TOPEKA (KSNT) - Kansas now has the legislative leverage it needs to make an offer to Kansas City's professional sports teams, but how could state-funded stadiums impact taxpayers?
KSNT 27 News spoke to the Dean of Washburn's Business School, David Sollars, who also teaches economics, to get the gist of what this star bond project could mean for taxpayers in the Sunflower State.
Sollars says the benefit of these bonds is that they don't increase taxes. The basic idea behind STAR bonds is that the projects they help fund will eventually pay for themselves.
If Kansas works out a deal with the Chiefs and/or Royals to help fund new stadiums, the money would be recouped from alcohol sales in potential stadium districts, as well as the revenue from sports gambling and the lottery. It would take 30 years to cover the cost.
The downside to these bonds, or opportunity cost as Sollars put it, is that those tax dollars can't go towards other public needs like roads or education.
Sollars also says from what he's seen of similar projects across the country, the long-term benefits can be extremely difficult to predict.
"This works great for the first five or ten years and then, unfortunately, the teams and the league move on to something new and different," Sollars said. "And they want to renovate, and the repairs happen. There's this never-ending battle back and forth over who's responsible for this, that, and the other."
Sollars told 27 News at the end of the day, there is certainly some benefit, but the question is "does that benefit outweigh the cost?"
Based on yesterday's vote, most lawmakers seem to believe they do. Governor Laura Kelly could still veto the bill, but she is expected to sign it based on previous testimony from her Chief of Staff.
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