ECONOMIC DEVELOPMENT INITIATIVES FUND

Fiscal Year 2014 and 2015 Recommendations

The primary recipients of monies from the Economic Development Initiatives Fund (EDIF) in Fiscal Years 2014 and 2015 will be the Kansas Department of Commerce, the Kansas Department of Wildlife, Parks & Tourism, the state's aviation sector through grants to Wichita State University, and the Board of Regents.

ECONOMIC DEVELOPMENT INITIATIVES FUND
Program or Project FY2014 FY2015
DEPARTMENT OF ADMINISTRATION
Public Broadcasting Grants 600,000 600,000
KANSAS DEPARTMENT OF COMMERCE
Operating Grant 9,197,764 9,224,870
Older Kansans Employment Program 253,046 253,139
Senior Community Service Employment 8,071 8,100
Strong Military Bases Program 100,000 100,000
Rural Opportunity Zones Program 1,829,084 1,831,012
Governor's Council of Economic Advisors 186,062 186,205
Innovation Growth Program 1,567,983 1,568,648
Creative Industries Commission 200,000 200,000
Medicaid Reform Employment Incentive 500,000 500,000
Accelerate Entrepreneurship Program 275,000 275,000
TOTAL - Commerce $14,117,010 $14,146,974
BOARD OF REGENTS
Vocational Education Capital Outlay 2,547,726 2,547,726
Technology Innovation & Internship 179,284 179,284
EPSCoR Program 993,265 993,265
Community College Competitive Grants 500,000 500,000
TOTAL-Board Of Regents $4,220,275 $4,220,275
KANSAS STATE UNIVERSITY
Extension System and Ag Research Programs 229,295 229,686
WICHITA STATE UNIVERSITY
Aviation Training & Equipment 4,981,537 4,981,537
KANSAS DEPARTMENT OF AGRICULTURE
Agriculture Marketing Program 570,832 575,110
KANSAS DEPARTMENT OF WILDLIFE, PARKS & TOURISM
Tourism Division 2,100,842 2,116,334
Parks Program 3,871,120 3,900,274
TOTAL-Wildlife, Parks & Tourism $5,981,962 $6,016,608
TOTAL-Economic Development Initiatives Fund $30,770,911 $30,840,190


The recommendations for Fiscal Year 2014 and Fiscal Year 2015 are described in detail and by program below.

DEPARTMENT OF ADMINISTRATION

Public Broadcasting Grants. The Governor recommends $600,000 from the EDIF in both FY 2014 and FY 2015 for public broadcasting grants. The grants are used by public broadcasting stations for operating costs and the purchase of equipment. Funded by the EDIF in the past, these grants were most recently funded from the State General Fund and the Governor suggests moving them back.

DEPARTMENT OF COMMERCE

The Department of Commerce works to deliver the highest level of business development, workforce and marketing services to build a healthy and expanding Kansas economy.

Operating Grant. The operating grant supports Commerce's traditional programs, including the Kansas Industrial Training and Retraining programs in its Workforce Services Division and financing the business recruitment efforts of the Business and Community Development Division.

Older Kansans Employment Program. This program is designed to provide Kansans 55 and over with an employment placement service. The emphasis is on providing permanent full-time or part-time jobs in the private sector.

Senior Community Service Employment Program. This program provides skill training through subsidized part-time employment for Kansans aged 55 and older who are at or below the poverty line.

Strong Military Bases Program. This program supports ongoing efforts of the Governor's Military Council to prevent the closure or downsizing of the state's military bases, which play an important role in the state's economy. The program also focuses on growing private sector industries in areas around the state's military bases and will be required to provide a local or private match to equal the state's commitment.

Rural Opportunity Zones Program. This program helps attract financial investment, business development and job growth in rural areas of the state. It offers qualifying individuals who relocate from outside the state to one of 50 counties that have been designed as Rural Opportunity Zones to be exempted from paying state income taxes for up to five years and provides for student loan forgiveness.

Governor's Council of Economic Advisors.   The Council coordinates strategic planning and economic resources, evaluates state policies and agency performances, and conducts research on topics such as Kansas' basic industries, tax competitiveness, and regulatory structure.

Innovation Growth Program. This program operates the grant programs previously managed by the Kansas Technology Enterprise Corporation which was eliminated in FY 2011. It leverages the state's innovation-based assets into partnerships with the private sector to create economic wealth for Kansas and helps small businesses use innovative processes and technologies to grow revenue and create jobs. The Department of Commerce has developed a return on investment-driven scorecard for this program and will fund the program partners based on performance and the ability to leverage resources.

Creative Arts Industries Commission. The Commission is responsible for promoting and developing the creative industries sector of the Kansas economy and expanding creative industry related jobs. The Commission is the result of the merger between the Kansas Arts Commission and the Kansas Film Commission, which was approved by the 2012 Legislature.

Medicaid Reform Employment Incentive. This program provides incentives for companies that employ and train individuals with disabilities. The program provides employers with $5,000 per new employee hired who is currently receiving Medicaid developmental disability waiver services and $3,000 per new employee hired who is currently receiving Medicaid physically disabled waiver services. This pilot program began in FY 2013 and was previously funded from the State General Fund.

Accelerate Entrepreneurship Program. This program is designed to increase the number of entrepreneurs in the state by providing incentives to Kansas educational institutions for each student or faculty member who starts a new company with at least one other full-time employee. 

BOARD OF REGENTS

Vocational Education Capital Outlay. Grants are distributed to community colleges and technical institutions to purchase equipment for training purposes. A 50 percent match from the institution is required.

Technology Innovation & Internship. The grants go to community colleges and technical institutions so that instructors may intern for short periods in private industry, keeping their skills up to date. The institutions must make a one-to-one match to receive the funds; it is often an in-kind match. The grants can also fund innovative equipment for student training.

EPSCoR Program. The Experimental Program to Stimulate Competitive Research (EPSCoR)  program combines federal and state dollars for research in science and engineering at the universities.

Community College Competitive Grants. This program requires a local match to develop innovative programs with private companies needing specific job skills or to meet other industry needs that cannot be addressed with current funding streams.

KANSAS STATE UNIVERSITY

Extension System and Agriculture Research Program's Cooperative Extension Program (ESARP). This funding is used for support of the program's general operations.

WICHITA STATE UNIVERSITY

Aviation Training & Equipment. The program supports the development of employees for the aviation industry. The state is a partner with aviation companies, the City of Wichita and Sedgwick County in the development of the National Center for Aviation Training, commonly called NCAT. The Center trains thousands for high-paying jobs in the aviation industry. State funding is administered by Wichita State University to provide equipment and assistance fitting with the program's curriculum.

DEPARTMENT OF AGRICULTURE

Agriculture Marketing Program. This program promotes the development of value-added agricultural products, and advances agricultural based economic and rural development.

DEPARTMENT OF WILDLIFE, PARKS & TOURISM

Tourism Division. The Tourism Division is responsible for the general promotion of Kansas, administration of travel information centers in Goodland and Belle Plaine, and publication of Kansas! magazine. The division also works with Wildlife and Parks programs to promote Kansas as the country's premier outdoor destination.

Parks Program.  The goal of the State Parks Program is to effectively manage, protect and administer the state's 25 state parks.
 
Source: Information in this report was taken from the Governor's Budget Report, State of Kansas, Fiscal Year 2014 and Fiscal Year 2015.


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