A Kansas Economic Progress Council press release issued Monday says they’re responsible for a study used to argue for a one-cent sales tax increase. But the author says Rep. Don Hineman, R-Dighton, asked for the study.

Hineman, contacted Wednesday in Topeka, said he, “asked a couple questions and put a couple folks together and they took it and ran with it.”

When asked if it was truly KEPC’s study rather than something he requested, Hineman said he did ask Wong to do the study.

“Well, I did ask Dr. Wong if he could do a sales tax study and put he and Bernie Koch in contact with each other. I did that because I really felt that Art Hall’s study was similar to single entry accounting, only looking at one side of the ledger and not looking at the negative economic effects of further expenditure cuts.“

House leadership is holding firm in their efforts to find ways to avoid a tax increase but lobbying organizations like KEPC, with the aid of some legislators, are working hard to convince the public that revenue enhancements — tax increases if you’re not a member of the political class — are not only necessary, but good for the state’s economy.

KEPC’s press release makes their purpose for and ownership of the study clear.

Kansas Economic Progress Council Executive Director Bernie Koch said the study was sought after January legislative testimony by Dr. Art Hall, a member of the unclassified professional staff at the KU School of Business.  Hall’s testimony indicated a sales tax increase would cost over 19,000 jobs statewide.  “We decided to seek a second opinion,” said Koch.  “This study shows there are no easy choices, but the solution that causes the least economic damage is a revenue enhancement.”

The study was prepared for the Kansas Economic Progress Council by the Center for Urban Studies and Kansas Public Finance Center at Wichita State University.  Dr. John D. Wong conducted the study.

Wong told KansasWatchdog Tuesday that Hineman contacted him about doing the study. “Rep Hineman called me and asked, number one, to assess the tax increase, and number two, specifically what he was more interested in is the impact of a comparable amount of reduction in state spending so that’s specifically what he asked me to do.

“I told Rep. Hineman that in order to run the model, because I did not have the most recent data, I would have to buy the data for the model. And I said the university isn’t going to allow me to do it if we have to pay the money for the model out of our pockets. He said he would try to find someone to reimburse us for buying the data. So that’s what we wound up doing. Bernie paid for the data and then I kind of volunteered and ran the model for him.”

“I got acquainted with Bernie over at Senate Suites,” Hineman told KansasWatchdog Wednesday. “That’s where both of us were staying during the session this year. So it just happened that our timetables kind of synched and lots of times we would eat breakfast together.

Kansas Alliance for Education

Hineman was one of the organizers and the first chairman of the Kansas Alliance for Education (KAE), a group organized in 2005 to oppose conservative candidates for the Kansas Board of Education. In 2006 the group received a total of $129,500 in seven donations from the National Education Association and its Kansas branch (KNEA).

KAE went on to form a coalition with a number of political groups listed on KAE’s blog page as alliance members and friends.

• Kansas National Education Association (KNEA)
• United School Administrators of Kansas (USA – Kansas)
• Kansas Association of School Boards (KASB)
• Kansas Traditional Republican Majority (K-TRM)
• Kansas Action for Children (KAC)
• Kansas Citizens for Science
• Kansas Families United for Public Education
• MAINstream Coalition
• True Blue Women

Hineman has received campaign contributions from the Greater Kansas City Chamber of Commerce, KNEA and the Kansas Traditional Republican Majority among others, but says contributions have no effect on how he votes.

“I represent my district and I vote the best interests of my district. For instance I was a strong supporter of delaying tenure for teachers and frankly, I would be in favor of completely abolishing the tenure system, and that’s direct in opposition to KNEA but I think that’s in the best interest of our education system.”

Hineman says his constituents are nervous about further cuts that eliminate government jobs, including teachers. “From the perspective of folks in rural communities in Kansas, the loss of one teaching job is a negative effect on the local economy every bit as much as the loss of one private sector job. “

Kansas Economic Progress Council

A Jan. 13 Government Relations Update from the Greater Kansas City Chamber of Commerce had this to say about KEPC:

“Two repurposed groups are building momentum across the state and organizing to advocate for improved transportation planning, Pre K-12 and higher education, and improved economic development programming.  The Kansas Economic Progress Council (KEPC) and a coalition of local Kansas chambers have been working hard to make bold statements about how Kansas businesses support transportation and public education as critical infrastructure tools to support economic development.”

KEPC is a 501(c)4 and can do an unlimited amount of lobbying. Federal disclosure forms listed its address in 2008 as c/o MARY BIRCH, 10851 MASTIN ST STE 1000, OVERLAND PARK KS 66210-1687.

That’s the address of the Lathrop & Gage law firm where Birch is a government affairs specialist. The firm also employs Senate Vice President John Vratl.

Koch joined KEPC in December after a brief stint with the Tulsa Chamber of Commerce. Just over a year ago he ended a 21-year stretch with the Wichita Area Chamber of Commerce.

Wong disagrees with Koch’s characterization that his study is a “second opinion” countering Hall’s study.

“I told him I would not characterize it that way. It’s not my study verses his (Hall’s) study. It’s a different study. I was not specifically doing it to respond to anything in Art Hall’s study,” Wong said.

Former state representative and budget hawk Jason Watkins filled Koch’s old position with the Wichita Chamber last year. Watkins said he’s disappointed by the heavy media attention for Wong’s study and the lack of attention to Art Hall’s analysis. “But I do appreciate Wong and Koch admitting that a lot of this has to do with government jobs.”

Watkins pointed out that only two states have more government jobs per 10,000 population than Kansas according to Rich States, Poor States, the 2010 ALEC-Laffer State Economic Competitiveness Index.

—

KansasWatchdog Earl Glynn contributed to this report.

—

Related

Studies Agree: A Sales Tax Increase Kills Jobs