KANSAS ECONOMIC DEVELOPMENT STUDY

Abstract

The current weakness of the Kansas economy is not a temporary phenomenon. Unabated, a continuation of existing trends will result in a relative erosion of the state's economic base and its ability to provide quality services for Kansans. However, the state can influence these trends in a positive direction. This will involve providing support for adaptation and change and the application of science and technology to the existing economic base as well as building upon strengths to develop new industry.

Kansas has important strengths and sound economic fundamentals upon which to develop its future. At the same time, there are some barriers to the development of modern technology-based enterprises, to small business entrepreneurship, and to expeditious technology transfer to Kansas industry. The recommendations that follow are designed to remove the impediments and to build upon the strengths.

The basic strategy for development should emphasize a balanced approach of supporting the existing economic foundation, including the traditional sectors, as well as fostering growth through the expansion of current and the attraction of new industry. It should involve an integrated state-local community effort. The state should not adopt a strategy for development based on tax incentives, but rather have a tax structure which is consistent with that of competing states with respect to business tax burden.

The erosion of the state's economic base will continue unless Kansas makes a large and sustained funding investment over the next decade to support a well designed package of economic development initiatives. This will require a significant investment of state financial resources. Our survey of 700 Kansas business and governmental leaders show overwhelming support for "bold, new initiatives," and their input has considerably influenced the following recommendations.