Chamber CEO: Kansas faces economic challenges in 2021

(The Center Square) – While many states’ economies are rebounding from COVID-19’s impacts, Kansas’ forecast is not so optimistic in 2021, according to a state chamber of commerce executive.

“Unfortunately, much like our historical economic performance, Kansas’ recovery during the second half of 2020 has lagged behind the rest of the states,” Kansas Chamber CEO and President Alan Cobb told The Center Square. “Unless Gov. Laura Kelly and the Kansas Legislature take the necessary steps to remove barriers to growth and improve our state’s business climate, our overall economic outlook will remain at risk.”

According to the latest data from the Bureau of Labor Statistics, the state’s unemployment rate is on the rise again, currently sitting at 5.6%. University of Kansas economic and social policy researcher Donna Ginther told KSNT that more than one-third of Kansas households with children could not make their rent payments. This, coupled with the end of eviction moratoriums, may contribute to a homeless problem.

“Kansas continues to be a slow-growth state saddled by unsustainable levels of local government and a state budget that has exceeded revenues the last two years,” Cobb told KSNT. “We are facing another revenue deficit even after a $600 million per year tax increase was passed in 2017.”

Already strained, the state may not be able to adequately compensate the unemployed without federal assistance if unemployment filings continues to rise.

The chamber’s focus will be on improving the state’s income and property tax climate and strengthening the legal climate, Cobb said.

“Kansans should ask their legislators to support the continued effort to decouple from federal tax code like many other states have done in response to TCJA [Tax Cuts and Jobs Act of 2017],” Cobb said. “We should be having discussions on how we can deliver better government for less as our current burden will continue to hold our state back.”

Cobb left room for optimism.

“As more Kansas businesses prosper, so will their employees, their communities and our state,” Cobb said.

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