Senator Derails Farmers and Railroad

 Kerr stops way-of-life bill' dead in it's tracks

'Merger Stumble'? 
Thanks in part to Representative Kerr's political maneuvering, the buyout by Watco's SKOL of the CKR missed the June 1st mark.  

05/11/01

In the last days of the Kansas legislature, one Kansas legislature helped derail plans for saving several Kansas rail lines by adding a controversial '1 cent gasoline tax' measure to a bill that would have aided Kansas rail lines.  

Sen Kerr (representing Reno county) effectively stopped the rail line bill from being approved by attaching a controversial 1 cent gas tax to the bill.

Sen. Ruth Teichman, R-Stafford, said shortline rail is critical to many
farmers in her district.  According to the Hutchison news, Kerr was quoted as saying  " the tax bill was used in political leveraging, but he wasn't aware it was critical this year. He expected lawmakers to study the tax-credit proposal during the summer.

The bill was one of Kansas's first moves in helping save the rail lines that serve the rural areas of Kansas.  The majority of the lines in Kansas were to be abandon by the Central Kansas Railway (CKR), which owned by OmniTrax.  Recently, CKR  had proposed a sale to Watco Companies - which was seeking aid from the State of Kansas in the form of tax credits and financial assistance. The measure offered $500,000 in annual tax credits over 20 years for the retirement of bonds issued to restore much of the 900 miles of Kansas & Oklahoma Railroad Co. track.

According to Watco, since the bill did not pass, they now plan to immediately abandon some lines - specifically Protection to Coats. Mr Kerr replied ""I think they (Watco) should be extraordinarily cautious about abandonment because it would send a very negative message to the Legislature by doing that before they have given us a chance to really study the issue," Kerr said. "I'm disappointed if that's their message."

While 'spin' power may control the damage at a political level, the removing of rail lines is permanent.  Senate Minority Leader Anthony Hensley, D-Topeka, criticized Kerr for using the shortline bill as a bargaining chip to get House members to vote for an addition to the gasoline tax, which the House refused.

"The problem is there's a trading of votes, and rather than looking at
issues on their own merits they get embroiled in politics," Hensley
said.  The bill had  heavy House support (120 to 3)  but never had a Senate vote because of Kerr's  last-minute political maneuvers.

Kerr was introducing the 1 cent gasoline tax as the same time as the Federal government is considering reducing the 14 cents gasoline tax.

 

 

 

 

 

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