Categories: 2014 Best & Worst States

Kansas is the 26th Best State for Business 2014

Previous State: Kentucky Next State: Ohio

No. 26 Kansas

Taxations & Regulations

Workforce Quality

Living Environment

Key Metrics
State GDP % Growth ’12-’13: 1.9 % Growth ’11-’12 v. Nat’l Avg. (2.5%): -1.1 Unemployment Unemployment Rate Dec. 2013 %: 4.9 Comparison with Nat’l Rate (6.70%): -1.8 Domestic Migration Domestic Net Migration 2013: -12,557 Rank: 42 State Government State Debt per Capita Fiscal Year ’13 ($): 2,648 State & Local Gov’t Employees per 10k Residents: 676.7 State-Local Tax Burden Rate (%): 9.7% Compared to Nat’l Avg. (9.9%): -0.21%

Key Metrics

State GDP

% Growth ’12-’13: 1.9
% Growth ’11-’12 v. Nat’l Avg. (2.5%): -1.1

Unemployment

Unemployment Rate Dec. 2013 %: 4.9
Comparison with Nat’l Rate (6.70%): -1.8

Domestic Migration

Domestic Net Migration 2013: -12,557
Rank: 42

State Government

State Debt per Capita Fiscal Year ’13 ($): 2,648
State & Local Gov’t Employees per 10k Residents: 676.7

State-Local Tax Burden

Rate (%): 9.7%
Compared to Nat’l Avg. (9.9%): -0.21%

Key Companies
Sprint Nextel Seabord Corp. YRC Worldwide

Development Trend Indicator: Neutral
Historic tax cuts may help job growth that is wobbling in relative terms.

CEO Comments
“Kansas just went to zero income tax on Sub S income; great idea which may not last. Excellent for business owners to have extra capital to reinvest in their businesses by lowering income taxes. In my opinion, we are on the lower end of regulation and bureaucracy. What really separates Kansas from my experience is the excellent work ethic and Christian and community values we find in the employees we recruit. The employees make the business.” “The cost of doing business on the east coast vs. Midwest is dramatically different. I continue to move jobs out of PA and into other operations in KS, NE and ND as the costs (healthcare, workers comp) are significantly higher and worker productivity levels are significantly lower. East Coast employees have learned how to game the system and the elected officials appear to be OK with this.”

CEO Comments

“Kansas just went to zero income tax on Sub S income; great idea which may not last. Excellent for business owners to have extra capital to reinvest in their businesses by lowering income taxes. In my opinion, we are on the lower end of regulation and bureaucracy. What really separates Kansas from my experience is the excellent work ethic and Christian and community values we find in the employees we recruit. The employees make the business.”

“The cost of doing business on the east coast vs. Midwest is dramatically different. I continue to move jobs out of PA and into other operations in KS, NE and ND as the costs (healthcare, workers comp) are significantly higher and worker productivity levels are significantly lower. East Coast employees have learned how to game the system and the elected officials appear to be OK with this.”

Based on CEO Survey by ChiefExecutive.net

Sources:
Bureau of Economic Analysis
Bureau of Labor Statistics
NewGeography.com
The Tax Foundation

J.P. Donlon

J.P. Donlon is Editor Emeritus of Chief Executive magazine.