TOPEKA — Commerce secretary and Lt. Gov. David Toland says there is no question the Kansas economy is better now than it was three years ago, when Gov. Laura Kelly took office.
The administration has leveraged the state’s natural advantages throughout the pandemic to secure new investments, including $1 billion in automation this year in southwest Kansas.
“When windows have opened, we have found a way to climb through that window or catapult through the window or shoot ourselves through a cannon through that window to get good things done,” Toland said. “There were opportunities that have been created, and by and large, I’m unapologetic about having aggressively pursued those opportunities to do good things.
“And I do think we are in the process of reshaping the Kansas economy, allowing innovation, in particular, to play a leading role in creating the jobs that will keep our kids in the state, creating the economic opportunities that will really allow communities to flourish.”
The Democratic governor has made economic advancements a cornerstone of her re-election campaign. She faces a challenge from Republican Attorney General Derek Schmidt in next year’s election.
The Kelly administration claims to have set a one-year record for new business investments in Kansas in back-to-back years, with $2.5 billion in 2020 and $3.69 billion in 2021. Republicans question the validity of those numbers, and claim that economic improvements can be attributed to tax changes passed during this year’s legislative session.
The governor is trying to have it both ways, Republicans say, taking credit for investments after repeatedly vetoing their tax proposals. The new plan provides tax cuts for large corporations, applies the state sales tax to out-of-state online sales and expands write-offs that primarily benefit high-income families.
“Politicians will always take credit for the hard work and risk-taking of entrepreneurs and investors, but the government doesn’t create jobs,” said C.J. Grover, a spokesman for the Schmidt campaign. “It can destroy jobs, though, and Gov. Kelly’s pandemic response did.”
Luck and fundamentals
Toland said Kansas had a “blockbuster year” in 2020 because the logistics and distribution sector exploded in response to the pandemic.
The state has a natural advantage in this area, he said, because it is in the center of the country, has quality infrastructure, including rail service, and a lot of relatively cheap land.
“Part of this is luck, and the larger part is we’re doing a good job on the fundamentals of economic development,” Toland said.
Toland said there was “a more haphazard approach” to economic development under Republican administrations that preceded his arrival at the Commerce Department in 2019. There wasn’t much focus, Toland said, which resulted in lackluster performance.
The state has kept track of yearly investment figures since Gov. Kathleen Sebelius was in office. The numbers are not adjusted for inflation.
Investments declined in each of former Gov. Sam Brownback’s first three years in office, from $1.95 billion in 2011 to $1.09 billion in 2013. Under Kelly, investments have increased from $1.32 billion in her first year.
