San Francisco, CA (PressExposure) May 15, 2013 -- The state of Kansas gave SelectQuote Senior $5 million in tax incentives just one and a half years after they awarded the company employing SelectQuote Auto & Home agents $1.8 million in tax incentives. SelectQuote's involvement with well connected individuals in the Kansas City metropolitan area may have set the stage for this largesse during tight times. Spectrum Business Ventures and Haakon Capital, private equity firms in the Kansas City area, acquired SelectQuote last year.
SelectQuote has been partnering with Kansas City's Spring Venture Group, to sell auto and homeowner's insurance under the SelectQuote Auto and Home name. This company also sells Medicare supplement insurance and life insurance, matching the other SelectQuote divisions.
This profligate spending is not without its critics. Bill Hall, President of the Hall Family Foundation notes that, "after the tug of war between the two states, Kansas has gained 595 jobs at a cost of $323,000 per net existing job." U. S. Senator McCaskill opines, "It appears to me they're going to have to start hollowing out education because he's on a mission to underfund I think alot of the state services in the name of no taxes."
The first $1.8 million was given to Spring Venture Group, which announced much of the growth justifying incentives was through SelectQuote Auto & Home. Spring Venture Group's former CEO, Tim Danker, is a co-founder of SelectQuote Auto & Home, and in 2013 left Spring Venture Group to become the CEO of SelectQuote Auto & Home.
SelectQuote Senior, SelectQuote's Medicare supplement division, just recently was awarded $5 million in tax breaks from Kansas. SelectQuote Senior is consolidating space with SelectQuote Auto & Home, and in doing so it moved over the state line.
There are unpleasant allegations coming from San Francisco, SelectQuote's corporate headquarters, which could have bearing on the wisdom of funding the company at taxpayer expense. "I suffered from police misconduct, of the sort currently being probed by the FBI at the police station in question", says former SelectQuote VOIP Architect Tom Dunham. "Circumstantial evidence, and a SelectQuote legal brief, raise the possibility of SelectQuote involvement." Mr. Dunham goes into further detail at SelectQuoteReview.com.
If nothing else this brings up the issue of SelectQuote's loyalty. This a pertinent question when the Kansas government is investing so much in the company. The public relies on SelectQuote sticking around long enough after the tax breaks to pay for itself.