Kansas, Inc.

1. Kansas, Inc. “To strategically build a strong, diversified economy that promotes new and existing industries”

2. Kansas, Inc. Overview • Independent, Objective, Non-partisan • Three Primary Areas of Focus • Strategic Planning • Research & Analysis • Evaluation & Benchmarking • Our Fundamental Goal • Strategic Planning – Suggesting policies and recommendations to ensure the State’s ongoing strategic competitiveness for economic growth 2007 Strategic Planning

3. 2007 Strategic Planning Leveraging our Foundations & Designing the Future:A Kansas Economic Renaissance • a renewal of life, vigor, interest; rebirth; revival Ren·ais·sance 2007 Strategic Planning

4. Research & Analysis • Developing & implementing a proactive & aggressive research agenda (18+ months of research leading into Strategic Plan) • Recent topics include: Aerospace Energy Agriculture Consumer Sentiment Industry Concentration Economic Trends Funding Productivity Indicators of the Kansas Economy Workforce Development Taxation Image 2007 Strategic Planning

5. Strategic Planning: The Process Academic & Policy Resource Team – Provide insight throughout process Presentation to Governor & Legislature Strategic Plan Kickoff Kansas, Inc. Board Approval Strategic Tactical Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2006 2007 2008 1st Meeting Steering Committee 2nd Meeting Steering/Cell/Policy Committee Final Meeting Steering/Cell/Policy Committee Statewide Cell Meetings Statewide Cell Meetings 2007 Strategic Planning

6. Strategic Planning: The People • Steering Committee • Business and industry leaders, legislative members, other policy makers • Other stakeholders, including individuals from various statewide organizations • Statewide Cells • 17 groups consisting of 5 to 7 members each throughout the state • Grassroots effort • Academic & Policy Resource Team • Representatives from various educational institutions and economic policy organizations 2007 Strategic Planning

7. Strategic Planning: The Places 2007 Strategic Planning

8. Guiding Principles Articulated Throughout the State • Pay attention to existing businesses • Hold the cities and counties harmless • Business-friendly, capital friendly • Every business matters • Limited resources • Focus on the high value targets 2007 Strategic Planning

9. Economy of Our Past Three Core Industries Gas Fields Dairy Private Oil Companies Soybeans Wheat Oil & Gas Industry Agriculture Oil Wells Feedlots Agricultural Refineries Corn Aerospace & Aviation Manufacturing Industrial Plastics 2007 Strategic Planning

10. Present Economy Kansas’ economy has evolved from three core industries into a handful of strengths in which we can strategically position to enhance our diversified economy 2007 Strategic Planning

11. Kansas’ Inherent and Emerging Strengths Five Pillars of Core Competencies: • Manufacturing – Aerospace & General • Energy & Natural Resources • Rural Development & Agriculture • Professional, Scientific & Technical Services • Bioscience 2007 Strategic Planning

12. Diversified and Integrated Economy Kansas must: Focus our inherent and emerging strengths Leverage our resources and achieve complete integration 2007 Strategic Planning

13. Economy of Our Present Manufacturing Professional, Scientific & Technical Services Rural Development & Agriculture Energy & NaturalResources 2007 Strategic Planning

14. Economy of Our Present Manufacturing Professional, Scientific & Technical Services Bioscience Rural Development & Agriculture Energy & NaturalResources 2007 Strategic Planning

15. Transition Economy Professional, Scientific & Technical Services Rural Development & Agriculture Energy & NaturalResources Entrepreneurship & Innovation Bioscience Manufacturing 2007 Strategic Planning

16. Transition Economy Professional, Scientific & Technical Services Rural Development & Agriculture Energy & NaturalResources Entrepreneurship & Innovation Bioscience Manufacturing 2007 Strategic Planning

17. Strategically Aligned Core Strengths Professional, Scientific & Technical Services Rural Development & Agriculture Energy & NaturalResources Bioscience Manufacturing 2007 Strategic Planning

18. Professional, Scientific & Technical Services Midway Wholesale Sprint Financial Services Cerner AGCO Nex-Tech Townsend Farms Hugoton Field Kansas Communities, LLC Koch Industries Midwest Energy Black & Veatch Rural Development & Agriculture Bayer Garmin Energy & NaturalResources MGP Ingredients Hill’s Pet Nutrition JACAM, Chemicals GM Sunflower Electric Cargill Manufacturing Bioscience CyDex, Inc. Rubbermaid INVISTA Hospira Spirit Aerosystems Vasogenix Pharmaceuticals, Inc. Great Plains Manufacturing Winfield Iron & Metal 2007 Strategic Planning

19. We must create the atmosphere to encourageEntrepreneurship and Innovation to support all of our core strengths 2007 Strategic Planning

20. Current EnvironmentLacks framework to efficiently coordinate our resources Business & Tax Climate Workforce Development Image Infrastructure Technology & Innovation Entrepreneurship Initiative Education 2007 Strategic Planning

21. We need to provide a framework that focuses these supporting fields into a well planned environment that will foster growth 2007 Strategic Planning

22. Environment for Opportunity Entrepreneurship Initiative Technology & Innovation Business & Tax Climate Workforce Development Infrastructure Image Education 2007 Strategic Planning

23. Strength Through Aligned Resources Entrepreneurship Initiative Technology & Innovation Professional, Scientific, & Technical Services Rural Development & Agriculture Energy & Natural Resources Strength Through Aligned Resources Business & Tax Climate Workforce Development Bioscience Manufacturing Infrastructure Image Education 2007 Strategic Planning

24. Vision Statement Kansans will notably increase personal and business wealth and improve our quality of life by focusing on our inherent and emerging strengths. 2007 Strategic Planning

25. Inherent and Emerging Strengths Manufacturing – Aerospace and General Rural Development and Agriculture Professional, Scientific, and Technical Services Energy and Natural Resources Bioscience Environment for Opportunity Business and Tax Climate Workforce Development Technology and Innovation State Image/Branding Economic Development Funding and Benchmarking Transportation Infrastructure Components of the Strategic Plan Provides 43 Strategies accomplished through 98 Recommendations 2007 Strategic Planning

26. Rural Development Mission - Enhance the prosperity of rural Kansas by developing innovative solutions recognizing local and regional strengths to ensure the quality of life in rural areas. 2007 Strategic Planning

27. Strategy 6 • Create a rural development model that provides a holistic, integrated approach based on four key pillars: • Capital • Access • Leadership • Benchmarking • The model should use incentives as the engine that drives integration. 2007 Strategic Planning

28. Strategy 6 – Enhancing the Structure of Rural Development in Kansas 6-1 Office of Rural Opportunity should be positioned at the highest possible level to become the centerpiece of a new integrated rural development structure. 6-2 Create a Division of Leadership within the Kansas Department of Agriculture. 6-3 Develop a coordinated incentive structure to reward communities, businesses and individuals for using the new integrated structure. 6-4 Benchmark our efforts and progress in rural Kansas. 6-5 Enhance funding to $1.0 million per year for the agricultural loan portfolio within the Department of Commerce. 6-6 Utilize and support the potential of Rural Opportunity Zones 2007 Strategic Planning

29. Current Organizational Chart Department of Commerce Secretary of Commerce Deputy Secretary Deputy Secretary Senior Director Business Development Communications & Marketing Services Workforce Development Travel and Tourism Trade Development 2007 Strategic Planning

30. Proposed Division of Rural Development Secretary of Commerce Advisory Board Deputy Secretary Division of Rural Development Division of Leadership (Dept of Ag) Network Kansas K-State Research and Extension Regional Offices of Rural Opportunity KSBDC USDA Rural Development KTEC Community Development Certified Development Companies Community and Regional Foundations KDWP Agriculture Marketing Development Kansas Bioscience Authority KDHE KDOT 2007 Strategic Planning ETC.

31. Proposed new structure of Department of Commerce Secretary of Commerce Deputy Secretary Senior Director Deputy Secretary Deputy Secretary Advisory Board Business Development Workforce Development Division of Rural Development Division of Leadership (Dept of Ag) Network Kansas K-State Research and Extension Communications & Marketing Services Regional Offices of Rural Opportunity KSBDC USDA Rural Development KTEC Trade Development Community Development Travel and Tourism Certified Development Companies Community and Regional Foundations KDWP Agriculture Marketing Development Kansas Bioscience Authority KDHE KDOT 2007 Strategic Planning ETC.

32. Kansas’ STAR Advantage Entrepreneurship Initiative Technology & Innovation Professional, Scientific, & Technical Services Rural Development & Agriculture Energy & Natural Resources Strength Through Aligned Resources Business & Tax Climate Workforce Development Bioscience Manufacturing Infrastructure Image Education 2007 Strategic Planning