The Docking Institute of Public Affairs at Fort Hays State University has published the results of an evaluation and economic impact analysis of the Promoting Employment Across Kansas (PEAK) program. The study concluded that the program is highly successful both in terms of economic impact and the satisfaction of participating companies.
The Docking Institute found that the program had an economic impact of more than $7.5 billion on Kansas. The analysis concluded that for each $1 of revenue used by the PEAK Program, the Kansas economy grows $960. Through April 2013, the PEAK program has created 4,725 direct jobs and 6,350 indirect jobs for a total 11,075 jobs.
“This independent analysis confirmed that the PEAK program has been a great tool to bring jobs and investment to our state,” Kansas Commerce Secretary Pat George said. “I’m thrilled that this program has been so beneficial to our economy, and we’ll keep working hard to ensure that Kansas taxpayers get the best value out of PEAK and other programs.”
Some key takeaways from the report included:
· The direct economic effect of the PEAK program on the Kansas economy is $4,895,832,476. The indirect (change in business spending) effect is $1,453,674,532. The induced (change in household spending) effect is $1,244,331,450, for a total economic impact of $7,593,838,458.
· The total PEAK eligible wages over the 6.4 year horizon for the 126 firms currently in the PEAK program is projected to be $2,492,151,660.
· Participant satisfaction with the program is high, with over 90 percent of respondents reporting satisfaction with the program and 60 percent saying they were “very satisfied.”
· The vast majority (97 percent) of respondents said they would recommend the PEAK Program to business owners from other states.
· Of the participating companies that had relocated their businesses to Kansas, 93 percent reported that they would recommend that other employers they know outside of the state relocate to Kansas.
An economic development program administered by the Kansas Department of Commerce, PEAK allows participating companies to retain 95 percent of the payroll withholding tax of PEAK-eligible jobs that pay at or above the county median wage where the operations and jobs will be located. Companies must create a minimum of five new jobs in non-metropolitan counties and 10 jobs in metropolitan counties.
—News release via Kansas Department of Commerce