Archive for Wednesday, October 21, 2015

Group says Kansas program benefits certain companies

October 21, 2015

— A watchdog group says larger businesses have been the primary beneficiaries of a Kansas economic incentive program.

The Wichita Eagle reports Good Jobs First says most of the money spent on the state's Promoting Employment Across Kansas program from 2010 to 2014 went to companies with more than 100 employees or at least 10 locations.

The program allows companies to retain 95 percent of their state payroll withholding tax for up to seven years.

State Commerce Department spokesman Dan Lara questions the group's methodology labeling firms with more than 100 employees as large. He says the federal government uses 500 employees as the threshold for what constitutes a small business, and an audit shows the PEAK program adds $57 to the economy for every $1 spent by the state.

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