Kelly says Kansas has restored lost jobs, but state remains below pre-pandemic level

Kansas Gov. Laura Kelly told a TV station that the state had restored the jobs lost in the pandemic “and more,” even as Kansas has yet to recover roughly 20% of lost non-farm jobs.

The Democratic governor, facing a tough reelection bid against Republican state Attorney General Derek Schmidt, has made economic development a central theme of her campaign. Kelly is currently conducting a “Prosperity on the Plains” tour of the state and has emphasized Panasonic’s decision to build a massive electric battery factory in Johnson County.

The comment, reported by Topeka TV station KSNT on Thursday, is at odds with data from the Kansas Department of Labor. In June, the agency reported Kansas had recovered 125,000 non-farm jobs, or 79.7% of the jobs lost in the early weeks of the pandemic in 2020.

“I know that during the pandemic, that every place lost jobs, but we have restored those jobs and more,” Kelly said.

Schmidt and other Republicans seized on the comment on Friday. Schmidt said that while the “facts say one thing,” Kelly “keeps saying another and hoping nobody notices.” Schmid’ts campaign pointed to a Forbes analysis of Bureau of Economic Analysis data showing Kansas nearly last among states in gross domestic product growth over the past year.

“It’s an election year, and the Governor’s trying to make up lost ground because she has almost nothing to show for four years in office except budget-busting spending propped up — for now — by Joe Biden’s bailouts and claiming credit for other people’s work. But Kansans know her administration’s abysmal record,” Schmidt said in a statement.

A spokeswoman for the governor, Brianna Johnson, didn’t directly answer a question Friday about whether Kelly had misspoke.

“Governor Kelly understands many Kansans are still getting back on their feet and are worried about rising costs,” Johnson said in a statement. “The Governor was noting that Kansas has recovered from the pandemic quickly and, thanks to her laser focus on bringing jobs and businesses like Panasonic to the state, we are now in a position to grow faster than ever before.”

Kansas unemployment was at 2.4% in June, near historic lows for the state. Total employment in Kansas is up about 28,664 since January 2019, when Kelly took office. The state has set aside $969 million into a rainy day fund and has also paid down $1.1 billion of pension debt amid large ending balances in the budget.

A state budget passed by an overwhelming bipartisan majority in the Legislature and signed by Kelly this spring moved hundreds of millions into the rainy day fund. Separate legislation, also approved with strong majorities in both the House and Senate, and signed by Kelly, set aside money to pay down pension debt.

But high inflation levels not seen in decades have sent prices rising over the past year. While governors have little direct control over inflation, Republicans have sought to tie Kelly and other Democrats to Biden, whose approval rating remains low. In a bid to keep and attract retirees to Kansas, Schmidt has proposed eliminating income taxes on retirement benefits.

In turn, Kelly has touted economic development across the state, including the Panasonic deal. The company announced last month that it plans to build a $4 billion battery plant for electric vehicles near De Soto that’s eventually expected to employ 4,000 people. The announcement followed a months-long effort to court the corporation, including passage of a massive incentive package.

In a statement, Johnson said Kelly had brought $13.6 billion in business investment to the state and had created and retained more than 50,000 jobs. Shortly after this story was published online, Johnson said the figure was actually just shy of 50,000.

Small businesses affected by the pandemic have also received $50 million in investments, she said.

“That work has paid off: Kansas’ unemployment rate is at record lows,” Johnson said.

Friday wasn’t the first time Republicans have criticized the way Kelly talks about the economy. In July, Kelly was asked by a voter about the possibility of a recession and responded in part by saying, “bring it on.” Kelly’s campaign said at the time the remark was intended to highlight her economic record and the health of the state’s finances.

Get Families Back to Work, which shares an address with the Republican Governors Association, spent more than $100,000 on airtime to highlight the remark on stations in Kansas City, Wichita and Topeka. Its ad called Kelly “out of touch.”