The Kansas Department of Legislative Post Audit's evaluation of the STAR Bonds program, overseen by the Kansas Department of Commerce, has uncovered a troubling reality. This program, intended to spur major commercial, entertainment, and tourism projects through increased sales tax revenue, has largely failed to meet its intended goals. A deeper dive into the program's performance paints an even more concerning picture, with evidence suggesting the STAR Bonds initiative may be doing more harm than good for Kansas taxpayers.

Uncovering the Shortcomings of STAR Bonds: A Comprehensive Audit Exposes the Program's Flaws

Shifting Economic Activity, Not Creating New Jobs

A 2020 analysis of STAR Bond projects in Wichita, commissioned by the Sentinel's parent company, Kansas Policy Institute, revealed a troubling trend. Rather than generating new economic activity and jobs, the STAR Bond projects mostly shifted existing economic activity and jobs to other parts of the city. This finding directly contradicts the program's core purpose of stimulating growth and development.

The analysis highlighted how STAR Bond projects failed to create any meaningful new jobs or economic activity, instead simply redistributing existing resources within the city. This raises serious questions about the program's effectiveness and whether it is truly benefiting Kansas communities as intended.

Lack of Oversight and Accountability

The 2021 audit of the STAR Bonds program also uncovered a startling lack of oversight and accountability. Requests for documents related to the program, filed under the Kansas Open Records Act, have been met with delays and denials, suggesting a concerning pattern of opacity and resistance to public scrutiny.

The audit found that the Kansas Department of Commerce, the agency responsible for overseeing the STAR Bonds program, has not defined or measured the program's impact on "local quality of life," a key metric it claims to prioritize. This lack of clear objectives and performance evaluation raises doubts about the program's true effectiveness and the ability of policymakers and the public to hold it accountable.

Questionable Priorities and Misaligned Incentives

The audit also revealed that the Kansas Department of Commerce's focus on attracting younger, college-educated adults may not align with the priorities of that demographic. According to the survey findings, graduates indicated that factors such as job prospects and proximity to family were more important in their decision-making than the amenities and quality of life improvements that the STAR Bonds program aims to provide.

This disconnect between the program's priorities and the actual needs and preferences of the target population further undermines the STAR Bonds program's effectiveness and raises questions about the validity of its underlying assumptions.

A Troubling Pattern of Opacity and Lack of Transparency

The Kansas Department of Commerce's reluctance to provide information and records related to the STAR Bonds program is particularly concerning. The Sentinel's own attempts to obtain records through the Kansas Open Records Act have been met with delays and denials, suggesting a troubling pattern of opacity and resistance to public scrutiny.

This lack of transparency not only hinders the public's ability to assess the program's performance but also raises questions about the potential mismanagement or misuse of taxpayer funds. The fact that the STAR Bonds program exists only in Kansas and two other states further underscores the need for greater oversight and accountability.

Questioning the Viability of the STAR Bonds Program

The cumulative evidence from the audits and analyses paints a bleak picture of the STAR Bonds program. With no clear evidence of its ability to achieve its stated goals, and a concerning lack of oversight and transparency, the program's continued existence raises serious concerns.

As the STAR Bonds program approaches its scheduled sunset in 2026, policymakers and the public must carefully consider the program's merits and whether it is truly serving the best interests of Kansas communities. The findings of these audits and analyses suggest that the STAR Bonds program may be more of a burden than a boon for the state, and its future should be carefully evaluated before any further taxpayer funds are committed.