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Released: May 11, 2001

Report Outlines Prosperity Of Kansas Residents

MANHATTAN, Kan. – A new study from Kansas State University shows that residents of Johnson County continue to prosper at the highest rate in the state, but residents of other counties also are doing quite well.

The report on Kansas’ Strength Index (SI) – a measure of economic prosperity – also indicates that "as in times past, the state [as a whole] is in transition," said K-State community development economist David Darling.

"The old and dependable sources of jobs and income – including production agriculture, value- added agriculture, oil and gas mining, and manufacturing of transportation products – will not drive the state’s or any county’s economy forward at the new pace set by the knowledge-based industries," said Darling, who developed the report with graduate student Lakshmi Reddyreddy.

"Many communities have to rebuild their local economy from the ground up, starting with new broadband connectivity. This can be a problem unless the major [local] telecommunications utility cooperates. Now, more than ever before, community leaders must think and act strategically," he said.

Darling’s strength index measures the prosperity of people living in each of the state’s 105 counties. It combines three other state measures:

* The Wealth Index is a ratio of per capita wealth of county residents, compared to per capita wealth of everyone living in Kansas.

* The Employment Index is a ratio of a county’s employed population, divided by the county’s total population. That number is then divided by the same ratio for all state residents.

* The Personal Income Index is a ratio of per capita income in a county, compared to the state’s per capita income.

Darling uses data gathered for the yearly SI report and other statistical bulletins to help community development leaders measure and monitor economic progress. This year’s report uses income data for 1999 and wealth and employment data for 2000.

Johnson County is a runaway leader in economic strength. The county’s strength index is 4.62, well ahead of second place Saline County at 3.19.

"Saline County is an interesting case study," Darling said. "Johnson County’s economy is driven by business and communication services, wholesale trade, finance, insurance, and real estate. Saline County relies more heavily on manufacturing. Both have built their retail base, and both have strong construction sectors."

Saline County ranks in the top 10 in the study’s wealth and personal income index and 11th in the employment index.

Some of the other examples in Kansas include:

* Jackson County, where residents benefit from high employment in the Native American gaming industry. Jackson’s employment index of 1.51 is the highest in the state.

* Douglas County, where residents benefit from their location on Hwy. 10 and the Kansas Turnpike. The county is experiencing a buildup of private sector businesses and industries.

* Sheridan County, where residents benefit mostly from one large factor: irrigated agriculture. In Kansas, that’s representative of many rural counties. Darling said residents in those counties often also benefit from government payments to farmers.

Ellis County in central Kansas is "an island of prosperity," Reddyreddy said. While its residents benefit from economic factors that rank it in the strength index top 10 (2.98), six neighboring counties (Barton, Russell, Rush, Trego, Rooks and Osborne) fall into the lower half of the measure.

A similar trend is seen in southwest Kansas where more sparsely populated Gray County has a higher strength index (2.85) than neighboring Finney (2.35) and Ford (2.31) counties.

Thus, "Not all high-ranking counties are job centers," Reddyreddy said.

She added that northeast Kansas counties around Johnson County are more prosperous, according to this year’s findings, while "a cluster of counties" in southeast Kansas are ranked at the low end of the measure. Riley and Pottawatomie counties in north central Kansas have gained strength, while several counties in southwest Kansas have lost economic strength.

The full report is available on-line at http://www.agecon.ksu.edu/ddarling. Or, interested persons may call Darling at 785-532-1512.

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K-State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well-being of Kansans. Supported by county, state, federal and private funds, the program has county Extension offices, experiment fields, area Extension offices and regional research centers statewide. Its headquarters is on the K-State campus, Manhattan.

Story by:
Pat Melgares, News Coordinator

pmelgare@oznet.ksu.edu
K-State Research & Extension News

Additional Information:
David Darling is at 785-532-1512