Kansas unemployment rate slides to 2.6%, lowest rate in more than a decade

by Tim Carpenter, Kansas Reflector

Topeka — The Kansas unemployment rate declined in January to 2.6%, federal and state agencies said Friday, to the lowest level in more than a decade.

The COVID-19 pandemic hijacked the nation’s economy in April 2020 to drive the jobless rate in Kansas to an astonishing 12.2%. It was above 5% for six months, before sliding to 4.7% by October 2020. The gradual decline placed the figure at 3.8% by January 2021 and 2.9% in October 2021.

In the latest report from the Kansas Department of Labor and the U.S. Bureau of Labor Statistics, the state’s unemployment rate hit 2.6% in January. There were 39,000 Kansans without a job last month, a sharp decline from 56,000 unemployed in January 2021.

“Kansas started 2022 with strong job growth, with estimates showing 8,500 jobs added in January,” said Amber Shultz, secretary at the state Department of Labor.

In the pre-pandemic period of the Kelly administration, the unemployment rate in Kansas was stuck at 3.1% for 13 consecutive months. It has now been below 3.1% in each of the five months from September to January.

Kelly’s predecessor, Gov. Jeff Colyer, led the state for one year while the unemployment rate ranged from 3.2% to 3.4%. He replaced Gov. Sam Brownback, who resigned to work for President Donald Trump.

Brownback was elected in a post-recessionary period with a January 2011 unemployment rate of 6.8%. Under his leadership, the rate progressively declined to 3.5%.

Emilie Doerksen, an economist at the state Department of Labor, said the January report indicated the state’s unemployment rate continued a downward trend to territory below pre-pandemic levels in part because the labor force participation rate had dropped in Kansas. The workforce stood at 1.5 million in January 2020, but was at 1.49 million in December.

In the report for January, Kansas nonfarm payroll employment climbed by 8,500 from December. The private-sector job figure increased by 5,100 over the month as government employment went up by 3,400.

Since January 2021, Kansas seasonally adjusted total nonfarm jobs increased by 17,100. This change is due to an increase of 16,200 private sector jobs and an increase of 900 government jobs.

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.
See more at https://kansasreflector.com/briefs/kansas-unemployment-rate-slides-to-2-6-lowest-rate-in-more-than-a-decade/

Senate approves three nominees to Kansas Board of Regents after unprecedented scrutiny

by Tim Carpenter, Kansas Reflector

Topeka — Bipartisan majorities in the Kansas Senate voted Wednesday to confirm three nominees to the Kansas Board of Regents recommended by Gov. Laura Kelly.

The process of considering nominations of former BNSF Railway executive Carl Ice, retired Kansas City, Kansas, school superintendent Cynthia Lane and former banker and state Sen. Wint Winter took on an unusually high level of political intrigue as some GOP lawmakers sought to derail Kelly’s picks of Lane and Winter to the state board with oversight of more than 30 public universities, community colleges and technical colleges.

The Senate Education Committee conducted an extensive evaluation of the nominees despite a unanimous vote of support last year by the interim Senate Confirmation Committee. The three nominees had been participating fully in Board of Regents meetings for months.

Sen. Molly Baumgardner, a Louisburg Republican and chairwoman of the Senate Education Committee, said evidence raised in the extended process resulted in a recommendation Ice be confirmed. She said the other nominees — Winter and Lane — were forwarded to the Senate without a recommendation because some lawmakers were convinced the nominees hadn’t been sufficiently transparent in answers to 44 written questions and a series of additional oral inquiries.

“They did have a fair hearing,” Baumgardner said. “It is up to this body to assure that the nomination process and the appointment process isn’t perfunctory.”

Sen. Gene Suellentrop, R-Wichita, urged senators unwilling to vote against a nominee to consider passing on the Board of Regents nominations. That same tactic could be relied upon by senators not 100% convinced in viability of a nominee, he said. If there were enough passing and no votes to block nominees, he said, Kelly would be forced to come back to the Senate with new picks for the Board of Regents.

Ice won unanimous support from the Senate with a 38-0 vote. The margin for Winter was 24-9, while Lane was confirmed 23-11. Four Republican senators passed on Winter and Lane. Two GOP senators were absent.

Before the votes, Sen. Marci Francisco, D-Lawrence, delivered a speech endorsing each of the governor’s nominees for the Board of Regents.

“Having active and engaged members of this board will help in planning and oversight of secondary education in Kansas,” Francisco said. “I would be remiss if I didn’t specifically express my support for Senator Wint Winter. He was a member of the Kansas Senate for 10 years and did a good job.”

During the Senate Education Committee hearings, questions were raised by GOP lawmakers about political allegiances of the individuals selected by the Democratic governor. They quizzed Winter about his opposition to re-election of then-Gov. Sam Brownback, while Lane was questioned about her involvement in a school-finance lawsuit that led to a finding the Legislature’s approach to funding K-12 public schools was unconstitutional.

The political dimension of the Senate’s consideration of the nominees was unusual given that three of six members of the Board of Regents, aside from the three just confirmed, previously served in the Legislature.

In addition, Brownback selected Helen Van Etten, who served as Republican National Committeewoman, to serve on the board in 2013 at the same time she served in that high-level Republican Party position.

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.
See more at https://kansasreflector.com/2022/03/02/senate-approves-three-nominees-to-kansas-board-of-regents-after-unprecedented-scrutiny/

State tax revenue tops February estimate, Kelly calls for food sales tax exemption

by Tim Carpenter, Kansas Reflector

Topeka — The half-billion dollars in state tax collections during February came in nearly $19 million above bullish estimates revised three months ago to reflect revenue growth.

The Kansas Department of Revenue said the state tabulated $502.5 million in tax revenue last month, which amounted to 3.9% more than anticipated by fiscal analysts. The total was $46 million, or 10.2%, beyond state revenue for February 2021.

“The positive trend in tax receipts continues with all of the major tax types — individual income tax, corporate income tax, retailer’s sales tax and compensating use tax — performing well,” said Mark Burghart, secretary of the state’s revenue department.

The department processed 15,000 more income tax filings and refunded $21 million more in February compared to the same month last year. Overall, the state has issued 281,000 refunds totaling $147 million in the current filing season.

Refunds for electronically filed returns can be expected to be deposited in taxpayers’ bank accounts in 4 days to 7 days, Burghart said.

“We are pleased to be able to get individual income tax refunds paid more quickly and into the accounts of taxpayers,” he said. “But for the larger number of refunds issued in February, individual income tax receipts also would have surpassed the February estimate.”

In February, state individual income tax collections in Kansas were $183.4 million. That was $6.6 million or 3.5% below the monthly estimate. Corporate income tax collections settled at $23.4 million or $12.4 million more than anticipated. The monthly total on corporate income tax was $15.2 million more than in February 2021.

Retail sales tax revenue outperformed predictions by $5.2 million or 2.8% for a monthly total of $195.2 million. That was $16 million, or 8.9%, more in retail sales tax revenue than experienced in February 2021.

Gov. Laura Kelly, a Democrat seeking re-election in November, said her administration had taken steps to promote fiscal responsibility and restore the state’s economy. She renewed a request that the Republican-led Legislature approve a bill removing grocery purchases from the state’s 6.5% sales tax.

“I urge the Legislature to work together to send me a clean bill eliminating the state’s tax on food immediately so that we can put this money back into the pockets of Kansas taxpayers,” Kelly said.

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.
See more at https://kansasreflector.com/briefs/state-tax-revenue-tops-february-estimate-kelly-calls-for-food-sales-tax-exemption/.