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Kansas commits $304M to chip plant to lure federal funds

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Kansas commits 4M to chip plant to lure federal funds


TOPEKA, Kan. — Kansas plans to offer $304 million in taxpayer-funded incentives to a semiconductor firm in its largest metropolis to construct an enormous new manufacturing facility, however the undertaking will not go ahead with out funds the U.S. authorities has promised for rebuilding the nation’s chip-making capability.

Gov. Laura Kelly introduced Thursday that Kansas has an settlement with Integra Applied sciences, primarily based in Wichita, for a 10-year bundle of tax breaks and reimbursement of bills. State officers mentioned the brand new, $1.8 billion plant would cowl 1 million sq. ft, have 2,000 staff and create 3,000 extra jobs amongst suppliers and different native companies.

The announcement comes with the U.S. attempting to reverse a lack of capability for making the chips which are very important to smartphones, laptops and different modern-day conveniences, in addition to cars and life-saving medical units. Congress final 12 months authorized a measure that gives greater than $52 billion in grants and different incentives for the semiconductor trade.

Kelly advised reporters throughout a Statehouse information convention that the state’s incentives are essential to attracting the federal funds and “making Kansas a necessary a part of our nation’s nationwide safety efforts.”

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“This superior manufacturing facility is a part of a nationwide push to revive our semiconductor trade in order that U.S. employees and companies can compete and win within the race for the twenty first Century,” Kelly mentioned.

Integra CEO Brett Robinson wouldn’t say how a lot federal funding the corporate wants, solely that there’s “no commercially viable approach” to do the undertaking with out it. He and state officers mentioned different states had been attempting to draw the undertaking, although they didn’t disclose the opponents.

“It isn’t simply vital to the USA and to safety, however it’s vital to the provision chain,” mentioned Kansas Senate President Ty Masterson, a Wichita-area Republican.

President Joe Biden pushed Congress final 12 months to spice up the U.S. semiconductor trade, due to a scarcity of chips made worse by the worldwide coronavirus pandemic and considerations about competing with worldwide rivals, significantly China. There’s been a decades-long shift to cheaper-to-operate Asian chip crops, and the trade is now depending on Taiwan, which China has lengthy claimed as its personal.

“If we had been ever to lose, for a sustainable period of time, entry to the southeast Asian provide chain, what we simply went by means of would pale compared,” Robinson mentioned.

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Integra, based in 1983, has about 500 staff in Wichita and Silicon Valley and describes itself as the most important U.S. supplier of the final two main meeting and testing steps within the chip manufacturing course of. The brand new manufacturing facility is predicted to pay a median annual wage of $51,000, about 46% larger than the state’s common of roughly $35,000.

For Integra to obtain its incentives, it should make investments at the least $1.5 billion within the new manufacturing facility within the subsequent 5 years and constantly present the equal of 1,600 full-time jobs for 10 consecutive years.

The incentives are a part of a program Kansas created final 12 months to ramp up its efforts to compete with different states for brand new, massive factories. Underneath that program, the state was allowed to supply as much as $1 billion in incentives to a single firm every in 2022 and 2023.

In July 2022, Kelly and different state officers introduced that Panasonic Corp. plans to construct a mega-factory to supply electrical car batteries for Tesla and different carmakers. The state lured the Japanese electronics large’s undertaking to the sting of the Kansas Metropolis space with incentives value $829 million over 10 years, probably the most the state has ever supplied.

The legislation permitting the incentives required prime leaders of the Republican-controlled Legislature to log off any deal between an organization and the state Division of Commerce, which is led by Lt. Gov. David Toland, a Democrat like Kelly. The legislative leaders gave their approval simply minutes forward of the announcement, after assembly in personal with Kelly for half an hour to evaluate the settlement, with no alternative for public evaluate or enter.

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The legislation additionally requires Kansas to drop its company revenue tax charges by half a share level for every mega-deal. If the Integra undertaking goes ahead, the highest charge would decline to six% from 7%, saving all companies roughly $100 million a 12 months.

Whereas each mega-projects have had bipartisan help, some lawmakers are vital of promising such large taxpayer-funded incentives to a single agency.

“We’ve got not written the checks for this primary undertaking they usually’re beginning the second with out even understanding that it really works,” state Senate tax committee Chair Caryn Tyson, a conservative Republican from jap Kansas, mentioned earlier than Thursday’s announcement.

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Comply with John Hanna on Twitter: https://twitter.com/apjdhanna.

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Kansas

Kansas State lands transfer safety Mar'Quavious Moss

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Kansas State lands transfer safety Mar'Quavious Moss


Kansas State has landed another player out of the transfer portal. West Georgia safety Mar’Quavious Moss has committed to K-State.

The announcement from Moss comes shortly after an official visit to Kansas State. His visit took place December 14th and he has been one of many prospects in Manhattan in the past few weeks. Moss has had a busy visit schedule as he has visited Georgia Tech, Tulane, Virginia and Houston in addition to K-State. Nebraska was involved late and got the last visit, which forced Moss to push his commitment back a day.

A tip of the hat goes to the Wildcats defensive coordinator and safeties coach Joe Klanderman. Kansas State was the first school to offer Moss when he entered the transfer portal and made him a major priority. K-State also had the advantage of Moss previously playing at Dodge City Community College for one season and has a connection to West Georgia on the Wildcats staff as Assistant Director of On Campus Recruiting Riley Galpin spent the last two years at West Georgia.

The true sophomore safety had a productive first season at West Georgia. He totaled 56 tackles with nine being tackles for a loss and 4.5 sacks along with four pass breakups and a forced fumble. His work around the line of scrimmage likely will have him playing the ‘Jack’ safety role in Manhattan.

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According to the On3 Industry Ranking (a combination of all four recruiting services), Moss is the No. 120 player in the transfer portal. He is also the No. 9 safety in the transfer portal as well as the No. 6 safety among players still available.

Moss is the No. 27 player added to the Wildcats roster in the 2025 recruiting class and is the third transfer added. The West Point, Georgia native will come to Kansas State with two seasons of eligibility remaining. He also has a redshirt available.



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Kansas governor wary of overspending as Legislature’s budget overhaul takes shape • Kansas Reflector

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Kansas governor wary of overspending as Legislature’s budget overhaul takes shape • Kansas Reflector


TOPEKA — The Kansas Legislature’s unprecedented budget takeover will enter the 2025 legislative session with a bare bones spending plan and sweeping cuts while Republican lawmakers eye property and corporation tax reductions.

Gov. Laura Kelly is still preparing her own budget — as is customarily the governor’s duty — and said her greatest apprehension ahead of the 2025 session is overspending, she told Kansas Reflector on Wednesday.

The apprehension applies both to spending on programs and further tax cuts, she said.

“Obviously, we know what happens when you go too far too fast on tax cuts,” Kelly said, recalling her predecessor Gov. Sam Brownback’s tenure, during which he implemented an experimental tax program that diminished the state’s tax base creating revenue deficits. “And I don’t think anybody in the state of Kansas wants to go back to that, including the Legislature.”

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Kansas Republicans created a new committee this year to give legislators the opportunity to craft their own preliminary budget. The committee wrapped up its meetings Thursday.

The meetings consisted of iterative presentations from almost 100 state agencies and departments seeking funding enhancements, which also were presented to the governor.

Under Kansas’ customary budget process, state agencies can appeal the Division of Budget’s recommendations to the governor. This year, about $1.1 billion worth of requests are up for appeal, according to committee chairman Rep. Troy Waymaster, a Bunker Hill Republican. The governor typically gets the final say on whether to accept or reject an appeal.

Waymaster weighed the possibility of denying all appeals requests in the legislative budget, regardless of what the governor decides.

“If we want to do property tax relief for the people of the state of Kansas, there’s no way we can approve the 1.1 billion that’s been appealed,” he said.

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But House Speaker Dan Hawkins, a Republican from Wichita, proposed eliminating all requested budget enhancements that added any new staff and the salary increases associated with them, leaving the Legislature with a base budget that could see additions as the session proceeds. A majority of committee members supported Hawkins’ proposal.

Expanding bureaucracy

Mounting requests for new facilities and expanded bureaucracy have too often flown under the radar, said Rep. Henry Helgerson, a Democrat from Eastborough, at a Dec. 12 committee meeting. He pointed to a $114 million ask from the Kansas Bureau of Investigation for a new headquarters and the now over-budget Docking State Office Building, which is set to finish renovations in April.

“We have gotten to a point where we just approve things and don’t say anything,” Helgerson said.

It’s up to legislators to curtail spending, he said, wary, too, of the majority party’s plans for further tax cuts.

“This group has to change the trajectory of our spending in the state,” he said, referring to the legislative budget committee.

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Rep. Kristey Williams, an Augusta Republican who chairs the K-12 Education Budget Committee, agreed but said spending scrutiny must be applied indiscriminately. Lawmakers can’t ignore certain “golden areas” the Legislature refuses to touch, she said, specifically referencing the Kansas State Department of Education.



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Kansas school board rejects textbooks because they’re too anti-Trump

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Kansas school board rejects textbooks because they’re too anti-Trump


A Kansas school board reportedly rejected textbooks because they believed that the teaching materials were too “biased” against Donald Trump.

A proposed contract with a Boston-based education company was also voted down by the newly elected conservative majority on the Derby Board of Education over their public statements on diversity, equity, and inclusion, KCUR-FM reported.

The $400,000 contract with Houghton Mifflin Harcourt was rejected even though it was recommended by Derby High School teachers, who requested a new school curriculum after being left without social studies textbooks for several years.

But board members reportedly said that parts of textbooks and other learning materials offered by the company did not reflect fairly on Trump’s first presidency.

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“My biggest concern … involved what I would define as bias of omission,” board member Cathy Boote said, according to the outlet.

Boote then shared examples of the material she deemed did not accurately reflect the president-elect’s time in office, including the controversial “Muslim travel ban.”

Board members expressed concern that the materials were anti-Trump
Board members expressed concern that the materials were anti-Trump (REUTERS)

“Then there was the ‘Muslim ban,’” Boote said and made air quotes as she spoke.

“With no mention of the fact it wasn’t aimed at all Muslim countries, just those that have no ability to vet. Safety was the top priority, but they leave it sit there, with no explanation, to make you think he was xenophobic.”

Trump’s travel ban, issued in January 2017, restricted entry into the US for certain people from foreign nations. It was nicknamed the “Muslim ban” by Trump as well as his aides and critics because a majority of those affected by the executive actions came from predominantly Muslim countries.

President Joe Biden issued a proclamation revoking the travel ban when he entered office, but in May this year Trump said he would reinstate the ban.

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“We will bring back the travel ban — you remember the famous travel ban,” he said.

Boote said that she was also concerned about the way Trump was portrayed in the text books when it came to trade deals with China, the January 6 Capitol riot and his position on Cuba.

Another board member, Michael Blankenship, reportedly agreed with the concerns raised by Boote, but also rejected the proposal to work with the company because of a pro-Black Lives Matter statement they made in 2020.

“We believe Black Lives Matter [and] we believe in social justice,” the company said.

“That’s a pretty bold statement,” Blankenship reportedly said. “Wouldn’t anybody want to know, ‘What do you mean?’ I still don’t have that answer.”

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The Independent has contacted Houghton Mifflin Harcourt for comment.



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