How many $ millions does KCPS lose in tax abatements? District wants you to know
The short answer?
$80 million in potential tax revenue to the Kansas City Public Schools and more than 20 public charter schools has been diverted by tax abatement incentives to developers the past three years.
Go to KCPS’ Tax Incentives page:
But KCPS acknowledges that the questions behind the city’s decisions to give tax breaks are complicated, and the district has created a web page to help defend its community against excessive tax incentives.
“Tax incentives can be a valuable tool for cities and states to attract and grow businesses and to promote redevelopment in distressed neighborhoods,” the district’s page reads. “However, without proper controls and oversights, they can also be harmful to communities due to the loss of potential public revenues.”
KCPS bears far more abated tax abatement per student than any other Kansas City districts, and the majority of the benefits in KCPS boundaries boost projects that are not in economically stressed areas.
“KCPS currently has $400 million of deferred maintenance,” the district notes. “We cannot afford to over-incentivize private development.”
The district is working with neighboring districts that also have concerns about the abatement process and the Cooperating School Districts of Greater Kansas City has issued recommendations to reform tax incentives in Kansas City.
The proposals list ways that the school districts believe will make the abatements process more consistent, equitable and directed to more faithfully boost areas of economic need.