Remove Obstacles for Business Community

By Ed O’Malley

The election dust has settled and the Kansas legislature is preparing to return to the Capitol in early January. As we return, legislators can take comfort knowing Kansas was recently named the number one state in America for business.

The Pacific Research Institute, a think tank focusing on free market strategies, recently partnered with Forbes Magazine to research and rank the states in order of “economic freedom.” The study says states that have the most economic freedom are those that offer the fewest obstacles, in terms of taxes and regulation, to starting a business or finding a new job.

While legislators should be proud of Kansas’ ranking, we should not be complacent. Layoffs in the telecommunications sector, a lagging agriculture economy and a continued sluggish national economy should all encourage the legislature to continue thinking of strategies to grow Kansas businesses. Above all else, the Legislature should adopt a strategy of “due no harm” when it comes to the business community.

Hopefully the 2005 Legislature can stop the trend of passing a controversial, often difficult-for-business bill during the final hours of session debate. Repealing the custom computer software sales tax exemption and implementing destination-based sales tax sourcing are examples of major headaches for small businesses that could have been avoided had the Legislature acted in a more deliberate, thoughtful manner.

Despite occasional missteps with business legislation, more often than not the Legislature strives to create a healthy economic environment in Kansas. A great respect for small business exists in Topeka.

While it may be difficult to develop another innovative major initiative so quickly on the heals of passing the Kansas Economic Growth Act, the Legislature can focus on important issues that move the business community forward, specifically healthcare and education.

The Governor’s healthcare proposal, co-sponsored by Insurance Commissioner Sandy Praeger, will receive ample attention. Everyone agrees something must be done to reduce the cost and availability of healthcare and health insurance. While strategies such as expanding state-run programs may meet resistance in the Legislature, providing small businesses with affordable health care choices is almost universally viewed as an important strategy to reduce overall business costs.

Another round of debates regarding the Kansas school finance formula will also take center stage. Make no mistake: The school finance formula is a business issue. Not only because a quality education system is the foundation of any thriving economy, but also because the school finance debate is all-consuming. Solving the school finance issue once and for all can enable us to freely debate other matters.

The Kansas economy does not benefit from even the perception of a school funding crisis, let alone the real thing. For the sake of the children (our future workforce) and the reputation of our business community, we need positive movement on the school finance issue.

Progress on the education and healthcare fronts, along with a continued commitment to a healthy business climate, should help Kansas retain its rank as the best state in America for economic freedom.

Ed O’Malley represents the 24th District in the Kansas Legislature, which includes portions of Roeland Park, Overland Park and all of Mission, Kan. He serves on the taxation, economic development, corrections and tourism committees. In the private sector, he serves as director of business development for Shred-it.