Key Points:
- Proposed anti-diversity, equity, and inclusion laws could cause economic loss in Kansas and Missouri.
- Discriminatory policies can lead to reduced travel, tourism, and economic development.
- Bills under consideration in Missouri and Kansas could result in losses of hundreds of millions of dollars.
A new report from The Perryman Group analyzed currently proposed legislation in both Kansas and Missouri and found the potential for economic loss in both states due to proposed anti-diversity, equity, and inclusion laws.
According to their findings, policies perceived to be discriminatory, irrespective of their stated purpose or actual intent, can lead to economic harm.
The Perryman Group estimates that bills and initiatives currently under consideration in Missouri that could be seen as discriminatory put the state at risk of losing nearly $2.6 billion in annual gross product and 23,842 jobs as of 2030.
In Kansas, policies under consideration that could be viewed as discriminatory put the state at risk of losing $898.4 million in annual gross product and 8,462 jobs as of 2030.
“The study shows there are significant unintended consequences when states signal they might not be friendly to diversity and inclusion,” said Eusebio Díaz, Health Forward Vice President of Strategy, Learning, and Communication.
Health Forward Foundation commissioned this study from The Perryman Group to get an impartial, independent analysis on the economic impact of policies that restrict diversity, equity, and inclusion efforts in each of the two states.
The study says controversial laws can both reduce travel and tourism and diminish the potential for economic development.
Scheduling an event in a location with policies that are considered to be non-inclusive or discriminatory is often interpreted as supporting these initiatives; thus, some organizations and sponsors choose to avoid areas with controversial laws in order to remove the appearance of approval.
In addition, studies indicated controversial public policy of this nature can discourage the location of “knowledge” workers and young workers to an area, thus reducing the capacity for attracting and retaining high-growth industries conducive to long-term economic development.
“Travel and tourism losses in Missouri and Kansas could total hundreds of millions per year, with an associated loss in revenue to the states and local governments,” said Dr. M. Ray Perryman, founder and CEO of The Perryman Group. “At a time when the US economy is facing major challenges and uncertainty, the competition for quality corporate locations and expansions as well as skilled workers is particularly intense and anti-DEI measures can be particularly damaging to future prosperity.”
The report calls out several anti-DEI bills being considered by the Missouri legislature among them is SB980. If passed, this bill, which would cover all companies doing business in Missouri, would make it illegal to consider the DEI status of business ownership, team or employees, when determining whether or not to do business with them.
“The act makes it unlawful for any “private business, in entering into, maintaining, or seeking to establish contractual relations with any other private business to: fail or refuse to enter into a contract, maintain a contract, or entertain bids or offers to contract, based, in whole or in part, on the fact that the other private business: (a) does not provide information or data, or does not provide sufficient information or data, about the extent to which its workforce or ownership exhibit particular DEI classifications; or (b) fails to satisfy any rule, standard, policy, goal, aspiration, or preference, whether express or implied, regarding the extent to which its workforce, managers, executives, or ownership exhibit or claim to exhibit particular DEI classifications…
“Travel and tourism losses in Missouri and Kansas could total hundreds of millions per year, with an associated loss in revenue to the states and local governments,” said Dr. M. Ray Perryman, founder and CEO of The Perryman Group. “At a time when the US economy is facing major challenges and uncertainty, the competition for quality corporate locations and expansions as well as skilled workers is particularly intense and anti-DEI measures can be particularly damaging to future prosperity.”
