Kansas House doesn’t override Gov. Sam Brownback’s veto of STAR bonds bill

Gov. Sam Brownback has prevailed in keeping the Kansas Legislature from blocking a project that could lure the American Royal to Wyandotte County.

The Kansas House on Wednesday voted overwhelmingly against overriding a Brownback veto of a budget provision that would have restricted the state from using sales tax revenue bonds — STAR bonds — for new projects in Wyandotte County.

Lawmakers were upset about the project and about the lack of legislative oversight. They worried that $46 million in sales tax revenue no longer needed for the Village West STAR bonds project was being diverted to the American Royal proposal.

The veto override in the House lost in a 97-24 vote. The Senate voted in favor of the override last week. Turning back the veto required two-thirds majorities in both chambers.

Legislators from Wyandotte and Johnson counties, including Democrats and Republicans, came to the defense of the American Royal proposal, pleading with lawmakers to sustain the veto.

“This isn’t just about Wyandotte County,” said House Minority Leader Tom Burroughs. “It’s about the economic progress we’ve made.”

Rep. Stephanie Clayton, an Overland Park Republican, told lawmakers that sustaining the veto was in the best interest of the state.

“It is best for the Kansas economy to promote an image of stability,” she said, “and moving forward based on policy and not on politics.”

The American Royal project would relocate the horse and livestock exhibition from Kansas City to western Wyandotte County. In his veto message of the budget proviso, Brownback told lawmakers it was unfair to single out one county over concern about STAR bonds.

The Legislature is working on legislation to reform STAR bonds rules, and Brownback said his administration is cooperating with that effort. Revenue from completed projects needs to flow back to the state and not finance new projects, which should stand on their own, legislators said.

In STAR bonds projects, local governments use sales tax revenue to pay off bonds for developing entertainment and tourist districts.

This story was originally published March 23, 2016 at 3:02 PM with the headline "Kansas House doesn’t override Gov. Sam Brownback’s veto of STAR bonds bill."