2024 Kansas Department of Commerce Annual Report

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For the last five years, we’ve been building a new Kansas.

And — with new initiatives, collaborative efforts and innovative ideas — this bold new era is coming to fruition across every region of our state.

Four consecutive Gold Shovel Awards, $20 billion in committed capital investment and over 69,000 jobs committed to be created and retained throughout Kansas — the numbers and accolades speak for themselves.

We’re reaching unprecedented heights and setting new expectations for Kansas. We’re no longer a state lagging behind in economic development; we’re leading — through workforce training and apprenticeships, quality of life, housing, childcare, tourism and other initiatives that continue to keep elevating the Sunflower State.

We’ve restructured Commerce to create the Quality Places Division and open the Office of Small Business Development and Entrepreneurship. We’ve added new leadership and momentum to our business development efforts. Former Kansans are moving back home because of our innovative Love, Kansas talent recruitment campaign.

We are landing projects across the state in urban, suburban and rural communities. We’re not solely focused on business investments; we’re investing in the quality of life in every region of the state. And a beautiful, new Kansas continues taking shape.

So, as we continue to grow our state, invest in our communities — and our people — and uplift every region of Kansas, let’s remember that the partnerships created and the work across the aisle are bringing transformative opportunities to our state. And there is no time to slow down.

With opportunities on the rise in our state — eyes are finally on Kansas.

Anchored by our unique economic strengths, committed staff, robust partnerships and committed talent across the state — we can continue to reach for the stars and remain the “state of unexpected,” as we work to make Kansas the best place to live, work and raise a family.

Ad Astra Per Aspera,
David C. Toland

2024 ECONOMIC DEVELOPMENT IMPACT

LEGEND

Business Development

In-State Offices

Successes

Quality Places

CDBG Grants

CSP Awards

Main Street Community

International

K-Globe Grants

Exporter of the Year Finalists

Workforce Development

Workforce Centers

Kansas Arts Commission

Kansas Arts Commision Grants

Office of Broadband Development

Office of Broadband Development Grants

Kansas Tourism

Tourism Grants

Love, Kansas Grants

Office of Rural Prosperity

HEAL Grants

SEED Grants

Rural Mural Grants

ROZ Marketing Grants

Rural Champions Grants

ROZ Counties

BUSINESS DEVELOPMENT

The Business Development Division continues to position Kansas as a premier destination for business growth and investment. Through our collective efforts, we have achieved remarkable success in attracting and retaining businesses, driving job creation, and fostering economic resilience across the state.

THE NUMBERS IN-STATE BUSINESS DEVELOPMENT REGIONS BUSINESS RECRUITMENT REGIONS

In 2024, our team facilitated 269 economic development successes, translating into $3.5 billion in committed capital investment and commitments to create 5,055 new jobs and retain 251 jobs. The average wage for these new jobs was $66,117.50, nearly 8% above the state’s median wage, contributing to our goal of creating high-caliber jobs and quality employment in Kansas. Our future looks strong -- a robust pipeline of 307 active leads, representing potential investments of more than $29 billion.

Notable successes include our ongoing focus on advanced manufacturing, aerospace, and EV-related investments, which continue to drive Kansas forward as a leader in innovation and industry. Additionally, the Kansas Department of Commerce was honored with a Gold Shovel Award for the fourth consecutive year. This recognition reflects our sustained excellence in business attraction and economic development and serves as a testament to the dedication of our team and partners.

As we look ahead, we remain committed to building on this momentum, ensuring that Kansas remains competitive and attractive for new and expanding businesses.

TOP 3 ACCOMPLISHMENTS

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Office of Small Business Development & Entrepreneurship

The formation of this new office marked a significant milestone in our strategy to foster small business growth and entrepreneurship across Kansas. The office successfully procured $2.6 million from the U.S. Treasury’s State Small Business Credit Initiative (SSBCI) for the Small Business Opportunity Program (SBOP). This funding will provide targeted financial support, helping small businesses access capital, expand their operations and stimulate economic growth. The program focuses on reducing barriers for entrepreneurs, which enhances Kansas’ reputation as a business-friendly state for small startups.

Business Retention & Expansion Team Coverage

This year, we successfully restructured the coverage areas for our in-state Business Retention and Expansion (BRE) team. The realignment, driven by valuable feedback from community stakeholders, was designed to better align all of the coverage maps across divisions in Commerce and better serve our customers. By strategically adjusting our territory maps, we’ve enhanced our capacity to support local businesses, strengthen regional partnerships, and respond more effectively to the distinct needs and challenges in each a,rea. Early results indicate improved engagement and faster response times from local economic development partners.

Successful Recruitment of High-Impact Jobs

One of our top achievements this year has been the significant wage growth from our successful projects. The average wage for the 269 successful projects was $66,117, which is 13% higher than the Kansas annual average wage. This outcome highlights our commitment to fostering high-quality job opportunities for Kansans. Through these efforts, we’ve helped attract and retain businesses that offer competitive wages, contributing to the overall economic vitality of the state.

TOP 10 BUSINESS DEVELOPMENT WINS

Elanco - Elwood Committed Capital Investment: $130.7M Committed Jobs: 72

SFC Global Supply Chain, Inc. - Salina Committed Capital Investment: $114.1M Committed Jobs: 70

Heartland Coca-Cola Bottling Company, LLC - Olathe Committed Capital Investment: $104M

Creekstone Farms Premium Beef, LLC - Arkansas City Committed Capital Investment: $103M

Blue Sky Farms - Lewis Committed Capital Investment: $100M Committed Jobs: 120

Flora Food Manufacturing US, LLC - Hugoton Committed Capital Investment: $92M Committed Jobs: 112

Honeywell International - Olathe Committed Capital Investment: $84M Committed Jobs: 156

Associated Wholesale Grocers - Kansas City Committed Capital Investment: $79.9M

Central Valley Ag. - Courtland Committed Capital Investment: $76M

General Mills - Olathe Committed Capital Investment: $71.5M Committed Jobs: 85

5,306 COMMITTTED NEW AND RETAINED JOBS

$3.5 BILLION COMMITTED CAPITAL INVESTMENT

LEADERSHIP

This year marked significant growth for the International Division as we reorganized to better serve Kansas businesses and enhance foreign direct investment (FDI). To that end, we established three dynamic sub-divisions: Export Promotion, Foreign Direct Investment, and Global Resources.

Exports are vital for bringing in outside revenue into the state and boosting our GDP. Our team is committed to helping Kansas companies expand their sales globally. In 2024, we launched new programs to better engage with companies at different levels of export experience. A major goal is to identify new-toexport companies and provide them with the support needed to be successful in their early export journeys. These programs will increase the number of companies exporting, the revenue brought into Kansas from overseas, and eventually, the number of jobs needed to support exporting.

The team was busy with international travel organizing nine trade missions in 2024. We had two leadership-led FDI missions to Canada and created a strategy to proactively increase FDI and trade with our neighboring country over the coming years. Governor Laura Kelly led a delegation to the Farnborough International Airshow in the UK in July. Lt. Governor David Toland also traveled to Japan, South Korea, Vietnam, Spain, Germany and Canada to bolster our FDI opportunities. In addition, we traveled to Brazil and Australia to begin the process of developing more trade and FDI relationships in both major economies.

International economic development does not stop at FDI and exporting. Our team can support other state economic development goals such as supply chain optimization, retaining and recruiting workforce, creating educational opportunities, and more. Our Global Resources sub-division plays an active role in advancing the state’s economic development objectives by cultivating and maintaining resources that bolster Kansas’ participation in international commerce. The team keeps an eye on global economic and political trends that might affect companies based in Kansas and strategically crafts international approaches to drive the state’s economic goals forward.

TOP 3 ACCOMPLISHMENTS

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Expanding Our Global Presence

The International Division focused on expanding our presence in historically strong FDI and export markets such as Canada, Europe and Asia with the help of our new in-country representatives. To this end, we organized leadership-led investment missions to England, Canada, Spain, Germany, Japan, South Korea, and Vietnam this year. We also explored new global markets such as Brazil , where we participated on the U.S. Commercial Service’s SelectUSA Roadshow in early 2024, and Australia, where we organized an investment-focused trip in October.

Creation of New Export Promotion Programs

The Export Promotion Team designed three new programs in 2024: 1) The Consolidation of KITSAP/KITMAP into one export grant called K-GLOBE, 2) a new export accelerator program called Export Kansas (launching Jan. 1, 2025), and 3) the Monthly Exporters Roundtable, a series of events around the state to reach Kansas companies regarding the resources available to exporters through state and federal programs.

Launch of Global Resources

A goal of the International Division is to look at how we can support Kansas’ global economic development from a more holistic view. Beyond our traditional export promotion and FDI functions, it is important that we understand how we can ensure our Kansas companies have access to a skilled global workforce, a resilient global supply chain, and the proper trade infrastructure to get products to market. In addition, we want to ensure that Kansas continues to enhance its attractiveness to foreign investors. To that end, we launched a third sub-division, called Global Resources, designed to look at economic issues such as supply chain, workforce and education, infrastructure, tourism, arts and culture, and sports from an international perspective to create a stronger economic ecosystem to support export growth and foreign direct investment recruitment.

KANSAS ARTS COMMISSION

LEADERSHIP NOTE

The mission of the Kansas Arts Commission (KAC) is to steward Kansas’ investment in the arts by empowering creativity, fostering innovation, and strengthening the economy to enhance the vitality of every Kansas community. We do this by offering a range of programs, services and funding opportunities to support cultural programming across Kansas and enhance the role the arts play in all levels of education, community service, workforce development and quality of life in our state.

This year KAC undertook new initiatives to increase transparency and provide grant applicants with more guidance in the application and awards process. Two webinars provided instruction on how to complete grant applications and program guidelines were expanded and made more comprehensive. A publicly available judging rubric now explains evaluation criteria to applicants in detail, and applicants have been invited to attend and speak at the panel meetings at which their applications are judged. Showcasing community support, 57 volunteer panelists from across Kansas and beyond each donated hours of time reviewing and scoring 140 applications across 13 public grant panel meetings.

KAC’s commitment to individual artists also made strides in 2024. In partnership with Mid-America Arts Alliance, KAC’s Artist INC and Artist INC Express workshops provided practical business skills to more than 80 artists, connecting them to tools and resources to grow and sustain their arts businesses and practices. One of these workshops was offered specifically to members of the Kansas Touring Artist Roster. Membership in the Touring and Public Art Rosters grew from 81 to 122. Inclusion in the roster helps artists connect with presenting organizations and encourages community outreach, as each Roster artist offers community engagement programs such as workshops, master classes, lecture demonstrations and arts education programming.

128 GRANTS

$1,378,250 AWARDED

47 COUNTIES

21 EVENTS HOSTED

TOP 3 ACCOMPLISHMENTS

1

LG Desk Concerts television production

Inspired by NPR’s beloved Tiny Desk Concerts, LG Desk Concerts offer a Kansascentered take on this format, featuring performances at the historic desk in the Lieutenant Governor’s office in the beautiful Kansas Statehouse. This unique and intimate setting provided the perfect backdrop for showcasing artists either currently based in Kansas or those originally from the state. All the artists have gone on to make significant impacts on national and global stages, yet remain strongly connected to Kansas and its vibrant creative culture.

The inaugural season featured a diverse mix of Kansas talent, including:

• Melissa Etheridge (Leavenworth), Grammy- and Oscar Award-winning rockstar/musician

• Freedy Johnston (Kinsley), 1994 Rolling Stone Songwriter of the Year

• Maria the Mexican (Lawrence), a fusion of Mexicana, Americana and indie blues rock

• Opus 76 String Quartet (Prairie Village), renowned classical musicians with national and international tours

• Son Venezuela (Kansas City), Kansas Music Hall of Fame inductees and legends of tropical Latin music

• Bad Alaskan (Lawrence), experimental electronic singer/songwriter

• Kelley Hunt (Lawrence), award-winning roots R&B, Americana singer/ songwriter, pianist and guitarist

Produced by the Kansas Arts Commission in partnership with Topeka’s awardwinning PBS affiliate KTWU, LG Desk Concerts shine a spotlight on the depth and diversity of Kansas-born and -based musical talent.

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Restructuring of grant programs and process

KAC streamlined its annual grant programs, bringing the number of programs down from nine to four while expanding the types of projects eligible for funding. General Operating Support, previously unavailable, was introduced after multiple requests from stakeholders, and it now accounts for more than half the grants awarded.

A limited number of KAC Special Projects grants also have been awarded to carry out programming related to KAC initiatives, including awards to the William Inge Theatre Festival, the Lied Center, and the Arts in Medicine program at Emporia State University.

3

Poetry Harvest –Poems at the State Fair

In partnership with Poet Laureate Traci Brimhall and the Kansas State Fair, 20 original poems were commissioned from Kansas poets, each with a subject relating to things celebrated at the Kansas State Fair, including rabbits, quilts, cattle and the 4-H program. The poems were exhibited on signs located near their subject matter. A reading of the poems was held on the House of Capper stage featuring Brimhall, many of the contributing poets, and Kansas’ Poetry Out Loud champion and Horton High School student Victoria Jelks. A QR code on each sign brought visitors to a page featuring recordings of the poems as read by Traci Brimhall.

KAC grants were awarded in each of the counties in blue.

BY THE NUMBERS

5,610,259 TRAVELKS.COM PAGE VIEWS

KANSAS TOURISM

LEADERSHIP NOTE

This past year has been marked by significant growth and recognition for Kansas as a tourism destination. We were thrilled to be named the Destination of the Year by the North American Travel Journalists Association (NATJA), honoring our inspiring and creative marketing efforts. NATJA also awarded us Gold for the Home on the Range Project in the creative marketing campaign category and Bronze for the Capturing Kansas: the Gordon Parks Legacy destination video.

Our year-long visitor marketing campaign launched with a video encouraging travelers to “Reclaim Your Vacation” in Kansas, complemented by broadcast, social and digital advertising with the same theme. Between all advertising outlets, this campaign generated over 212 million impressions.

We placed a lot of emphasis on encouraging residents to explore their own home state by launching the weekly “On The Road and To The Stars” blogger-style segment on WIBW, which features places to visit within the state. The Sunflower Summer program further advanced that idea by helping our youth fall in love with Kansas at an early age.

The subscription lifestyle publication, KANSAS! Magazine, continues to earn accolades. The International Regional Media Association (IRMA) awarded the magazine three Gold awards for Cover, Historic Feature, and Illustration, along with a nomination for Magazine of the Year.

During the summer, Kansas Tourism partnered with the Legislature to address a critical issue and launched the Love, Kansas talent recruitment campaign. Designed to help overcome the worker shortage in our state, the initiative focuses on the state’s abundant job opportunities, high quality of life, excellent education system and affordable communities as ways to recruit Kansans living elsewhere back “home.”

Moving forward, we are excited to build on this momentum by welcoming travelers from near and far and sharing all that Kansas has to offer.

350,000 TRAVEL GUIDES PRODUCED

75,000 BYWAYS GUIDES PRODUCED

TOP 3 ACCOMPLISHMENTS

1

Sunflower Summer

This was Kansas Tourism’s first year managing the Sunflower Summer program and it was a resounding success. We had 223 attractions participating from across the state (a 97% increase YOY) and a total of 497,573 tickets were claimed (a 55% increase YOY). New to the program this year was inclusion of non-admission based attractions. We also launched critical mobile app updates, new branding, a brand new website, and increased marketing of the program to Kansas families. This marketing resulted in more than 973,000 TravelKS.com website views, 2,500 travel guide requests, and 1,600 newsletter sign-ups from Sunflower Summer website and app users.

2

Mobile Visitor Center

The Mobile Visitor Center (MVC) debuted at the 2024 Kansas State Fair with an official launch ceremony including the secretaries of both the Kansas Department of Commerce and Department of Transportation, highlighting the partnership and creativity between the two agencies. The MVC is a wrapped Kansas-themed van that travels to high attendance type events, both in and out of state, creating personal connections and sharing Kansas as a great place to visit, live, work and raise a family. Next year’s calendar is filling up quickly, as we are scheduling to attend events such as major festivals, sports events and travel shows.

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Love, Kansas

Love, Kansas is a new talent recruitment initiative designed in direct response to the opportunity brought on by an increase in the need for workers to fill the many quality jobs we have available. It is designed to attract new residents, with a strong focus on “boomerangs” or people who previously lived or have a connection to Kansas. It officially kicked off on July 1 with 19 pilot communities and over the next three months, swelled to more than 56 communities actively engaging and holding their own local Love, Kansas events to bring new residents to their communities. Partnerships with universities, colleges, businesses and civic organizations are helping to carry the message of Kansas as a quality place to live, work and play.

$1,103,633 AWARDED IN TOURISM GRANTS TO 49 COMMUNITIES

434 REGISTERED AGRITOURISM BUSINESSES

497,573 SUNFLOWER SUMMER TICKETS CLAIMED

BY THE NUMBERS

90 PRESS RELEASES

MARKETING AND COMMUNICATIONS

LEADERSHIP NOTE

The Marketing and Communications team is charged with telling the Commerce story. As the agency’s mission is rather straightforward – empowering individuals, businesses and communities to achieve prosperity in Kansas – it would follow that the story could be told rather succinctly.

Nothing could be further from the truth, however. By embracing a holistic view of what economic development looks like, Commerce adds layers of related and necessary components to the mission. It’s not just about recruiting companies and creating jobs, although that work will never cease.

We pay attention to making sure we’ve got workers to fill them, whether we’re training up existing Kansans, tracking down those who’ve moved away, or tapping into nontraditional sources. We make sure that communities are prepared for opportunities that might arise, that they’re a good fit for that company, and that the employee base wants to reside there. They want fun things to do, they need childcare and healthcare, they need to be able to make a difference in the lives of neighbors.

Commerce incentivizes companies to create good-paying jobs for hard-working Kansas families. But we also incentivize entrepreneurs to launch their big ideas, downtown areas to stabilize old buildings, artists to inject culture, providers to bring broadband to rural communities, etc., etc.

And the Marketing and Communications team gets to document it all, in real time and on every platform and medium available. We crisscross the state to capture our Commerce colleagues in action, making real differences in the lives of real Kansans. We pride ourselves on the quality of our releases, videos, social posts, pamphlets, photographs, presentations, speeches, email campaigns – and we are unrelenting in our quest to do it even better the next time around.

We take our charge seriously, because it’s for the good of the State of Kansas and all those who call it home.

1,078 SOCIAL MEDIA POSTS

28,954 AVERAGE MONTHLY WEBSITE USERS

TOP 3 ACCOMPLISHMENTS

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Grants Guide

In order to better communicate the scope of grant funding available from Commerce, the team created both a Grants at a Glance one-pager and a 44page Grants Guide for distribution throughout the state. The larger guide details all the funding opportunities available to help businesses, organizations and communities further their identified goals. Both also are available on our website and updated in real time.

Email Campaigns

To bolster recruitment efforts of the Business Development (BD) team, the Marketing and Communications team developed industry-specific email campaigns to send to companies on Commerce’s prospect lists. We conducted A-B testing (variations of both content and design to maximize the message’s impact), which has resulted in multiple business development projects the department is pursuing.

Website Updates

Improving both the user experience and quality of content on the Commerce website continued in earnest. Notable areas receiving facelifts were the newsroom, the staff directory and the Transparency Database. We continue to improve the website (as well as our social media platforms) in order to increase public engagement.

33,149

19.08% AUDIENCE GROWTH OVER 2023

2,434,195 PAGEVIEWS IN 2024

OFFICE OF BROADBAND DEVELOPMENT

LEADERSHIP NOTE

In 2024, the Kansas Office of Broadband Development (KOBD) continued to make significant strides in expanding high-speed internet and digital opportunities for all Kansans. This year, 2,726 homes, 248 businesses and 32 municipal locations were connected to high-speed broadband. Additionally, we launched the Broadband Ready Communities program, signaling to providers that communities are ready for broadband investment.

Our commitment to statewide engagement and technical assistance remained strong; with 52 events completed, including 13 regional planning workshops. Outreach efforts educated and informed communities allowing them to support applicants who shared their community vision for broadband. With the Broadband Equity Access and Deployment (BEAD) program, local governments and community organizations can directly impact applicants with a letter of support and participation in community engagement.

Our office is energized by the continued progress made with our Digital Opportunities programs, including the Digital Opportunities to Connect Kansas (DOCK) and Advancing Digital Opportunities to Promote Technology (ADOPT). Through these programs, we awarded nearly $7 million to organizations supporting public Wi-Fi, equipment distribution, and digital skills training.

By September, Kansas received federal approval to open BEAD applications, unlocking $451.7 million to bring high-speed internet to unserved and underserved Kansans. Of the homes and businesses that are eligible to receive funding, 97 percent of them are considered rural.

7 ADOPT GRANT PROJECTS AWARDED

$2.8M TOTAL DOCK GRANT AWARDS BY THE NUMBERS

$3.9M TOTAL ADOPT GRANT AWARDS

16 DOCK GRANT PROJECTS AWARDED

1

BEAD Program

2 3

KOBD was one of the first 10 states to open applications for the $451.7 million in the Broadband Equity, Access, and Deployment (BEAD) program. This shows significant progress in implementing the infrastructure program. This funding will be directed toward expanding high-speed internet access to more than 50,000 Kansans, ensuring reliable, affordable broadband for all residents.

Digital Equity

KOBD received federal approval of the first Kansas Digital Equity Strategic Plan and began to implement it with our award allocation of $8.2 million. This funding will ensure that every Kansan can access and adopt the technology needed to support workforce, education, telehealth and agriculture.

BROADBAND ACCELERATION GRANTS (BAG) 1.0,

Broadband Acceleration

In 2024, KOBD awarded 14 projects for broadband infrastructure through the Broadband Acceleration Grant funded through the IKE transportation program. The awards will support the broadband infrastructure in economically distressed counties and connect 3,006 locations. Since implementation in 2020, this state program has deployed $25 million to connect 9,107 locations.

3,006 HOMES,

OFFICE OF INNOVATION

LEADERSHIP NOTE

In today’s rapidly evolving global economy, ensuring that Kansas continues to “punch above its weight class” requires the continued support of commercialization and the transfer of cutting-edge technologies, a vibrant innovation ecosystem, and disruptive ideas that will cement our global competitiveness. This vision underpins the work of the Office of Innovation.

In 2024, the office’s legacy of success continued by helping to bring 12 new ideas to life through the KITE Proof of Concept and Small Business Research and Development Accelerator (SBRDA) grant programs. Capital flowed to Kansas companies, totaling more than $12 million, thanks to programs like the Kansas Angel Investor Tax Credit (KAITC). This funding was made possible by 143 investors who utilized KAITC to breathe new life into 23 companies, now on their way to making an impact on the global market.

As the new Chief Innovation and Strategy Officer (CISO), I am grateful and humbled by the opportunity to drive the office’s bold vision for the future. I understand that bold actions lead to transformative results, and I am resolute in my determination to lead a team that firmly establishes Kansas as a global hub for bold ideas, innovation, and entrepreneurship. With an energized team, the office will intensify engagement with ecosystem stakeholders to ensure that our innovation ecosystem is empowered, incentivized and collaborative, fostering a growing and competitive economy in Kansas. The innovation potential of Kansas lies in its unique strengths. The office aims to harness these strengths to create high-value industries, attract investments and generate new opportunities for Kansans.

5

$125,000

7

$175,000

TOP 3 ACCOMPLISHMENTS

Engineering Higher Education Matching (EHEM) Program

The Engineering Higher Education Matching (EHEM) Program, established through HB 2292, represents a bold investment by the State of Kansas to align engineering education with the economic development priorities of the state. With $1.5 million in funding allocated in 2024, the program supports accredited engineering programs at Benedictine College, Friends University and the University of Kansas. By enhancing these programs, EHEM ensures a steady pipeline of highly skilled engineers equipped with advanced capabilities to meet the demands of Kansas industries.

State Tour

The Kansas Office of Innovation spent time this fall visiting key stakeholders in Kansas’ innovation ecosystem. The tour gave the Innovation team the opportunity to connect with universities, incubators and economic development organizations that support the innovation ecosystem. These connections are being used to help develop strategies aimed at rebuilding the innovation ecosystem and educating stakeholders about the critical role the state can play in fostering and sustaining innovation. By doing so, Kansas is positioning itself to become a leader in innovation.

FORGE Program

The Kansas Fostering Opportunities for Research, Growth, and Entrepreneurship (FORGE) program, was created in the spring of 2024 and designed to support and accelerate innovation ventures within state universities, ultimately creating new economic activity in Kansas. This pilot program supports projects that boost technology commercialization, strengthen university-industry partnerships, launch faculty and student ventures, and expand industry access to university resources. Each of the six state universities received funding to define and enhance their roles within Kansas’ innovation ecosystem, including developing “front door” services that make university resources more accessible to external partners. These services are crucial for streamlining connections between businesses and university expertise, facilitating smoother collaboration, and maximizing the impact of research and innovation on economic growth. 1 2 3

$3,765,226

143

$12,317,502

OFFICE OF RURAL PROSPERITY

Since Governor Kelly established the Kansas Office of Rural Prosperity (ORP) in 2019, we have been dedicated to developing impactful programs that empower rural communities to achieve economic prosperity. Our initiatives have fostered collaboration, resulting in the restoration of downtown buildings, the creation of new art and gathering spaces, and the revitalization of the ROZ program to attract new residents. Additionally, we’ve launched award-winning initiatives that address the pressing challenges faced by rural Kansas.

In 2024, ORP awarded nearly $3.6 million in grants. Even more important is the nearly $5.4 million in matching funds contributed by local communities through programs such as HEAL, Rural Champions, ROZ, SEED and Rural Murals, generating an economic impact of almost $9 million across rural Kansas. Collaborations with federal partners at USDA and EDA, as well as philanthropic partnerships with the Patterson Family Foundation, increase this impact to nearly $10 million in rural communities within a single year.

Looking to the future, ORP is committed to deepening its understanding of rural challenges and building upon this success. We are streamlining our programs to facilitate more accessible state funding for rural communities. Through initiatives such as Rural Champions, our team is dedicated to helping Kansans tackle their toughest issues while continually developing new ideas to enhance the quality of life and prosperity in rural Kansas. Ultimately, we aim to empower a grassroots network of Kansans ready to tackle community projects across the state.

91 COUNTIES WITH ORP PROJECTS

14 RURAL CHAMPIONS

20 NEW MURALS IN RURAL COMMUNITIES

12 SEED GRANT AWARDS

1 2

Silver Awards

At the 2024 International Economic Development Council (IEDC) annual conference, the Office of Rural Prosperity received two Silver Awards for the Rural Champions Program — one for Most Innovative Economic Development Program and another for Best Cross Border or Regional Collaboration Project. These international honors highlight how rural Kansans, working with resource partners, can tackle even the most daunting challenges together.

ROZ Program

In 2024, significant processes were improved for the Rural Opportunity Zone (ROZ) Student Loan Repayment program. Our team recognized the need to enhance this program to better serve rural communities to effectively attract new residents. Incorporating feedback from the legislature and the Legislative Post Audit process, we simplified the ROZ application, making it more accessible for new graduates and traveling professionals looking to make Kansas their home. With these improvements, we can now align the ROZ program with the Love, Kansas marketing campaign, promoting the benefits of returning to rural Kansas.

3

Reaching New Communities

Identifying barriers to prosperity in rural communities is a key priority for ORP. This year, we secured an EDA grant to study why some rural areas haven’t received funding from Commerce, whether due to lack of applications or other obstacles. The findings will help Commerce streamline state-funded programs and processes, making them more accessible to rural communities, ensuring economic success across all of Kansas.

OFFICE OF RURAL PROSPERITY PROJECTS AND INITIATIVES

HEAL

SEED

Champions

Rural Murals

County, City, Employer, & Foundation Sponsors

City, Employer, & Foundation Sponsors Only Not ROZ

399 CURRENT ROZ PARTICIPANTS

166 NEW ROZ APPLICANTS

28 BUILDINGS SAVED WITH HEAL PROGRAM

$3.5M TOTAL GRANT AWARDS

OPERATIONS

LEADERSHIP NOTE

Supporting the state’s record-breaking capital investment and economic growth, the operations teams had an exceptional year. Fiscal, IT, HR, Regulatory Compliance, AJLA and the Athletic Commission all contributed significantly to the great success of our agency.

Attracting and retaining top talent is the hallmark of a successful organization. Our HR team had another banner year supporting the agency through 89 new employee orientations and 1,488 candidate applications processed to ensure the right candidate got the job.

Fiscal maintained its prompt efficient and customer-friendly service despite absorbing additional workloads as the agency continues to grow. More than 6,600 payments were processed accurately this year. Ensuring our federally funded workforce programs are operating in a lawful manner, Regulatory Compliance ensured Workforce Services received positive audits from U.S. Department of Labor.

Legal had an extremely successful and busy year. Over 1,240 contracts, grants and addendums were drafted, reviewed and processed. Over 15,000 individual DocuSign recipients benefited from this work. Several dozen KORA requests were handled and 25 new Reinvestment Housing Incentive Districts were approved and established. STAR Bond business is booming with several large projects (over $400M) being worked. Just as importantly, smaller, but equally impactful, rural projects are being worked across the state. We currently have 19 active STAR Bond projects.

The Athletic Commission, established to safely regulate and promote combat sports within Kansas, supervised 59 combat sports events without the loss of life or limb! The Athletic Commission is always in search of innovative opportunities for new types of events.

100 NEW EMPLOYEE ORIENTATIONS

12 NEW INTERNS

2,060 CANDIDATE APPLICATIONS PROCESSED

TOP 3 ACCOMPLISHMENTS

STAR Bonds

The STAR Bond program is booming! The team participated and assisted in 11 visitation and feasibility studies for potential STAR Bond projects. These projects are all based on tourism-related attractions and improve quality of life in Kansas. They have an aggregate potential capital investment of several billion dollars and are geographically located across the state. Recent groundbreaking ceremonies have been held at Homefield in Wyandotte County and at Bluhawk in Overland Park.

Supporting Sunflower Summer

The Sunflower Summer program encouraging Kansans to visit tourist attractions and cultural wonders in Kansas was a tremendous success. Legal and fiscal services supported this initiative by drafting and processing several hundred grant agreements, along with several thousand payments, to individual attractions across the state.

AJLA Cloud Transition

AJLA announced that, in partnership with AWS and Scale Capacity, the critical planning and assessment phases of its cloud transition have been successfully completed. This marks a significant milestone in scaling infrastructure to meet the growing demands of workforce data systems. The deployment phase began on October 7, with the target completion for America’s JobLink (AJL), ajla.net, and the Federal Employment Data Exchange System (FEDES) projected for Quarter 4 of 2024. Following closely, the CertLink deployment will commence in Quarter 1, 2025, ensuring a smooth and progressive migration of services. 1 2 3

2,946 SERVICE DESK TICKETS RESOLVED

8,773 FISCAL PAYMENTS PROCESSED

540 LIVE CHAT CONVERSATIONS

98% POSITIVE LIVE CHAT RATING

QUALITY PLACES

LEADERSHIP

In 2024, Commerce reorganized several of its key program areas to be housed in the Quality Places Division. The new division is made up of the Community Development Block Grant (CDBG) program, Quality Places Specialists, Housing, Kansas Main Street, Office of Broadband Development, and the Office of Rural Prosperity.

The Quality Places Division has played a pivotal role in enhancing the state’s communities through strategic investments and initiatives that improve livability, economic growth and sustainability. The division has focused on fostering vibrant, connected and attractive places across Kansas by promoting community development projects, enhancing infrastructure, and supporting revitalization efforts in both rural and urban areas.

A key achievement has been the collaboration with the Office of Rural Prosperity (ORP), and addressing the unique challenges faced by rural communities. Every team within the division has worked closely with ORP to support initiatives that improve access to healthcare, education and broadband internet in rural areas.

The division has worked with the Office of Broadband Development to expand high-speed internet access across Kansas. This initiative has been particularly important for rural and underserved communities, enabling them to participate more fully in the digital economy, access remote work opportunities, and improve educational outcomes.

Quality Places has also supported workforce housing development efforts across the agency. The division has worked to address housing shortages in growing communities to ensure that Kansas remains attractive to a diverse range of businesses and talent.

Through these initiatives, the Quality Places Division has strengthened Kansas’ ability to attract investment, retain residents, and foster a sense of community pride, positioning the state for long-term prosperity.

30 DESIGNATED MAIN STREET COMMUNITIES

$13,363,731 AWARDED FOR COMMUNITY DEVELOPMENT BLOCK GRANTS

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Community Development Block Grant - Regional Water Project

The first regional water project for rural Kansas is moving forward, with a $7.8 million investment, including a $1 million grant from the CDBG program, and additional funding support from KDHE. The project aims to ensure long-term water security for the City of Caney by purchasing water from the City of Coffeyville. To achieve this, 14 miles of pipeline will be installed, running from Caney’s elevated water storage to Coffeyville’s 12-inch water main. At Commerce, regional water projects will remain a priority in 2025, with this initiative playing a crucial role in addressing communities’ water needs.

Community Service Tax Credit

Commerce awarded 36 non-profit organizations Community Service Tax Credits totaling $4,099,858. Each project addresses unique community needs, from modernizing infrastructure to enhancing cultural and recreational resources. The awarded projects include initiatives such as replacing city pool facilities, expanding and renovating community libraries, historic preservation efforts, and expanding arts facilities and senior care services.

ROOMS Program

Kansas Main Street has made significant strides in revitalizing our downtown areas through the Residential Opportunities on Main Street (ROOMS) grant program.

This year, eight Designated communities were each awarded a $50,000 ROOMS grants, aimed at transforming underutilized upper floors of downtown buildings into vibrant housing units. These projects are expected to yield more than 40 new housing units, addressing critical housing shortages and attracting residents to our historic downtown districts. Additionally, these grants will catalyze approximately $5.9 million in private reinvestment, further boosting local economies and driving ongoing development efforts. By bringing new life to Kansas downtowns, Kansas Main Street is not only preserving the character of our communities but also fostering sustainable economic and residential growth.

$4,099,858 AWARDED BY COMMUNITY SERVICE TAX CREDITS

$500,000 AWARDED BY INDIVIDUAL DEVELOPMENT ACCOUNT TAX CREDITS

$75,000 AWARDED IN STARTUP HOUSING OPPORTUNITY VENTURE LOAN LOANS

BY THE NUMBERS

32,217 STUDENT PARTICIPATION IN WORK BASED LEARNING

WORKFORCE DEVELOPMENT

LEADERSHIP NOTE

Workforce Services play a pivotal role in supporting the Kansas economy and boosting community prosperity. An unemployment rate of just 3.5% is certainly commendable. The Workforce Services Division (KANSASWORKS) links businesses, job candidates and educational institutions to ensure that employers can find skilled workers and workers can find employment opportunities. The division accomplishes this by partnering with Local Workforce Development Boards (LWDB), other state agencies, and a variety of community-based partners.

The KANSASWORKS Workforce System includes workforce centers located throughout the state whose goal is to connect Kansas businesses with jobseekers in their area. Additionally, KANSASWORKS offers jobseekers assistance with job seeking, interviewing, resumes, labor market information, and skills assessment.

KANSASWORKS offers a robust pool of resources to aid the unemployed and underemployed in finding and returning to work via programs like the Workforce Innovation and Opportunity Act, RETAINWORKS, and Ticket to Work.

KANSASWORKS is more than just a stopgap for unemployment; it is the cornerstone of a community’s strength and resilience. In 2024, KANSASWORKS hosted 13 statewide virtual job fairs along with 480 in-person job fairs with 7,797 jobseekers in attendance.

During the later part of 2024, General Motors’ Fairfax plant shut down for retooling to prepare for their new production line. This is impacting GM’s workforce along with several suppliers in the region. Our team is delivering focused support to affected employees and suppliers, ensuring they have access to essential resources and services. This includes sharing Rapid Response information through in-person meetings and informational packets, organizing specialized job fairs, providing resume assistance, and connecting individuals with training opportunities to facilitate a smooth transition. Our collaborative efforts are designed to minimize disruptions and create pathways to new employment opportunities.

98 SCHOOL DISTRICTS ENGAGED IN WORK BASED LEARNING

219 SCHOOLS ENGAGED IN WORK BASED LEARNING

6,069 KANSAS BUSINESSES ENGAGED IN WORK BASED LEARNING

TOP 3 ACCOMPLISHMENTS

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Registered Apprenticeship

2024 saw our Kansas Office of Registered Apprenticeship continue a trend of significant growth. Kansas jumped 10 spots to #29 in the nation in terms of total new apprentices, following a statewide increase of 47% over last year. Our active apprentices also increased by 23%. We continue to make great strides in expanding apprenticeship opportunities, especially in the healthcare, advanced manufacturing and construction industries.

Work-Based Learning Initiative

The Kansas Work-Based Learning Initiative is a multi-faceted network of resources designed to help acquaint students with a variety of career possibilities based on their specific interests, skills and goals. The career awareness objective utilizes guest speakers, field trips, tours and more to introduce students to career options which they might not have otherwise been aware. Career exploration allows for more hands-on experiences like job shadowing and mock interviews to give students a chance to try out those different careers. Finally, career preparation can place students into internship or apprenticeship programs, as well as simulate work-based experience. When taken all together, these tracks can forge a path to gainful post-education employment.

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Justice-Involved Programs

KANSASWORKS continues to expand the services offered to justice-involved individuals through programs like ReSpECTWORKS (Reentry Specialized Employment Counseling and Training) and PROWD (Partners for Reentry in Workforce Development). The programs provide employment and training services to youth and adults while detained in Kansas correctional facilities and after release to the community. In the coming program year, similar employment and training assistance will be introduced at the Topeka Correctional Facility. As of June 30, 2024, 80 percent of our ReSpECTWORKS participants have found gainful employment post-incarceration.

664,265 INDIVIDUALS ENGAGED ON KANSASWORKS.COM

127,834 JOBSEEKERS SERVED

542,105 WORKFORCE SERVICES PROVIDED

96,199 EMPLOYERS SERVED

LEGISLATIVE HIGHLIGHTS

LEADERSHIP NOTE

Commerce continues to engage elected officials at the local, state and federal levels of government. We value those partnerships as we work to make Kansas the best place in the country to do business. We strive to be transparent, accessible and responsive. Over the course of the next year, we will advocate for policies that promote economic development and thriving communities. The 2024 session proved to be similar to previous sessions. We appreciate the bipartisan support shown for expanding the STAR Bonds program and allowing the agency to have the resources needed to carry out our strategic plan. We look forward to continuing conversations about economic development and how to strengthen the Kansas economy.

HB 2001 (SPECIAL SESSION) STAR BOND STADIUM LANGUAGE SIGNED INTO LAW

• Allows for up to two professional sports franchise (NFL or MLB) STAR Bond projects

• These projects must include a stadium of not less than 30,000 seats and a capital investment of at least $1 billion

• The STAR Bond agreement must be approved by the Legislative Coordinating Council (LCC), and this new expansion of STAR Bonds will sunset on June 30, 2025

SB 28 STAR BOND AMUSEMENT PARK LANGUAGE SIGNED INTO LAW (BUDGET BILL)

• Expands the STAR Bond program to include amusement park rides

BUDGET ENHANCEMENTS APPROVED (BUDGET BILLS)

• Micro-Internship Expansion - $500,000

• Housing and Workforce Development Program - $2M

• Kansas Arts Commission - $500,000

• Swope Health Project - $4.5M

• World Cup - $28M

AWARDS AND ACCOLADES

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GOLD SHOVEL

Kansas earned Area Development magazine’s coveted Gold Shovel Award for the fourth year straight year. The latest accolade — without precedent in state history — reflects the economic development success the state has experienced since 2019. Since that time, Kansas has created 1,180 new economic development projects worth almost $20 billion in committed private sector investment and created and retained more than 69,000 jobs statewide. (June 2024)

THREE GOLD AWARDS

Kansas Tourism won three Gold Awards from the International Regional Media Association for KANSAS! magazine. All three were for creative work in the “Notorious” issue, which delved into Kansas’ history of rebels with a cause. (June 2024) Gold Awards were given for:

• Custom Caricature Illustrations

• Magazine Cover

• Historic Feature

The magazine also earned honors for Art Direction of a Single Story, and the magazine itself was a finalist for Magazine of the Year.

TWO SILVER AWARDS

The Kansas Department of Commerce’s Office of Rural Prosperity (ORP) received two 2024 Excellence in Economic Development Silver Awards from the International Economic Development Council (IEDC) for the Rural Champions program. The awards were given specifically for the department’s work in the Innovative Economic Development and Regional or Cross-Border Partnership categories that impacted rural communities. IEDC said the execution of these projects has a significant impact on revitalizing communities and playing a major role in shaping and improving the practice of economic development in every region of Kansas. (September 2024)

FOUR MARKETING AWARDS

Kansas Tourism earned four awards for innovative destination marketing from the North American Travel Journalists Association during its annual competition. (March 2024) Awards were given for:

• Destination of the Year – Kansas Tourism, for its overall marketing campaigns, including all the brand messaging of To The Stars, the To The Stories video and the Home on the Range project.

• Creative Marketing Campaign, Gold Award – Home on the Range, which celebrated the uniqueness of Kansas through a series of videos set to the state’s iconic song and featured images of the state’s diverse landscapes and vibrant culture.

• Destination Video, Bronze Award – Capturing Kansas: The Gordon Parks Legacy, which explores the faces and places that make Kansas an incredible place to visit and live.

• Travel Guide, Honorable Mention – Kansas Official Travel Guide 2023, which invites readers to explore the Sunflower State’s diverse things to do, including attractions, museums, dining, accommodations, historic sites and outdoor adventures.

2024 SUCCESSES

Kansas brings home the Gold Shovel Award for the fourth straight year.

Governor Kelly announces Elanco to invest $130M and create 70 jobs in Elwood.
KANSAS! Magazine earns international attention and awards.
Kansas launches national Love, Kansas campaign to attract and retain talent.
This year’s Minority Enterprise Development week awards gala takes place in Hugoton.
Kansas Tourism hits the road with its new mobile visitors center.
Governor Kelly celebrates the 2023 Governor’s Exporter of the Year: Tank Connection in Parsons.
Commerce announces first regional water project for rural Kansas.
Orange EV in Kansas City is powering the Kansas drive to a sustainable transportation future.
Kansas Main Street selects eight rural communitites for new upper-level housing grant.

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