Sunday, January 18, 2026

In the end, economic development isn't about charity—it's about smart, sustainable investments that pave the way for a thriving future.


Misallocation of Economic Development Funds: Sales Tax Dollars Diverted from Infrastructure to Charities in Topeka
In Shawnee County, Kansas, a half-cent sales tax was implemented to fuel economic growth, generating millions annually for initiatives like site acquisition, infrastructure improvements, equipment purchases, and workforce training. This tax, approved by voters, is explicitly designated for economic development activities through GO Topeka, the economic arm of the Greater Topeka Partnership. Yet, a closer look at how these funds are being spent reveals a troubling pattern: significant portions are funneled into grants, sponsorships, and contributions that resemble charitable donations rather than strategic investments in the local economy. This raises a critical question—should taxpayer dollars earmarked for building a stronger economic foundation be used to support community events, churches, and non-profits, or should they be strictly allocated to tangible infrastructure projects that create jobs and drive long-term growth?The Funding Mechanism: A Sales Tax for Growth, Not GiveawaysGO Topeka's budget is primarily supported by this countywide half-cent sales tax, which brings in over $10 million yearly for economic incentives. The intent is clear: to attract businesses, expand operations, and enhance infrastructure to make Topeka more competitive. Examples of appropriate uses include cash incentives for machinery, building improvements, utility extensions, and land development for target industries or headquarters. Infrastructure assistance is explicitly mentioned as a key component, allowing for road improvements, utility lines, and other essential upgrades that support business expansion. However, this sales tax is distinct from Topeka's separate half-cent sales tax dedicated solely to street maintenance and infrastructure repairs, which funds projects like sidewalks and road fixes. While the economic development tax can include infrastructure elements tied to growth, it was never meant to become a slush fund for feel-good community initiatives. Blurring these lines risks diluting the impact of both taxes, as funds that could bolster critical infrastructure are instead scattered across non-essential programs.Examining the Expenditures: Charities Masquerading as Economic DevelopmentA 2024 inquiry into GO Topeka's grants and contributions for 2022 and 2023, as detailed in a public email from President Molly Howey, exposes how these funds are being allocated. Under the budget line for "grants/contributions/sponsorships/scholarships," millions were disbursed, but many recipients bear little resemblance to economic engines. Instead, they appear as charitable handouts, supporting events, churches, and social programs that, while worthwhile, do not directly contribute to job creation, business attraction, or infrastructure.Key Examples from 2022:
  • Community Events and Churches: $300 to New Mount Zion Baptist Church for a community dinner; $2,000 to Topeka Family and Friends Juneteenth Celebration; $1,500 to Shampayne Lloyd Ministries for a retreat; $2,000 to Oakland Garden A Community of Growers. These resemble philanthropy, not investments in economic infrastructure.
  • Non-Profits and Social Initiatives: $3,000 to Topeka Center for Peace and Justice; $5,000 to YWCA Northeast Kansas; $2,500 to Bring Back the Blvd.; $3,000 to Junior Achievement of Kansas. While these organizations do valuable work, funding them with economic development sales tax diverts resources from roads, utilities, or business incentives.
  • Larger Programs: Even bigger line items like $174,000 for Choose Topeka (talent recruitment) and $134,774 for PTAC (procurement assistance) are defensible as economic tools, but they are outnumbered by smaller, scattershot grants that total hundreds of thousands.
Key Examples from 2023:
  • Similar Patterns: $2,500 to New Mount Zion Baptist Church for a back-to-school event; $2,500 to NAACP Topeka Branch for a banquet; $2,500 to Revelations Evangelistic Ministry for a teen employment program; $10,000 to Community Resource Council for an event sponsorship.
  • Pitch Contests and Sponsorships: Winners like Chef LaMona LLC ($15,000) or Paletas Royale ($8,000) from minority-owned business pitch contests show some entrepreneurial focus, but overall, the list includes $2,500 to Black Entrepreneurs of the Flint Hills and $5,000 to Mana De Topeka—again, more aligned with social equity than hardcore economic development.
  • Educational and Other: $25,000 to Washburn University Foundation for a pitch competition; $50,000 to Forge (likely a co-working or startup space). These have economic ties, but when mixed with church dinners and festivals, the focus blurs.
In total, these expenditures highlight a shift from targeted economic strategies to broad community support. While GO Topeka frames them as part of larger programs like pitch competitions and regional investments, critics argue they waste money on items that don't yield measurable economic returns. Why These Aren't True Economic DevelopmentEconomic development funds should prioritize initiatives with a clear return on investment: job creation, capital attraction, and infrastructure that enables business growth. Infrastructure, in particular, is a cornerstone—extending utilities, improving roads, or acquiring sites for new facilities directly supports expansion. Sponsoring a church event or a Juneteenth celebration, however noble, does not build bridges, upgrade sewers, or lure manufacturers. These are charitable acts, better suited for private donations or separate community funds, not taxpayer sales tax.This misallocation has real consequences. Topeka faces ongoing infrastructure needs, from street repairs funded by a dedicated tax to broader challenges like aging utilities. Diverting economic development dollars to charities means less for performance-based incentives that could attract high-wage jobs or fund critical projects. Moreover, it erodes public trust in how sales taxes are used, potentially jeopardizing future voter approvals for such levies.A Call for Reform: Redirect Funds to Infrastructure and Real GrowthIt's time to realign GO Topeka's spending with its original mandate. Sales tax revenues should be restricted to verifiable economic development— infrastructure upgrades, business recruitment incentives, and training programs with tracked outcomes. Charities and community events deserve support, but not at the expense of roads, utilities, and jobs.Policymakers in Shawnee County must audit these grants, impose stricter criteria for what qualifies as "economic development," and consider reallocating funds to pressing infrastructure priorities. Voters approved this tax for growth, not giveaways. By refocusing on infrastructure, Topeka can build a foundation for prosperity that benefits everyone, rather than scattering dollars on short-term feel-good.
In the end, economic development isn't about charity—it's about smart, sustainable investments that pave the way for a thriving future.

https://mcremedia.blogspot.com/2024/05/fwd-go-topeka-inquiry.html


--
Henry McClure 
Time kills deals
785-383-9994

www.henrymcclure.live
on

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)