Compared to neighboring states, Kansas economy has been sluggish, but candidates running for governor each have a plan to jumpstart things. Will any of them actually work?
Experts say every plan faces an uphill battle.
With Kansas lacking the power to add some mountains, or beaches, or Stanford/MIT-level research universities, experts say the state will be stuck where market forces have already landed: a little farming, a little aerospace, a little manufacturing, all driven by forces beyond the control of Kansas politicians.
I dont think there are a lot of policy levers, especially at a state level, that can make a whole lot of difference, said Art Hall, director of the Brandmeyer Center of Applied Economics at the University of Kansas.
But all is not lost. Hall says some policies can make a difference, however small.
Republican Kris Kobach
Kobachs one big idea to grow the economy is to cut regulations, along with income, property, and sales taxes, much like what was done six years ago. Hes credited similar steps taken by the Trump administration for the growing national economy.
All of these can be done in a responsible way without breaking our budget, Kobach said. And if we want to get our businesses going weve got to do it.
The thinking is that if you can remove barriers, existing businesses will grow and new ones will be attracted to the state.
Dan Rickman, a professor of economics at Oklahoma State University, has done extensive research on the impacts of tax policy on state and local economies, including looking specifically at the tax cuts that came when Sam Brownback was governor.
Most states that dramatically cut their taxes are underperforming what you would have expected they would have, Rickman said.
If Kansas were to try the tax-cut approach again, he said, it would get the same result.
The evidence, here in Kansas and around the country, just doesnt support the use of state tax cuts to spur economic growth.
If youre going to get gains from tax cuts you have to very carefully understand and figure out where you can get the cuts without hurting programs that are needed, Rickman said.
Too often, he said, the budget cuts used to offset decreases in revenue go too far. State budgets generally dont have a lot of fat to begin with and increasing efficiencies only goes so far.
Conservatives have said the Brownback tax cuts faced two significant problems. One, they werent accompanied by a sufficient rollback in the size of state government. So the states finances fell into crisis.
Secondly, conservatives argued that low commodity prices for Kansas grain and oil offset the economic spark lit by the Brownback plan.
