Fed’s Tightening Plans Collide With SVB Fallout

14 Tuesday, March 14

Fed’s Tightening Plans Collide With SVB Fallout

info2023-03-14T13:12:14-05:00March 14th, 2023|

The collapses of Silicon Valley Bank and Signature Bank give Federal Reserve policy makers two good reasons to hold off on raising rates when they meet next week. But the latest run of economic data can only serve to remind them why, until last week anyway, they planned to keep raising rates. Investors’ expectations for the Fed have been whipsawing this year. Early on there were hopes that cooler inflation would lead the Fed to raise its range on overnight rates by a final quarter point at its March meeting, and then go on hold. A monster January employment report and [...]

14 Tuesday, March 14

Banks got hammered by SVB’s collapse. But the Fed might still raise rates

info2023-03-14T13:11:49-05:00March 14th, 2023|

A joint guarantee by the Federal Reserve, the Treasury Department and the Federal Deposit Insurance Corporation wasn't enough to stop the bank rout. Regional banks were hammered by the second- and third-largest bank collapses in U.S. history. ... Despite the turmoil in the banks, markets and analysts expect the Fed to go through with rate hikes. If the Fed pauses, it would "invite markets and the public to assume that the Fed's inflation fighting resolve is only in place up to the point when there is any bumpiness in financial markets or the real economy," explained Citigroup economist Andrew Hollenhorst. Source: [...]

14 Tuesday, March 14

Kansas sales tax cut on food would cost local governments $180M. Here’s what might happen.

info2023-03-14T08:30:42-05:00March 14th, 2023|

If a Kansas Senate plan to exempt food from state and local sales taxes becomes law, local governments could be facing a collective $180 million shortfall, leaving little option but to raise property taxes if the state doesn't compensate them. Senators passed the bill last month knowing that local governments would lose what was then an unknown amount of revenue, but promised to follow up with a plan to make them whole. Senate President Ty Masterson, R-Andover, did so on Thursday, rolling out a plan that would put a one-time payment of $220 million into a fund that local governments could [...]

14 Tuesday, March 14

Municipal Bond Trends for March 13, 2023

Henry Schmidt2023-03-14T08:03:07-05:00March 14th, 2023|

The interest rate table above illustrates recent changes in a sample of MBIS "investment grade" yields. Every issuer's credit is different. For rates that may be applicable to your municipality, contact our Municipal Bond Advisors, Larry Kleeman, Beth Warren and Henry Schmidt.

13 Monday, March 13

Kansas marks 33 years since deadly F-5 ‘Hesston tornado’

info2023-03-14T08:47:37-05:00March 13th, 2023|

On this day in 1990, a deadly F-5 tornado ripped through the town of Hesston in Harvey County. The twister was on the ground for nearly 50 miles and, at one point, merged with a sister tornado nearby. Two people were killed as a result of the storm. A 6-year-old boy huddled with his family near the town of Burrton died when a chimney collapsed into the home's basement. In the Marion County town of Goessel, an elderly woman lost her life in the storm. Harvey County alone sustained more than $25 million in damages. More than 200 homes and 20 [...]

13 Monday, March 13

Groundwater levels fall across western and south-central Kansas

info2023-03-13T22:52:42-05:00March 13th, 2023|

Northwest Kansas GMD 4, which saw well-below-average precipitation in 2022, experienced a drop of 1.31 feet in 2022 groundwater levels after declines of 0.53 feet in 2021 and 0.70 feet in 2020. GMD 4 covers Sherman, Thomas, Sheridan and parts of Cheyenne, Rawlins, Decatur, Graham, Wallace, Logan and Gove counties. Groundwater there is pumped from the Ogallala aquifer and shallow alluvial sources associated with streams. Even the well-known Sheridan 6 Local Enhanced Management Area, the first area of its kind of organized, local groundwater conservation efforts, struggled this year with larger water-level declines. Source: KAKE - News

13 Monday, March 13

How local leaders are addressing spike in property valuation

info2023-03-13T22:51:41-05:00March 13th, 2023|

At the beginning of this week, the Sedgwick County Appraiser's Office had three appeals. As of Wednesday afternoon, that number jumped to 98 appeals (with an anticipated total of more than 5,000 this year). "I have spoken with friends and neighbors and real estate clients that have had 15-20 percent or more tax evaluation increases in one year," Realtor Toni Titus said. Titus says in her 22 years as a realtor, she's never seen Sedgwick County property valuations increase by this much. Source: KSN-TV

13 Monday, March 13

Wichita State’s Innovation Campus to add $75 million building to help combat gun crimes

info2023-03-13T22:47:28-05:00March 13th, 2023|

A new $75 million building on Wichita State’s Innovation Campus will house a federal laboratory that will process shell casings to help law enforcement agencies across the country solve gun-related crimes. The building also will house the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The opening of the lab in the new building will create roughly 100 new jobs, Republican U.S. Sen. Jerry Moran said a news conference Monday. Source: Local News | Wichita Eagle

13 Monday, March 13

Wichita Public Schools will pay up to $2.5 million for security upgrades at 11 schools

info2023-03-13T22:45:56-05:00March 13th, 2023|

Eleven Wichita schools will be getting security upgrades for their front entryways. The Wichita school board has approved a contract with Hutton Construction to pay up to $2.5 million for the upgrades. Hutton will provide “construction work for secure entry, teacher locks, elevator access and intercom communications.” The scope of the work at each site and project timelines have not yet been established, district spokesperson Susan Arensman told The Eagle. The 11 sites are Allison, Curtis, Mayberry, Mead and Pleasant Valley middle schools, Beech, Gammon, Jackson, Linwood and Seltzer elementary schools and Levy Special Education Center, which serves students from K-12. [...]

13 Monday, March 13

Proposal for second package of megadeal incentives in doubt

info2023-03-13T22:43:51-05:00March 13th, 2023|

A proposal to expand a lucrative tax incentive for landing mega economic development projects similar to Panasonic and Integra is in serious doubt with the legislative session past its midpoint. If passage of a tax incentive package for Panasonic wasn't difficult enough last session, it's proving to be even more of an uphill fight to provide more incentives requested by the Commerce Department last month. "I can tell you a lot of people regret voting for it," Republican state Rep. Sean Tarwater said of the incentives approved for Panasonic that were later used in the Integra deal. Source: Sunflower State Journal