Kansas Confront INEVITABLE Tax Increases For New Chiefs Stadium?!?

A policy wonk perspective offers an apt perspective . . . Nobody gives away SIX BILLION BUCKS without it costing a great deal down the road . . . Here's a bit of the math: 

The project may require new taxes down the road to cover the loss of revenue growth that would normally flow into the state’s coffers, he said. 

The Chiefs project will be funded through a 60-40 public-private partnership, according to terms posted online by the Kansas Department of Commerce. The state’s 60% of funding will come from a mix of STAR bonds, or sales tax and revenue bonds, and funds in the Attracting Professional Sports to Kansas Fund, which is revenue from iLottery and sports betting. 

STAR bonds also will be repaid with 100% of liquor sales tax collected in the district. 

According to a Commerce Department fact sheet, the state expects 20,000 new jobs to be created during the construction phase and more than 4,000 new permanent jobs at the stadium and entertainment district that will surround the stadium. The annual estimated economic impact is expected to be $1 billion, and the Chiefs will pay $7 million in annual rent. 

Ian Graves, a Prairie Village City Council member and self-described public finance policy wonk, said his primary concern is with how the project freezes future revenue growth.  

“We are diverting natural revenue growth over time that we rely on to basically account for the increase of price in goods and services that governments require,” he said. “If you look at sales tax revenue growth, just naturally, it floats with inflation because as the price of purchased goods go up, sales tax revenues also climb, and then that increased revenue goes back to be able to support the city or state.”

Read more via www.TonysKansasCity.com link . . .

MOIndie: Chiefs’ move to Kansas leaves experts grappling with possible revenue drain, massive unknowns

Developing . . .