There was a lot going on yesterday, but Kansas City’s NPR station still had time to get out a big think piece — reprinted from local nonprofit news outlet The Beacon — on what the Chiefs and Royals stadium battles mean for the region’s eternal economic border war between Missouri and Kansas. How did KCUR and The Beacon do? Let’s drop in and see:
The two states had for years engaged in a bloodletting competition to lure businesses to their side of the Kansas City region — handing out lucrative incentives to move a corporate headquarters just a few miles across the state line.
These deals brought no new jobs to the region. They sacrificed millions in taxes that could have gone to hire more teachers, pave more roads or invest in public safety. They did nothing to improve the regional economy.
It was, as many called it, a race to the bottom.
So far, so good, though Kansas City is hardly alone in this regard.
Suddenly, that race came to a halt. In 2019, the governors in both states recognized the futility of these battles and agreed to stop the poaching. Since then, most economic development officials in the region say, the truce has worked.
Sort of? The 2019 truce only applied to payroll tax kickbacks, and even then was seen as fragile given that it was “binding” only until one state or the other chose to walk away, as reported at the time by oh hey look it’s KCUR!
A recent study conducted by Brookings Metro underscores why the states shouldn’t waste those resources. The study found that the Kansas City region’s economic output is almost evenly split on both sides of the state line, an anomaly among other multistate regions.
What’s more, the metro’s total GDP significantly boosts each state’s economy. Of Missouri’s total GDP, nearly a fourth comes from the Kansas City metro. Kansas, in turn, gets more than a third of its total from our region.
This is where the article starts to get weird: Kansas and Missouri shouldn’t be throwing public money to lure businesses back and forth across the state line because … the K.C. metro area is evenly split between the two states? Notably, that’s not even what the linked Brookings study says about the K.C. border war, which is the more lucid argument that “both states attempted to move jobs and businesses in the Kansas City metro area to their side of the state line, resulting in zero net new jobs for the region—at taxpayers’ expense.”
But if a place like Wyandotte County has a chance to use incentives to attract a business, why shouldn’t it? In fact, even with the truce, the county and its neighbors across the region still strike deals with businesses in nearby cities and counties.
Uhhhh, because it results in zero net new jobs for the region, at taxpayers’ expense? Also, what happened to “the truce has worked”? Can we get a fact-checker in here?
The difference today, said Greg Kindle, CEO of Wyandotte Economic Development Council, is those businesses are the first to broach the idea of a move. And even then, they aren’t, he said, asking for anything more than what the county typically gives to qualifying businesses.
Consider Mies Family Foods, a family-run business that will be moving from Missouri back to Kansas, where it got its start. Earlier this year, Mies was looking for a larger site and turned to Wyandotte County because that’s where the owners live.
The county offered Mies its standard 50 percent tax abatement. That, coupled with an attractive site near Interstates 70 and 635, was enough to convince Mies to make a $15.6 million investment and bring 51 employees to Kansas. When the abatement ends, the property will generate $200,000 a year in taxes.
“You look at that and say, does that qualify as a border war?” Kindle said. “Well, they had a connection to Kansas and wanted to move.”
Oh, okay, the county is handing out tax breaks to everyone, including companies owned by people who would want to move to your state regardless and are just happy to pocket the cash as a bonus. That’s … better? Kindle seems to be trying to go with “better,” I think?
If you’re wondering why The Beacon chose to ask the head of the local public-private pro-business advocacy group about whether giving public money to local businesses is a good idea, you clearly weren’t the editor of this piece, because that’s the only kind of source heard from here: People quoted include the CEO of K.C.’s regional business marketing arm, the CEO of the Greater Kansas City Chamber of Commerce, the aforementioned Wyandotte economic development council CEO, a Kansas state official who voted to spend $28 million on the 2026 World Cup even though it’ll be held in Missouri, the CEO of K.C.’s World Cup bid group, and one of the Brookings authors. Any other experts in or critics of interstate bidding wars or the economics thereof didn’t get a call for comment, so we’re left viewing the end (?) of this truce (?) through a lens of “actually, it’s all fine, probably.”
As for the Chiefs and the Royals, though they’re the hook for the headline, they don’t make that much of an appearance in the article itself, though it does note that “on balance, the subsidies offered to major league sports franchises rarely, if ever, deliver that boost.” That’s followed, however, by a digression about how stadium employees would likely live in both states either way — true enough, but kind of beside the point if the whole issue is that paying to move businesses back and forth across state lines is a net zero for the region as a whole — and then this:
And the region, certainly, does not want to lose either the Royals or the Chiefs. [Greater Kansas City Chamber of Commerce Joe] Reardon said that even if one or both teams move to Kansas, the truce will remain because the region will have kept its prized teams.
You heard it here first: Without tax kickbacks, the Chiefs and Royals could move to Greensboro or someplace, according to the head of the organization dedicated to obtaining tax kickbacks for its members. Great journalism, everybody — who needs meddling billionaires when we have reporters who’ve been trained to follow their lead on who is and isn’t worth talking to?