling the Kansas Economy

    By Dave Trabert, Kansas Policy Institute.

    Kansas’ fiscal policy has stifled the state’s economy for more than a decade and the effects are now being severely felt. Policy debates are often thought of in terms of party identification but the dividing line in Kansas is about the size and role of government; specifically, limited government versus large, expanding government. Most major policy debates really come down to whether government or taxpayer interests take precedent.

    For example, last year’s 19 percent sales tax increase was designed to allow government spending to increase by more than $200 million. Efforts to instead have government operate more efficiently were rebuffed by the demand for higher revenues, even though both academic studies of the proposed sales tax increase concluded it would cost thousands of jobs. The February employment report from the Kansas Department of Labor confirms those predictions.

    Kansas employmentKansas employment

    Kansas continues to lose private sector jobs, while government jobs increase. The adjacent table shows a loss of 12,100 private sector jobs over the last year; you have to go back to 1997 to find fewer jobs in February. To fairly compare February employment to the July implementation of the sales tax, we have to use seasonally adjusted data from the U.S. Department of Labor. On that basis, there are 23,200 fewer private sector jobs since the sales tax increase.

    There’s been talk of repealing the sales tax but opponents say it would make it harder to balance the state budget. That’s true, but it can be done by having government operate more efficiently, eliminating programs no longer deemed effective, and treating government employees the same as all other taxpayers. Others oppose repealing the sales tax because they’d rather retain it and use the revenue to begin reducing income tax rates. The March to Economic Growth Act (MEGA) would restrict the growth in state revenue and ease the tax burden but opponents are concerned about the impact on government. Never mind that Kansas has one of the highest state and local tax burdens in the country (number 19 according to the Tax Foundation and getting worse) and that jobs and population are migrating to states with lower tax burdens.

    Last year’s smoking ban was another fine example of putting government interests first, with state-owned casinos getting an exemption. Opponents of an effort to remove that exemption say it would cost state-owned casinos millions of dollars in lost revenue and reduce state tax revenues. Bar owners said the same thing last year but their concerns were dismissed.

    And then there’s the Kansas Public Employees Retirement System (KPERS). The debate over resolving a KPERS deficit of at least $9.3 billion is perhaps the most egregious example of fiscal policy favoring government growth. KPERS is one of the worst funded plans in the country and provides benefits many times greater than received by most private sector workers. Fully funding it will have catastrophic impact on taxpayers and the economy, but even minor benefit reductions are vehemently opposed. Even a proposal to reduce benefits for employees not yet hired can’t get off the ground.

    Continuing to strip taxpayers of their economic freedom so that we can sustain and grow government will eventually cause the state’s economy to implode, as governments in California, Illinois and many nations are currently experiencing. This isn’t theory, it’s history — and we should avoid repeating it.

  • Kansas and Wichita quick takes: Thursday November 4, 2010

    The future of politics is here, now. After noting how California reached way back to the past to elect a governor, Denis Boyles writes in National Review Online about the future, and how it’s being made right here: “If you want to see the bright and shining politics of the future, you have to go to the country’s heartland, and specifically to Kansas, a place most Democrats only know from Thomas Frank’s liberal folklore. There, the election has yielded two new congressmen — Mike Pompeo and the remarkable Tim Huelskamp — who were not created by the Tea Party movement because their politics were already ahead of that helpful wave. Here‘s a local paper’s coverage. Pompeo is a natural leader, while Huelskamp is something even more — an inspiration, maybe. (He’s briefly sketched in Superior, Nebraska). Mark these guys. Politically, they’re how it’s going to be.”

    Schools hope we won’t notice. Kansas Reporter tells of the new Kansas school funding lawsuit, filed on Election Day. Schools must have hoped that news of the filing would get swamped by election day news, which is what happened. The remedy asked for is more money, which has been shown not to work very well in terms of improving student performance … but it makes the education bureaucracy happy. I would suggest that students sue the Kansas State Department of Education for the inadequate education many have received. For a remedy, ask for things that have been shown to work: charter schools and widespread school choice.

    Kansas House Republicans. Yesterday I reported that Republicans gained 15 seats in the Kansas House of Representatives. Double-checking revealed that I had made a data entry error. The actual number of Republican gains is 16, for a composition of 92 Republicans and 33 Democrats.

    Kansas House Conservatives. In the same article it was noted that since some Kansas House Republicans — the so-called moderates or left-wing Republicans — vote with Democrats more often than not, there was a working caucus of about 55 conservatives. It is thought that conservatives picked up four seats in the August primary, bringing the number to 59. With most of the Republicans who defeated Democrats expected to join the conservative cause, it appears that conservatives now fill over 70 seats, constituting a working majority in the 125-member Kansas House of Representatives. Conservatives do not enjoy a majority of votes in the Kansas Senate, however.

    Local smoking bans still wrong. As noted in today’s Wichita Eagle, there might be a revisiting of the relatively new Kansas statewide smoking ban. Incoming Governor Sam Brownback believes that such decisions should be left to local governments, presumably counties or cities in this case. For those who believe that the proper foundation for making such decisions is unfoundering respect for property rights — plus the belief that free people can make their own decisions — it doesn’t matter much who violates these property rights.

    GOP: Unlock the American Economy Daniel Henninger in the Wall Street Journal on spending and what Congress really needs to do: “It is conventional wisdom that what voters, tea partiers and talkers want the Republican Party to do is cut the spending. … Getting the spending under control matters a lot.” But Henninger says controlling spending is not enough: “The new GOP has to find an identity beyond the Beltway power game, a way to make the nation’s most important activity not what is going on in Washington, as now, but what is done out in the country, among the nation’s daily producers and workers. The simplest way for the Republican Party to free itself and the economy from this unending Beltway hell is by reviving a core belief of one of the country’s most successful presidents: If the government will get out of the way, Ronald Reagan argued, there’s no limit to what the American people can achieve.” Government getting out of the way was one of freshly-minted Congressman Mike Pompeo’s campaign themes. National figures are warning Republicans that they have one chance to get things right in Washington or risk losing the support they won in this election. And Pompeo urged his supporters, more than once, to hold him accountable in Washington. Maybe Raj Goyle might want to linger in Wichita for a few years to see how things work out.

  • Kansas and Wichita quick takes: Thursday October 28, 2010

    Final fourth district forum. Last night’s debate or forum between all four candidates running for the Kansas fourth Congressional district was the last such event before Election Day. Hosted by KSN Television and moderated by John Snyder, all four candidates appeared: Reform Party candidate Susan Ducey, Democrat Raj Goyle, Republican Mike Pompeo, and Libertarian Shawn Smith. Goyle used almost every question as an opportunity to launch an attack on Pompeo, particularly on the issue of outsourcing of jobs. No dummy — he did go to Harvard law school, after all (so did Pompeo) — Goyle used some clever and creative license to morph nearly every question into these attacks. Pompeo largely ignored Goyle’s attacks but still got in a few digs at him. … Ducey and Smith kept to their principled arguments of limited government and free markets and avoided attacks on each other and the two major party candidates. Ducey, particularly, referred to the constitutionality of programs several times and her belief in states’ rights. Smith’s belief in the superiority of free markets was crystal clear. In his final statement, he referred to the “road to serfdom.” … For those who have been following the campaigns of the two major party candidates, not a lot of new information was presented in the forum. The real news, I think, is the competent and credible performances of the two minor party candidates, Ducey and Smith. They did well in terms of their presentation. Most importantly, if you believe in individual liberty, limited government, and free markets, these two candidates deserve your serious consideration.

    Kansas Republicans in control. KWCH Television and SurveyUSA released new polling showing Republicans firmly in the lead for Governor, Secretary of State, and Treasurer. The only race that is close is for Attorney General, where challenger Derek Schmidt leads incumbent Stephen Six 50 percent to 42 percent. Of this race, the pollster commented: “Incumbent Attorney General Steve Six remains the Kansas Democrat with the best chance of keeping his job, but even he trails his rival Republican Derek Schmidt by 8 points, unchanged from the previous poll. Schmidt led by 20 points when polling began in August, but has led in single-digits since. 20% of Republicans cross-over to vote for Six. Independents in this contest break for the Democrat. There continues to be volatility in this race; among seniors, typically the most stable and reliable voters, the lead has changed 4 times in 4 polls.” Interestingly, all three Democratic incumbents — Six, McKinney, and Biggs — have large advantages in fundraising over their Republican challengers.

    Tweet of the day. @bob_weeks: Government cake was pretty good at Wichita’s National Center for Aviation Training ribbon cutting ceremony.

    Smoking ban now fiscal issue. Today’s Wichita Eagle editorial by Rhonda Holman laments the fact that there’s a possibility the Kansas statewide smoking ban might be overturned. Holman has never respected the property rights-based argument against smoking bans, nor the individual responsibility argument. Now she raises the financial argument for the ban: “Yet in Kansas, the momentum among leaders risks going the wrong way — against public health and the recognition that government has a fiscal responsibility to ban public smoking.” The fiscal responsibility Holman cites comes from the fact that the state pays a lot of the costs of health care, and if fewer people smoke, the state could save money. Perhaps. Next year, I expect Holman to use the same arguments in favor of a ban on alcoholic beverages, salty foods, sugary soda pop, cheeseburgers, and anything else that will increase health care costs. Seriously. By the way, this government regulation of behavior often does not work and produces unintended consequences, as in the recent findings that bans on texting while driving have increased accident rates in some states. Holman supported the Kansas texting ban for safety reasons.

    Many more have voted. As of yesterday in Sedgwick County, 39,000 mail ballots have been returned, and 6,300 people had voted in person. Since there are about 260,000 registered voters in the county, 18 percent of all possible voters have already voted. But looking at likely voters — in the 2006 midterm election 118,258 ballots were cast — perhaps 40 percent of likely voters have already voted. In the 2008 general election — a presidential election year — 194,688 ballots were cast, so using that denominator, 24 percent of likely voters have voted.

    A reason to vote early. Yesterday this column discussed reasons why voters may want to wait until close to Election Day to vote. But there is one reason for voting as early as possible. If you don’t want voter contact — telephone calls, mailings, people knocking on your door — voting early might reduce the number of contact attempts. This is because campaigns, if they want, can receive a list of voters who have returned their ballots each day. Savvy campaigns will then cross these voters off their lists so they don’t waste effort contacting those who have already voted. To make this work well, you’d want to get everyone in your household to vote early.

    Vote machine “malfunctions” reported. There have been several reports that at advance voting locations in Wichita, when the machine flipped to display the page for U.S. Congress, one candidate’s name was already checked, just as if the voter had touched it already. The voters were able to un-check that vote and vote for their intended candidate. I suggested to the tipster that she have people take still photographs, perhaps using a smartphone, of each screen as the voting machine presented it. But an even better solution that would eliminate all source of doubt is this: As you vote, use your smartphone to take video of the entire process. This, I believe, would produce strong evidence of voting machine irregularities, if it is happening.

    Wichita Eagle voter guide. Click here. You can get a list of the candidates, along with their responses to questions, customized for your address.

    Outside spending cuts both ways. Debra J. Saunders of the San Francisco Chronicle: “White House adviser David Axelrod went after the Chamber of Commerce earlier this month, calling its $75 million campaign ‘a threat to our democracy.’ But as the Wall Street Journal reported last week, the public employees union AFSCME is spending $87.5 million on 2010 campaigns.”

    Kansas House could shift. It’s often mentioned that Republicans have large margins in both the Kansas House of Representatives and Senate. In the House, however, there’s a working body of about 55 reliably conservative members. The other Republicans — moderates, they’re called — will vote with Democrats for things like sales tax increases. This could change, however. It’s thought by some that conservatives picked up four seats in the August primary election, getting the House up to 59 reliable conservative votes. 63 votes are needed to have a majority and pass a bill. Can conservatives pick up more seats next Tuesday? Might the prospect of a conservative majority and a conservative governor flip a few moderate Republicans? We may know on Wednesday — or maybe not.

    Ballotpedia to have election night coverage. The website Ballotpedia will have election night coverage focusing on ballot issues, state legislative contests, and state attorney general races. Did you know that voters will be electing 6,125 state legislators next week? See What to expect from Ballotpedia election coverage on November 2 for details on the coverage.

    Report voter fraud, by phone. American Majority Action has developed and released a voter fraud app for smartphones. Describing it, AMA says “This free, cutting edge system will enable voters to take action to help defend their right to vote. Whether you’re a campaign junkie, or just want a better America, Voter Fraud will help you report violations at the election booth and serve to uphold the democratic process.” I downloaded it for my iPhone.

    Waiting for Superman. The Kansas Policy Institute will host a free screening of Waiting for Superman on Thursday November 4th. Of the film, the Wall Street Journal wrote: “The new film ‘Waiting for ‘Superman’” is getting good reviews for its portrayal of children seeking alternatives to dreadful public schools, and to judge by the film’s opponents it is having an impact. Witness the scene on a recent Friday night in front of a Loews multiplex in New York City, where some 50 protestors blasted the film as propaganda for charter schools.” In Kansas, the Wichita Eagle printed an op-ed penned by the education bureaucracy status quo — Sharon Hartin Iorio, dean of the Wichita State University College of Education in this case — to inoculate Wichitans against the effects of what I am told is a powerful film. Let’s hope this film gets Kansans to thinking about public schools in our state, as Kansas is way behind the curve on innovation, compared to other states. The film will be shown at 7:00pm at the Warren Theatre East (11611 E. 13th St.). KPI asks that you RSVP by Tuesday, November 2 to James Franko at james.franko@kansaspolicy.org. Space is limited.

  • Kansas news digest

    News from alternative media around Kansas for June 25, 2010.

    Public sector grows along with KPERS dependency

    (Kansas Liberty) “Between April 2008 and April 2010, the private sector in Kansas has experienced an overall loss in jobs of approximately 5.89 percent, while the public sector has experienced an overall gain in employment of approximately .83 percent. … As the public sector and its salaries continue to grow, so does the dependence on the state’s pension plan, KPERS.”

    Kansas working toward implementing aspect of Obamacare

    (Kansas Liberty) “The Kansas Department of Insurance is working with the federal government to create a temporary high-risk insurance pool, in accordance with regulations set forth by the new federal health-care law. High-risk insurance pools are designed to provide coverage for residents with pre-existing conditions who are unable to find coverage elsewhere. The temporary high-risk pool will operate until 2014, when the law prohibits insurance companies from denying coverage to those with preexisting conditions.”

    Budget cuts hit small towns harder, KC Fed reports

    (Kansas Reporter) “TOPEKA, Kan. – Kansas government’s continuing financial jam may threaten the economic recovery of the state’s small town and rural communities, according to a new analysis published by the Federal Reserve Bank of Kansas City.”

    Researchers debate number of student dropouts

    (Kansas Reporter) “TOPEKA, Kan. – By one count, slightly more than one in 100 students drop out of school; by another count, only 75 students out of 100 actually receive diplomas. Trying to figure out the number of students in Kansas who have graduated high school, versus the number that have dropped out before graduation is tricky and confusing business.”

    Info about Ethics Commission meeting not found by attending

    (Kansas Watchdog) “On Tuesday the Kansas Governmental Ethics Commission held their monthly meeting in Topeka. The agenda for the meeting was a bit curious: The plan was for a 15-minute session that started at 11:45, followed by a 30-minute session 90 minutes later.”

    Business Owners Ask Kansas Courts to Stop Smoking Ban

    (Kansas Watchdog) “Owners of private clubs and bingo operations have asked the courts to stop the statewide smoking ban (HB2221) from taking effect July 1. Attorney Tuck Duncan Friday filed a motion to intervene in a temporary injunction sought by Michael Merriam to stop implementation of the ban while courts hear claims that the ban violates various U.S Constitutional rights.”

    Tiahrt and Moran Trade Shots Over Support for Federal Bailouts

    (State of the State KS) “The Tiahrt (R) and Moran (R) campaigns traded shots Wednesday over the issue of government bailouts with Tiahrt firing the first shot saying Moran was misleading voters when Moran said claimed he never voted for a bailout.”

    Opinion by Senate President Stephen Morris – The 2010 Legislative Session: Keeping Our Promises to Kansans

    (State of the State KS) “The 2010 Legislative Session is now officially history. When this chapter of the Kansas story is written, it will go down as perhaps the most significant since the Great Depression. In fact, the challenges facing lawmakers this year were unprecedented. As we enter the election season, you may hear a lot of misinformation about what actually happened in Topeka this year; I would like to set the record straight.”

    Response by Americans For Prosperity to Opinion Article by Senate President Steve Morris

    (State of the State KS) “The recent letter to the editor submitted by Senate President Stephen Morris caught my attention. He claims passing the largest sales tax increase in Kansas history was the ‘only responsible way’ to address the budget shortfall. A shortfall he blames on an ‘economic crisis.’”

  • Kansas smoking ban discussed on Kansas Week

    On the KPTS public affairs television program Kansas Week, the recently-passed Kansas smoking ban was at issue. Bob Weeks is in the Wichita studio along with host Tim Brown. Stephen Koranda, Kansas Public Radio Statehouse Bureau Chief, is in the Topeka studio.

    Additional coverage of the meeting of smoking ban opponents is at Kansas smoking ban opponents meet in Wichita. More coverage of smoking bans is here.

  • Kansas smoking ban opponents meet in Wichita

    A group primarily composed of business owners met in Wichita on Thursday to discuss the recently passed Kansas smoking ban and what might be done to overturn it or mitigate its damage to business.

    Phillip Bradley of Kansas Licensed Beverage Association briefed the group on the current status of the smoking ban and what types of action might be possible in the future.

    Bradley told the group that it’s nearly impossible to get a new bill through the Kansas Legislature at this time. The greatest chance for action is to have an amendment added to a bill that’s already in conference. He mentioned SB 454 as a possibility, adding that it’s being made into a “Christmas tree,” meaning that many interests are attempting to add to the bill.

    There are three issues related to the smoking ban that can gain traction with legislators, Bradley said. The first is that the state exempted state-owned casinos from the smoking ban.

    The second is the “ten foot rule,” which says that smoking is not allowed within ten feet of “any doorway, open window or air intake” of a building, except for those buildings (like state-owned casinos) that are exempt from the smoking ban. This is a problem for downtown areas or malls where businesses may be in close proximity to each other, and to sidewalks and outdoor patios where smoking is permitted.

    The third relates to treating similar classes unequally in the law. Private clubs that were in existence before January 1, 2009 can be exempted from the smoking ban. Private clubs formed after that date, however, are subject to the smoking ban.

    Bradley explained some of the difficulties involved in understanding legislative action. The so-called “gut-and-go,” for example, is where a bill that is passed by one chamber — say the Senate — is stripped of its content by the other chamber, the House of Representatives in this example. The original text of the bill is replaced with new text, which might refer to a totally different topic. The reformulated bill — passed by the House, even though it now refers to a totally new and possibly entirely different subject — goes back to the Senate as having already been passed by that body.

    Representative Brenda Landwehr, a Republican who represents parts of northwest Wichita and who is chair of the House of Representatives Health and Human Services Committee, addressed the group and offered advice as to how to influence legislators. She recommended personal telephone calls to legislators explaining how the smoking ban will impact their businesses. If legislators say studies show that smoking bans have no impact on business, she suggested callers ask legislators why the state exempted its state-owned casinos from the smoking ban. “People don’t understand the amount of money that bars bring to this state,” she added.

    Landwehr said that the state-owned casinos, being exempt from the smoking ban, are competition to already-existing bars near the casinos, both existing and those that may open in the future.

    She advised the group that legislators generally respond first to people who live in the district they represent.

    Ali Issa, owner of Heat Cigar and Hookah Lounge in Wichita, where the meeting took place, urged the group to take action. Expressing the concern that the smoking ban is harmful to business, he said “Our goal is to stay in business.” He urged the group to make calls to legislators and spread the message through social media like Facebook.

    A question asked by some business owners asked about the possibility of gathering signatures on petitions. As Kansas has no initiative and referendum process, it’s not possible to force votes on state laws through this process. Petitions, however, can powerfully express the sentiment of the public.

    It was mentioned that under a conservative Kansas governor — presumably Sam Brownback — the smoking ban might not survive. But Sheila Martin, a Hutchinson business owner and activist in the smoking ban issue, said that many people will be out of business by the time Brownback becomes governor in January 2011.

    The group plans to hold a public meeting soon to bring attention to this issue.

    A website has been established to support the efforts of business owners. It may be accessed at Kansas Right to Choose.

    Other coverage of this meeting is at Business group will fight state’s smoking ban.

  • Kansas governor to face smoking ban protesters in Salina

    A group of citizens who don’t agree with Kansas Governor Mark Parkinson’s decision to sign the statewide smoking ban bill is planning a protest in Salina.

    The governor will sign the smoking ban bill on Monday at 3:30 pm at the Salina Public Library. It’s a ceremonial signing, as the actual bill was signed earlier today.

  • Wichita legislative forum highlights differences in approach to government spending

    Yesterday over 200 people packed a room at Wichita State University to attend a forum of Wichita-area Kansas state legislators. The meeting was chaired by Representative Steve Brunk, a Republican who represents Bel Aire and parts of far northeast Wichita.

    One of the topics underlying much of the meeting was the subject of tax cuts to business. Proponents of government spending say the state has given up too much revenue by granting tax cuts.

    Sometimes, in case of the business franchise tax, the state levies a tax simply for existing. This tax is being phased out over a five-year period starting in 2007. Government spending interests — including Governor Mark Parkinson — want to reinstate this tax, however.

    There are sometimes disagreements as to what a “cut” means. In his opening remarks, Representative Jim Ward, a Democrat who represents parts of southeast Wichita and is also assistant minority leader, referred to a recent $95 million tax cut given to business, saying this is not a good thing to do when the state needs more tax revenue. Representative Brenda Landwehr, a Republican who represents parts of northwest Wichita, disagreed with Ward’s characterization.

    The program referred to is an expansion of a program that lets companies keep their employees’ Kansas withholding taxes when new jobs are created. Proponents of these types of economic development incentives that are granted through the tax system argue that without the incentive, no jobs would be created, so there would be no new taxes to collect. Therefore, the program is without cost. They also often argue that the new jobs create other economic activity that is taxed, and this is a source of revenue for the state.

    There is ample evidence, however, that these targeted economic development incentives often do not work as intended.

    In answering one question, Landwehr referred to the Health Care Freedom Act. This possible amendment to the Kansas Constitution would allow Kansas to opt out of certain areas of possible federal health care legislation, such as the requirement that citizens purchase health insurance. Landwehr said that the issue goes back to what the Constitution and the Bill of Rights really say. Freedom and liberty are two key words, she said. “If government decides that they should be the one dictating to you what company your health issuance should be with, what benefits you should have or not have, we’re going to have less providers. … We need to be able to make these decisions ourselves.”

    Addressing the number of uninsured in Kansas, Landwehr said that over half are the “invincibles” — young people 18 to 30 years old who choose not to purchase health insurance. Another segment are the underinsured.

    On the recently-passed statewide smoking ban, Brunk read a question that asked “Why is smoking not bad for you in state-owned bars?” Brunk remarked that the questioner probably meant state-owned casinos, to the amusement of the audience. I thought to myself if the state can own casinos, why not bars? And if the state owned bars and taverns, would the smoking ban apply to them?

    Rep. Landwehr criticized the smoking ban based on liberty, freedom, and property rights. She also mentioned problems with the bill regarding how the casino floor air — where smoking is allowed — would be kept separate from the air in the rest of the building. Representative Geraldine Flaharty, a Democrat who represents parts of south-central Wichita, said that the health issues of smoking overrode these issues.

    Education, however, was the topic of interest to many in the audience.

    Representative Joe McLeland, a Republican who represents parts of west Wichita and who is chairman of the House Education Budget Committee, said that education funding is a tough issue. He mentioned the large unencumbered fund balances in Kansas school districts, mentioning specifically that the Wichita school district has $252 million in its fund balances as of December. “Schools have a lot of money,” he said to disapproval of the large number of school spending advocates in the audience.

    McLeland said that schools routinely transfer unspent money from the general fund — which can’t be carried forward to the next year — to other funds. These other funds generally fall into the category of restricted funds. Schools continually remind everyone that money in these restricted funds can’t be spent with the same degree of flexibility that money in unrestricted funds can. This is part of an effort by schools to treat restricted funds — which according to recent Wichita school district presentations are 59.5% of the district’s spending — as though they don’t exist and shouldn’t be counted as part of school spending.

    McLeland said that this week he will introduce legislation that will reduce the number of funds from 27 to five and will prohibit transferring general fund dollars to restricted funds, including capital building funds.

    McLeland also said that state law requires school districts to spend 65% of their budgets in the classroom. Since the state average is about 55%, McLeland said schools are not following this law.

    Uniform accounting is a new law passed recently, McLeland said. With 293 school districts in the state, each reporting numbers differently, it is difficult to compare budgets.

    McLeland also referred to the voluntary efficiency audits that school districts could participate in. The Derby school district is the only local school district that participated. The audit found that Derby instructional services spending was above average for its peers, but teacher salaries were below the peer average. McLeland said that the reason for this surprising finding couldn’t be determined due to the lack of standard accounting and reporting.

    Representative Judy Loganbill, a Democrat who represents parts of east and southeast Wichita and who is also a Wichita school teacher, asked the rhetorical question “how often do you visit a school?” She mentioned the battle between unencumbered and encumbered funds. “Approximately 60 percent of a school’s budget must go to certain places. It has to. … What’s left over is where we get the unencumbered funds. … When you’re looking at your unencumbered funds, that’s where your salaries come from.”

    She also mentioned the difficulty of determining what constitutes spending in the classroom. Things like transportation, utilities, books, materials — all are essential to schools, she said. She also mentioned the need to produce highly qualified and educated students to lead us into the next generation. She said that businesses don’t come into our state because of the employee withholding tax break discussed above, but because of quality of life issues like schools, good roads, and safe neighborhoods.

    After a short break so that many of the legislators could leave to attend a funeral of a former legislator, Representative Kasha Kelley of Arkansas City gave an overview of the Kansas budget and the budget process.

    A question to her referenced the large number of unemployed in Kansas. If tax breaks to business are such a good deal, why are there so many unemployed? Rep. Jim Ward expressed similar sentiment earlier. A proper answer to this question is that yes, there are large numbers of unemployed in Kansas at this time. Our unemployment rate is lower than the nation’s, however, and we should be grateful for that. Furthermore, we don’t know what our jobs situation would be if taxes on business had not been reduced. Since taxes in all forms are a drag on jobs creation, it is certain that there would be fewer jobs in Kansas if not for some tax reductions.

    Also, some of the tax breaks given are quite small in relation to the state budget. In 2007, which is when the franchise tax reductions started, that tax brought in about $4.6 million. To place this number in some context, in February alone the state fell $71 million short of projected revenue.

    Another questioner who identified himself as a former family business owner and a teacher for 12 years questioned the effectiveness of tax abatements and breaks on job creation.

    One questioner criticized the state’s economic forecasts, calling for an honest assessment, perhaps by different company. It has been the case that over the past year or so, actual revenues have been significantly less than forecast. Brunk responded that the projections are developed by economists from state universities. It should be noted that economic forecasting is very difficult, and very few people foresaw the tremendous decline in the nation’s and state’s economies. If someone could forecast these things with certainty, they could make trades in financial markets that would generate very high returns.

    Analysis

    Regarding the claim that business tax cuts are costing the state too much lost revenue: The problem with this analysis is that it presumes that the government has first claim on the income of businesses — and people too, for that matter. Those who believe in the principle of self-ownership, meaning that people own themselves and the things they produce, have a problem with this attitude.

    I fully agree with the critics of targeted tax breaks. The state, as do all governments, has a poor record of being able to choose which companies or class of companies should benefit from special tax treatment and subsidy. A report by the Division of Legislative Post Audit from 2008 found that “it’s difficult to accurately assess the results of economic development expenditures.” Overall, the report was skeptical of the expenditures on economic development and its ability to produce jobs.

    The school spending lobby, hungry for more tax dollars, refuses to acknowledge simple facts. The existence of the unspent fund balances is vigorously disputed, even though Kansas Deputy Education Commissioner Dale Dennis has said that schools can use these funds if they want. This is contrary to school spending advocate and Kansas school board member David Dennis in his flawed Wichita Eagle op-ed.

    The schools also have no explanation for why the unspent balances in the funds grow rapidly, from $74 million to $94 million over the last four years for the Wichita school district. Instead, the schools would rather be left alone and unaccountable. Hopefully some initiatives in the legislature, such as the common accounting requirements, will lead to greater transparency and accountability.

    The school spending lobby must also face the fact that the Kansas state achievement tests, which show large increases in school performance, are almost certainly fraudulent, as is the case in most states. The link between the huge increase in Kansas school spending and these test scores is used as an argument not to cut schools spending.

    We also saw again the school spending lobby’s claim that restricted funds don’t count, as though schools are totally hamstrung when it comes to this money.

    The contentiousness in the audience between the school spending lobby and the rest of the audience should lead us to question why we turn over such an important matter to government.

  • Kansas news digest

    News from alternative media around Kansas for March 5, 2010.

    Teacher Tenure Under Review In Effort to Reduce School Costs

    (State of the State KS) “A House committee heard testimony on a bill Wednesday that would lengthen the period of time public school teachers must work to five years before eligible for tenure.”

    KPERS Committee Considers Early Retirement for Employees To Save Money

    (State of the State KS) “The House KPERS committee considered a bill Tuesday that would encourage early retirement for some government workers to save costs.”

    Kansas Democrats Focus on 2010 Elections at Washington Days

    (State of the State KS) “Kansas Democrats gathered to celebrate and campaign at Friday and Saturday’s Washington Days in Topeka.”

    Smoking ban proponents pull out bag of tricks to get bill passed, casino exemption included

    (Kansas Liberty) “In the near future, Kansas residents will be forced to comply with a statewide smoking ban, which has received the support of both chambers of the Kansas Legislature. Today, the House voted 68-54 to concur with the conference committee agreement reached between select members of the House and the Senate.”

    Day-care bill puts too much government in the home, opponents say

    (Kansas Liberty) “Tammi Hill, owner of the Peace of Mind Home Child Care Center in Olathe, has been brought to tears of frustration over a new piece of legislation which is currently in the Senate Public Health and Welfare Committee. Senate Bill 447 would create several new restrictions for day care providers, including regulations on how long children can take using the bathroom, how long a provider can speak with a parent, and how long a provider can spend with any inspector that may drop by the ensure the care center is in compliance with regulations.”

    Cigarette tax increases reported to bring negative outcomes

    (Kansas Liberty) “Americans for Prosperity-Kansas has launched a new web page dedicated to informing Kansas residents about how an increased cigarette tax could cost the state revenue, instead of bringing in additional revenue as suggested by the Democrats.”

    Wichita School Board Attempts to Explain Budget, Seeks Priorities

    (Kansas Watchdog) “About 400 people attended a Board Night Out at Wichita’s West High School Monday evening. A similar number attended another forum at Wichita’s Southeast High School. USD259 Wichita Board of Education President Barbara Fuller, board member Lanora Nolan and Superintendent John Allison attended the West High gathering and offered their assessments of the decisions facing the district because of the ongoing state budget crisis.”

    Tiahrt, Others Exonerated in Ethics Probe

    (Kansas Watchdog) “The Associated Press is reporting that Kansas Congressman Todd Tiahrt has been exonerated in an ethics probe of his connections with defense lobbying firm PMA and its clients. The probe found no violations by Tiahrt or five other members of the House Defense Appropriations Subcommittee. The late John Murtha (D-Pa.) topped the list of who received large donations from PMA Group and its clients and steered earmarks to PMA clients.”

    Kansas revenues sag deeper into crisis territory

    (Kansas Reporter) “TOPEKA, Kan. – February’s $71 million tax collection shortfall dropped Kansas revenues for the month deeper into budget crisis territory, legislative researchers reported Thursday.”

    Kansas’ bid for federal school money rejected

    (Kansas Reporter) “TOPEKA, Kan. – Kansas’ first round application for a slice of $4.35 billion in new federal education stimulus money has been rejected, but education officials say they plan to try again in a second round next June. The Kansas State Department of Education said it learned Thursday that it is not among 16 finalists selected to receive grants under the Obama administration’s Race to the Top plan for educational reform.”

    Kansas tax committee sends $169 million increase to House

    (Kansas Reporter) “TOPEKA, Kan. – Kansas House Taxation Committee members reluctantly voted Tuesday to raise $169 million in new taxes by requiring homeowners and renters to a pay 5.3 percent sales tax on their water, electric and natural gas bills that are now tax-exempt.”

    Costly Kansas tax credit needs more money, panel told

    (Kansas Reporter) “TOPEKA, Kan. – A controversial business tax credit once flagged as a drain on Kansas’ budget needs more money to help create jobs in Kansas, backers told a Kansas House Taxation committee Wednesday. Opponents, however, argued that removing a state lid on Kansas Historical Preservation tax credits, which last year were lopped by more than half their previous levels, would perpetuate the inefficient use of taxpayer money and give the recipients an unfair advantage over competitors who aren’t similarly subsidized.”

    Foster care system criticized, defended

    (Kansas Health Institute News Service) “Sadie Carpenter said no one ever told her why she and her husband weren’t allowed to adopt their great granddaughter. Marilyn Dilley said she and her husband were never told why they couldn’t adopt a boy they’d cared for as foster parents.”