Legislative action could cost Wyandotte County millions of dollars in economic development projects
Wyandotte County Democrats in the House find themselves in a rare position of working hard to keep the governor’s veto in place on a law that would not allow STAR bonds to be used in future Wyandotte County projects.
The veto override passed today in the Kansas Senate. Sens. David Haley and Pat Pettey, representing the 4th and 6th districts in Wyandotte County, voted against the override, Sen. Haley said. They voted to maintain the current STAR bond projects. Sen. Steve Fitzgerald, R-5th Dist., of Leavenworth, whose district includes part of western Wyandotte County, also voted against the override.
Some legislators wanted more of the potential sales tax revenues from the projects to go to the state’s general fund, not back to development costs as sales tax revenue bonds.
According to Abbie Hodgson, chief of staff of House Democratic Leader Tom Burroughs, the House Democratic leader is working hard to stop the veto override from passing in the House.
If it passes it could endanger STAR bond projects in Wyandotte County, including Schlitterbahn, U.S. Soccer Training facility, and the potential American Royal project, she said. The Unified Government has already approved using STAR bonds from Schlitterbahn, that were approved several years ago, for the U.S. Soccer Training project being developed using former Schlitterbahn property. The American Royal project is not yet approved, and has not been through the planning and zoning process yet.
If the House does not pass the veto override, then the veto would stand and Wyandotte County could still have STAR bonds, Hodgson said.
Sen. Fitzgerald, in an explanation of his vote, stated: “While I applaud the efforts to regain the funds, and I believe that the proceeds of the STAR bonds district should go to the general fund thereby reducing the burden on Kansas taxpayers, I must take offense to the singling out of Wyandotte County for special negative attention. STAR bonds must be properly used and I vote ‘No’ on the line item veto of H Sub SB 161.”
Sen. Haley concurred with Sen. Fitzgerald’s explanation.
Sen. Pettey’s explanation of her vote: “I vote ‘No’ on the motion to override the governor’s line item veto on H Sub SB 161 regarding Star Bonds. Singling Wyandotte County out undermines the success that the Star Bond tool has brought to Wyandotte County. Wyandotte County is the only county that has successfully used this economic tool to bring major tourist attractions to Kansas along with millions of dollars of private investment and thousands of new jobs. This legislature should be very cautious in changing an economic development tool that is working. This tool has already been amended 5 times in the last 12 years.”
Gov. Sam Brownback issued this statement as the Senate discussed a possible override of his veto on House Substitute for Senate Bill 161 concerning STAR bonds.
“As I said in my veto message, no county should be singled out in the manner contained in the budget proviso,” Gov. Brownback stated. “I am hereby informing the Legislature that the Department of Commerce will not approve any new STAR Bond projects in any other county. This policy would apply to any project not yet approved by the Department of Commerce, and is within my authority under Article 1, Section 3 of the state Constitution.
“I note that the vetoed provision would effectively be repealed by the enactment of other legislation containing certain STAR Bond reforms. My administration has been working with the Legislature on those reforms and will continue to do so. I look forward to receiving acceptable legislation before the end of the session. In my view, this approach to reform is much preferred over that taken in the budget.”
An effort in the Kansas House to help horse and dog racetracks receive the same percentage of gaming profits as do the casinos cost another legislator his chairmanship this afternoon. That effort, if successful, eventually might have allowed The Woodlands to reopen. After trying to get a bill to the floor in order to add a racino provision to it, Rep. John Rubin, R-Shawnee, was stripped of his chairmanship of the Corrections and Juvenile Justice Committee by the House speaker.
Rep. John Barker, R-Abilene, also was stripped of his post by the House speaker today as chairman of the House Rules Committee.