Auditors working for the Kansas Legislature estimated five of the state’s major business development incentive programs would generate positive total returns for the private-sector economy but not produce enough growth in tax revenue to cover public investments. The evaluation was ordered in June by a joint committee of the House and Senate due to skepticism among some legislators with the state government’s use of tax credits or exemptions, or direct expenditure of state funds, to convince businesses to make capital investments or create jobs in Kansas. Gov. Laura Kelly, who won reelection in November, invited scrutiny by pointing to her first-term success in pursuing new jobs, including a $4 billion Panasonic battery plant for De Soto. Legislative auditor Josh Luthi said during a briefing with lawmakers all five programs were viewed as “generally successful” despite projections the programs wouldn’t deliver enough new state and local income, sales or property taxes to cover every dollar in direct costs or foregone revenue devoted to economic development.
Source: Kansas Reflector
