Hanford, diversification, and the Tri-Cities Economy FY 1998
The missions of the U.S. Department of Energy's Richland Operations Office (DOE/RL) are to safely manage the Hanford Site, to manage and clean up its legacy wastes, and to develop and deploy new science and technology in the environmental and energy fields. Collectively, DOE/RL and its contractors are the most important single entity in the Tri-Cities local economy (Pasco, Kennewick, and Richland, Washington, and the surrounding area). Although the relevant economic region affected by DOE/RL and its contractors actually embraces a geographic area reaching from Yakima in the west to Walla Walla in the east and from Moses Lake in the north to Pendleton, Oregon, in the south, over 90% of economic impacts likely occur in Benton and Franklin Counties. These two counties are defined as the ''local'' Tri-Cities economy for purposes of this study (see Figure 1). In the federal fiscal year (IV) 1998 (October 1, 1997 through September 30, 1998), the total impact of DOEs local $1.6 billion budget was felt through payrolls of $519 million and local purchases of goods and services of $246 million. The total local spending of $765 million was down slightly from the FY 1997 total of $774 million. Taking into account the slightly greater multiplier effects of this spending due to changes in its mix, the DOE/RL budget sustained an estimated 36% of all local employment (31,200 out of 86,000 jobs) and up to 64% of local wage income ($1.55 billion out of $2.40 billion). This was up slightly from the year before (29,500 jobs, $1.49 billion income). DOE budget increases in FY 1999 are expected to result in a net increase of about 200 local DOE contractor jobs over the September 30, 1998 level, or about equal to the FY 1998 average. In addition, economic diversification more than offset the impact of the local DOE losses in FY 1998 and, together with an initial economic boost from privatization of Hanford's tank waste cleanup, is expected to play a significant expansive role in FY 1999. All of these positives, taken together with their multiplier effects, would directly or indirectly add a total 2,750 jobs and at least $135 million in income to the economy. However, agriculture and related regional services are expected to be weaker than in FY 1998, offsetting part of these gains. The overall net effect still is expected to be a net increase of 2,050 jobs and $86 million in wage income.
- Research Organization:
- Hanford Site (HNF), Richland, WA (United States)
- Sponsoring Organization:
- US DOE Office of Environmental Management (US)
- DOE Contract Number:
- AC06-96RL13200
- OSTI ID:
- 781693
- Report Number(s):
- DOE/RL-99-0029-; EW3130000; EW3130000; TRN: US0111242
- Resource Relation:
- Other Information: PBD: 14 Apr 1999
- Country of Publication:
- United States
- Language:
- English
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