Friday, August 6

Determining Which Economic Development Tools are Most Important and Effective in Promoting Job Creation and Economic Growth in Kansas, Part 2

An audit from Kansas Legislative Division of Post Audit, February 2014. Here is the conclusion:

Kansas appears to have an appropriate mix of economic development incentives. Although Kansas and other comparison states configure their programs differently, all states aim to achieve similar economic goals using similar funding mechanisms. Overall, Kansas stakeholders are pleased with the state’s array of programs and incentives, particularly its newest programs, PEAK and JCF. That is largely because these programs provide businesses with fast and predictable cash which can be reinvested for further growth. Nevertheless, it is equally important to remember that other factors, such as an educated and skilled workforce, play a major role in businesses’ decisions to locate or expand in Kansas. Stakeholders viewed the recent income tax rate reductions for individuals and certain entities favorably, but also expressed some uncertainty about whether the tax policy would be successful in the long run. Lastly, while numerous studies have shown that states must offer economic development incentives to remain competitive, it is critical for programs to be evaluated on a periodic basis to ensure those programs remain efficient and effective.