Here is a disturbing statistic: Kansas’ median income dropped last year by a greater percentage than any other state except Georgia, the U.S. Census Bureau reported last week. Our median household income fell 4.2 percent, from $45,094 to $43,204. Specific reasons for the drop weren’t cited, though much of it likely is due to local aviation layoffs. What is clear is that too many Kansans are moving backward financially rather than forward.
Posted by Phillip Brownlee
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20 Comments
Find this response at the Salina Journal blog:http://www.saljournal.com/blogs/?p=98(the response below probably will not be formatted correctly)
Why is the Eagle reporting this on their blog? Shouldn’t this be a REAL news story in Kansas?
Higher taxes will only make economic/business problems worse in Kansas, yet almost every newspaper in Kansas blindly pushes for higher taxes for schools as the only possible option, when no one holds superintendents, and schools in general, accountable for all their spending. The plan seems to be to tax us into prosperity. If money were really a problem in schools, we’d get the kids involved in solving the problem, too.
Why didn’t the Eagle cite the census report — the report is available online at: http://www.census.gov/prod/2005pubs/p60-229.pdf (see page 30 for the 50 state data).
And did the Eagle really get this story from Karl Peterjoin’s press release from Sept 1? Why can’t the Eagle give credit where credit is due?
KANSAS TAXPAYERS NETWORKP.O. Box 20050Wichita, KS 67208
316-684-0082 FAX 316-684-7527
www. kansastaxpayers.comSeptember 1, 2005 For Immediate Release
Revenue Growth Lags As Kansas Falters
By Karl Peterjohn
In early August Governor Sebelius issued a news release praising the economic growth that had allowed state tax revenues to grow significantly in the fiscal year that ended June 30. In the state’s general fund revenues were 7.1 percent or $322 million above last year.
This seemingly good news hides a big problem. Kansas revenues are growing well below the national averages. We are also lagging behind our neighbors and this includes job growth too. Nationally, the Wall Street Journal reported in July that federal revenues were 14.6% above the same period last year or over $204 billion. Oklahoma’s state government is taking $150 million of their increased tax revenue to use to cut personal income taxes but they will also raise spending by $750 million more according to Budget and Tax News in August.
Why is Kansas economic growth lagging? Some tax collections are actually down. In 2002 the state’s cigarette tax was raised from 24 to 79 cents a pack. Naturally, tax collections soared in 2003 with this 229 percent tax hike. However, the state’s revenue per penny of cigarette taxes started to fall and has continued to decline. Total revenues are falling in the last two years and are now over $10 million below the 2003 high point.
Before the cigarette tax was raised, this levy generated about $2 million for every penny of tax. Now it is barely $1.5 million per penny. While total revenues are about $119 million, or 2 percent of the state’s revenues, the proposal by Governor Sebelius for another large, 50 cent a pack tax hike will just shift a lot of cigarette purchases out-of-state, to the internet, or other tax avoiding alternatives. Sadly, this is also leading to more illegal cigarette sales and smuggling.
Severance tax collections soared over 22 percent or over $18 million in the most recent fiscal year as oil and gas prices enjoyed large hikes. This tax collected over $100 million for the first time but is also just 2 percent of state tax collections.
Personal and corporate income tax receipts enjoyed a large percentage growth of 11.9 percent or $244 million above last year. This increase alone was 75 percent of the total increase in state general fund revenues. In contrast, Kansans are shopping outside of Kansas since sales tax collections grew only 2.2 percent or $35 million. Many Kansans, particularly those in eastern Kansas, have learned that the lower state tax rates on groceries, cigarettes, gasoline, beer and alcohol lead to lower prices in western Missouri and in other border states.
This might also explain the generally flat overall, but in some individual cases, declining tax collections the state has on various forms of alcohol and related products. The state’s cereal malt beverage tax collections actually dropped over 4 percent or $88 thousand last year.
The state’s 20 mill property tax for public schools is excluded from the official state revenue estimates. However, the increase in appraisals resulted in estimates of a $40 million hike in the state’s tax collections for this levy that is excluded from the official Kansas General Fund figures.
So the shifting changes in Kansas tax collections shows the mixed nature of the economic recovery in this state. This is an additional reason why Kansas cannot afford another new state spending spree next year.
#####
Karl Peterjohn is the executive director of the Kansas Taxpayers Network and is a former news reporter and California Department of Finance budget analyst.
Sorry, I cited the wrong KCN report. Here’s the correct one from Sept 2:
KANSAS TAXPAYERS NETWORK
P.O. Box 20050
Wichita, KS 67208
316-684-0082 FAX 316-684-7527 316-644-2647
www. kansastaxpayers.com
September 2, 2005 For Immediate Release
Kansas Income Has Large Drop in 2004 Says Census Report
Kansas Taxpayers Network (KTN) expressed dismay at the latest Census Department income figures that show Kansas income dropping at the second worst rate among the 50 states in 2004. The U.S. Census Department released this data at the end of August in their report on Income, Poverty and Health Insurance Coverage in the United States: 2004.
This report is available online at: http://www.census.gov/prod/2005pubs/p60-229.pdf (see page 30 for the 50 state data). In this report Kansas is listed as having the second largest drop in income among the 50 states. Here’s how Kansas ranked with our five neighboring states and the U.S. average:
State % Change Change in Dollars
KANSAS – 4.2% -$1,890
Colorado + 0.3% +$ 164
Missouri – 3.2% -$1,419
Nebraska + 0.1% +$ 53
Oklahoma + 1.8% +$ 693
U.S. avg. – 0.2% -$ 79
This large decline in income for Kansas also indicates that this state is lagging behind our neighbors. “The Census Department’s report of declining Kansas income indicates that this state continues to be in economic trouble. This should be worrisome to state officials who seem intent on figuring out more ways of spending taxpayers’ money instead of focusing upon growing this state’s economy,” said Karl Peterjohn, executive director of the Kansas Taxpayers Network.
“The massive fiscal uncertainty created by the activist Kansas Supreme Court and the profligate state spending hikes supported by Governor Sebelius and the legislative big spenders during the special session have put this state in a fiscal bind. The increases in property and income taxes, various other state ‘revenue enhancements,’ and permanent extensions of supposedly ‘temporary’ state sales tax hikes are putting an anchor on this state’s economic prospects. This federal census data dramatically shows the recent decline in Kansans’ incomes. Soaring state spending will only worsen this problem.”
KSMeadowlark, thank you very much for posting that information. Looks like we have some real good people looking after the welfare of the state.
Karl Peterjohn is a true Kansas patriot and we need more people like him. Kansas needs to really look at what it has and where it is going to better formulate a pro-business growth. The direction we are taking is not going that way. Higher taxes is the number one issue and government regulations.
I was talking to somebody from the refinery in South East Kansas. He told me they only run at 40% of their capacity for refining gasoline. Reason is the EPA regulations and state gas formulation, well, since the EPA just temporarily suspended the different formulas of gasoline to improve gasoline production, that refinery can now go to near 100% capacity. :)
For the people who say that schools don’t have enough money, they have enough money, trust me! I go to many schools all over Kansas and they have plenty of money.
Although I disagreed with Karl on the downtown arena, I believe he is a good force for Kansas and should keep the message going.
OK, there may have been several other sources of this information in addition to KTN’s press release. The story also appeared here:
Wichita Business Journal Story: Census: Income falls in Kansas, Missourihttp://wichita.bizjournals.com/wichita/stories/2005/08/29/daily13.html
Lawrence Journal-World story (Aug 31): Kansas household income droppinghttp://www2.ljworld.com/news/2005/aug/31/kansas_household_income_dropping/?business
Voice for Liberty Blog in Wichitahttp://wichitaliberty.org/node/158
So why isn’t this more newsworthy in Kansas? Why no REAL editorials?
Shoot, man! With the price of fuel, we could sell all the liberal, Bush-hating BS on the other blogs and gat rich!
Now that’s an idea Sudden Sense. ;)
Oh! But just you wait! They will come creeping on this blog by the dozen saying how much crap and stupid everybody else is, because they are not liberal.
Liberal means being educated and knowing it all, not being a liberal, you are a dumb, indoctrinated fool who doesn’t know what you are talking about and you have no merit, because you are not like them. A liberal!
I’m serious! They will infiltrate this blog and take over. I believe they get marching orders from Moveon.org and other liberal sites and orginizations to spread all over the web and posting like mad, like they are the majority of political thought in this nation and they reign supreme.
LOL!
They reign supreme only in processing hay, not at the ballot box. Even dung beetles avoid their BS.
I don’t care if my wages go down – at least gays cant marry, and we get taught how bad evolution is!
I luvs my hillbillly state!!
I guess falling behind is a good thing if you’re a Republican. Conservatives want to take us back to Ozzie and Harriet. Kansas Republicans won’t be happy till we get back to the Stone Age (congrats…you’re nearly there). I predict Kansas will become a haven for Republicans. I suggest we change the state motto:Kansas…Dumb enough for ya.
Funny how many hi-tech state of the art air craft come out of this here hillbilly, stone age state. Get real. We, Kansasns, live in the Bible belt. That means we have a belief in God and His word. His word says He created this world and that the gay life stye is wrong. Heck, don’t you libral dems go to church?
GetReal and XXX. You can make things happen in Kansas. You can look at it with a positive light, like I do. You know how I do it? I do not look towards the government for anwsers, for a hand out, for salvation, for job creation, or anything. I just do what I need to do and hope everybody else jumps on the positive and optimitic bandwagon.
The liberals viewpoint of relying so much on government is making you depressed and think pessimitic about life and our great state. It is a mental disease you have contracted from other negative people. They will not get you anywhere.
Joe, you hate being sterotyped by the liberals, but yet you are one of the best at sterotyping liberals. Maybe what goes around comes around? If you don’t want to be judged by others, maybe you should quit judging others.I find all the partisan BS so boring, everyone needs to try to think rationally, rather than basing every opinion along party lines. Too many on this blog are more interested in namecalling and putting others down rather than seriously discussing issues.
Median incomes fall in Kansas and Republicans rally to their war cry–”high taxes are to blame!”
So what you’re saying is that taxes are higher now than when Clinton was president?
Which means that under Bush taxes are rising in Kansas, which isn’t surprising because he cut so many federal programs to the states, the states have had to raise taxes to compensate.
Bush’s “tax cuts” were no real tax cuts, they were tax SHIFTS to the middle class, and it’s the middle class who are losing ground as the median income drop shows.
But just keep voting Republican–it’s worked out so well in the past four years, we really DESERVE more of the same . . .
How is it tax shifts? If everybody got a tax break, then the middle class benefited. The poor do not pay taxes, so nothing changed there.
Damoon! I agree with you on the name calling, but I know that liberalism and liberal policies are determental to our nation, so I will defend against them at any chance.
Joe–
Everybody didn’t get a tax cut, that was more Bush propaganda.
But still, if Bush gives you a 300 dollar tax refund (which was actually a Democratic idea), and then he cuts federal funds to schools so that your property taxes have to be increased 700 dollars, that’s a TAX SHIFT and an INCREASE.
But you want to believe that you can get something for nothing, and Bush is the man who keeps telling you it is true.
BTW, the percentage of people in poverty has gone up for the fourth year in a row (Bush) after going down for four years in a row (Clinton).
But pay no attention to falling incomes and rising poverty . . . Bush tax “cuts” are working, dammit!
Galahad, why do you even bother? The guy is hopeless. He believes Rush and Oriley. He’s probably spent his whole life here, for God’s sake!
Kansans are moving backward and always have. This is partly due to the Taft-Heartly act. The so called “right to work” that encourages emloyers to pay and treat workers unfairly. If employers have no fear of unions and even the power to fire at will any employee that even dares to ask for a better wage and fairer conditions, well then the wages and treatment of workers is gonna go down………just as far as the working folk will allow (or be forced by circumstances) to accept it.
Take the above and combine it with the at large Kansas embrace of stodgy faith and supersticion and predjudice and emnity to anything progressive. Is it a wonder that no one and I mean no one outside of Illegal immigrants wants to come to or work in this sorry place?
How come my income taxes haven’t been reduced the same per centage.
Johnson County’s median income rose. That means the rest of Kansas’s aggregate income dropped even worse than the cited statistic.
The statistical problem is related to Kansas educators’ trumpeting Kansas’s “Top 10 states” ACT average (which is actually false, but Kansas’s score average is still above the national average). Take out Johnson County, and the rest of Kansas’s ACT aggregate average is BELOW national average, which is significant because Kansas ACT takers include smaller percentages of disadvantaged minority students than the nation-at-large. Students outside of JC are not doing very well, at least those who want to go to college (i.e. the ones who take the college-admission ACT).