WICHITA, Kan. (AP) — A watchdog group says larger businesses have been the primary beneficiaries of a Kansas economic incentive program.
New study shows #SmallBusiness not the focus of #EconDev incentives. https://t.co/pmJavSatRa pic.twitter.com/6uq0Tw2wWa
— Good Jobs First (@GoodJobsFirst) October 20, 2015
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.
“Small businesses in Kansas and Missouri deserve real help, not lip service” @KCStar Op-Ed reflects report: https://t.co/pmJavSatRa #EconDev — Good Jobs First (@GoodJobsFirst) October 20, 2015
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.