Expert says Kansas' economic outlook is 'not good,' fears worst is yet to come

TOPEKA, Kan. (KSNT) - As some Kansans continue to face financial hurdles, Dr. Donna Ginther, an economic and social policy researcher at the University of Kansas, said she fears the worst is yet to come.

"January is going to be bleak in a number of ways," Ginther said in an interview Thursday.

The unemployment rate in Kansas is back on the rise at 5.6%, leading to many frustrated claimants. This has led to more food and housing insecurity, with more than one-third of Kansas households with children not being able to make rent, Ginther said.

Without some forbearance on foreclosures and evictions, the state may see a homeless crisis, according to Ginther. She noted that part of that is linked to the end of the economic stimulus programs. A new stimulus bill is needed to get people the help they need, she said.

"Things are not good. It's time for Congress and the president to get their act together, and help the American people," Ginther said.

When talking about the future struggles the state may have to face in 2021, Ginther said lack of help from the federal government could lead to increasing unemployment, with the state possibly having to lay off more workers without means to provide compensation.

Ginther also explained that a large part of the problem has come from the health crisis the state is facing from the coronavirus pandemic.

As cases continue to increase, she said that more problems are on the horizon.

"COVID-19 is likely to get worse before it gets better," Ginther said, explaining that there is still potential for a possible surge in cases during the holiday season.

After Thanksgiving, state health officials said they saw less spread of the virus than expected, noting that the state saw a reproductivity factor of 0.97%.

“If it’s one or lower, it’ll eventually burn out and it will go away,” said state health secretary Dr. Lee Norman during a press conference on Tuesday.

Norman also said that while the "overall" trend line for the state appears to be gradually decreasing, it's important for Kansans to continue adhering to safety protocols over the holidays, like social distancing and avoiding large gatherings. This is the best way to stay on track with fixing the economy, Ginther said.

Having a vaccine is another "tool" to be used to combat the virus, Ginther also said, as more Kansans retreat from social activities for fear of their health.

"We need to have the funds to enable the state to be able to vaccinate people so that we can restore economic activity," Ginther said.

Ginther warned that the economic crisis plaguing the state may get better, but the health crisis has to be solved first.