Comparing employment, population and income across Kansas and the United States

Research Report Supplemental Industry Cluster Information for the Kansas Military Analysis Comparing employment, population and income across Kansas and the United States Jeremy Hill, Director Debra Franklin, Regional Labor Force Analyst Kasey Jolly, Regional Economic Analyst Mary Jane Townsend, Research Associate Prepared for November 2009

About the Governor s Military Council The Governor s Military Council fosters cooperation between the installations and private and public sectors, and pursues initiatives to enhance the quality of life for all military personnel, active and retired. The council also assists in the development, coordination and execution of strategy required by any future change in missions proposed by the Department of Defense. The Council was established by Executive Order and has been charged to initiate, act upon and consider all necessary strategies to: Optimize the military presence in Kansas, including recruitment and retention of new missions and force structure; Actively foster close, effective cooperation among the installations and public and private sectors throughout the state; Pursue initiatives to enhance the quality of life for all military personnel, including active and retired; Promote Kansas as a desired location for all Department of Defense retirees; Assist in the transfer of technology between the military and the private sector to enhance the competitive posture of both in the national and global market; Explore and develop outreach opportunities for individuals retiring from military service to use their talent as members of the Kansas workforce; and Assist in the development, coordination and execution of strategy required by any future change in missions proposed by the Department of Defense. Members Governor Mark Parkinson Chairman, Topeka John Armbrust Executive Director Governor's Military Council Manhattan Lt. General Robert Arter (retired) Armed Forces Bank Fort Leavenworth Colonel George Boyd Civil Air Patrol, Wichita Senator Sam Brownback U.S. Senator Major General Tod Bunting Adjutant General, Topeka Mark Edwards Hoover Schermerhorn Edwards Pinaire & Rombold Junction City Neil Fisher Kansas Building Systems Topeka Pat Gallaher Wichita Metro Chamber of Commerce Alonzo Harrison HDB Construction, Topeka Rep. Tom Hawk State Representative Manhattan Congresswoman Lynn Jenkins U.S. Representative Doug Kinsinger Greater Topeka Chamber of Commerce/GO Topeka Sen. Kelly Kultala State Senator, Kansas City John Montgomery The Daily Union, Junction City Congressman Dennis Moore U.S. Representative John E. Moore Former Lt. Governor and Past GMC Chair, Wichita Congressman Jerry Moran U.S. Representative Sen. Lana Oleen (retired) Manhattan Aaron Otto Office of State Treasurer Dennis McKinney, Topeka Jerry Reilly Reilly and Sons, Inc. Leavenworth Sen. Roger Reitz State Senator, Manhattan James C. Remsberg Wichita Senator Pat Roberts U.S. Senator Tim Rogers Salina Airport Authority, Salina Mike Shilling Shilling Construction Company Manhattan Robin Spurrier Spurrier Chemical Companies Wichita Scott Stuckey Old Trooper Regiment, Inc. Junction City Representative Lee Tafanelli State Representative, Ozawkie Congressman Todd Tiahrt U.S. Representative Colonel Robert R. Ulin (retired) Command & General Staff College / 5 th Region Association of the United States Army Lansing Linda Weis Weis Real Estate Company Manhattan

About Kansas, Inc. Created by the Legislature in 1986, Kansas, Inc. is an independent, objective, and non-partisan organization designed to conduct economic development research and analysis with the goal of developing policies and recommendations to ensure the state s ongoing competitiveness for economic growth. To attain our mission, Kansas, Inc. undertakes these primary activities: 1) Identifying, building, and promoting a Strategic Plan for economic development efforts in the State of Kansas; 2) To complement the Strategic Plan, Kansas, Inc. develops and implements a proactive and aggressive research agenda, which is used to identify and promote sound economic development strategies and policies; 3) Through collaboration and outreach with economic development entities and other potential partners, Kansas, Inc. conducts evaluation reviews and provides oversight of economic development programs to benchmark development efforts in the State of Kansas. Co-Chaired by the Governor, Kansas, Inc. is governed by a 17-member Board of Directors. Board members, as mandated by legislation, include four members of Legislative leadership, a representative from the Board of Regents, the Secretary of Commerce, the Commanding General of the Kansas Cavalry, a representative from labor, and eight other members from the private sector representing key Kansas industrial sectors. Private sector members are appointed by the Governor and confirmed by the Kansas Senate. Through analysis and open dialogue, Kansas, Inc. identifies policy options and builds the consensus essential for concerted action on vital economic issues. Kansas, Inc. is designed to be a public-private partnership with expectations that state investments are leveraged with other funds to maintain a strong research portfolio. Co-Chairs Governor Mark Parkinson Topeka Donna Johnson Pinnacle Technology, Lawrence Members Gene Argo American Rodeo Company, Hays Patti Bossert Key Staffing, Topeka Secretary David Kerr Kansas Department of Commerce, Topeka Wil Leiker AFL-CIO, Topeka Reginald Robinson Kansas Board of Regents, Topeka Stephen L. Waite Kansas Cavalry, El Dorado Rep. Tom Burroughs State Representative, Kansas City Rep. Lana Gordon State Representative, Topeka Sen. Tom Holland State Senator, Baldwin City Don Landoll Kansas Cavalry, Marysville Lawrence L. McCants First National Bank, Goodland John Pilla Spirit AeroSystems, Wichita Donald P. Schnacke P.A., Topeka Sen. David Wysong State Senator, Mission Hills Kansas, Inc. Staff Stan Ahlerich President Debby Fitzhugh Director of Operations Dan Korber Sr. Research Analyst

Table of Contents Kansas Military Summary of Findings...4 Active Duty, Reserve, and National Guard...5 Definition...5 Active duty, reserve and National Guard compared to the United States and compared to other Kansas Industry...5 Kansas military employment and wages compared to other states...10 Kansas military members and wages by county...14 Civilians...19 Definition...19 Civilian employment and wages...19 Military Retirees...21 Definition...21 Retiree Population and Payment...21 Veterans...24 Definition...24 Veteran Population and Expenditures...25 1

Table of Tables Table 1. Summary of Kansas 2007 Active, Reserve and National Guard Military Statistics...6 Table 2. Comparing Industry Employment in Kansas...7 Table 3. Comparing Industry Total Pay in Kansas...8 Table 4. Comparing Industry Average Annual Wage within Kansas...9 Table 5. Top 5 2007 Active, Reserve, National Guard Employment by State...11 Table 6. Top 5 Average Annual Active, Reserve and National Guard Member Growth by State...12 Table 7. Top 5 2007 Active, Reserve National Guard Member Income by State...13 Table 8. Top 5 2007 Active, Reserve, National Guard Income Growth by State...13 Table 9. Top 5 2007 Average Annual Active, Reserve, National Guard Pay by State...13 Table 10. Top 5 2007 Active, Reserve, National Guard Employment by County...15 Table 11. Top 5 Average Annual Active, Reserve, National Guard Employment Growth by County...16 Table 12. Top 5 2007 Active, Reserve, National Guard Pay by County...17 Table 13. Top 5 Active, Reserve, National Guard Pay Growth by County...17 Table 14. Top 5 2007 Average Annual Active, Reserve, National Guard Pay...18 Table 15. Top 5 2006 Civilian Personnel and Pay by State...21 Table 16. Top 5 2007 Military Retiree Population by State...23 Table 17. Top 5 2007 Military Retiree Payments by State...24 Table 18. Top 5 2007 Veteran Expenditures and Population by State...26 2

Table of Maps Map 1. 2007 Military Employment Concentration by State...11 Map 2. 2007 Military Pay Concentration by State...12 Map 3. 2007 Military Employment by County as a Percent of Total Kansas Military Employment...15 Map 4. 2007 Military Pay by County as a Percent of Total Kansas Military Pay...16 Map 5. 2007 County Average Annual Military Pay as a Percent of County Total Annual Average Pay, 2007...18 Map 6. 2006 Number of Military Civilians by State...20 Map 7. 2006 Total Military Civilian Pay by State...20 Map 8. 2007 Total Number of Retirees Receiving Department of Defense Pay by State...22 Map 9. 2007 Military Retiree Average Annual Pay from the Department of Defense...23 Map 10. 2007 Total Veteran Expenditures by State...25 Map 11. 2007 Veteran Population by State...26 3

Kansas Military Summary of Findings The,, was given the task of analyzing military activity within the state of Kansas. The objective is to analyze historical employment and income trends within Kansas counties, analyze the position of Kansas military employment and income compared to other states, and identify strengths and weaknesses associated with economic impacts from military employment activities. Notable findings are listed below: Kansas military employment 1 comprised nearly 2 percent of total Kansas employment in 2007 with more than 33,000 active duty, reserve and National Guard service members. Earnings of Kansas military service members were twice the level of concentration than that of the nation with a Kansas military earnings concentration ratio of 2 relative to the United States. Military service members earned more than $2.5 billion dollars in Kansas in 2007. Kansas military service personnel wages were $77,087, or 179.4 percent of the Kansas average wage ($42,965) in 2007. Kansas military membership grew 8.1 percent, the fastest of all geographies, between 2006 and 2007. Geary, Sedgwick, Leavenworth, Johnson and Shawnee counties each had more than 1,000 military service members in 2007. Geary County, Kansas, boasts the highest number of military personnel that are active duty, reserve or National Guard in 2007 in Kansas. More than 46 percent of all jobs in the county were active duty, reserve or National Guard members. More than 68 percent of all employee earnings in the county were paid to active duty, reserve or National Guard members. The highest average annual military service member wage in 2007 was in Leavenworth County, at more than $152,000. Kansas had more than 6,500 civilians working for military installations, receiving more than $373.1 million in wages in 2006. Total military retiree compensation in Kansas was $416.6 million in 2007. Total military veteran expenditures in Kansas were $678.3 million in 2007. In all, Kansas military service member, civilian, retiree and veteran expenditures totaled close to $4.3 billion in 2007. 2 1 Military employment, military jobs, military personnel and military service members refer to active duty, reserve and National Guard service members for the purpose of this study, unless otherwise noted. 2 Calculated based on 2007 military service member, retiree and veteran data and 2006 civilian data. 4

Active Duty, Reserve, and National Guard 3 Definition As defined by the Bureau for Economic Analysis, U.S. Department of Commerce: 4 The estimates of wages and salaries for the military services consist of the estimates of cash wages (including allowances) of full time personnel of the armed services (including the Coast Guard), the estimates of cash wages of the members of the Reserves including the National Guard, and the estimates of pay in kind received by the full time and reserve enlisted personnel of the armed services. Military employment is measured as the number of military personnel assigned to active duty units that are stationed in the area plus the number of military reserve unit members. The estimates of active duty employment for the Army, Air Force, Navy, Marine Corps, and Coast Guard are based on the annual averages of 12 monthly observations, for a given year, from reports received from each branch of service. Navy personnel assigned to ships and other mobile units and Marines assigned to Fleet Marine Force units are measured according to the units' home ports rather than their actual locations as of the reporting date. The measure of the employment of the military Reserves including the National Guard is confined to members of reserve units that meet regularly for training. The state estimates are based on fiscal year ending September 30 tabulations of military reserve pay provided by the Army, Air Force, Navy, Marine Corps, and Coast Guard. Active duty, reserve and National Guard compared to the United States and compared to other Kansas Industry The concentration of military personnel 5 within the state of Kansas is stronger than that of the United States as measured by an industry concentration ratio, or location quotient, of 1.62. Kansas military employment comprised nearly 2 percent of total Kansas employment in 2007 with more than 33,000 active duty, reserve and National Guard service members. U.S. service members comprised 1.1 percent of total U.S. employment in 2007. On average, active duty, reserve and National Guard service member employment increased by 1.2 percent per year for the past 10 years in Kansas. Nationally, military service members decreased over the 10 year time period from 1997 2007. In general, the activities of military service members play a stronger role in the economic vitality of Kansas than that of the nation, due to the higher employment concentration in Kansas. Kansas military employment grew by more than 2,400 active duty, reserve and National Guard service members in 2007. The increase in employment between 2006 and 2007 was faster than any other industry growth rate in the state of Kansas, at 8.1 percent. The military represented one of the smaller industry employers in Kansas, with 1.9 percent of all nonfarm employees. 3 Source: Regional Economic Information System, Bureau of Economic Analysis, US Department of Commerce; County Income CA05N, County Employment CA25N, State Income SA05N, State Employment SA25N 4 http://www.bea.gov/regional/definitions/nextpage.cfm?key=military 5 Military employment, military jobs, military personnel and military service members refer to active duty, reserve and National Guard service members for the purpose of this study, unless otherwise noted. 5

Active duty, reserve and National Guard service members payroll contributed to 3.3 percent of all nonfarm payrolls in the state of Kansas in 2007. Military service members earned more than $2.5 billion dollars in 2007. Payroll dollars to military service members have increased, on average, 14.6 percent each year since 1997. Income paid to Kansas military service members was twice the level of concentration than that of the nation. This indicates that military wages contribute to a larger portion of nonfarm payroll in Kansas than military wages contribute in the nation. Military sector earnings are small in comparison to other industry sectors within Kansas. Military payroll increased by more than 17 percent between 2006 and 2007; this is the highest payroll growth rate of any industry in the state for the same time period. Higher payroll earnings compared to employment levels indicate an above average wage. The average annual military service personnel wage in the U.S. in 2007 was $71,616. Military service personnel s average annual wage in 2007 in Kansas was $77,087, or 107.6 percent of the national wage. The average annual wage of an active duty, reserve and National Guard service member more than doubled between 1997 and 2007, increasing an average 12 percent each year. The average annual wage of military personnel is the fifth highest industry wage in Kansas behind utilities, management of companies, the federal civilian government and the information industry. Kansas military service personnel wages were 179.4 percent of the Kansas average wage ($42,965) in 2007. Table 1. Summary of Kansas 2007 Active, Reserve and National Guard Military Statistics Summary of Kansas 2007 Active, Reserve and National Guard Military Statistics* Number of Military Jobs 33,003 Percent of All Kansas Jobs 1.9% Level Change in Total Military Employment from 2006 2,476 Percent Change in Total Military Employment from 2006 8.1% Level Change in Total Military Employment from 1997 3,544 Percent Change in Total Military Employment from 1997 12.0% Average Annual Percent Change in Total Military Employment since 1997 1.2% Military Employment Concentration Ratio, with respect to the U.S. 1.62 Average Annual Military Pay $77,087 Total Mililtary Pay $2.5 billion Level Change in Total Military Pay from 1997 $1.5 billion Percent Change in Total Military Pay from 1997 146.5% Military Pay Concentration Ratio, with respect to the U.S. 2.00 *Jobs, Employment and Pay refer to active, reserve and national guard members. 6

Table 2. Comparing Industry Employment in Kansas Comparing Industry Employment In Kansas 2007 Industry Employment as a Percent of Total Nonfarm Employment 2006 2007 Employment Growth Average Annual Growth from 1997 2007 1997 2006 2007 Nonfarm employment 1,606,924 1,745,585 1,779,652 100.0% 2.0% 1.1% Forestry, fishing, related activities 9,329 9,207 9,261 0.5% 1.9% 0.1% Mining 19,913 22,344 23,134 1.3% 0.6% 1.6% Utilities 7,796 7,515 7,564 0.4% 3.5% 0.3% Construction 86,834 97,978 99,851 5.6% 0.7% 1.5% Manufacturing 200,091 189,321 192,544 10.8% 1.9% 0.4% Wholesale trade 67,875 65,096 66,697 3.7% 2.5% 0.2% Retail trade 199,478 194,051 194,338 10.9% 0.1% 0.3% Transportation and warehousing 54,806 57,786 59,002 3.3% 2.1% 0.8% Information 39,664 43,591 44,654 2.5% 2.4% 1.3% Finance and insurance 73,240 81,832 83,178 4.7% 1.6% 1.4% Real estate and rental and leasing 42,872 54,698 58,877 3.3% 7.6% 3.7% Professional, scientific, and technical services 72,137 89,511 91,036 5.1% 1.7% 2.6% Management of companies and enterprises 14,437 12,271 12,722 0.7% 3.7% 1.2% Administrative and waste services 72,823 93,354 98,519 5.5% 5.5% 3.5% Educational services 17,606 22,495 23,379 1.3% 3.9% 3.3% Health care and social assistance 154,025 178,742 182,448 10.3% 2.1% 1.8% Arts, entertainment, and recreation 21,546 27,168 26,905 1.5% 1.0% 2.5% Accommodation and food services 97,974 110,033 110,611 6.2% 0.5% 1.3% Other services, except public administration 85,338 98,124 98,561 5.5% 0.4% 1.5% Government and government enterprises 269,140 290,468 296,371 16.7% 2.0% 1.0% Federal, civilian 26,001 26,201 24,597 1.4% 6.1% 0.5% Military 29,459 30,527 33,003 1.9% 8.1% 1.2% State and local 213,680 233,740 238,771 13.4% 2.2% 1.2% 7

Table 3. Comparing Industry Total Pay in Kansas Comparing Industry Total Pay In Kansas 2007 Industry Pay as a Percent of Total Pay 2006 2007 Pay Growth Average Annual Growth from 1997 2007 1997 2006 2007 Income in $1,000's Nonfarm earnings $45,464,151 $72,209,365 $76,462,291 100.0% 5.9% 6.8% Forestry, fishing, related activities $129,315 $255,099 $280,609 0.4% 10.0% 11.7% Mining $489,804 $1,389,058 $1,571,466 2.1% 13.1% 22.1% Utilities $520,143 $730,882 $792,166 1.0% 8.4% 5.2% Construction $2,617,720 $3,935,188 $4,048,734 5.3% 2.9% 5.5% Manufacturing $8,564,572 $13,031,005 $13,449,900 17.6% 3.2% 5.7% Wholesale trade $2,690,875 $3,934,179 $4,198,785 5.5% 6.7% 5.6% Retail trade $3,338,061 $4,520,060 $4,679,951 6.1% 3.5% 4.0% Transportation and warehousing $1,976,990 $2,629,570 $2,760,236 3.6% 5.0% 4.0% Information $1,770,008 $3,398,973 $3,731,033 4.9% 9.8% 11.1% Finance and insurance $2,348,796 $3,927,021 $4,190,947 5.5% 6.7% 7.8% Real estate and rental and leasing $604,718 $1,049,108 $1,041,398 1.4% 0.7% 7.2% Professional, scientific, and technical services $2,520,170 $4,845,160 $5,291,216 6.9% 9.2% 11.0% Management of companies and enterprises $834,663 $1,074,292 $1,140,269 1.5% 6.1% 3.7% Administrative and waste services $1,417,171 $2,634,179 $2,860,610 3.7% 8.6% 10.2% Educational services $295,339 $480,968 $521,155 0.7% 8.4% 7.6% Health care and social assistance $4,158,888 $6,754,394 $7,200,327 9.4% 6.6% 7.3% Arts, entertainment, and recreation $223,993 $297,898 $312,390 0.4% 4.9% 3.9% Accommodation and food services $1,188,107 $1,751,968 $1,775,006 2.3% 1.3% 4.9% Other services, except public administration $1,441,562 $2,081,823 $2,225,776 2.9% 6.9% 5.4% Government and government enterprises $8,333,256 $13,488,540 $14,390,317 18.8% 6.7% 7.3% Federal, civilian $1,515,743 $2,165,474 $2,140,546 2.8% 1.2% 4.1% Military $1,032,239 $2,171,946 $2,544,087 3.3% 17.1% 14.6% State and local $5,785,274 $9,151,120 $9,705,684 12.7% 6.1% 6.8% 8

Table 4. Comparing Industry Average Annual Wage within Kansas Comparing Industry Average Annual Wage In Kansas 2007 Average Annual Industry Wage as a Percent of Average Annual Total Nonfarm 1997 2006 2007 Wage 2006 2007 Average Annual Industry Wage Growth Average Annual Industry Wage Growth from 1997 2007 Nonfarm employment $28,293 $41,367 $42,965 100.0% 3.9% 5.2% Forestry, fishing, related activities $13,862 $27,707 $30,300 70.5% 9.4% 11.9% Mining $24,597 $62,167 $67,929 158.1% 9.3% 17.6% Utilities $66,719 $97,256 $104,728 243.8% 7.7% 5.7% Construction $30,146 $40,164 $40,548 94.4% 1.0% 3.5% Manufacturing $42,803 $68,830 $69,854 162.6% 1.5% 6.3% Wholesale trade $39,645 $60,437 $62,953 146.5% 4.2% 5.9% Retail trade $16,734 $23,293 $24,082 56.0% 3.4% 4.4% Transportation and warehousing $36,073 $45,505 $46,782 108.9% 2.8% 3.0% Information $44,625 $77,974 $83,554 194.5% 7.2% 8.7% Finance and insurance $32,070 $47,989 $50,385 117.3% 5.0% 5.7% Real estate and rental and leasing $14,105 $19,180 $17,688 41.2% 7.8% 2.5% Professional, scientific, and technical services $34,936 $54,129 $58,122 135.3% 7.4% 6.6% Management of companies and enterprises $57,814 $87,547 $89,630 208.6% 2.4% 5.5% Administrative and waste services $19,460 $28,217 $29,036 67.6% 2.9% 4.9% Educational services $16,775 $21,381 $22,292 51.9% 4.3% 3.3% Health care and social assistance $27,001 $37,789 $39,465 91.9% 4.4% 4.6% Arts, entertainment, and recreation $10,396 $10,965 $11,611 27.0% 5.9% 1.2% Accommodation and food services $12,127 $15,922 $16,047 37.3% 0.8% 3.2% Other services, except public administration $16,892 $21,216 $22,583 52.6% 6.4% 3.4% Government and government enterprises $30,963 $46,437 $48,555 113.0% 4.6% 5.7% Federal, civilian $58,296 $82,649 $87,025 202.5% 5.3% 4.9% Military $35,040 $71,148 $77,087 179.4% 8.3% 12.0% State and local $27,074 $39,151 $40,649 94.6% 3.8% 5.0% 9

Kansas military employment and wages compared to other states The largest numbers of active duty, reserve and National Guard members serve in the state of California with more than 218,000 members in 2007. New Hampshire had the fewest service members in 2007 with 3,943. Kansas ranked 22 nd in total active duty, reserve and National Guard members employed when compared to other states and the District of Columbia in 2007. The Military employment concentration ratio for Kansas in 2007 was 1.62. The concentration ratio was tied with Oklahoma for the twelfth most concentrated state in the nation. This implies that active duty, reserve and National Guard members have a larger impact on the Kansas economy than the military has in the remaining 38 geographic areas under consideration. Average annual growth in military service members was largest between 1997 and 2007 in Nevada, at an average rate of 2.7 percent each of the 10 years. Thirty nine of the states, including the District of Columbia, declined over the 10 year period. New Mexico incurred the largest decrease with a 2.5 percent decline in an average year. Kansas ranked fourth in active duty, reserve and National Guard member growth between 1997 and 2007. Kansas military membership grew 8.1 percent, the fastest of all geographies, between 2006 and 2007. The largest amount of active duty, reserve and National Guard member pay occurred in the state of California with more than $16.3 billion paid in 2007. Vermont had the lowest level of pay in 2007 with $158.3 million. Kansas ranked sixteenth highest in total active duty, reserve and National Guard member pay when compared to other states and the District of Columbia in 2007. The military pay concentration ratio for Kansas in 2007 was 2. This concentration ratio was the eighth most concentrated in the nation. This implies that active duty, reserve and National Guard member pay has a larger impact on the Kansas economy than the military pay has in the remaining 43 geographic areas under consideration. Average annual growth in military pay was largest between 1997 and 2007 in Minnesota, at a rate of 21.6 percent each of the 10 years. All states incurred average annual pay increases of more than 4 percent over the 10 year period. Kansas ranked sixth in active duty, reserve and National Guard average annual pay growth between 1997 and 2007. Kansas military pay grew 17.1 percent, the fastest of all geographies, between 2006 and 2007. The District of Columbia paid the highest average annual active duty, reserve and National Guard wage in 2007 of $102,390. The lowest average annual military pay was $39,487 in Vermont. The average annual military wage in Kansas ranked eleventh among the states. 10

Map 1. 2007 Military Employment Concentration by State Table 5. Top 5 2007 Active, Reserve, National Guard Employment by State Top 5 2007 Active, Reserve, National Guard Employment by State Employment Active, Reserve, National Guard Employment Concentration Ratio Relative to United States 1. California 218,063 0.91 2. Texas 177,547 1.12 3. Virginia 160,862 2.88 4. North Carolina 128,823 2.09 5. Florida 101,559 0.84 22. Kansas 33,003 1.62 United States 2,041,000 1.00 11

Table 6. Top 5 Average Annual Active, Reserve and National Guard Member Growth by State Top 5 Average Annual Active, Reserve, National Guard Member Growth by State Average Annual Employment Growth 1997 2007 Employment Growth 2006 2007 1. Nevada 2.7% 4.4% 2. Minnesota 1.9% 4.8% 3. Alaska 1.3% 0.5% 4. Kansas 1.2% 8.1% 5. Kentucky 0.6% 1.0% United States 0.6% 0.0% Map 2. 2007 Military Pay Concentration by State 12

Table 7. Top 5 2007 Active, Reserve National Guard Member Income by State Top 5 2007 Active, Reserve, National Guard Member Pay by State Active, Reserve, National Guard Pay, in $1,000's Pay Concentration Ratio Relative to United States 1. California $16,288,065 0.85 2. Virginia $15,091,795 3.60 3. Texas $13,652,282 1.14 4. North Carolina $10,281,055 2.70 5. Florida $7,862,811 1.06 16. Kansas $2,544,087 2.00 United States $146,168,000 1.00 Table 8. Top 5 2007 Active, Reserve, National Guard Income Growth by State Top 5 2007 Active, Reserve, National Guard Member Pay Growth by State Average Annual Pay Growth 1997 2007 Pay Growth 2006 2007 1. Minnesota 21.6% 6.3% 2. West Virginia 16.7% 3.5% 3. Tennessee 16.4% 4.8% 4. Iowa 15.3% 2.5% 5. New York 15.1% 3.2% 6. Kansas 14.6% 17.1% United States 9.7% 5.3% Table 9. Top 5 2007 Average Annual Active, Reserve, National Guard Pay by State Top 5 2007 Average Annual Active, Reserve, National Guard Pay by State Average Annual Active, Average Annual Active, Reserve, National Guard Reserve, National Guard Average Annual Pay Pay as a Percent of Average Total Pay* 1. District of Columbia $102,390 114.1% 2. Virginia $93,818 181.8% 3. Hawaii $87,494 191.8% 4. Maryland $81,338 153.4% 5. Alaska $81,294 159.7% 11. Kansas $77,087 179.4% United States $71,616 145.1% *Average Annual Active, Reserve, National Guard Pay as a Percent of Average Annual Total Pay within the respective geography. 13

Kansas military members and wages by county Geary, Sedgwick, Leavenworth, Johnson and Shawnee counties each had more than 1,000 military service members in 2007. Geary and Leavenworth counties were the only counties in Kansas with an above average industry concentration compared to the state of Kansas. Geary, Douglas, Johnson, Riley, Miami, Shawnee, Pottawatomie, Butler, Franklin, Jackson, Ford and Crawford counties grew in active duty, reserve or National Guard military personnel between 2002 and 2007. All other counties either remained constant or decreased in military personnel in the same time period. Geary County, Kansas, boasts the highest number of military personnel that are active duty, reserve or National Guard in 2007 in Kansas. More than 46 percent of all jobs in the county were active duty, reserve or National Guard members. The Geary County employment concentration of active duty, reserve or National Guard members compared to the state of Kansas was 25.21, indicating significant dependence on the military for economic vitality. The Geary County military service personnel grew 9.8 percent annually, on average, between 2002 and 2007. Geary, Leavenworth, Sedgwick, Johnson, Shawnee, Wyandotte and Douglas counties each paid more than $25 million in military service members pay in 2007. Geary and Leavenworth counties were the only counties in Kansas with an above average pay concentration compared to the state of Kansas. All Kansas counties experienced an increase in military service member pay greater than 35 percent from 2002 to 2007. Wichita, Hamilton, Lincoln, Edwards, Kearney and Graham counties incurred increases in military service member pay of 17 percent or more each year between 2002 and 2007, the largest annual average of all counties. Geary County, Kansas, boasts the largest amount of military active duty, reserve or National Guard pay in 2007 in Kansas. More than 68 percent of all employee pay in the county was paid to active duty, reserve or National Guard members. The Geary County pay concentration compared to the state of Kansas was 20.52, further exemplifying dependence on the military for economic vitality. Active duty, reserve and National Guard members incurred a 12.4 percent increase in pay each year, on average, between 2002 and 2007. The average annual pay of a military service member in Kansas counties in 2007 was above the average annual pay of all jobs in 2007 in all but five counties, Saline, Grant, Coffey, Wyandotte and Johnson. The highest average annual military service member pay in 2007 was in Leavenworth County, at more than $152,000. 14

Map 3. 2007 Military Employment by County as a Percent of Total Kansas Military Employment Table 10. Top 5 2007 Active, Reserve, National Guard Employment by County Top 5 2007 Active, Reserve, National Guard Employment by County Active, Reserve, National Guard Employment Employment Concentration Ratio Relative to Kansas Active, Reserve, National Guard Employment as a Percent of Total Employment 1. Geary 14,729 25.21 46.7% 2. Sedgwick 4,562 0.77 1.4% 3. Leavenworth 3,160 4.90 9.1% 4. Johnson 2,456 0.32 0.6% 5. Shawnee 1,073 0.49 0.9% Kansas 33,003 1.00 1.9% 15

Table 11. Top 5 Average Annual Active, Reserve, National Guard Employment Growth by County Top 5 Average Annual Active Duty, Reserve, National Guard Employment Growth by County Average Annual Employment Growth 2002 2007 Employment Growth 2006 2007 1. Geary 9.8% 26.1% 2. Douglas 2.3% 3.2% 3. Johnson 1.9% 2.6% 4. Riley 1.7% 6.4% 5. Miami 1.3% 2.0% Kansas 3.2% 8.1% Map 4. 2007 Military Pay by County as a Percent of Total Kansas Military Pay 16

Table 12. Top 5 2007 Active, Reserve, National Guard Pay by County Top 5 2007 Active, Reserve, National Guard Pay by County Active, Reserve, National Guard Pay, in $1,000's Pay Concentration Ratio Relative to Kansas Active, Reserve, National Guard Pay as a Percent of Total Pay 1. Geary $1,350,320 20.52 68.3% 2. Leavenworth $480,510 8.71 29.0% 3. Sedgwick $297,917 0.54 1.8% 4. Johnson $93,228 0.13 0.4% 5. Shawnee $49,780 0.30 1.0% Kansas $2,544,087 1.00 3.3% Table 13. Top 5 Active, Reserve, National Guard Pay Growth by County Top 5 Active, Reserve, National Guard Pay Growth by County Average Annual Pay Growth 2002 2007 Pay Growth 2006 2007 1. Wichita 17.5% 5.1% 2. Hamilton 17.4% 6.0% 3. Lincoln 17.3% 3.4% 4. Edwards 17.2% 2.5% 5. Kearny 17.1% 4.8% Kansas 12.3% 8.3% 17

Map 5. 2007 County Average Annual Military Pay as a Percent of County Total Annual Average Pay, 2007 Table 14. Top 5 2007 Average Annual Active, Reserve, National Guard Pay Top 5 2007 Average Annual Active, Reserve, National Guard Pay Average Active, Average Active, Reserve, National Guard Pay Reserve, National Guard Pay as a Percent of Average Total Pay* 1. Leavenworth $152,060 319.0% 2. Geary $91,678 146.1% 3. Sedgwick $65,304 127.2% 4. Shawnee $46,393 107.5% 5. Douglas $46,079 135.0% Kansas $77,087 179.4% *Average Active, Reserve, National Guard Pay as a Percent of Average Total Pay within the respective geography. 18

Civilians 6 Definition As defined by the Office of the Actuary, U.S. Department of Defense: 7 Direct Hire Civilians: Employees hired directly by an agency of DoD. Includes Foreign Nationals hired by DoD to support DoD activities in their home countries. Indirect Hire Civilians: Foreign Nationals assigned to support U.S. forces through contracts or agreements with foreign governments (or agencies thereof). These personnel are employees of the foreign governments involved. Total direct and indirect hire civilian employment. For direct hires, includes, with some exceptions, all direct hire employees who had not officially separated as of the reporting period or were on paid leave. Civilian employment and wages 8 The U.S. reported more than 642,000 civilian employees working for the military in 2006. Pay for civilian employees were reportedly more than $45 billion in the same year. The average annual wage of a civilian employed by a military installation in the U.S. in 2006 was $70,233. The state with the largest number of civilians working for military installations in 2006 was Virginia with more than 81,000 civilians employed, earning an average of $75,703 annually. Total civilian pay in Virginia in 2006 surpassed $6.2 billion. Vermont was the only state with less than 1,000 civilians employed by the military. It employed approximately 600 civilians, paying $28.9 million in wages in 2006. The average annual wage for a civilian employed by the military was the lowest in Vermont in 2006 at $47,525. Kansas had more than 6,500 civilians working for military installations, paying more than $373.1 million in wages in 2006. The average annual wage of a civilian working for a military installation in Kansas was $56,733 in the same time period. The average annual wage in the state of Kansas for all nonfarm employment was more than $15,000 less than the military civilian average annual pay in 2006. 6 http://siadapp.dmdc.osd.mil/ (atlas_2006_siadapp.dmdc.osd.mil.pdf) DoD Personnel and Procurement Statistics 7 http://siadapp.dmdc.osd.mil/personnel/netgloss.htm 8 Civilian, for the purpose of this study, refers to civilians employed by military installations only. 19

Map 6. 2006 Number of Military Civilians by State Map 7. 2006 Total Military Civilian Pay by State 20

Table 15. Top 5 2006 Civilian Personnel and Pay by State Top 5 2006 Civilian Personnel and Pay by State Civilian Personnel Pay Civilian Personnel ($1,000's) 1. Virginia 81,342 $6,157,809 2. California 55,709 $4,206,698 3. Texas 41,462 $2,516,962 4. Georgia 32,862 $2,076,349 5. Maryland 30,749 $2,603,595 28. Kansas 6,577 $373,136 United States 642,214 $45,104,515 Military Retirees 9 Definition As defined by the Office of the Actuary, U.S. Department of Defense: 10 The military retirement system applies to members of the Army, Navy, Marine Corps, and Air Force. However, most of the provisions also apply to retirement systems for members of the Coast Guard (administered by the Department of Homeland Security), officers of the Public Health Service (administered by the Department of Health and Human Services), and officers of the National Oceanic and Atmospheric Administration (administered by the Department of Commerce). Only those members in plans administered by the Department of Defense (DoD) are included. The system is a funded, noncontributory defined benefit plan that includes nondisability retired pay, disability retired pay, retired pay for reserve service, survivor annuity programs, and special compensation programs for certain disabled retirees. The Service Secretaries may approve immediate nondisability retired pay at any age with credit of at least 20 years of active duty service. Reserve retirees must be at least 60 years old and have at least 20 qualified years of service before retired pay commences. There is no vesting before retirement. Retiree Population and Payment The retired population is typically not creating a good or service, but they are still compensated with pay. The spending of these dollars creates an economic impact. In the United States there were 1,943,765 military retirees in 2007. Of these retirees, 1,822,265 received some form of transfer payment or retirement pay. The United States paid more than $40.4 billion in compensation to retirees in 2007. The average annual compensation per retiree in the U.S. in 2007 was $22,172. 9 http://www.defenselink.mil/actuary/ 10 http://www.defenselink.mil/actuary/cfo2007.pdf 21

Florida had the most retirees of all states in 2007 with 186,102 retirees. Of the retirees, 175,373 received compensation for retirement in Florida. Annual compensation payments to retirees in Florida in 2007 totaled $4.1 billion. Virginia paid the highest average annual compensation rate to a military retiree, compared to that of the nation in 2007. Virginia paid $28,864 per retiree. The District of Columbia reported the fewest military retirees, with 2,740 retirees receiving compensation. The state of Vermont paid the lowest total amount of compensation of all states, indicating the smallest direct impact from retirees, at $62.2 million. New York paid the lowest average annual retiree compensation rate at $17,102 in 2007. Kansas had 20,281 military retirees living in the state in 2007; 19,333 of those retirees received retirement pay or compensation. Total military retiree compensation in Kansas was $416.6 million in 2007. The average annual pay to a retiree in Kansas was $21,548. Map 8. 2007 Total Number of Retirees Receiving Department of Defense Pay by State 22

Map 9. 2007 Military Retiree Average Annual Pay from the Department of Defense Table 16. Top 5 2007 Military Retiree Population by State Top 5 2007 Military Retiree Population by State Military Retirees Receiving Pay from Department of Defense Total Military Retirees 1. Florida 175,373 186,102 2. Texas 173,263 183,005 3. California 158,155 170,320 4. Virginia 135,537 141,295 5. Georgia 82,475 86,998 29. Kansas 19,333 20,281 United States 1,822,265 1,943,765 23

Table 17. Top 5 2007 Military Retiree Payments by State Top 5 2007 Military Retiree Payments by State Average Annual Military Retiree Payment ($1,000's) Payment Received by Paid Military Retiree 1. Florida $4,130,472 $23,552 2. Texas $4,003,764 $23,108 3. Virginia $3,912,120 $28,864 4. California $3,608,364 $22,815 5. Georgia $1,772,568 $21,492 27. Kansas $416,592 $21,548 United States $40,402,836 $22,172 Veterans 11 Definition As defined by the Office of the Actuary, U.S. Department of Defense: 12 The term veteran means a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable. As defined by the National Center for Veteran s Analysis and Statistics, Department of Veterans Affairs: 13 The Department of Veterans Affairs (VA) provides official estimates and projections of the veteran population using the Veteran PopulationModel (VetPop). The model is updated periodically for improved methodology, more recent data, and changing needs. For each year from April 1, 2000 to September 30, 2036, VetPop2007 generates the number of veterans by selected characteristics: at the state and/or national levels by Age, Gender, Period of Service, Race/Ethnicity, Rank (Officer/Enlisted), and Branch of Service; at the county level by Age and Gender. These are the main data sources for VetPop2007: Census Bureau Census 2000 Defense Manpower Data Center (DMDC) Active Duty Defense Manpower Data Center (DMDC) Reserve Office of the Actuary of the Department of Defense GORGO projection Census Bureau American Community Survey (ACS) 11 http://www1.va.gov/vetdata/page.cfm?pg=15 table 12L 12 http://www.law.cornell.edu/uscode/38/usc_sec_38_00000101 000.html 13 http://www1.va.gov/vetdata/page.cfm?pg=15 24

Veteran Population and Expenditures The veteran population is similar to that of the retiree. Veterans are no longer creating a good for the military, but they are still compensated with pay or compensated with services. The spending of these compensation dollars creates an economic impact, just as retirement compensation, and wage and salary compensation. In the United States there were 23,578,714 military veterans in 2007. The United States recorded expenditures toward veteran compensation and services of more than $75 billion in 2007. The average annual expenditure per veteran in the U.S. in 2007 was $3,189. California had the largest veteran population of all states in 2007 with 2,131,939 veterans. Annual expenditures to veterans in California in 2007 totaled $6.6 billion. The District of Columbia recorded the highest average annual expenditures to a military veteran, compared to that of the nation, in 2007. D.C. spent $42,468 per veteran. The state of Vermont reported the fewest military veterans at 55,382 veterans. Veteran expenditures were lowest in Vermont when compared to other states. This indicates the smallest direct impact from veteran expenditure activity, with expenditures of $176.8 million. Michigan registered the lowest average expenditures per veteran at $2,206 in 2007. Kansas had 236,596 military veterans living in the state in 2007. Total military veteran expenditures in Kansas were $678.3 million in 2007. The average annual expenditure per veteran was $2,867. Map 10. 2007 Total Veteran Expenditures by State 25

Map 11. 2007 Veteran Population by State Table 18. Top 5 2007 Veteran Expenditures and Population by State Top 5 2007 Veteran Expenditures and Population by State Veteran Expenditures ($1,000's) Veteran Population 1. California $6,563,257 2,131,939 2. Texas $6,282,525 1,707,365 3. Florida $5,684,839 1,746,539 4. New York $3,569,621 1,065,749 5. Ohio $2,970,791 957,889 35. Kansas $678,307 236,596 U.S. Totals $75,180,884 23,578,714 26

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