State’s business climate ‘average’

Chamber leader says Kansas should focus on economy, jobs

? Being good for business isn’t good enough, the president of the Kansas Chamber of Commerce and Industry told legislators Wednesday.

Lew Ebert, in a presentation to the Senate Commerce Committee, said Kansas ranked among the middle of the pack on numerous business indicators. But it risks losing jobs unless more work is done to lower such costs as taxes, insurance, legal expenses and workers’ compensation, he said.

“If the ’03 session was about balancing the budget, there is an opportunity to make the ’04 session about the economy and jobs,” Ebert said.

Gov. Kathleen Sebelius has proposed a budget for the upcoming fiscal year that anticipates little revenue growth and replicates much of the existing budget. She also has proposed a $304 million tax increase during three years to benefit school districts.

It would be the second major tax increase in two years. In 2002, legislators raised taxes $253 million to balance the budget.

Ebert shared highlights of what the chamber has found in reviewing more than a dozen surveys on states and their business climates.

Among Kansas’ strengths, he said, are its transportation infrastructure, skilled work force and natural resources. But while Kansas is an “average” state for business, the surveys showed that many neighboring states are “above average.”

He said the difference was important because Kansas competes with surrounding states and the world for jobs and new businesses, and competition was increasing.

For example, North Carolina has approved an $800 million economic development package, Ebert said, adding that Kansas has had a net loss of jobs since 2002. If Kansas does little to improve the climate, he said, economic opportunities would be lost.