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Archive for Wednesday, June 11, 2014

Kansas lags most of region in GDP growth

June 11, 2014

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— Kansas' gross domestic product grew 1.9 percent in 2013, slightly ahead of the national rate, but lagged behind all regional states except Missouri, according to the U.S. Department of Commerce's Bureau of Economic Analysis.

"We're not doing very well," said Kansas University Professor Donna Ginther, director of the Center for Science, Technology and Economic Policy.

In the Plains Region, North Dakota's GDP grew 9.7 percent; South Dakota, 3.1 percent; Nebraska, 3 percent; Iowa, 2.9 percent; Minnesota 2.8 percent and Missouri, 0.8 percent.

Among Kanas' other neighboring states, Colorado's GDP increased 3.8 percent; and Oklahoma, 4.2 percent.

The national GDP increased 1.8 percent.

Several states in the Rocky Mountains and Great Plains saw significant growth from oil and gas drilling and agriculture, according to the statistics.

GDP is the value of finished goods and services and is considered a key indicator of economic health.

Ginther said the new figures show consumer consumption and construction are low in Kansas and government purchasing was the lowest in the region.

"Government cuts have been an economic drag on the state as well as consumers staying home," she said. "Anything we can do to invest in new industries and opportunities will create economic growth."

In recent weeks, Kansas has been hit with several rounds of troubling economic news.

Tax revenue in April and May fell $310 million under estimates, and that has put the state budget in a precarious situation. Individual income tax collections from July 2013 through last month were 25 percent less than during the same period the previous year.

A revenue profile from the non-partisan Kansas Legislative Research Department shows in the next fiscal year the state will have an ending balance of $56 million and that could become a deficit of more than $1.2 billion in 2018.

On Wednesday, Democratic candidate for governor Paul Davis called on Gov. Sam Brownback to acknowledge the state's economic problems that Davis said have been caused by Brownback's tax changes.

The Legislature and Brownback cut the state income tax rate and exempted the owners of 191,000 partnerships, sole proprietorships and other businesses from income taxes. Brownback has argued the tax cuts will boost the economy.

Comments

Brett McCabe 4 months, 3 weeks ago

Gosh, and all of those business owners were supposed to take the Brownback windfall and reinvest in their businesses by adding people randomly to their payrolls.

Give money to poor people and they spend it. Give money to rich people and they sit on it. Why is this so hard for Republicans to understand?

Simple, they don't want to understand. These people are like confederate soldiers who ran around in the wilderness declaring that the war was not over and that slavery was important for the country to succeed.

If you elect imbeciles, you don't get enlightened policy.

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James Howlette 4 months, 3 weeks ago

Obama hates Kansas just slightly less than he hates Missouri, but I'm sure he'll start hating Kansas the most next year.

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Richard Heckler 4 months, 3 weeks ago

No it is not Obama…

It is the Sam Brownback administration that hates Kansas and the hard working taxpayers.

Proof.

Worker's taxes siphoned off by their bosses - http://www.jimhightower.com/node/7723#.UkS9vBaTOX0

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Bob Forer 4 months, 2 weeks ago

This cannot be right. Our dear leader, comrade Sam Brownback, promised that tax cuts to the wealthy would be a shot in the arm to the Kansas economy.

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James Howlette 4 months, 2 weeks ago

Oh, but it's Obama's fault that they weren't. Because federal taxes! Or something.

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Richard Heckler 4 months, 2 weeks ago

Isn't time to consider Impeachment of the Sam Brownback administration and Ray Merrick for economic negligence? And working in secret with ALEC?

Worker's taxes siphoned off by their bosses - http://www.jimhightower.com/node/7723#.UkS9vBaTOX0

--- Rosy Kansas Revenue Numbers Don’t Add Up Steve Rose - a longtime Johnson County columnist Read more here: http://www.kansascity.com/2014/03/29/4922381/rosy-kansas-revenue-numbers-just.html#storylink=cpy

--- New Study Rips Kansas Tax Cuts http://www.kansascity.com/2014/03/27/4919129/new-study-rips-kansas-tax-cuts.html

--- What’s the matter with Kansas Schools http://www.nytimes.com/2014/01/08/opinion/whats-the-matter-with-kansas-schools.html

http://www.huffingtonpost.com/dennis-van-roekel/exposing-alecs-agenda-to-_b_3223651.html

--- Read more here: http://www.kansascity.com/2014/05/30/5056283/brownbacks-tax-cuts-now-full-blown.html#storylink=cpy

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William Weissbeck 4 months, 2 weeks ago

Kansas, somewhat like Missouri, is in a bit of a pickle - we don't have the newly found natural resources of the states to the north, nor reserves of the states to the south. We surely don't have the tourism. But for that, Missouri might be a basket case of aging population and pockets of urban and rural poverty. Corn and soy beans are still the crop kings - other states grow much more. I guess the livestock isn't making up the difference. Kansas went a long way with its aircraft manufacturing and assembly business, but that's not growing. About the best we can do is steal businesses from the Missouri side of the KC Metro area.

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Dorothy Hoyt-Reed 4 months, 2 weeks ago

The real point is that Brownback said the tax cuts would bring in lots of jobs and business. Trickle down theory hasn't worked, and it still doesn't. A strong economy does not come from the supple side. It comes from the bottom up. People with money will demand, then the supply will happen, which will create more jobs, which will create more demand, then more supply. Businesses aren't going to hire more people or expand their business, because they got a tax break. They will do it because people want to buy their goods or services.

Also, I have not been a conspiracy nut, but it makes me wonder why they keep forcing this "theory" down our throats. Is it greed? And they have great PR. I mean, I don't know how many people I've heard defending the people who are ripping them off. I even had people sending me emails about getting rid of the "death" tax, even though none of them would ever have or be heir to an estate big enough to pay an inheritance tax. I don't know if they are sure they will be rich someday, or their poor uncle will suddenly become a rich uncle.

I even had a guy tell me that minimum wage should be what it was when he was young, $1.20/hr. I remember those days too, but I also remember buying bread at 10 cents, paying $100/month to rent a house, and gasoline at 20 cents a gallon. I also remember the days when the boss, rightfully, made more money than the workers, but not as huge a difference as there is now.

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Bob Forer 4 months, 2 weeks ago

Is it greed?

Absolutely. Of the pathololgical variety. Normal people take comfort in the fact that their fellow human beings are adequately clothed. The Koch boys, on the other hand prefer to add another billion dollars to their "net worth."

I hear they are worth around 30 billion dollars each. How many more bililion will it take before their warped psyches become untwisted.

If it would help end the madness, I'd be willing to throw one of the Koch boys a five spot.

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Steve Jacob 4 months, 2 weeks ago

Well said. The bad thing is Missouri is also stealing from the Kansas side, so everybody is moving but paying less taxes.

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Richard Heckler 4 months, 2 weeks ago

This form of management is intentional.

This model of ALEC government is killing state economies elsewhere and all are trying to kill public education. The primary method of choice is annually defund a service until it can no longer function. Thus the ALEC people step up and say it is not working which is a lie of course.

Next state services go up for sale with anxious buyers lurking in the back door shadows.

Kansas and our local communities cannot afford this ALEC method of fraudulent government.

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Larry Sturm 4 months, 2 weeks ago

Tax cuts really working well for the rich not so good for the middle class.ALEC AND THE BROWNBACK ADMISTRATION BAD FOR KANSAS.

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Bob Smith 4 months, 2 weeks ago

Your caps lock is sticking again.

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