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Archive for Thursday, December 15, 2011

Brownback ‘bullish’ on Kansas economy

December 15, 2011, 10:31 a.m. Updated December 15, 2011, 3:35 p.m.

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— Gov. Sam Brownback said Thursday he's optimistic about where the Kansas economy is heading in the near future, saying signs of growth in new aviation sectors, energy development and agriculture businesses point to better times ahead.

The Republican governor told The Associated Press that despite the possibility that Boeing could eliminate more than 2,000 jobs at its plant in Wichita, orders for Boeing's commercial aircraft remain strong and will benefit aviation-related companies in Kansas.

"I'm very bullish on the state. Things are starting to move forward," Brownback said.

Brownback said he thinks Kansas will add aviation jobs, including expanding work in commuter aircraft in Wichita.

Boeing's defense unit has said it is studying the future of its Wichita plant, despite winning an Air Force contract to build the next generation of refueling tankers. The company said in 2010 that winning the contract would mean thousands of jobs for Kansas, but now the plant's future is now in doubt.

Brownback said he wanted to meet with Boeing officials and make the state's case for keeping the jobs.

"Nobody's giving up on anything but I want more jobs," the governor said.

On Wednesday, Brownback and the other eight members of the State Finance Council approved issuing $6 million in bonds for Bombardier LearJet for expansion of its Wichita operations. The company will use the money for its LearJet 85 commuter jet program, which has received $33 million in total for the project on promises of several hundred new jobs.

Brownback said he expects Kansas to gain jobs and revenue in energy development, including wind power generation and new leases for hydraulic fracturing for oil and natural gas production.

"We've got several deals in the hopper of major private sector, either expansion or coming into the state, that if we can get a few of them to land, we'll really stimulate a core piece of the Kansas economy," Brownback said, declining to give details about the prospects.

Jeremy Hill, director of Wichita State University's Center for Economic Development and Business Research, is forecasting 1.1 percent growth in the Kansas economy, adding more than 15,000 jobs.

Leading the way would be production sectors, with durable goods manufacturing adding 3,175 job, or 2 percent to the work force.

Hill said Kansas is similarly situated with other Midwest states, but could stand to gain more should other nations tighten their monetary policy, making the cost of goods produced in the United States cheaper. Hill said Wichita and southeast Kansas have an abundance of skilled workers to fill those jobs.

During the past year, Brownback has hosted a series of economic summits on topics including animal agriculture, aviation, biosciences, water and the military defense industry. He also signed legislation to encourage rural development by granting five-year income tax abatements for people who move to Kansas from out of state and settle in a county that has experienced double-digit population declines.

Aimed at helping small communities, the plan includes a tuition repayment program for college graduates who move to participating counties. More than 120 graduates have applied for the program.

The former U.S. senator has released a number of policy initiatives ahead of the Jan. 9 start of the 2012 legislative session, including reforming the state's Medicaid program, reorganizing human service agencies and rewriting the school finance formula. A tax plan and details for stabilizing the $14 billion budget will come during his State of the State address.

As 2012 approaches, Kansas has shown signs of an economic recovery. The unemployment rate was 6.7 percent in October, the most recent figure available, down from 6.9 percent the previous year. State tax collections are running $142.6 million above the same period in the previous fiscal year after Brownback and Republican legislators pared spending.

Kansas Democratic Party Chairwoman Joan Wagnon said while she appreciated Brownback's positive attitude she would temper the enthusiasm based on the number of workers still unemployed or working for reduced wages and benefits.

"I'm not bullish yet, but I hope that it does recover," said Wagnon, who served as secretary of revenue for Democratic Govs. Kathleen Sebelius and Mark Parkinson. "I think we need to get those people back to work. I think it's too early to say we've won."

As of October, there were 93,000 Kansas residents unemployed, down from more than 100,000 a year ago.

Wagnon said headwinds in the global economy, including concerns about the European debt crisis threaten to put the United States back in recession, which could kill any prospects for Kansas growth.

"I don't think we are clear of that," she said.

Hill said the European debt crisis could disrupt the financial sector, slowing the flow of capital, making investment in business expansion difficult in the United States.

Comments

sourpuss 2 years, 4 months ago

So fracking is the future for employment in Kansas? Is he unaware of the poisoned water systems in Wyoming? Letting fracking proceed in Kansas will destroy the aquifer, destabilize minor faults, and will negatively effect agriculture by poisoning the irrigation systems. This is a BAD IDEA and it is a shame that one governor can wreck the environment of an entire state for something as short-sighted as a few extra jobs.

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Richard Heckler 2 years, 4 months ago

Brownback like most other politicians are among the most UNINFORMED in America.

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Gandalf 2 years, 4 months ago

Evil sam was also confident that the arts would still qualify for federal funds too.

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headdoctor 2 years, 4 months ago

Great. Translation from the BS-O-Meter. The stock holders and the CEO's of Boeing and the energy companies(Koch Brothers)and The Kansas City Board of Trade will do well by raping everyone else. Including the farmers through price fixing the funny money float system of the Kansas elevators. I would say that is bullying not bullish. What is new about that? What about the rest of the Businesses in the State?

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autie 2 years, 4 months ago

Speaking for BS'ers everywhere, this is merely defecation in one hand and wishing in the other. We all know which one fills up the quickest. From what I've seen the aviation industry really sucks right now. All of them laying off left and right. And Brownie himself killed a significant wind project in Cowley that the locals had been working on for some time. Mr. Woodenheaded policy maker speaks from both sides of his mouth....just depends on the audience.

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kochmoney 2 years, 4 months ago

The headline mixed up the letters and forgot the T. I don't think it's "bullish" about the economy so much as it's something else.

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