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HEROES IN HEALTHCARE

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WORLD CHAMPIONS

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ICONS OF EDUCATION

Ingrams.com | February 2023

WE DID IT

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It’s not just a wall of kind words. It’s inspiration that keeps me going.” - Jaime Bartley, RN Director of Nursing,Transplant “ Every day my team and I try to give hope, and sometimes life itself, to patients and their families. It’s an amazing privilege. But it comes with the feeling of wondering if we could do even more.Then a card comes.Those few kind words remind us of the difference we’re making.There’s no better feeling than that.

To schedule an appointment, call 913-588-1227 or visit KansasHealthSystem.com/Appointments.

FEBRUARY 2023 • VOLUME 49, NO. 2

Talk of the Town 7 In the News/Correspondent Business News and Legislative Updates Perspectives 4 Editor’s Note A City Comes Alive by Joe Sweeney 9 Between the Lines For all the promises that the DEI

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agenda makes, its impact on medical school instruction should be a warn- ing call. by Jack Cashill

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11 Reflections

Features 14 We Did It — Again!

Another year passes without improving K-12 academic performance. What are we paying for again? by Dennis Boone Changes at the Fed suggest we really should pay attention to what every- one on the FOMC has to say between meetings. by Ken Herman

The Kansas City Chiefs bring the Lombardi Trophy home, and a city turns out to pay tribute to the victors. The celebration drew well more than half a-million red-clad fans Downtown.

Special Reports 14 Celebrate!

12 In a Nutshell

With two NFL championships in four seasons, and three trips to the Super Bowl in that span, the Kansas City Chiefs are operating at levels never before seen here.

19 Where We Stand Is the long-predicted recession nearly here? 23 Bucking the Trends

Business & Commerce 18 Financial Adviser

25 Heroes in Healthcare Meet 21 health-care providers, their support teams, volunteers and others who bring a deep personal commit ment to their organizations. 41 Icons of Education

As the American health-care system has been ravaged by The Great Resignation, hospitals in Kansas City are bigger than ever. Their talent challenge? Keeping up with unprecedented demand. By Dennis Boone

Taking a defensive posture amid an economic downturn is a strategy fraught with its own risks, but a neces sary one for prudent executives. by Steve Johnson

25 Heroes in Healthcare

After decades of pursuing their pas sion in schools, at community colleg es and on campus, this region’s most impactful educators are recognized for the contributions they’ve made.

20 Wealth Management

Meet 21 exceptional people, from high ranking administrators to hospital volunteers, who help give this region its exceptional level of health care.

Investors will want to pay particular attention to the implications of the Secure 2.0 Act. by Josh Hahn

41 Icons of Education

51 Of Counsel

What are the qualities of the best instructors and administrators in K-20 education? It all starts with a commit ment to another generation of students.

Employers should pay particular atten tion to changes in federal regulations regarding non-compete clauses. by Tim Hilton

49 A Shared Pain

American employers and enrollment officials at U.S. universities are locked in a demographic struggle that will have implications for talent acquisi- tion for years to come. By Dennis Boone

52 Small Business Adviser

A few things to keep in mind as your company assesses its employee benefit structures. Among the most important of them: Your company culture. by Susan Stasi

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Ingrams.com

EDITOR’S NOTE

by Joe Sweeney

A City Comes Alive

of a business done right and run right. In particular, the way an organization assesses, pays and deploys talent. When the news came last March that Tyreek Hill, KC’s Merchant of Speed, had been traded to the Miami Dolphins, fans here commenced with a wailing and gnashing of teeth, and the prognosticators were quick to declare an end to the Chiefs’ emerging dynasty in the AFC. Brett Veach, the player personel arch itect, set about assembling a new board with savvy draft picks (read: affordability) and strategic addition of NFL veterans (read: experience). Veach, it seems, was cutting the edges on new pieces of a puzzle even as he was assembling it. The doubters were having a field day. Yet after losing Hill, not only did Kansas City improve its overall record, from 12-5 in 2021 to 14-3 this year, but Mahomes threw for a personal-best 5,250 yards in the regular season (No. 1 in the NFL), hurled 41 touchdowns (again, No. 1), secured 272 first downs (again, No. 1), had the best first-down percentage among starting quarterbacks, and had 72 passes of at least 20 yards (No. 1) and 13 for at least 40 yards (No. 1). Some rebuilding. He did plummet all the way to No. 2 in quarterback rating, at 105.2—behind the 105.5 of Tua Tagovailoa, whose career prospects in Miami improved greatly by being able to throw to … Tyreek Hill. There are several lessons here. First, among them, don’t listen to the “experts.” They’re usually little better at prognostication than the face-painted loon in the stands. Another: Don’t sell Veach short on his ability to assess talent. A third would be, Never—and we mean Never— Doubt or bet against Patrick Mahomes. The biggest take-away: Secure your key pieces, give them tools to excel, and let playmakers make plays. The time will come when you might have to part ways with one of your stars—but if you’re prepared with a full pipeline, the results can yield improved team performance. So here’s to the World Champion Chiefs, and the example they set for all of us in the quest to excel, in the office or on the field. Now let’s go do it again.

As you can imagine, we have quite a library here at Ingram’s and on our shelves resides an archive of nearly every notable business deal, transaction or development in the KC region, and much more. To my surprise, there is not a single mention of the Royals winning the World Series in the fall of 1985. This perplexes me. It’s difficult to rationalize why this publication’s editors at that time did not embrace coverage of a world championship as a business consideration. Perhaps the mindset was that sports had less to do with business; perhaps, to them, winning a World Series, while a terrific feat, was not newsworthy in the sense of business reporting. I can assure you Ewing Kauffman enjoyed a fairly robust dose of ROI in that era, and in recent years the Hunt family has amplified profits by ridiculous sums. I was at games Six and Seven of the World Series in 1985, and can still feel the way KC and The K exploded with energy. Interestingly, after the game, very few cars left the Truman Sports Complex right away. This was the biggest celebratory tailgate in Royals history up until that time, and until history repeated in 2015. A city comes alive in times like these and this town has never seen anything like what we’re witnessing with the Chiefs over the past few seasons. We know how franchises might fluctuate and lose some steam. David Glass parcelled out the Royals soon after winning the World Series in 2015 and sucked the life right out of the franchise. I know several from the current Royals ownership group, and there are some tenacious and savvy business minds driving that ship. The fans have higher expectations than what the team has yielded since being purchased, and I believe this is the year the Royals need to turn the franchise around. Fans won’t support the team nearly as much if they’re losing and they’ll jump out of their shoes when they do win. As for the Chiefs, I was in the Huddle Club for a couple years as a kid and what a ball it was in the west end-zone seats near the field. Not long after the team moved to Arrowhead, there began a very, very long drought. I suspect you would have to be 60 or older to possibly recall the Chiefs promotional campaign called “We’re Coming Back Kansas City, Come Along.” Well, the fans didn’t. The Chiefs were horrible. Season after season, and for more than a decade. Things are better when we win. I’ve never seen this city more alive with energy as it was during the playoffs—especially after Super Bowl LVII. The parade was crazy fun, and fortunately this year, the temperatures were more tolerable than in 2020. Compare and contrast fan response here with major markets. Los Angeles, for example. On consecutive weekends this year, the Chiefs beat both LA teams—Rams and the Chargers. Would either team, after winning it all, generate the kind of fan response KC did? Turns out, the answer is a clear no. Just check the media reports on empty streets lining the Rams’ parade route after last year’s Super Bowl. With the confetti now swept up and thoughts turning to the NFL draft here in April, then preseason camp just 90 days later, it’s worth taking a minute to consider the Chiefs’ accomplishments not merely as athletic feats, but as examples Sometimes all you need is a little spark— like a Super Bowl championship … or two.

Joe Sweeney Editor-In-Chief and Publisher E | JSweeney @ Ingrams.com

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IN THE NEWS

Tidbits of Business News from Around the Region

MISSOURI BUCHANAN COUNTY St. Joseph Pot-Tax Vote

planned 13-story residential tower in the River Market area. The vote followed public comments that cited concerns about a lack of sufficient parking to support the 300 units in the planned $75 million project. Food Packer Building Here A collaboration between companies from Iowa and South Dakota is moving ahead with plans for a large food-processing center to make and ship sandwiches for sale at venues like convenience stores. West Liberty Foods of Iowa and Vertical Cold Storage of South Dakota say they are prepared to commit nearly $200 million to upgrade the 327,000 facility, which they say will

create more than 575 jobs and an annual payroll of nearly $40 million—an average of nearly $70,000 each.

LAFAYETTE COUNTY Oak Grove Bank Acquired

Residents of St. Joseph will vote in April on whether to impose a marijuana sales tax. The City Council passed an emergency ordinance in January, calling for a public vote to levy a 3 percent sales tax on all tangible personal property retail sales of marijuana. The council was prompted to act after assessing the response of nearly 60 other cities in Missouri that had done the same by creating ballot initiatives. Urban Outfitters, which made a $403 million splash in the region’s logistics pond by opening a large distribution center in Wyandotte County last fall, is back with plans for an encore that could create 750 jobs in Cass County by 2028. The parent company’s Nuuly clothing rental brand has unveiled plans to build a $60 million fulfillment/laundry opera tion at the Raymore Commerce Center. The 604,000-square-foot plant would be Nuuly’s second U.S. operation. A vital commuter leg of U.S. 169, from Charles Wheeler Downtown Airport across the Missouri River to Fifth Street in Downtown Kansas City, has closed for bridge replacement and will remain that way until the fall of 2024. Crews from the Missouri Department of Transportation will direct the construction of the new southbound bridge and ramps connecting to I-35. Northbound lanes will remain open during the $220 million project. Additional ramp closures will begin in March and run through year-end. JACKSON COUNTY Break in Apartment Momentum Not every large multifamily project is sailing through the planning process in Kansas City: The City Planning Commission has voted 4-3 against a CASS COUNTY URBN Back for More CLAY COUNTY U.S. 169: The Pain Begins

The Kansas City banking market, known for its atypically large number of institutions, became a tad less competitive with the recent acquisition of Commercial Bank of Oak Grove by the nearby Bank of Odessa last month. Bank of Odessa had nearly $313 million in deposits as of last year, roughly three times the size of the Oak Grove bank. Over the past 10 years, the number of banking institutions in the Kansas City MSA has fallen from 143 to 119 upon the completion of this merger.

Correspondent News Updates from the Capital cities

Washington | SBA: No Exception on Excess PPP Payments Businesses that made good-faith errors on applications for loans from the Paycheck Protection Program in 2020 will not be eligible for the program’s loan forgiveness provisions, the Small Business Administration has announced. Honest mistakes made during the frenzied application timeline in the early stages of the pandemic, in some cases, led to larger loans than those business owners were entitled to receive; they will be required to repay those excess amounts. The agency says more than 304,384 PPP loans generated excess distributions of nearly $3.8 billion, or $12,403 on average. Jefferson City | $30 Million Set for Hiring, Training Missouri’s Department of Economic Development will direct $30 million in federal funding designed to help companies address workforce shortages by recruiting and training thousands of new and current employees. Gov. Mike Parson, in announcing the move, said that the program would “go a long way in ensuring Missouri workers can meet the demands of the future.” The federal ARPA Workforce Training Grant Program, funded through the American Rescue Plan Act, was launched in August 2022. It provided competitive grants to a diverse range of applicants and will train workers across multiple sectors, including child care, health care, broadband deployment, manufacturing, and more, by encouraging It worked to secure the $4 billion Panasonic Energy plant in 2022; now, Kansas is doubling down on large-scale incentives with more than $300 million for a new semiconductor factory in Wichita. Integra Technologies is behind a project that it says could bring 2,000 jobs to Wichita and help shore up the city’s aerospace sector. Lawmakers recently approved more than $1.8 billion in capital investments as part of the state’s APEX incentive program, enacted last year to provide incentives for Panasonic. The State Finance Council, which includes legislative leaders and Gov. Laura Kelly, unanimously approved the package, which calls for Integra to invest at least $1.5 billion by 2028 and maintain 1,600 full-time jobs through 2033. recipients to train at-risk and low-income populations. Topeka | State Mega-Project, Part II

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Kansas City’s Business Media

February 2023

IN THE NEWS

Tidbits of Business News from Around the Region

PLATTE COUNTY Southern Absorbs Citizens

83rd Street and Cedar Niles Road in western Lenexa. Arise is also behind Stone Ridge, a smaller development of 103 homes nearby.

unty has awarded $190,000 to Harris Fab rication, part of a $2.1 million expansion that over the next decade is expected to generate a combined economic impact of $175 mil lion, agency officials say. The expansion will accommodate up to 30 new full-time workers with compensation packages of more than $50,000 each. The company specializes in metal fabrication and design. Developers are seeking a change in zoning on the site of the former Cerner Continuous Campus in western Wyandotte County, but the contours of their plan have yet to be released, other than suggesting the 63.5-acre site will become something more invigorating that office space alone. The two towers, each nine stories high, cover 660,000 square feet, with nearly 2,600 parking spaces. The zoning change being sought would expand normal office use to allow establishments that might be louder and more visible, with hours outside of 9-to-5. WYANDOTTE COUNTY Cerner Site Make-Over

The regional banking consolidation trend also saw Poplar Bluff-based Southern Bank, with $3.4 billion in assets, jump into the Kansas City market by acquiring Citizens Bank & Trust Co. in a cash-and stock purchase that added nearly $1 billion in assets for the buyer. Southern dips its toe into this market with Citizens’ 15 branches, six of which are in the Kansas City area. Southern’s footprint now covers 65 facilities in Missouri, Kansas, Illinois, and Arkansas. KANSAS JOHNSON COUNTY Arise Homes Goes Big Arise Homes will do its part to address the nation’s housing crunch with Stone Ridge North, a massive residential development that will include more than 380 single family homes and more than 50 duplexes. Developers have asked to rezone 168 acres at

LEAVENWORTH COUNTY Big Moves for Hill’s

In January, Hill’s Pet Nutrition anno unced that it would move its corporate headquarters from Topeka to Overland Park. It is also putting the finishing touches on its new $250 million manufacturing facility in Tonganoxie. The 300,000-square-foot plant is expected to create nearly 80 new jobs when production begins in the fall. The plant sits on 84 acres Hill’s acquired in 2021 at the Tonganoxie Business Park and will produce packaged wet foods for dogs and cats. That operation will support production at the company’s Pet Nutrition Center in Topeka. SHAWNEE COUNTY Manufacturer Gets Incentives The Joint Economic Development Org- anization serving Topeka and Shawnee Co-

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BETWEEN THE LINES

Pointed Perspectives & Penetrating Punditry | by Jack Cashill

Patients Beware, Meritocracy Is Now on Life Support America’s medical-education complex faces a crisis of its own making with its loss of focus. I had the privilege this past year of editing Dr. Stanley Gold farb’s book, “Take Two Aspirins and Call Me by My Pronouns.” Before getting involved in this project, I had been a staunch defender of American medicine. Afterward, not so much. Forever an optimist, however, I am hoping that physicians will follow Dr. Goldfarb’s prescriptions and heal themselves. Dr. Golfarb is no slouch. A prominent kidney specialist, he also served as associate dean for curriculum at the University of Pennsylvania School of Medicine. It was from that perch that he saw what was happening to medical education nationwide. Spoiler alert: it wasn’t pretty. participation trophies—at least not yet—troubles the report authors. From their perspective, the core ailment plaguing medical education is, what they call “the myth of meritocracy.” They see this myth as the most concerning of several “malignant narratives” that infect the health-care world. The scare italics are theirs, by the way. As Goldfarb sees things, an em-

phasis on STEM courses has a way of differentiating students who know their material from those who don’t. Instead of that bothersome science stuff, the AMA master plan encourages medical educators to “address the broader issues of the climate, societal norms, macroeconomic social/health policies, and the systems of power that shape social hierarchy and gradients.” For years, to be sure, medical scho- ols have taught about the effects of climate on health. Historically, doc tors have been schooled in treating everything from frostbite to tropical diseases, as well as other more prosaic climate maladies like heat stroke and sunburn. But the AMA master plan has little to do with actual medicine and everything to do with activism. Aspiring doctors are urged to participate in “global health and sustainability initiatives” and learn the wonders of “locally sourced, plant-based diets.” Paging Dr. Thunberg! “It’s time for medical schools to introduce climate change into their curricula,” insisted a 2018 article in the prestigious journal Academic Medicine . Reportedly, some 200 medical schools have already done just that. Designing a curriculum, however, is a zero-sum activity. Every course in, say, “Health Care System Decarbonization and Resiliency” means one fewer course in Anatomy or Physiology or Biochemistry. And climate is just one spoke in the intersectional wheel of social justice. As Goldfarb suggests, curricula are purged of the hard stuff for one

Going public with his concerns took some cojones on Goldfarb’s part. It was sort of like a Russian general telling Putin the Ukraine thing wasn’t going quite as planned. Not having reached the gulag stage, the powers that be at U Penn simply chose to airbrush Goldfarb from history. Literally. In an impressively Orwellian response, Goldfarb’s medical unit at Penn removed from its web page all references to its former co-chief, now officially a non-person.

Old-fashioned guy that he is, Goldfarb made the mistake of arguing that med students and interns were spending too much time on courses like, say, social policy and gender equity and too little time on subjects like biochemistry and physiology. “One can argue—up to a point—that physicians have unique skills and knowledge and that their efforts are best spent on traditional ‘medical’ concerns,” wrote one Goldfarb critic. “But there’s a problem when hateful stereotyping and inflam matory rhetoric enter the conversation.” Having read every word of Goldfarb’s book multiple times, I can assure would-be

Medical students, says Stanley Goldfarb, spend too much time on social policy and gender equity and too little on biochemistry and physiology.

readers there is nothing “hateful” or “inflammatory” about it. Today, to criticize any feature of the progressive juggernaut is to risk being labeled a “hater” or worse, which is why so few doctors speak out, which is why, until last year, I did not have the slightest clue about the radical rewiring of medical education. Goldfarb’s consignment to the memory hole was not an anomaly. Those with an open mind might just take a gander at the American Medical Association’s master plan titled “Organizational Strategic Plan to Embed Racial Justice and Advance Health Equity, 2021–2023.” The AMA is not some rogue outfit. Founded in 1847, it is the primo professional association of the medical establishment. The title seems benign enough, but the devil, as usual, is in the details. The fact that medical schools do not hand out

Jack Cashill Ingram’s Senior Editor P | 816.842.9994 E | Editorial @ Ingrams.com

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BETWEEN THE LINES

prime reason, namely to better recruit and retain groups “underrepresented in medicine.” Today, medical educators don’t have much choice in the matter. Accrediting agencies can be very tough on educators who resist. Consider the case of the University of Utah School of Medicine. In a 2021 review, its accrediting organization, the Liaison Committee on Medical Edu- cation, spanked the school for its un- satisfactory efforts on the DEI front. Most notable was the medical school’s failure, since last spanked, to recruit any new women faculty in the “American Indian/Alaskan Native, Native Haw- aiian/Pacific Islander” categories. (I hate the word “granular,” but damn, this is some granular stuff.) The school responded with, among other activities, an “Indigenous STEM Youth Outreach Program” as well as a gathering with the unwittingly iron- ic name, “Day of the Dead Premedical

Conference.” In addition, it held “diver- sity recruitment days,” offered scholar- ships to students from “underrep- resented populations,” mandated anti-

from would-be faculty. All of this costly hoop-jumping made little impression on the accredit ors. They begrudged the school with a rating of “satisfactory with a need for mentoring” and gave the school a year to come up with a more groveling pro gress report. So here’s where we are today. Those who think meritocracy in medicine a malignant myth can be as loud as they want with their protests. Those who think otherwise—most readers, I sus pect—are well-advised to keep their mouths shut. As Dr. Goldfarb can attest, being a non-person is not much fun.

Those who think meri tocracy in medicine a malignant myth can be as loud as they want with their protests. The rest of us are well advised to keep quiet.

bias training for its admissions staff, switched to a “holistic” admis- sions process that gave great weight to a student’s “cultural awareness” essay, and demanded a “diversity statement”

The views expressed in this column, which is also published online in the Heartlander, are the writer’s own, and do not necessarily reflect those of Ingram’s Magazine. Jack Cashill , Senior Editor, Editorial @ Ingrams.com

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REFLECTIONS

by Dennis Boone

At the Intersection of Business and Life

Once Again, It’s All About Opportunity, Not Outcome to blame “white flight,” as though black kids are incapable of learning on their own. Sure enough, she fell back on it, even though the Kansas City district has seen just as much “black flight” to suburban districts over the decades. You don’t get from 75,000 students to 14,000 through white flight alone. Karen is one of those proud mothers

For all the talk about improving urban public education, the needle isn’t moving enough. Let’s start with something positive here, and a big hats-off to Lia McIntosh, director of the civic effort known as KC Rising. As Black History Month dawned, she issued a brief commentary celebrating Martin Luther King Jr. and his “I Have a Dream” speech. “Dr. King knew that economies thrive through increased participation when everyone has equitable opportunities to advance,” McIntosh wrote. “Dr. King knew that economic inclusion is not just the right thing to do: Growing economies rely on a broader-based opportunity that proactively recruits and elevates women and people of color.” In normal times, those sentiments would reflect a mainstream of American thought. Maybe they still do, but these are not normal times. McIntosh is to be applauded for correctly implying that the buzz word of 2022—“inclusion”—is not the opposite of “opportunity.” It’s possible to strive for both in the workplace. In the current environ ment, though, you’d have a hard time finding many who would agree with her. Instead, “equity” has become code for relieving Group A of certain assets in order to elevate Group B without consideration of whether that’s even sustainable. That’s where “opportunity” comes in. We all have different talents and different shortcomings. I know corporate leaders in this town who are hard chargers perfect for driving organizational growth, but I wouldn’t want them coaching the fragile psyches of a middle-school basketball team. The great fallacy of this age is that the self-proclaimed elites who lead us can ensure “equitable” outcomes across a diverse range of 330 million people. The great mystery behind that fallacy is why so many executives at large corporations and institutions play the DEI game in its current formulation. A tremendous amount of lip service and resources pour forth from the C-Suites in praise of the god Equity. And yet, fully three decades after diversity in business leadership burst into Corporate America’s consciousness, the needle hasn’t moved a hell of a lot on the composition of leadership ranks and corporate boards. Why do you think that is? Here’s a clue: Meritocracy. It’s indeed a thing. If an economy is to grow and people are to experience new opportunities to climb the income ladder, we have to embrace it. To do otherwise—to focus on ESG rather than hard growth metrics and returns on capital invested— is to take the first step on the path to irrelevance. Not long before the pandemic, I used this space to condemn the Kansas City School District for the 2019 cash grab that followed a huge surge in property valuations as Jackson County ham-fisted its reappraisals. After pointing out that the district already was spending more per pupil than one of the top schools in the metro (full disclosure: my older son was at Rockhurst at the time, as is his younger brother today), we received an online response from a KCSD family’s matriarch. Let’s call her Karen Karenofski. Not only was I elitist and racist, she huffed, I was ill-informed on the social conditions that fueled the decline of the Kansas City district. I must have missed a few things during my 20 years of residency here. A favorite trope of this cohort is

who publicly proclaim a commitment to urban education but privately limit their own children’s high school experience to Lincoln Prep. That’s the academic crown jewel of this city’s schools, with a 2022 average composite ACT score of 20.8. These oh-so-socially-conscious parents wouldn’t think of sending their kids to any of the five other high schools, where scores ranged from 13.4 to 13.6, another 13.6, a 13.7, and 14.4. (Those 2022 scores, it should note, have fallen significantly at every one of those high schools, including Lincoln Prep, since the cash infusion began in 2020.) Karen’s outrage would be better dir- ected at the root causes of underper formance. To be fair, the fault lies not with the school district administration or the teachers. They’ve been handed a steaming hot mess with a student body that, in too many cases, is wholly unprepared to learn— and that rolls back to the sorry excuses for parents who enabled such collective failure. You change that, you change outcomes. Even within the wreck of an educa tional system, some gems will shine. Some kids will excel, some will beat state-average ACT scores, and some will even outperform peers at Rockhurst or Pembroke Hill. They are the ones who can take advantage of the opportunities to elevate their status in life. As we’ve seen from half a century of billions injected into urban districts, no amount of money can correct what’s wrong here. The educational system will never deliver “equity”—it’s a pipe dream, one that allows those empowered to enact radical change to maintain the status quo. I’ve been hearing about the need for a national discussion on race all my life. If we’re ever going to start that, it’d be nice if we’d do it from a position of intel lectual honesty. And get back to where Dr. King took us.

Dennis Boone is the edito rial director at Ingram’s. E | DBoone @ Ingrams.com P | 816.268.6402

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Kansas City’s Business Media

February 2023

IN A NUTSHELL

by Ken Herman

Reading the Tea Leaves With the Fed

How does transparency there affect markets? President Biden’s State of the Union earlier this month includ ed the usual mix of calls for bipartisan cooperation and partisan finger-pointing. Specific policy recommendations getting the most attention called for quadrupling the 1 percent tax on corporate share buybacks and increasing environmental spending. Neither is likely to get much traction in a divided Congress and probably 90 percent of what was discussed by Biden will never occur. Jerome Powell, who chairs the Federal Reserve Board, seemed energized at the Washington Economic Club on the day of Biden’s address. The key takeaway from Powell’s appearance is that the strong employment report issued later that same week underscores the Fed’s message. That message, Powell says, is that there is still a lot more work to do. In comparison with previous versions of the Fed, one would say this Chair was unusually candid. While the Powell Fed is being candid, he also reveals a lot. Powell says this new transparency was a necessary evolution for a modern central bank. The hope is that if traders know what the Fed thinks it will do and why it thinks it should do it, then the market can reposition as the economy shifts. Policy justification shifts may occur before the Fed has to communicate a new idea or what it plans to do. With that in mind, Powell’s communication is consistent with another quarter-point hike in March, plus plans

Interestingly, the first question, about the employment report and the Fed’s plans for rates, elicited a more definitive answer than similar previous questions. Does Powell see economic releases before they are published? Powell res ponded that he gets a call—just me as Chair, no one else—the day before some reports confirm what Wall Street thought. The last Chair who answered this par ticular question was Alan Greenspan. Has nothing changed in 40 years? In terms of the last FOMC meeting, did Powell not know a huge employment report was going to be reported? Did that call come the day before the release, in this case, a day after the FOMC meeting wrapped up? Rubenstein even asked Powell about his management style. When you want to talk to your fellow governors, do you walk down to their offices, or do you call them into yours? After all, when 19 individuals make decisions with so much

for more potential increases after that. Of course, those plans will change if the economy unfolds in ways the Fed currently does not anticipate. David Rubinstein’s breezy style put Powell at ease, prompting surprisingly can did responses. Some of the questions about the process were new ones. For example, did anyone know the Federal Open Markets Committee meetings start a week before the announcement date with a series of phone calls? The Chair has a long, in depth conversation about the economy and policy with each of the 18 other committee

economic influence, psychology is as important as eco- nomics in a fore cast. The way a boss works day to day with his or her subordinates says a lot about how they build loyalty and work toward con sensus. Powell’s an- swer—essentially,

Changes at the Fed suggest we really should pay attention to what everyone on the FOMC has to say between meetings.

participants before the formal discussion starts in Washington. That was not common knowledge. The fact is that policy options prepped for the meeting are compiled by the chair, explaining how the options are mapped out. Powell also noted that if, during the formal meeting, it looks as though the committee is not comfortable with his options, he will call a break and work with a smaller team to redraft them. This is a more democratic approach than in the past, suggesting that we really should pay attention to what everyone on the FOMC has to say between meetings, not just the Chair. Compared to the news conference, where most reporters ask variations of the same question about the divergence between Fed and market rate expectations, this recent interview was refreshingly wide-ranging.

“I like to get up and pop in on people”— explains a lot about the Fed, especially the energy and comfort FOMC par ticipants have communicating with the public. Greenspan, in contrast, once said that he often did not speak to any fellow FOMC board members between meetings. Board members who served in the ’80s and early ’90s said they went to Washington excited about being part of something, only to find that no one talked to anyone else. Once, it was a cold and lonely place, but, clearly, not anymore.

Ken Herman served as the Managing Director of Bank of America Global Capital Markets and was the Mayor of and served on the City Council in

Glendora, Calif. E | Editorial@

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February 2023

Chiefs edge Philadelphia for Super Bowl crown, draw massive crowds for Downtown celebration. WE DID IT

again

I t wasn’t just coming back from 10 points down at halftime. It wasn’t just coming back behind a quarterback playing with one good leg. It wasn’t just racking up 38 points against one of the best defenses in the NFL this season. All of them added up to a Super Bowl classic, one that came down to the final seconds before Harrison Butker’s 27-yard field goal secured victory: Kansas City Chiefs 38, Philadelphia Eagles 35. That set the stage for the Feb. 15 victory parade through Downtown Kansas City, culminating at Union Station with team officials, players and coaches providing comments for a raucous crowd estimated well more than half a million. Sports economists are generally in agreement that large-scale achievement on the field of play do little to elevate a community’s economic prospects. To the extent that they do, it may have more to do with fans feeling better about their lives and circumstances, and thus willing to spend more freely—up to a point, and within a certain time frame. But there’s little doubt that a television audience estimated at 113 million—more than one American in three, among all age groups—tuned in for this year's Super Bowl. It’s tough to imagine Patrick Mahomes path to greater name awareness, for Kansas City itself and the Chiefs as a brand, the game has, at least temporarily, raised the nation’s consciousness about this place. Back to the game itself. A great deal of media hoo-ha was expended about a holding call against the Eagles in final minutes, one that allowed the Chiefs to essentially run out the clock before Butker’s kick. And much was made of the high-scoring nature of this game, the third-most points in Super Bowl history. Too often overlooked in the post-game coverage was the role of the Chiefs’ defense. Eagle quarterback Jalen Hurts had his way throughout the first half in building that 24-14 lead, but holding the birds’ powerful offense to 11 second half points was impressive. And the reality is, without Nick

Bolton’s 36-yard scoop-and-score off of Hurts’ unforced fumble, the Chiefs probably wouldn’t have won this game. In that sense, defense does indeed win championships. The offensive line, as well, is due its tribute. The Eagles came into the game with more quarterback sacks this season than any team in the league. They got to Mahomes … not once. Not for a sack, anyway. The one time they wrapped him up, he flicked the ball to Kelce for a first down. The O-line also paved the way for 158 badly needed rushing yards. As much as Philadelphia kept Mahomes on the bench with time of possession in the first half, the Five Linemen of the Apocalypse flipped that script in the second half to keep Hurts on the Eagles’ sideline. Woven throughout the game were some other intriguing outcomes and data points: n Mahomes, in just his third Super Bowl, has tied the legendary Tom Brady with comebacks of at least 10 points in the title game: They both found themselves in that tight spot three times, winning twice. n By the way: 45 other quarterbacks in Super Bowl history have also been down by 10 points during their games. Their record? 0-45. n This victory allowed head coach Andy Reid, who finally broke the Super Bowl championship hex in 2020, to pass Dallas great Tom Landry in post-season wins, with 22. With 10 more, Reid could pass New England’s Bill Belichick. n Travis Kelce’s over-the-shoulder catch for the Chiefs first touchdown moved him to No. 1 all-time among tight ends for postseason TDs, passing New England’s Rob Gronkowski. Kelce is six away from tying Jerry Rice for No. 1 all time leader. n Mahomes threw touchdowns to a pair of new faces in 2022—Kadarius Toney and Skyy Moore—and another newcomer, running back Isaiah Pacheco, notched his first post-season score. n Toney’s 65-yard punt return to set up the Chiefs’ first lead was the longest in Super Bowl history.

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