TOPEKA – The free-market grassroots group Americans for Prosperity-Kansas today released a study by Arduin, Laffer & Moore Econometrics, analyzing the impact of the federal stimulus plan on the states.

According to the study, “The Economic Impact of Federal Spending on State Economic Performance,” the federal stimulus plan will be a long-term drain on the private sector. Donna Arduin, one of the study’s authors, will be in Topeka on Wednesday to discuss the findings with legislators.

“Obviously, when government expenses go up, that money is taken from the private sector,” said AFP-Kansas state director Derrick Sontag. “While that seems to be an obvious concept, many of our elected officials don’t seem to understand how increasing government spending ultimately crowds private sector growth.

“I hope Kansas legislators will take advantage of this opportunity to visit with Ms. Arduin this week and to closely examine the true long-term impacts of the federal economic stimulus package.”

The study notes that the state of Kansas stands to lose 17,200 to 22,200 private sector jobs as government employment is expected to explode. Aside from hindering private sector job growth, the study also finds our state economy’s growth will be stifled.

Over a ten-year period, the Kansas economy will be 3.14 percent smaller than it would have been had the stimulus spending been focused on one-time projects only rather than permanent spending programs. That percentage is equivalent to about 21,600 jobs that will never be created due to permanent increases in government spending.

“The long-term negative impact of this federal spending is clear,” said Sontag. “When government expenditures grow beyond our economy’s ability to pay, growth suffers.

“This is an important fact for lawmakers to keep in mind as they return to Topeka this week to finish the final spending package of the 2009 Legislature.”