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Top Story

Mar. 07, 2008

Test range closure would ditch millions and 305 jobs

By MARK WAITE
PVT

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TONOPAH -- The closure of the Tonopah Test Range would shut down an economic engine in Central Nevada worth $157.4 million in federal spending, including $16.3 million of personal income and 305 jobs, consultants for the University of Nevada, Reno, Center for Economic Development told Nye County commissioners Tuesday.

Commissioners determined upon a $40,080 study in January 2007 on the socio-economic impact of the test range after the U.S. Department of Energy proposed closing it as one option of consolidating the nation's nuclear weapons facilities under the National Nuclear Security Administration Complex 2030 plan.

This week the draft statement was released, which called for the range to be closed as the "preferred alternative."

The UNR consultants sent out 2,615 surveys to all post office boxes in Tonopah, Goldfield, Silver Peak, Round Mountain and Manhattan, of which 284 were returned. Another 33 surveys of test range employees were returned.

The study showed Tonopah Test Range employees lived slightly longer in the region, 5.4 years, as opposed to 4.5 for people not working at the range.

The employees at the test range have higher annual salaries, $64,200, compared to $48,300 for the rest of the population. UNR consultant Buddy Borden said the 33 percent higher income drives the economic engine, spurring purchases in the local community.

Consultants were hampered by official secrecy on government spending for purchases at the Tonopah Test Range, but Borden said he obtained estimates from Sen. John Ensign's office that it costs $140 million to support the operations at the Tonopah Test Range.

Borden calculated that for each $1 million of direct spending, an additional $124,598 is generated in direct and indirect impacts. Most of the benefits of the spending went to the service industry in the surrounding area, he said.

Fellow researcher Tom Harris conceded there's no assurances the $140 million gets spent in the Tonopah area community.

When it comes to direct spending in the community, 9 percent of the people surveyed who didn't work at the test range said their company or family member did business with the Tonopah Test Range. That figure rose to 27 percent for range employees.

Borden's report notes the Tonopah Test Range has stabilized the economy of the area surrounding Tonopah due to the boom and bust nature of the other industries, mining and tourism.

"It's not just one sector impacted, it's multiple sectors, and I think we're only getting the top of the iceberg," Borden told commissioners.

An interesting side note: Researchers noted that many of the Tonopah Test Range employees have spouses in the local area that own businesses.

Nye County Commissioner Joni Eastley commended Borden on his report and said she would use it during her comments at the public hearing Tuesday night.














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