Wichita businesses not leaving home after all Print

(From KansasLiberty.com)

In the David v Goliath epic now playing in Wichita, the rock to the noggin was the idea that tax increases should have taxpayer approval.

Wichita businesses not leaving home after all

A race for a seat on a county commission normally would fly below the radar. Local papers have plenty of other news to handle and local leaders have plenty of other issues to face.

But one man's campaign for a set on the Sedgwick County Commission has sparked a greater-than-usual interest. He's not only attracted the attention of the local paper, he's angered the deepest pockets in Wichita. 

What caused the backlash?

Republican Karl Peterjohn, executive director of the Kansas Taxpayers Network, told the area's biggest corporations that if the benefits and incentives they receive from taxpayers require a tax increase, the increase ought to be approved by taxpayers first.

That, to Wichita's business leaders, was a no-no. Just the thought of putting tax increases to a vote was enough to make some of them hint that if Peterjohn were elected, businesses would flee Wichita.

Peterjohn faces Democratic candidate Marcey Gregory in the November general election for the District 3 slot on the county commission after defeating incumbent Tim Winters in the primary by 18 points.

But Peterjohn's biggest battle may be about that cautious aversion of his to tax increases. His stance has caused the Wichita Metro Chamber of Commerce’s political action committee and some of the state's biggest businesses, most of which receive substantial incentives from state and local government, to bring out their big guns to oppose him.

In fact, according to a report in the Wichita Eagle, the reaction to Peterjohn's position seemed to be little short of hysterical.

  • Jim Walters, Cessna's senior vice president for human resources: "There are billions at stake in this discussion. And there are hundreds and thousands of jobs at stake."

  • Jeff Turner, CEO of Spirit Aerosystems: "If his views were to prevail in this community, companies like ours would be hard-pressed to invest anymore in this community."

  • Harvey Sorensen, chairman of the Wichita Metro Chamber of Commerce's board: "Ultimately, workers will not come to Wichita, and businesses will not come to Wichita, unless you provide a community that's worth living in...If any of [the aircraft manufacturers] left, it would be a disaster for Wichita."

Peterjohn even received criticism from a member of the Wichita Independent Business Association - after he received an official endorsement from the group.

Jack Pelton, Cessna's CEO, told the Eagle that it was Peterjohn's opposition to a 2006 county tax increase to pay for the $54 million Jabara aviation-manufacturing training center that raised "a big red flag"  for Cessna.

According to the Eagle, the business leaders "planned plan to raise thousands of dollars" to make sure Peterjohn doesn't win the election.

That Eagle piece wasn't the only story on the race, either. Peterjohn said at first he was surprised by the backlash, and by the substantial amount of press attention his campaign has received.

“Initially, this has been a huge surprise as I had gotten support from approximately 1,000 members here in the Wichita area from the Wichita Independent Business Association,” Peterjohn told Kansas Liberty. “My race for county commission has generated more front-page headlines than a lot of other races down here - I would say even more than every legislative race.”

Peterjohn said he was going to stick with his pro-taxpayer platform despite the hostile response he has received from some of the Wichita businesses.

“My emphasis has always been a pro-economic growth, pro-taxpayer position with a limited government, and obviously other people have other viewpoints,” he said.

Peterjohn said it was important to remember that if he was elected he would be one of five commissioners serving on the commission, and that he could not get any changes made without the support of at least two other commissioners.

Cooler corporate heads seem to have prevailed since the Eagle's piece ran Oct. 8.

Doug Oliver, director of corporate communication for Cessna, said the idea that Cessna could possibly move out of town if Peterjohn won a commissioner's seat was an exaggeration.

“We have acres and acres and 12,000 employees so moving is really out of the question,” Oliver told Kansas Liberty. “I think a lot of this response is to statements made in a meeting that certain people may or may not be in favor of.”

Oliver said Cessna would not take an official position on candidates, and instead focuses on the issues supported or opposed by candidates.

“We take a position on making sure or hoping to make sure there is a steady supply of qualified workers to continue to produce aircraft in south central Kansas and in Wichita,” he said.

Debbie Gann, vice president of corporate communications for Spirit AeroSystems said the business would not considering moving away if Peterjohn is elected.

“Our president, Jeff Turner, never said that we would move away,” Gann told Kansas Liberty. “We don’t have a company position on Karl. Our CEO has just said we support public-private partnerships and technical training and Karl doesn’t support those things, but it's not so much supporting one candidate over the other. It's more of asking candidates what they think it takes to maintain and grow jobs.”

The Wichita Independent Business Association is also backpedaling from harsh comments made in the Eagle report about Peterjohn.

Tom Witsman, president of the Wichita Independent Business Association’s said the group’s official endorsement of Peterjohn may not reflect the opinion of everyone in the association.

“You aren’t going to find a group as large as ours where everyone feels the same,” Witsman told Kansas Liberty.

Wistman said Peterjohn had been a member of the organization for many years and that he had previously been on the board of directors.

 Sorenson was not available for additional comments Monday.

“Pro-growth, pro-business and a level business climate that would be favorable for all the businesses to prosper is my focus, so the last thing on my mind is trying to drive anyone out of Wichita,” Peterjohn said.

- Holly Smith