Saturday, January 31, 2015

An Open Letter to Elected Officials in Kansas on Population Outlook, Zero Income Tax, and Education

Dear Kansan elected official,

First I would like to thank you for the sacrifice and dedication you give to Kansas, a state we both love and want to make better.  I am writing you today to express concern as a citizen about population growth, a possible zero income tax policy, and how education intertwines with these two. I believe in Kansas and at age 25, bought a house in Salina, Kansas that I hope to retire in.  Kansans deserve a strong economy, job growth, and a future with as much or more opportunity as today.  One of the challenges facing in building our economy is building positive and strategic population growth.  In the long term outlook of economic growth, our Kansas government needs to consider and strategically plan for positive population growth.  
Governor Brownback has a strategic plan in creating "Urban Opportunity Zones" using incentive to try to have families move to economic depressed urban regions.  One of the benefits is possible student loan repayment, attracting those who have pursued higher education to these areas.  This plan seems prudent in bringing new workers, and possibly workers with college degrees, into economically depressed areas to try to bolster the economy. (http://www.kansascity.com/news/government-politics/article8424306.html)  In Kansas we also have rural housing incentive districts and programs to try to bring families to small towns to help maintain and bolster those economies (check these population projections for rural areas: (http://www.ipsr.ku.edu/ksdata/ksah/population/2pop17.pdf) .  These two plans represent strategic underpinnings trying to create purposeful and positive population growth to strengthen the local and state economies.  Kansas needs plans like this to fight the rural exodus and urban decay that can devastate citizens and economies without strategic interventions. 
When I research ‘states with no income tax’, I find websites listing states as great retirement areas, or good places to live to keep more of what a person owns in the person’s pocket.  A zero income tax policy could be a factor in some states to create an economic impetus to drive new citizens to a state, citizens who could then pay property or sales tax and help bolster the economy.  States like Florida have tourism to allow for income, or Texas has an abundance of an oil economy.  States like Wyoming or South Dakota are also on this list, perhaps trying to draw in new citizens (http://www.usatoday.com/story/money/personalfinance/2014/04/26/these-states-have-no-income-tax/8116161/ ).  In beginning the economic experiment of ‘marching toward become a zero income tax state, I imagine building the economy through purposeful and beneficial population growth through offer tax break incentives seemed like a good idea.  However, I’d now like to point out some confounding variables and perhaps unseen situations as to why a no income tax policy would not benefit the Kansas economy and instead could prove disastrous. 
People will often move for jobs or educational opportunities for the adults or the children in the family.  Becoming a zero income tax state must come at a cost, and right now the biggest budget losses are aimed at lowering education budgets.  A loss of government investment in education would also create a loss in human capital.  In looking at population growth, it is important to also look at ‘human capital’, or what the population of a state can contribute beyond a simple number count.  If Kansas creates a zero income tax state by slashing funding to education, people will be less likely to move to Kansas (http://www.census.gov/prod/2014pubs/p20-574.pdf).  Having higher levels of education in higher percentages of the population increases human capital, strengthens the economy, and makes communities more vibrant with opportunity and growth (http://www.newyorkfed.org/research/current_issues/ci17-6.pdf).  If Kansas wants Urban and Rural opportunity incentive programs to work in building population and economy in those areas, adequate education funding must also be in place or the programs will fail to meet their desired goals.  A locality is threatened in terms of economic growth if quality education is not provided (http://educationnext.org/education-and-economic-growth/). 
Another possible benefit of being a no income tax state is that individuals will potentially have greater freedom in making personal choice rather than have the government make choices for the individual by taxing income before the money even goes to the bank.  However, if having no income tax also greatly reduces the level of education, the effects on the person’s ability to choose will be deleterious rather than beneficial.  Education is the best long term anti-poverty plan: those who are well educated are less likely to have their freedoms taken away in jail and experience overall better rates of good health (http://www.cdc.gov/media/releases/2012/p0516_higher_education.html) .  People have less freedom of choice when in the throes of poverty, when incarcerated, or when sickness forces budget decisions or poor health restricts options.  The push for less government involvement is tied to a person desiring higher personal freedom, but less funding for education would not increase the overall personal freedom of Kansans, but decrease the opportunity to choose and the rational ability to make productive choices.  A less educated populace, or even a reputation as a state not supportive of education will drive down our economy, greater more urban decay and rural exodus, eliminate opportunity and choice for many citizens and decrease our human capital even as population rates increase. 
We cannot afford a decrease in human capital.  The word ‘afford’ is purposeful.  This argument is not about what is best for the child in the classroom, or some argument from human rights on how children deserve well-funded education.  Afford is literal.  Our economy cannot afford a decrease in human capital; financially our budget cannot withstand the effects of marching toward becoming a zero income tax state by torching the education budget.  We are not soldiers who ‘burn the boats’ in conquest of reaching our goal.  Kansas citizens do not wish to fly kamikaze into a future as a no income tax state at the cost of our future, our economy, creating population exodus of educated individuals, and greatly reducing our available human capital by lowering the priority on education as our population numbers will continue to go up without strategic education and guidance.  This cannot be.  We cannot afford education cuts.  It will wreck our economy, stifle the future growth of our economy and potentially send us on a march towards a bankrupt state government.  We cannot afford this ‘march’, and Kansas citizens are not conscripted soldiers forced to march to the beat of the drum of elected officials whose plans do not match the public good or general consensus. 

I personally do not believe our future is best with massive cuts to education funding now.  Becoming a zero income tax state may be a worthwhile goal, but the timing is not right and the initial efforts have had widespread deleterious effects and we cannot afford to continue this forced march.  I believe in the benefits of education and know how research supports the correlation between education and economic growth.  Please, do not allow our growth to be sought through the false paradise of becoming a zero income tax state and advocate for a brighter future through funding education and building human capital through purposeful and strategic investment.  I am willing to invest in the future of my son and my own future; I am willing to pay income tax.  Please help Kansas down the right, researched and proven path to economic growth by continuing to invest in education.  

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