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Kansas Panasonic plant was a bipartisan secret. Now the GOP pins it all on Gov. Kelly?

Derek Schmidt is attacking his Democratic opponent over the lack of transparency. She couldn’t have done it without the Republican-dominated Legislature.
Derek Schmidt is attacking his Democratic opponent over the lack of transparency. She couldn’t have done it without the Republican-dominated Legislature. Associated Press file photo

The agreement bringing a $4 billion Panasonic battery plant to Kansas has a few holes, apparently, which is disturbing but not a surprise.

We endorsed the deal, which promises to bring 4,000 direct jobs to the old ammunition depot in De Soto. is expected to provide roughly $830 million to the company in tax credits, sales tax exemptions, payroll reimbursements, training support and other subsidies.

But we also said the state should pay attention to the details (“More hard work lies ahead,” we said). Other companies have promised jobs and growth in other states, only to pull back from those promises later. Kansas must do whatever it can to protect its investments if Panasonic tries to walk back from the plant.

The early returns are not encouraging.

The bill creating the framework for the deal, known as APEX, does not directly guarantee jobs at the plant, for example, or set wage standards. Additionally, it doesn’t appear factory construction contracts will include hiring goals for minority and women-owned businesses, which should be essential if public support is involved.

The agreement does not appear to require the company to pay prevailing wages for construction, another common provision in most public-private deals.

Kansas must insist on fair hiring practices for the construction of the plant, and operating it. The state needs environmental guarantees as well. These details, and others, must be worked out before construction begins.

We remain extraordinarily disappointed at the continued secrecy surrounding this agreement — the public has a keen interest in the development package. News of loopholes and omissions is highly regrettable.

At the same time, let’s be clear: Problems with the Panasonic agreement, and the secrecy surrounding it, are not solely the fault of Gov. Laura Kelly and her administration.

Republicans are just as much a part of this deal as Kelly, a Democrat. They considered it, they approved it, they endorsed it. U.S. Sen. Jerry Moran, Kansas Senate President Ty Masterson, and Kansas House Speaker Ron Ryckman — Republicans all — applauded the deal the day it was announced.

Now, as questions arise, some Republicans are taking a backhanded swipe at Kelly. “Pretty disappointing when an election-year announcement of good-paying jobs comes without an actual requirement for good-paying jobs,” Kansas Attorney General Derek Schmidt said.

“We need a governor who will be more responsible with hardworking taxpayer money. Kansas can do better,” said Schmidt, Kelly’s likely November opponent.

The comment is outrageous. If Kansas can do better, why didn’t the attorney general tell his fellow Republicans to cut a better deal? And — for that matter — how can Kansas do better? We need specifics, Mr. Schmidt. You’ll need to execute the deal if you’re elected.

Others, including Speaker Ryckman, are pointing fingers at the governor’s staff. It’s out of our control, some GOP members claim.

Ridiculous. We extended congratulations to Republicans for helping land the Panasonic plant, and they deserved it. Kansans shouldn’t let them hedge their bets now.

Public incentives for private enterprises are always suspect, and should be the subject of public scrutiny. Kelly’s decision to keep the talks secret was a mistake, and will cause no end of problems as details are rolled out.

But Republicans agreed to the ground rules, and were willing to take credit for the Panasonic decision. It’s reckless to point fingers now, in an election year, for political purposes.

Instead, Republicans and Democrats must work together to make sure the deal is the best we can get. From early appearances, that work will be extensive, and difficult.

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