Saturday, March 7, 2026

Local-Level Headaches - Go Topeka

Kansas has a long, colorful history of economic development efforts that promise the moon—jobs, growth, revitalization—and often deliver scandals, waste, conflicts of interest, or outright failures instead. These aren't isolated oopsies; they're recurring themes involving the Kansas Department of Commerce, local agencies, massive incentive packages, and a whole lot of taxpayer money vanishing into questionable deals. The pattern? Big promises, lax oversight, insider perks, and when things go sideways, denials, audits, or someone conveniently resigning/disappearing from the picture.
Here are some of the standout messes that have made headlines over the years:
The Jonathan Clayton Saga (2023–2024): The Felon Who Oversaw $100M+ in Grants
This one's fresh and reeks. The Kansas Department of Commerce hired Jonathan Clayton as director of economic recovery—no criminal background check—despite his prior financial felony convictions in Pennsylvania. He managed over $100 million in federal pandemic relief funds (ARPA/Base Grant programs). Red flags piled up: he allegedly embezzled from small towns like Mullinville and Peabody (e.g., conflicts where he sat on boards receiving grants he approved at the state level), including a $425,000 grant where he handled both sides. Audits slammed the agency's weak hiring and inconsistent grant processes. Clayton went missing amid scrutiny, then died in a crash in August 2024. Commerce officials (including Lt. Gov./Commerce Secretary David Toland) denied political favoritism claims in his alleged emails, but lawmakers ordered multiple audits. The fallout? Calls for better vetting and transparency, but it exposed how a felon could slip through and potentially misuse public funds.
Brownback's "Kansas Experiment" (2012–2017): Tax Cuts That Tanked the Economy
Former Gov. Sam Brownback's aggressive tax-slashing agenda—branded the "Kansas experiment"—was sold as rocket fuel for growth. Instead, it cratered revenues, forced deep cuts to schools and services, and underperformed compared to neighboring states. Revenue shortfalls hit billions; job growth lagged; the state even raided funds to plug holes. Studies showed it harmed the economy (e.g., real GDP growth ~7.8% less than peers). Critics called it a failed supply-side fantasy; supporters blamed external factors. Brownback left for a Trump ambassadorship, but the damage lingered in budget fights for years.
Massive Incentive Packages and "Duped" Deals (Ongoing)
Kansas loves dangling huge subsidies to lure big projects, often with mixed results:
  • Panasonic EV Battery Plant (De Soto, ~2022 onward): Over $1 billion in potential subsidies via APEX Act tax breaks. Audits found no one even tracks the true cost—Commerce and Revenue departments clueless on how much taxpayers are forking over. Classic corporate welfare opacity.
  • Border War (Kansas-Missouri rivalry): Decades of poaching companies across the state line with escalating incentives, costing hundreds of millions in lost revenue for both sides. By 2019, even politicians admitted it was a pointless, expensive arms race hurting taxpayers.
  • General audits (2019 onward): Repeated findings of misuse—e.g., Job Creation Program funds diverted to non-economic stuff like FFA chapters; no written policies for awarding millions; inconsistent ARPA relief distribution.
Local-Level Headaches
  • Economic Development Corporation of Kansas City, KS/MO (2021–2023): Fired director accused of nepotism (hiring her husband), self-loans, and misusing funds. Feds seized accounts/cars in fraud probes.
  • Other spots: Hesston's $20M grocery plan scaled back after ties to an indicted businessman; Wyandotte County cronyism/nepotism gripes; various small-town grant mishaps.
Tying back to Topeka's scene (since that's been our focus): While no massive "scandal" has blown up GO Topeka/Greater Topeka Partnership yet in the same way, the favoritism vibes—insider board ties, JEDO sales tax funds flowing to connected developers like AIM Strategies—fit the statewide pattern of economic development orgs operating with thin accountability. Public-private deals often benefit the chamber crowd while the city/general fund struggles. Add in broader Commerce opacity (e.g., KORA violations for withholding records on incentives), and it's easy to see why folks smell cronyism everywhere.
Bottom line: Kansas economic development is littered with tales of overpromising, under-delivering, and too-cozy relationships. Audits keep piling up recommendations for transparency and safeguards, but the cycle repeats—big incentives for flashy projects, while basics get shortchanged. If you're digging for more on a specific one (like Clayton details or Topeka ties), or want sources pulled up closer, hit me with it. This stuff deserves the spotlight.


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