- This is corporate citizenship done right. This is a BLISTERING indictment of Laffer-inspired supply side voodoo economic policy, and an equally blistering indictment of Sam Brown's leadership of Brownbackistan (the former state of Kansas)."More importantly, there’s a motivation of conscience that factors into it, too. It’s not so much that I’m moving the company to Missouri as I’m moving it away from Kansas."Blog post with full text of letter is here:Wow!
By Jen Hayden
Jeff Blackwood, the CEO of Pathfinder Health innovations, released a public letter stating their intentions to move the company out of the state of Kansas. Mr. Blackwood pulled no punches in his message to Governor Brownback and Kansas conservatives:
“I can’t, in good conscience, continue to give our tax money to a government that actively works against the needs of its citizens; a state that is systematically targeting the citizens in most need, denying them critical care and reducing their cost of life as if they’re simply a tax burden that should be ignored.” – Jeff Blackwood, CEO of Pathfinder Health Innovations
Wow! In the full text of the letter, Mr. Blackwood said they re-evaluated staying in Kansas when they outgrew their current space. After consideration, they just can’t stay:
There are a lot of things that factor into this decision. For one, the company has outgrown our current space. There are no seats left, and we have new employees coming on every month. The state of Missouri is also helping us with some tax incentives, but these are minor considerations.More importantly, there’s a motivation of conscience that factors into it, too. It’s not so much that I’m moving the company to Missouri as I’m moving it away from Kansas.
Emphasis added. He went on to note the absolute failure of conservative policies that are laughably advertised as means to attract new companies to the state:
Kansas has become a test center of “trickle down” economics, espoused by economist Arthur Laffer during the Reagan years. Nowhere has there been as thorough an implementation of Laffer’s policy recommendations… and nowhere has there been as dramatic a failure of government.Under Brownback’s direction, Kansas implemented an unprecedented tax cut in 2012, eliminating taxes for LLCs and professional firms (for full disclosure, PHI is a C Corporation) and making the largest cuts in the highest tax brackets. He shifted taxes to create a heavier burden on property and sales taxes, which typically represent a larger burden on lower income brackets. Brownback declared that this tax cut would be a “shot of adrenaline” for the Kansas economy, but the reality is that the tax cuts have had the opposite effect. Kansas lags neighboring states in job growth. For 11 of the last 12 months, Kansas has dramatically missed revenue targets, falling deeper in debt and facing another round of degraded bond ratings.The worst part is that the burdens for the shortfalls rest on the shoulders of those who can least afford it – children and the developmentally disabled.One of Brownback’s first actions was to close the Lawrence office for Kansas Social & Rehabilitation Services (SRS). This agency provided services for low-income children and the developmentally disabled, and access to the Lawrence office was critical for people in that community to receive services. Their only option was to try to figure out how to get transportation to the Topeka SRS office, thirty miles away. Not an easy task. The closure of the Lawrence office was supposed to save the state $400,000 per year.At the same time, Brownback decided to pursue a personal vendetta against the Kansas Bioscience Authority, an organization created to spur the economic development of bioscience companies in Kansas. Brownback was convinced that funds were being misused, so he decided we needed to spend over $400,000 (conveniently, the same amount that could have kept the Lawrence SRS office open) on lawyers and auditors to pour over the KBA books. In the end, they found a total of $5,000 in misused funds, which the former KBA president repaid with a personal check. It all came down to priorities – pursue a personal vendetta at the expense of the disabled.
Blackwood went on to scorch Governor Brownback on state healthcare cutbacks and the ongoing destruction of previously excellent public school system that has been systemically dismantled under Republican care.
I believe that it is the responsibility of business owners and people with some voice in society should speak up against these destructive policies. And I believe it is far past the time that Sam Brownback and his cronies admit the damage they’ve caused to the people of Kansas and resign in the shame they deserve.
Thank you, Mr. Blackwood. You can read his full letter at the Pathfinder Health Innovations blog.
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