Shawn Sullivan, director of Gov. Sam Brownback’s budget office- KHI photo
By Jim McLean
KHI News Service
A $21 million shortfall in September tax collections has renewed the debate on Gov. Sam Brownback’s economic policies heading into the last month of the 2014 campaign.
Over the last five months, tax receipts have fallen more than $360 million short of official projections, driven largely by the 26 percent reduction in income tax rates championed by Brownback and passed by the Republican-controlled Legislature in 2012 and 2013.
The continuing shortfalls are forcing the state to spend through its reserves, a strategy that analysts in the nonpartisan Kansas Legislative Research Department say could put the state nearly $240 million in the red by July of 2016.
Paul Davis, Brownback’s Democratic challenger, used the September revenue report to launch another attack on what he calls the governor’s “failed policies.”
“The governor’s economic experiment isn’t working, and it’s not going to work,” Davis said in a campaign news release. “It is damaging our schools, hurting our economy and putting our children’s future in jeopardy.”
Brownback and others in the administration insist that the drop in revenue is temporary and that the tax cuts will transform the Kansas economy if given enough time to work.
Shawn Sullivan, director of the governor’s budget office, said small business owners whose taxes were eliminated by the cuts are telling him they eventually will use the money they’re saving to create new jobs.
“What they tell me is, ‘These tax cuts and these policy changes take time (to work),’” Sullivan said. “These tax policy changes aren’t like you flip a switch and you have 100,000 new jobs. It’s trying to set the environment right for small businesses that employ the majority of Kansans.”
Kansas is doing well compared to neighboring states when it comes to job growth in the small business sector, Sullivan said.
Revenue Secretary Nick Jordan points to the $21.5 million collected above the September estimate in corporate income taxes as an indication of the state’s improving business climate. But critics say the corporate tax windfall was more than offset by a $42.4 shortfall in individual income tax receipts.
Broader measures reported by the U.S. Bureau of Labor Statistics still show the state lagging the region and nation in job growth.
To head off possible budget cuts, Sullivan said the administration is implementing “efficiencies” that he estimates can save $101 million by the end of the 2015 budget year.
Eventually, Sullivan said, he expects that taxes paid by Kansans hired to fill the new jobs created by the governor’s tax policies will restore state revenues to pre-cut levels.
But Duane Goossen, a former budget director who worked for both Republican and Democratic governors, said that is wishful thinking.
“It seems almost impossible to think given our current tax structure that increased economic activity could replace the losses that have occurred,” Goossen said.
Neither the governor nor anyone in his administration has been able to show precisely how the job growth they’re hoping for will restore the lost revenue, Goossen said.
“In fact, the opposite is true,” he said. “The Kansas Legislative Research Department has been predicting and forecasting all along that with these tax changes revenue would drop dramatically, and it has.”
More than 100 students from the St. Joseph School District participated in the districts first annual Cool Biz Challenge Thursday at EmpowerU.
“The students have an opportunity to be creative and innovative,” said Lisa Miller with the St. Joseph School District. “They have to develop a new product, or modify an existing product, or come up with a new service to relate to one of the four generations. Baby boomers, generation x, generation y, generation z.”
Miller said student then had to present their ideas and plan to a panel of judges, similar to the TV series ‘Shark Tank’.
“We’re always looking for opportunities for students to get out and work with business owners, meet other entrepreneurs,” said Miller. “So we bring the kids here, bring the business people here and they get to network together.”
Benton High School Senior, Breanna Phillips said her team is created a washing machine you can control with your phone.
“We are creating a washer that has different compartments and we’re hooking and app up to it so say you’re at a game or something and you need something washed for the next day but you don’t have enough time to do it you can go to your app and it will start your washer up for you and there’s actually a dryer hooked up to it,” she said.
Cool Biz Challenge panel judge Lute Atieh, Chief Operations Officer with American Business & Technology University said the event is a way to get kids looking towards the future.
“What we’re doing is presenting some best practices,” Atieh said. “They can ask questions and we can give advice.”
Atieh said each winner is also awarded a $1000 scholarships to attend American Business & Technology University, and software to help with their future businesses.
Missouri Western State University has released its annual security report.
The report contains statistics of different types of crimes that have occurred on the campus over the past 3 years, in or on off-campus buildings or property owned or controlled by the school and on public property within or immediately adjacent to the campus..
WASHINGTON (AP) — Gun control groups say they plan to spend tens of millions of dollars this fall to help congressional candidates backing firearms curbs.
That means their campaign spending could finally match the National Rifle Association’s after years of being drubbed by the gun lobby.
Yet gun control groups’ long awaited parity with the NRA comes at a time when firearms violence is not a top public concern. That’s a turnabout from the months following the December 2012 massacre of 20 first-graders plus six elementary school aides in Newtown, Conn.
Both sides in the gun debate plan heavy campaign spending over the next few weeks anyway. That’s because there are many close races where a few votes could matter — especially in the Senate, which each party hopes to control next year.
The One Hundred And Two River Bridge on Route 48 near Rosendale is now open, according to the Missouri Department of Transportation. The new bridge, built alongside the old bridge, is eight feet wider and seven feet higher than the old bridge and includes two-foot shoulders. The old bridge, built in 1929, will be removed beginning next week.
Contractors have been working since April 2014 on the new bridge and only closed the roadway on Aug. 19, 2014, to tie the roadway into the new structure. The new bridge opened late in the afternoon yesterday, Oct. 1, 2014. Weather related issues caused a slight delay in reopening the bridge, which was originally scheduled to only be closed 30 days, to minimize disruptions to the traveling public. MoDOT appreciates the patience of motorists during this brief closure.
NEOSHO (AP) – A state prison inmate has been charged with murder in the 2001 death of a Missouri woman whose body has never been found.
Newton County prosecutor Jake Skouby charged 56-year-old Mark T. Walsh with second-degree murder, armed criminal action and statutory sodomy in the death of Freida Franks. The Newton County woman disappeared in August 2001. Prosecutors allege she was killed at a campground in Joplin.
The charges were filed in late September after Newton County detective Mike Barnett reviewed the case.
The Neosho Daily News reports a woman told investigators that she was with Franks and Walsh at the campground in 2001, when she was a child. The woman said Franks saw Walsh sexually abusing her and was injured when she tried to stop the abuse.
A severe thunderstorm pounded portions of Mitchell and other counties in North central Kansas early Thursday morning.
According to information from the National Weather Service in Hastings, golf ball size hail broke windows on the south side of homes 3 to 8 miles south of Beloit about 6:35 a.m. Thursday morning.
Officials also report crops destroyed due to a combination of hail and wind southeast of Beloit.
The Mitchell County Sheriff’s Office estimated winds of 90-mph caused significant damage to a home, and destroyed a farm Quonset about a mile south of Asherville around 6:40 a.m.
As the storm moved east and northeast, it dropped ping pong ball size hail south of Concordia, and hail covered the ground in portions of Washington and Marshall counties, and wide spread tree damage was also reported in Frankfort due to high winds.
LAWRENCE, Kan. (AP) — A new report says sexual offenses reported last year on the Kansas University campus increased by 10 from the previous year.
The Lawrence Journal-World reports there were 13 reported sex offenses in 2013. In 2012, there were three, and in 2011, there were two. The numbers come from incidents reported to the college’s Public Safety Office, student affairs office and the Department of Student Housing.
The federal Clery Act requires colleges to report their crime statistics and submit them to the U.S. Department of Education.
On Wednesday, the school placed the Kappa Sigma fraternity on interim suspension, after receiving reports of a sexual assault during a fraternity party over the weekend. The national organization’s executive director says they’re investigating the matter and have also suspended the local chapter for the time being.