ECONOMIC IMPACTS OF THE KANSAS COMPREHENSIVE HIGHWAY PROGRAM

The Kansas Comprehensive Highway Program (CHP) was an eight year program of highway construction beginning July 1, 1989 and ending June 30, 1997. Overall funding totaled $4 billion. This study measures the economic impact of the $2.86 billion used for construction of K jurisdiction projects. The two objectives were: 1) Measure the DIRECT output, income, and employment impacts by highway improvement type of the CHP; and 2) Measure INDIRECT and INDUCED output, income, and employment impacts by highway improvement type of the CHP. The output impact is the increase in Kansas production as a result of the CHP. The income impact is the increase in Kansas wages and salaries in response to an increase in the income of the workers employed on CHP construction projects. The economic impact of the CHP (K jurisdiction) highway construction contracts as measured by output is $7.4 billion. The economic impact of the CHP (K jurisdiction) highway construction contracts as measured by income is $1.4 billion. The economic impact of the CHP (K jurisdiction) highway construction contracts as measured by employment is 117,820 full time equivalent jobs. Although the economic impacts measured in this study are considerable, it should be noted that highway investment yields many other benefits to the highway users that are beyond the scope of this project. For example, the highway improvements that reduce congestion can result in reductions in vehicle operating costs such as maintenance, fuel, tires, and depreciation. These improvements can also reduce travel times and result in lower highway accident costs. This study also did not examine the economic impact of such items as preliminary engineering, utility adjustments, right-of-way acquisitions, construction engineering, and construction projects not on the state highway system. Further research is needed to quantify these user benefits and the impact of these and other activities.