State Officials Clash on Goodyear Topeka Request

Kansas officials have reportedly disagreed over a decision whether to respond affirmatively to a request from Goodyear to provide nearly $38 million in state aid, in order to continue operating from the company’s plant in Topeka. The tyre manufacturer says that it will commit to $250 million-worth of spending on equipment upgrades at the plant if Kansas is willing to offer its suggested incentives. Goodyear says that without the upgrades, up to 700 jobs may have to be cut.

The Topeka Capital-Journal writes that revenue secretary Joan Wagnon and commerce secretary Dave Kerr were sceptical about handing Goodyear incentives to keep jobs going. Wagnon stated, “There’s nothing in it for the state” during a Senate Commerce Committee hearing, having noted that the additional spending would not create additional jobs, while Kerr expressed concern at the burden on the state’s finances. Wagnon supported his concern, saying that the total cost, after interest on the proposed twenty-year bonds was taken into account, would rise to $116 million.

Officials from the legislative delegation offer the plan bipartisan support, with Republican senator Julia Lynn saying that stopping employment losses is as important as fostering expansion of employment.