The IMPACT program is a funding mechanism designed to respond to the training and capital requirements of major business expansions and locations in the state. IMPACT may be utilized by individual businesses or consortiums of companies adding new jobs. The program is typically reserved for those projects involving at least 100 new jobs at a higher-than-average wage level. Projects with less than 100 new jobs may be funded, but must involve wage levels significantly higher than average. IMPACT has two major components – SKILL (State of Kansas Investments in Lifelong Learning) and MPI (Major Project Investment).
Funds workforce training expenses including:
Funds other expenses including, but not limited to:
To be eligible for MPI, an employer must spend more than two percent of payroll on workforce training or utilize funds from SKILL for employee education and training. While there is no statutory limit on the percentage of an individual project's IMPACT funds that may be utilized for MPI, these investment funds are limited to ten percent of the total funding available under the IMPACT program.
IMPACT costs are financed through tax-exempt, public bonds issued by the KDFA. These bonds are retired through the revenue received from statewide employer withholding taxes. Individual project size may not exceed 90 percent of the withholding taxes received from the new jobs over a ten-year period. The maximum amount of assistance for which a company qualifies is directly tied to the number of new jobs created and the taxable wages of those jobs over ten years. If the company is unable to create jobs in sufficient numbers to generate withholding tax revenue according to its annual projections, the business may be required to repay a portion of the funds on a shared basis with the state. If the company leaves the state before the bonds are retired, the full cost must be repaid, less any withholding tax contributions collected prior to the company's departure.
Rebecca Bouska, Deputy City Administrator