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. Leveraging our Foundations & Designing the Future: A Kansas Economic Renaissance Ren·ais·sance a renewal of life, vigor, interest; rebirth; revival 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 Consumer Sentiment Energy Agriculture Industry Concentration Economic Trends Productivity Indicators of the Kansas Economy Taxation Workforce Development Image Funding 2007 Strategic Planning

5. Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 1 st Meeting Steering Committee Strategic Plan Kickoff 2 nd Meeting Steering/Cell/Policy Committee Strategic Planning: The Process 200620072008 Presentation to Governor & Legislature Kansas, Inc. Board Approval Final Meeting Steering/Cell/Policy Committee Statewide Cell Meetings Academic & Policy Resource Team – Provide insight throughout process 2007 Strategic Planning Strategic Tactical

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. 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 Guiding Principles Articulated Throughout the State 2007 Strategic Planning

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

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 Rural Development & Agriculture Manufacturing Energy & Natural Resources Professional, Scientific & Technical Services 2007 Strategic Planning

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

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

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

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

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

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

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

23. Image Workforce Development Business & Tax Climate Infrastructure Entrepreneurship Initiative Education Technology & Innovation Manufacturing Energy & Natural Resources Professional, Scientific, & Technical Services Rural Development & Agriculture Bioscience S trength T hrough A ligned R esources 2007 Strategic Planning

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

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

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

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

32. Image Workforce Development Business & Tax Climate Infrastructure Entrepreneurship Initiative Education Technology & Innovation Manufacturing Energy & Natural Resources Professional, Scientific, & Technical Services Rural Development & Agriculture Bioscience S trength T hrough A ligned R esources Kansas’ STAR Advantage 2007 Strategic Planning