1. Revenues from gaming & lottery operations should be invested into dynamic and creative economic development strategy and programming.

The Economic Development Initiative Fund (EDIF) is the share of lottery and gaming revenues directed to economic development. It holds approximately $42 million annually.  In 2019, an audit described that the impact and funding from the EDIF was unclear and programs and activities it funds have not been evaluated for outcomes.

In 2021, Kansas revealed its Framework for Growth. Five years later and with an administration change on the horizon, now is good timing for a review and adjustment to that strategy. At the same time the components of how EDIF is used and evaluated should also be reviewed so that going forward Kansans are of one frame of mind. A bipartisan legislative group coupled with extensive input from Kansans across the state could create a powerful road map for the state.

2. Kansas Future Fund – The best ideas for Kansas do not necessarily begin in Topeka

Kansas has an opportunity to establish from existing carryover funds an endowment sufficient to generate annually $25 million. All while maintaining appropriate reserves for yearly budgeting purposes and without touching the Rainy-Day Fund.

Each year, Kansans would be invited to bring forward their best ideas for moving our state forward. Entrepreneurs, nonprofits, educational institutions, local governments, and community partnerships would be eligible to submit proposals addressing priorities such as population growth, rural vitality, entrepreneurship, and more.

Annually we can tap the dreams, imagination, and ingenuity of Kansans. Let’s see where they take us.

3. Invest where the real growth is – new, existing, small, and young local companies.

In Kansas, businesses with less than 500 employees total 99.1% of all firms in Kansas. Small Kansas businesses employees make up 48.9% of the workforce. Small businesses generate almost 89% of all net job creation in the country.

There may be some new, fresh job creation benefits for existing small business. If worker shortages remain a challenge, consider giving the same payroll tax incentive a conglomerate receives and let small businesses retain or be refunded 95% of their payroll withholding taxes.

It is also time to investigate what the state gives up and what it gets in return for current and future industrial recruitment. At a minimum, Kansas should no longer give tax breaks to sectors when the KansasDepartment of Revenue cannot estimate the fiscal impact of a tax break or a recruitment deal.

4. Provide funding support to regional planning councils.

One requirement of the EDIF is that half its funding (about $21 million) be spread evenly across state congressional districts. A 2019 audit report noted, “we could not determine if EDIF funds are distributed across Kansas as required by law.”

One way to ensure a substantial share of EDIF is spread across the state would be to provide funding support to the network of eight Regional Planning Councils (RPC). A well-run RPCs can leverage the funds they have to provide even larger program and funding impacts.

RPCs have their fingers on the pulse of their communities. They are in the region everyday meeting with people, businesses, educators, and non-profits. An annual EDIF commitment, subject to accountability measures, would provide a stable funding source.

5. Learn from and adopt other state economic development successes.

Kansas can learn from successful programs, avoid the inevitable trial and error phase and mine the richness of ingenuity in other locations.

Survey of some key data issues 

Saline County has the strongest position for new jobs in Kansas

While Saline County still lags behind the nation’s job growth over the most recent five years, the county’s job growth was almost 2% greater than the state growth (9.4% to 7.8%). Saline County with its strong cooperation can help show the way to a more aggressive and successful economic development strategy. That central Kansas spirit of working hard and working together; I can bring to the Kansas Legislature.

A knowledgeable entrepreneur expert shared with me his estimate that in each population base 3% have the potential to be “game-changing” entrepreneurs. Much like exceptional athletes are identified at early ages, it is important that states and communities begin to see future business leaders as individuals with unique and special skills that need nurturing.

Jobs Issue

Since 2020, Kansas ranks 47th in the United States for job creation. The other four states in the bottom five are Iowa, Nebraska, Mississippi, and Wisconsin.

Bureau of Labor Statistics – Quarterly Census of Employment and Wages (QCEW)

Annual Job Average

                                 2020                 2025                     2020-25 Chg.         % Change

Kansas                 1,328,640         1,432,626               103,986                   7.8%

US                       139,103,590       155,732,363          16,628,590               12.0%

Why This is Important

If Kansas had just increased jobs at the US average of 12%, there would be almost 55,000 more jobs in the state. Those jobs at the Kansas average wage rate would have resulted in almost $3.5 billion in additional income in the state.

Imagine how that amount of money would impact the state’s ability to cut taxes, fund education, or invest in the Kansas Future.

Population Issues

Since 2010, annually over 5,000 more US citizens leave Kansas than move into Kansas.

The tepid population growth in Kansas is due to international migration and natural growth (births minus deaths). Both are showing disturbing signs of decline.

National and state policies are beginning to impact international migration. The Bureau of the Census, in its annual estimate of the Component of Population Change, estimates that from 2024 to 2025, 7,440 international immigrants settled in Kansas. In the four years prior, the state averaged over 9,200 immigrants.

From the same data source, births continue to exceed deaths in Kansas. The annual average of births over deaths from 2010 to 2019 was just over 13,000 more births, however. That natural increase has dropped significantly since 2020; Kansas is averaging an annual natural increase of 3,666.

These population and job trends are not recent or the result of a quirky, outlier year.  Kansas has ongoing stagnant job growth and an aging, shrinking population.

Even worse is the prospect of a return to the Brownback experiment, basically large tax cuts, that most benefit higher income families, followed by praying for a job miracle.