Wichita State News: Money

Cash versus noncash

Ever since the federal TARP bailout of banks and insurance companies led to a huge public and political backlash against incentive travel, the industry has become galvanized by the realization that there is very little hard research that backs up its long-held beliefs about the power and value of non-cash incentives.

In our September cover story, Incentive will look at one new piece of research set to be published in the Journal of Economic Psychology next year. "Preference Reversals in the Evaluation of Cash Versus Noncash Incentives," by Prof. Victoria Shaffer of Wichita State University, is among the first examples of scholarly research comparing the cash and non-cash awards in corporate incentive programs. And the news is generally good.

Go to the Incentive Insights Podcast Web site (click the "here" link at the bottom to hear the podcast).

Wichita State, Coleman partner for life jacket testing

The Coleman Co. Inc. has donated $15,000 to the Wichita State University Heskett Center's Aquatics Program as part of a partnership that will allow Coleman to use the aquatics facilities to test new designs for the company's life jacket (personal flotation devices or PFDs) lines.

Rick Looslie, director of design services for Coleman, said Coleman's research and development requirements for its Stearns PFD business includes the need for a pool where the water would remain calm during testing.

Also required is a pool with the proper depth that would allow people testing the devices to jump safely into the water from various heights.

Coleman evaluated those and other requirements and looked into several other local pool sites and possibly installing a pool on the Coleman property. But none of those options fit as well as the Aquatics Center, Looslie said.

"After several attempts at finding a solution, I contacted WSU's Heskett Center and discovered the facilities were exactly what we were looking for," he said, "so we finalized the details with the Aquatics Center team, and the initial testing activities and WSU relationship have proven very successful."

Dean of Students Cheryl Adams said: "Wichita State University is extremely pleased with this valuable partnership. We look forward to continuing to build our relationship with Coleman."

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About The Coleman Co. Inc.

As an international leader in the innovation and marketing of outdoor products, The Coleman Co. Inc. helps people have fun and make memories by providing the gear integral to their favorite outdoor experiences. The company's products include its legendary lanterns and stoves, as well as coolers, tents, sleeping bags, airbeds, backpacks, furniture and grills under its Coleman® and Exponent® brands. Additionally, the company provides flotation devices, towables, rainwear, waders, hunting and fishing gear, and safety and survival equipment under its Stearns®, Sevylor®, Sospenders®, Hodgman®, Mad Dog Gear®, Nevin® and Helium® brands. Founded in 1900 and based in Wichita, Kan., Coleman is a wholly owned subsidiary of Jarden Corporation and can be found online at www.coleman.com. Consumers can call (800) 835-3278 or e-mail consumerservice@coleman.com for general information or for Coleman and Exponent products. For all other brands, call (800) 328-3208 or e-mail stearnsrec@stearnsnet.com.

About Jarden Corp.

Jarden Corp. is a leading provider of niche consumer products. Jarden operates in three primary business segments through a number of well recognized brands, including: Outdoor Solutions: Abu Garcia®, Berkley®, Campingaz® and Coleman®, Fenwick®, Gulp!®, JT®, K2®, Marker®, Marmot®, Mitchell®, Penn®, Rawlings®, Shakespeare®, Stearns®, Stren®, Trilene® and Volkl®; Consumer Solutions: Bionaire®, Crock-Pot®, FoodSaver®, Health o meter®, Holmes®, Mr. Coffee®, Oster®, Patton®, Rival®, Seal-a-Meal®, Sunbeam®, VillaWare® and White Mountain®; and Branded Consumables: Ball®, Bee®, Bicycle®, Crawford®, Diamond®, Dicon®, First Alert®, Forster®, Hoyle®, Kerr®, Lehigh®, Leslie-Locke®, Loew Cornell® and Pine Mountain®. Headquartered in Rye, N.Y., Jarden has over 20,000 employees worldwide. For more information, please visit www.jarden.com.

Competition didn't deter scholarship hopeful Whitman

Studying hard and applying early for scholarships paid off for freshman Nathan Whitman, who has received four scholarships to Wichita State University.

He began applying in the fall of his senior year of high school, and he didn't discriminate when it came to dollar amount. He applied for every one he could.

"The scholarship process is hectic, but worth it in the long run," he said.

Whitman received the Top Shock scholarship, the Distinguished Scholarship Invitational Top 50 scholarship, and the Presidential Scholar and Sedgwick County scholarships, which total $6,500.

"Some are renewable if I keep my grades high, so I'm studying hard," he said.

Whitman filled out paperwork, did interviews and wrote essays to fulfill the scholarship requirements. He said that having a high GPA and good ACT score helped him, as well.

The DSI scholarship required him to spend a day on campus with other high school students who were competing for the same award. He said he had to work in groups, solve a hypothetical problem and write an essay about himself in a given time limit.

"It was very stressful but satisfying," he said. "The judges and the evaluations of our essays determined who got what scholarship."

Because WSU offered him the most money and carried his intended major, Whitman decided to attend WSU over Kansas State.

"K-State offered me a nice scholarship opportunity, but the majority of the aid would have gone to dorm costs," he said. "WSU is best for my financial situation."

The scholarships have also allowed him to stay debt-free, which was one of his goals. He also liked how friendly the student body and faculty were.

Whitman is majoring in secondary English education and creative writing and plans on becoming a high school English teacher. He cannot wait to analyze literature, see the perspectives of others and then pass that information on to students. He also wants to be an author.

"If I were a published author, I could tell stories that might have impacts to be remembered for years," he said.

In high school, Whitman took drafting classes and met with architectural firms and architects about their careers. He loves being creative, which is part of the reason he was originally drawn to architecture.

"I saw how many limitations and building standards there were in the field," he said. "Their workbook of building codes is about the size of a Gutenberg Bible."

Whitman said he hated moments of his drafting classes and realized how those moments could represent the whole of his life. Instead, he looked into career possibilities such as writing, reading and teaching, which coincided with his special interests.

"I have always enjoyed helping others learn," he said. "Knowing that as a teacher, I will be helping to shape the future of America gives me a feeling of accomplishment that is absolutely priceless."

WSU Podcast: Online banking grows, but some consumers still hesistant

This WSU Newsline Podcast is available at www.wichita.edu/newslinepodcast. See transcript below.

You're listening to the podcast edition of the Wichita State University audio newsline. Learn more about WSU — the home of Thinkers, Doers, Movers and Shockers — on the Web at wichita.edu.

The number of U.S. households banking online continues to grow. Jupiter Research projects the number of households banking online to jump from 29.3 million in 2003 to 56 million this year, and the percentage of those paying bills online to increase from 50 percent in 2003 to 85 percent in 2008. Even so, Rick LeCompte, a personal finance expert at Wichita State University, says financial institutions are struggling to balance the needs of customers.

LeCompte: "Financial institution firms are struggling to balance the needs of customers versus the cost they incur to provide Internet-type delivery of banking services."

LeCompte says financial institutions spend a lot of money to provide customers with security.

LeCompte: "Financial institutions expend tremendous amounts of funds and energy in order to provide their customers with security. They have to weigh this against the costs that they incur and also the benefits to their customers and to the institution itself."

And banks continue to encourage customers to give online banking a try.

LeCompte: "Banks encourage their customers to use the Internet in a variety of ways. Some are even (offering) cash reimbursements for setting up bill pay or setting up additional online accounts. They may also send out postal mailings in order to get customers to sign on for rewards programs and other types of benefits that the bank may be able to offer."

LeCompte explains why banks want you to do business online.

LeCompte: "The primary reason banks want you to do business online is that it reduces their cost. This can have the benefit of increasing their profits. It can also have a benefit of reducing the rate they charge on loans, and also increase the rates they're able to pay on deposits."

One of the most attractive aspects of online banking is online bill paying. With a few clicks, you can pay your bills, check your balances and see what has cleared. But LeCompte says not all consumers are quick to join the growing number of people using online banking.

LeCompte: "A primary reason people don't switch to Internet banking is that they may not see a benefit to them. There can also be privacy concerns. There can also be the fact that they have unreliable Internet service, and maybe it's just too much difficulty for them to change."

LeCompte says while online banking continues to grow in popularity, brick and mortar banks won't disappear anytime soon.

LeCompte: "It's unlikely that brick and mortar locations will go away in the near future. There are many transactions that need to be performed in person. Also, some who will like that personal touch of walking in and talking to the banker, and banks also look at that as a different delivery mechanism, in addition to their Internet."

Thanks for listening. Until next time, this is Joe Kleinsasser for Wichita State University.

Entrepreneurship forum series continues this fall

The Wichita State University Center for Entrepreneurship is hosting the fifth segment in its six-part series of the Entrepreneurship Forum Series for Business Ownership. This fall's segment, titled Venture Financing, will feature a lineup of entrepreneurial experts and specialists who will focus on the role of finance in the launch and growth of a business.

Venture Financing, which is tailored for students, aspiring entrepreneurs and veteran business people, will be held in three sessions from 3-4 p.m. Thursday, Sept. 25, Wednesday, Oct. 15, and Thursday, Nov. 20, in 107 Devlin Hall.

Center for Entrepreneurship director Tim Pett described the series as "all-around business ownership."

"A number of participants have requested more instruction in financing, which is an overarching issue in business inheritance, purchasing, franchising and start-up," he said. "Financing is a key issue for starting a business and for existing business owners as well."

The Sept. 25 session, "Financing the Start-Up," will offer advice on finding sources for financing a business launch.

"The Role Money Plays in Family and Privately Held Firms" will occupy the Oct. 15 session, and will be led by John Ward who is considered one of the world's experts on family business.

The final session on Nov. 20, "Financing Growth in the Entrepreneurial Firm," will answer questions regarding where to look for financing, financial sources with the least risk and maintaining profitability.

Seven speakers with entrepreneurial backgrounds will guide participants through the series while sharing lessons learned from their own experiences. Three of the speakers are Jay Feist, former CFO and COO of Feist Publications, Inc.; Vanessa Klein, business development specialist for the U.S. Small Business Administration; and Ward, president of Kansas Venture Capital, Inc.

The Entrepreneurship Forum Series for Business Ownership was launched in fall 2006, teaching each segment in semester-long increments. The previous segment topics were Franchising, Family Owned, Acquisitions and Start-Ups. The spring 2009 semester will host the closing segment, which will touch on miscellaneous subjects, and the forum series will start over again in fall 2009.

The Entrepreneurship Forum Series is free and open to the public. For more information, contact the Center for Entrepreneurship at (316) 978-3000.

State's banks fitter than nation's

Kansas banks had a disappointing first six months, but it was a lot better than banks nationwide.

That's according to a report this week by the Federal Deposit Insurance Corp.

Kansas banks' net income was $295 million in the first half of 2008, compared with $324 million in the same period a year ago, according to the FDIC's State Banking Performance Summary.

That's a 9 percent decrease.

Nationally, banks' net income fell 53 percent when comparing the first six months of 2007 and 2008.

Kansas banks also had a better pre-tax return on assets than national banks.

Pretax ROA -- a standard bank performance measure that shows how much money a bank earns for each $100 it has in assets -- for Kansas banks was 1.38 percent in the first half of the year.

For national banks it was 0.77 percent.

"Return on assets is still above 1 (percent), which is good," said Rick LeCompte, a Wichita State University finance professor.

Read full story.

WSU Center for Real Estate releases second quarter 2008 Home Price Index

Sedgwick County home prices appreciated by 3.34 percent between the second quarters of 2007 and 2008, according to new figures released by the Center for Real Estate at Wichita State University.

For the quarter, home prices appreciated by 1.60 percent, which translates into an annualized increase of 6.57 percent.

"Wichita area home prices rebounded solidly in the second quarter of this year," said Stan Longhofer, director of the WSU Center for Real Estate. "Although there is still some weakness in the lower end of the market, the tight inventories are resulting in price pressure in the middle and upper price ranges."

Overall, home prices in Sedgwick County have risen at an average annual rate of 3.10 percent during the past five years. In contrast, prices of other goods and services have risen by 3.55 percent per year over the same time frame.

Read full report.

Scholarship Information Nights kick off for WSU fall semester

Last year, WSU awarded more than $8 million in scholarships. Join the WSU Office of Admissions to learn how to maximize your student's scholarship potential. Parents, high school seniors and high school counselors are invited to come learn about scholarship opportunities at Wichita State.

This informational session will cover scholarship eligibility requirements, deadlines and due dates, how to apply to WSU and information on the Distinguished Scholarship Invitational competition. Admissions representatives will be on hand to answer your questions. RSVP is encouraged, so sign up today online at www.admissions.wichita.edu (click on "RSVP for an Event") or call the Office of Admissions at (316) 978-3085.

For your convenience, the Scholarship Information Nights are offered throughout the fall at various locations. All programs begin at 6 p.m., except Saturday, Sept. 13, which begins at 10 a.m.

Following are dates and locations for fall 2008 Scholarship Information Nights.

Tuesday, Aug. 19, WSU West Campus

Tuesday, Aug. 26, Trinity Academy

Thursday, Aug. 28, WSU Main Campus

Thursday, Sept. 4, Derby High School

Monday, Sept. 8, Newton High School

Thursday, Sept. 11, Wichita Northwest High School

Saturday, Sept. 13, WSU Main Campus

Monday, Sept. 15, Maize High School

Wednesday, Sept. 17, Goddard High School

Thursday, Oct. 2, WSU South Campus

For more information about the Scholarship Information Nights, call the Office of Admissions at (316) 978-3085 or (800) 362-2594.

Business student awarded McGowan scholarship

Wichita State University has awarded the 2008-2009 William G. McGowan Scholarship to Stephen Mariga, a graduate student in WSU's W. Frank Barton School of Business.

Award value for the scholarship is the general cost for the senior year of undergraduate studies or one year of graduate work. The scholarship provided for the 2008-2009 academic year will cover WSU's actual tuition cost or $18,000, whichever is less.

Scholars are selected based on academic performance, a grade point average of 3.0, financial need and submitted essays. Attributes such as scholarship, talent, leadership qualities, character and community involvement are also considered.

The applicant must be a full-time student, currently enrolled as a business major. The student must also be recommended by a faculty member of the business school, with final decisions made by the dean of the business school.

Mariga has a bachelor's degree in economics and accounting and is working toward a master's degree in business administration. On campus, he has worked as a peer tutor and a graduate staff assistant in the Office of Multicultural Affairs. He has instructed at the Kenya College of Accounting and the Thika Institute of Technology, as well as Maryhill High School in Nairobi, Kenya.

The William G. McGowan Scholars program, funded by William G. McGowan, co-founder of MCI Communications Corporation, recognizes academic success and distinction of students pursuing a major in an accredited business school. It was created to encourage leadership, interpersonal skills and academic, campus and community involvement.

Wichita's tax districts aren't breaking even

Tax increment financing helped create Old Town, brought a grocery store to a business-deprived northeast neighborhood and put a Gander Mountain store on the east bank of the Arkansas River.

But city and county tax records show that nearly $159 million in public money has been spent on Wichita's tax increment financing districts, to get roughly $150 million worth of new development.

That new development equals about a $37 million increase in the property tax base.

"You would hope the (public) investment would generate a multiple of the investment, not the other way around," said Wichita State University economist John Wong, an expert on municipal finance.

Read full story.

Visioneering Wichita benchmarks highlight income growth

"After a steady 20-year decline, Wichita's per-capita personal income has rebounded and is now once again above the national average," said Janet Harrah, director of the Center for Economic Development and Business Research at Wichita State University.

Per-capita income is one of the benchmarks set by Visioneering Wichita to track how well the region is achieving its long-range plan. The Center for Economic Development and Business Research at WSU measures regional benchmarks developed by Visioneering Wichita as part of its community service.

"Visioneering Wichita measures the priorities the region said are important for our future success, and our economic success is one of the most important," said Harvey Sorensen, chairman of Visioneering Wichita. "Measuring the benchmarks helps the community know how we are doing, and keeps us focused on what we want to achieve together."

In addition to measuring per-capita income, CEDBR also measures several other indicators for Visioneering Wichita, including job growth, downtown development, and arts and recreation.

"The economic benchmarks highlight Wichita's relatively strong economy. The aviation sector in particular is supporting healthy income and job growth," said Harrah.

The full benchmark report can be found on the Visioneering Wichita Web site at www.visioneeringwichita.com.

WSU Foundation announces $8.5 million gift to WSU

At a news conference Monday, May 5, the Wichita State University Foundation announced an $8.5 million gift from the estate of Evelyn D. Cassat.

The majority of the gift will benefit WSU's department of communication sciences and disorders, specifically the Speech-Language-Hearing Clinic, and the WSU Regional Institute on Aging.

Elizabeth King

"This is the second largest contribution received in the university's history," said Elizabeth King, WSU Foundation president and CEO. "It is dramatic. In addition to what it will do for the faculty and students of WSU, we can only begin to imagine what it will do for aging citizens in terms of research and quality of life."

The gift will go toward renovation and equipment for the Speech-Language-Hearing Clinic, which will be renamed the Evelyn Hendren Cassat Clinic.

The portion of the gift allocated to the department of communication sciences and disorders will support distinguished, endowed professorships that will further research in audiology and related subjects. The funds also will be used to enhance clinical services and support faculty development.

Peter Cohen

"This is a transformational gift for our college, which has had only one other endowed faculty position prior to this contribution," said Peter Cohen, dean of the College of Health Professions. "This gift will result in a program and facility that are both second to none."

The contribution to the WSU Regional Institute on Aging will support significant expansion of opportunities for WSU faculty to conduct aging research and also will support the Carl and Rozina Cassat Professorship in Aging, named after Paul Cassat's parents.

" 'Invest in our faculty' will be the principle underlying the use of this generous gift," said J. David McDonald, associate provost for research. "Programs will be created to enable faculty to secure large blocks of time for research aimed at improving the health and well being of older Kansans."

James Rhatigan, WSU Foundation consultant, met Evelyn and her husband, Paul Cassat, in 1998 when they called then WSU President Eugene Hughes with a business proposition.

"It was immediately apparent that this couple was highly intelligent and creative," said Rhatigan. "I found them more interesting the longer I knew them — an endless source of stories."

Neither Paul nor Evelyn Cassat made more than $6 an hour during their careers, yet through their financial acumen, they were able to save and invest and, in the end, provide a major gift to the university.

"Evelyn Cassat, in particular, was an expert investor," said Rhatigan. "The wealth she created will continue to be invested through the WSU Foundation, and earnings from those investments will present opportunities for students and faculty alike, far into the future."

Rhatigan developed a warm relationship with them and became a close confidant to Evelyn Cassat after her husband's death Nov. 21, 2002. Evelyn Cassat died Sept. 9, 2007.

Paul and Evelyn Cassat Background

Evelyn Cassat and her husband, Paul, lived in Abilene, Kan., for many years. She graduated from Florence Memorial High School in 1929 and received a Bachelor of Journalism degree from the University of Missouri in 1933 and a Bachelor of Science in education from the Kansas State Teachers College of Emporia in 1938. She was a high school teacher in Florence, Chapman and Abilene.

A neighbor of Evelyn's parents offered to finance a legal education for Evelyn, given her quick wit and obvious intelligence. Evelyn was interested but said that her parents did not consider the law a good career option for women, so she did not pursue it.

Paul Cassat attended Kansas Wesleyan University, but his educational work was interrupted by his success in working with the United Telephone Company in Abilene. Southwestern Bell took over the company in 1939.

He was a trouble shooter and key man for Southwestern Bell for many years until his retirement in the mid-1970s. He often talked about stringing private lines from General Dwight D. Eisenhower's train to his mother's Abilene home when Eisenhower visited during World War II. Paul Cassat was known as a kind and gentle man.

His father, Carl, was an auto mechanic until his death in 1926, and Paul Cassat demonstrated an avid interest in this emerging industry.

The year his father passed away, Casssat submitted a patent application concerning the functioning of the internal combustion engine and was awarded a patent for his idea in 1929. He was only 20. In 1944, he developed a plan for a fluid clutch in automobiles and regularly talked about improvements in automobiles he envisioned.

The Cassats' quality of life in their later years was severely compromised by hearing loss. Evelyn Cassat also had macular degeneration and glaucoma, impeding her vision, which had a marked affect on her investment work.

These factors led her to a growing interest in aging, and eventually this became the focus of her gift.

Lawrence 'Larry' Jones gift reflects core studies, passion for music

Because of incredible forethought while serving on the board for Union Pacific Corp., Lawrence M. "Larry" Jones was able to designate a combined gift of $500,000 to Wichita State University's Fairmount College of Liberal Arts and Sciences and the Wichita Symphony after his death.

WSU received $400,000 of the gift.

Jones died Nov. 7, 2007.

Union Pacific had created the Board of Directors' Charitable Contribution Plan to recognize the interest of company and board members in supporting worthy charitable and educational institutions.

"These gifts are available through the generosity of the Union Pacific Corp. to its directors and, of course, from Larry's service to that company," said Anita Jones, Jones' widow.

Part of the gift established the Dr. Lawrence M. Jones Distinguished Professorship in the Fairmount College of Liberal Arts and Sciences.

"In addition to LAS offering some of the most pleasurable courses we took as undergraduates," said Anita Jones, "we felt these studies are the vital core for an abundant intellectual life. Our favorite professors at the time also were in these subjects: English, history and political science. So the opportunity to offer a professorship is particularly appealing."

The gift also is being used to endow the principal viola chair with the Wichita Symphony. The Joneses enjoyed many kinds of music together including Big Band, jazz, '50s and, especially, classical.

"The Wichita Symphony has been a consistent source of beautifully performed classical music in our community," said Anita Jones. "The ability to support an artist by endowing a principal chair is also satisfying."

The Wichita Symphony has been focusing on increasing its endowment since 2004 and, according to Mitch Berman, the Symphony's executive director, the Joneses' gift fits well into this endeavor.

"The Larry and Anita Jones Endowed Chair will provide for the viola principal chair for 50 years," said Berman. "About half of the principal chairs are endowed."

WSU Foundation receives $2 million gift for scholarships

The Wichita State University Foundation has received a gift of $2 million from the Flora Lea Wallis Trust. The gift will create an endowed fund to support general scholarships for students at WSU.

Wallis was a lifelong resident of the Springfield, Mo., area, where she was a cosmetologist and worked for a printing company. Along with her brother, Chesley, she also owned and operated a dairy farm south of Springfield. Wallis' ties to Wichita were through her brother, who at one time lived in Wichita and owned the beauty shop in the Beacon Building.

Wallis died Feb. 8, 2007, at age 99. She was predeceased by her brother and his wife. The scholarship will bear the names of Wallis, and Chesley and his wife, Ruth.

While Wallis never attended WSU, she recognized the importance of a college education and wanted her gift to make it financially possible for students to pursue their educational dreams.

"This gift will have a significant positive impact on WSU students for years to come, as they benefit from the generosity of the Wallis legacy," said Michael Lamb, vice president for planned giving and development services for the WSU Foundation. "We are most grateful to friends and alumni of the university who remember Wichita State in their estate plans."