Joshua Spolsdoff Senior Research Economist Utah’s Defense Economy: Economic Impacts and Industry Trends Utah's defense industry is an integral component of the state's diverse economy, contributing over $19 billion in economic activity.

August 2021

411 East South Temple Street Salt Lake City, Utah 84111 801-585-5618 I gardner.utah.edu

Utah’s Defense Economy: Economic Impacts and Industry Trends

Analysis in Brief Utah’s defense industry makes a substantial contribution to Average Compensation of Utah Jobs, 1990–2019 the state’s diverse economy, contributing an estimated $19.3 (Constant 2019 Dollars) billion to GDP (10.6% of total), and supporting 211,000 jobs. $100,000 2019: $85,377 The industry has experienced nearly twofold growth since $90,000 2015, primarily due to growth at Hill Air Force Base, Veteran $80,000 services, and a sharp rise in contract awards. 1990: $61,320 $70,000 These considerable impacts stem from the following major $60,000 components of Utah’s defense economy: 2019: $62,929 $50,000 1990: $48,981 • Hill Air Force Base • Veterans $40,000 • Dugway Proving Ground • Defense Civilian Retirees $30,000 • Tooele Army Depot • Contracts and Grants $20,000 • Utah National Guard $10,000 • Reserves, Recruiting, $0 and ROTC 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Defense Non-Defense Key Findings • Share of the Economy—In 2019, Utah’s defense sector Source: Bureau of Economic Analysis, Bureau of Labor Statistics, REMI PI+ historical data directly and indirectly supported 10.3% of the state’s Defense Sector Economic Impact Summary, 2019 employment, 9.5% of its personal income, and 10.6% of its gross domestic product (GDP). 45,000 Jobs (211,285) 10.3% 40,000 • Growth—The defense sector’s total economic impacts Jobs (211,285) 10.3% 35,000 have increased nearly twofold since 2015, increasing by 30,000 102,000 jobs and $9.1 billion in inflation-adjusted GDP. PersonalPersonal Income Income ($13.9 ($13.9Billion) Billion) 9.5%9.5% 25,000 • Key Organizations—Of the $4.3 billion in defense GDP ($19.3 Billion) 10.6% 20,000 contracts in Utah, $3.3 billion (76%) went to 10 contractors.

GDP ($19.3 Billion) 10.6% Number of Jobs 15,000 Northrop Grumman, L-3 Communications, and Moog were 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 10,000 the three largest organizations, accounting for nearly $2.6 Share of State Total 5,000 billion (60%) of total contracts. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Share of State Total 0 • Jobs—Defense activities supported an estimated 211,285 Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 full- and part-time jobs, 10.3% of total jobs in the state. $100,000 Military Civilian Defense $90,000 • Income—Defense personnel earned more than $13.9 • GDP—Utah’s$64,215 defense sector contributed $19.3 billion to $80,000 $100,000 billion in 2019, 9.5% of total personal income. Federal the state’s GDP, 10.6% of the total. 2019: $85,377 $85,377 $90,000 defense jobs in Utah offered an average of $85,377 in $70,000 • Fiscal Impacts—Defense-related activity generated net $80,000 $60,000 1990: $61,320 compensation, 35.7% more than the $62,929 at non- $62,929 $70,000 $50,000fiscal impacts of $244.3 million for the state. defense jobs. $54,907 $60,000 $40,000 2019: $62,929 $50,000 $30,000 1990: $48,981 $40,000 TM $20,000 INFORMED DECISIONS 1 gardner.utah.edu I August 2021 $30,000 $10,000 (IConstant 2019 Dollars) $20,000

$0 Average Compensation per Job $10,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $0

Defense Non-Defense 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Defense Non-Defense

Jobs

Personal Income

GDP

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Hill AFB Dugway Tooele Guard Reserves & Other Veterans Retired Civilians Contracts & Grants

Hill AFB: 42.5%

Dugway: 2.0% Tooele: 0.9% $100,000 $244.3 2019: $85,377 Guard: 7.5% $90,000 Million $80,000 Reserves & Other: 2.5% 1990: $61,320 Veterans: 2.1% $70,000 DOD Civilian Retirees: 0.7% $60,000 Contracts & Grants: 41.7% 2019: $62,929 $50,000 1990: $48,981 $40,000 6% 1990: 5.5% $30,000 $20,000 5% $10,000 4% $0 3% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Defense Non-Defense 2% 2019: 2.1% 1%

Defense Jobs as a Percent of All Utah 0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Table of Contents

Overview ...... 5 Figures Comparison: FY 2015 and FY 2019...... 5 Figure 1: Major Military Installations in Utah...... 5 Economic Impacts...... 6.. Figure 2: Share of Economic Impacts by Utah Defense Fiscal Impacts...... 7 Sector Component, 2019...... 7 Federal Defense Employment...... 8 Figure 3: Share of State Net Revenue Impacts from Utah Terms Used in This Report...... 9 Defense Sector Component, 2019...... 8 Hill Air Force Base ...... 10. Figure 4: Defense Share of Total Employment in Utah, Dugway Proving Ground...... 13 1990–2019 ...... 8 Tooele Army Depot...... 16 Figure 5: Military and Federal Civilian Defense Utah National Guard...... 18 Employment in Utah, 1990–2019 ...... 8 Reserves, Recruiting, and ROTC...... 21 Figure 6: Compensation per Utah Job, Defense versus Reserves...... 21 Non-Defense, 1990–2019 ...... 8 Military Recruiting...... 22 Figure 7: Hill Air Force Base Non-Payroll Spending in Reserve Officer Training Corps...... 24 Utah by Industry, FY 2019...... 11 Veterans...... 26 Figure 8: Statewide Economic Impacts of Hill Air Medical Facilities...... 27 Force Base, 2019...... 11 Benefits ...... 28 Figure 9: Dugway Proving Ground Non-Payroll Spending Contracts...... 29 in Utah by Industry, FY 2019...... 14 Department of Defense Retired Civilians...... 31 Figure 10: Statewide Economic Impacts of Dugway Defense Contracts and Grants...... 33 Proving Ground, 2019...... 15 DOD and VA Prime Contracts and Grants in Utah, Figure 11: Tooele Army Depot Non-Payroll Spending in FY 2000–FY 2019...... 33 Utah by Industry, FY 2019...... 17 FY 2019 Contracts and Grants...... 34 Figure 12: Statewide Economic Impacts of Tooele Impacts of Non-Installation Defense Contracts...... 37 Army Depot, 2019 ...... 17 Impacts of Defense Grants...... 38 Figure 13: Utah National Guard Employees Trends in Defense Employment and Compensation. . . . 40 by Type, FY 2019...... 19 Defense Employment in Utah, 1990–2019...... 40 Figure 14: Utah National Guard Non-Payroll Spending in Compensation from Defense Employment, 1990–2019. . 41 Utah by Industry, FY 2019 ...... 19 Methodology ...... 43 Figure 15: Statewide Economic Impacts of the Utah Data Collection...... 43 National Guard, 2019 ...... 20 Estimating Economic Impacts...... 43 Figure 16: Statewide Economic Impacts of Military Estimating Fiscal Impacts ...... 44 Reserves, 2019...... 21 Acknowledgements...... 45 Figure 17: Statewide Economic Impacts of Military Recruiting, 2019...... 23 Figure 18: Statewide Economic Impacts of Federal ROTC Employment, 2019...... 25 Figure 19: Veterans by County in Utah, 2019 ...... 26 Figure 20: Regional and Local Office VA Contract Spending in Utah by Industry, FY 2019...... 29 Figure 21: Statewide Economic Impacts of Federal Spending for Veterans, 2019...... 29 Figure 22: DOD Retired Civilians by County in Utah, 2019. . 31 Figure 23: Statewide Economic Impacts of DOD Retired Civilians Pension Payments, 2019...... 32 Figure 24: Defense Contracts and Grants in Utah, Prime Awards FY 2000–FY 2019...... 33 Figure 25: Utah Defense Subcontracts, FY 2015–FY 2019 . . 35

August 2021 I gardner.utah.edu 2 INFORMED DECISIONSTM Figure 26: Total DOD and VA Contracts and Grants by Table 14: Statewide Economic Impacts of Dugway Proving Service, FY 2019 ...... 35 Ground, 2019...... 14 Figure 27: Total DOD and VA Contract and Grant Dollars in Table 15: Statewide Fiscal Impacts of Dugway Utah by County, FY 2019...... 35 Proving Ground, 2019...... 15 Figure 28: DOD and VA Contracts and Grants in Utah by Table 16: Economic Impacts of Dugway Proving Industry, FY 2019...... 36 Ground by County, 2019...... 15 Figure 29: Non-Installation DOD and VA Contracts Table 17: Tooele Army Depot Employees by County of Performed in Utah by Industry, FY 2019...... 37 Residence, 2019 ...... 16 Figure 30: Statewide Economic Impacts of Non-Installation Table 18: Tooele Army Depot Employment and Non-Payroll DOD and VA Contracts with Utah Companies, 2019. . . .38 Spending Comparison, FY 2015 and FY 2019...... 16 Figure 31: Statewide Economic Impacts of DOD and VA Table 19: Tooele Army Depot Non-Payroll Spending in Grants to Utah Recipients, 2019...... 39 Utah by Industry, FY 2019...... 16 Figure 32: Military and Federal Civilian Defense Table 20: Statewide Economic Impacts of Tooele Employment in Utah, 1990–2019...... 40 Army Depot, 2019 ...... 17 Figure 33: Defense Share of Total Employment in Utah, Table 21: Statewide Fiscal Impacts of Tooele Army 1990–2019 ...... 40 Depot, 2019...... 17 Figure 34: Compensation per Utah Job, Defense versus Table 22: Economic Impacts of Tooele Army Depot Non-Defense, 1990–2019 ...... 41 by County, 2019 ...... 17 Figure 35: Military and Federal Civilian Defense Estimated Table 23: Utah National Guard Employees by County, Total Compensation in Utah, 1990–2019...... 41 FY 2019...... 19 Figure 36: Defense Share of Total Compensation in Utah, Table 24: Utah National Guard Employment and Non- 1990–2019 ...... 42 Payroll Spending Comparison, FY 2015 and FY 2019 . . . 19 Table 25: Utah National Guard Employees by Service, Tables FY 2019...... 19 Table 1: Direct Employment and Non-Payroll Spending for Table 26: Utah National Guard Non-Payroll Spending in Utah Defense Sector Components, FY 2015 and FY 2019 . . 5 Utah by Industry, FY 2019...... 19 Table 2: Statewide Economic Impacts of Utah Defense Table 27: Statewide Economic Impacts of the Utah Sector by Component, 2019...... 6 National Guard, 2019 ...... 20 Table 3: Statewide Fiscal Impacts of Utah’s Defense Table 28: Statewide Fiscal Impacts of the Utah National Sector, 2019...... 6 Guard, 2019 ...... 20 Table 4: Hill Air Force Base Federal Employees by Table 29: Reserves Employment in Utah, 2019...... 21 County of Residence, 2019...... 10 Table 30: Statewide Economic Impacts of Military Table 5: Hill Air Force Base Employment and Non-Payroll Reserves, 2019...... 21 Spending Comparison, FY 2015 and FY 2019...... 10 Table 31: Statewide Fiscal Impacts of Military Table 6: Hill Air Force Base Non-Payroll Spending in Utah Reserves, 2019...... 22 by Industry, FY 2019 ...... 11 Table 32: Military Recruiting in Utah, 2019 ...... 23 Table 7: Statewide Economic Impacts of Hill Air Force Table 33: Statewide Economic Impacts of Military Base, 2019...... 11 Recruiting, 2019...... 23 Table 8: Statewide Fiscal Impacts of Hill Air Force Base, Table 34: Statewide Fiscal Impacts of Military 2019 ...... 11 Recruiting, 2019...... 23 Table 9: Economic Impacts of Hill Air Force Base by Table 35: ROTC Employment in Utah by County, 2019 . . . .24 County, 2019...... 12 Table 36: Selected ROTC Cadets and Scholarships Paid in Table 10: Dugway Proving Ground Employees by Utah, 2019–2020 Academic Year...... 24 County of Residence, 2019...... 13 Table 37: Statewide Economic Impacts of Federal ROTC Table 11: Dugway Proving Ground Employment and Non- Employment, 2019...... 25 Payroll Spending Comparison, FY 2015 and FY 2019 . . . 13 Table 38: Statewide Fiscal Impacts of Federal ROTC Table 12: Dugway Proving Ground Non-Payroll Spending Employment, 2019...... 25 in Utah by Industry, FY 2019...... 14 Table 39: Direct Effects Comparison for Veterans in Utah, Table 13: Estimated Dugway Proving Ground Visitor FY 2015 and FY 2019...... 26 Spending in Utah by Industry, FY 2019...... 14 Table 40: Veterans by County in Utah, 2019 ...... 27

INFORMED DECISIONSTM 3 gardner.utah.edu I August 2021 Table 41: VA Medical Care Expenditures in Utah by Table 55: DOD and VA Contracts and Grants in Utah by County of Patient Residence, FY 2019...... 27 Industry, FY 2019...... 36 Table 42: Income and Financial Support Received by Table 56: Top 10 Defense Contractors in Utah, FY 2019 . . . 36 Utah Veterans, FY 2019...... 28 Table 57: Number of Utah Contracts and Contractors Table 43: Regional and Local Office VA Contract from DOD and VA, FY 2019...... 36 Spending in Utah by Industry, FY 2019...... 29 Table 58: Non-Installation DOD and VA Contracts Table 44: Statewide Economic Impacts of Federal Performed in Utah by Industry, FY 2019...... 37 Spending for Veterans, 2019...... 29 Table 59: Statewide Economic Impacts of Non-Installation Table 45: Statewide Fiscal Impacts of Federal Spending DOD and VA Contracts with Utah Companies, 2019. . . .37 for Veterans, 2019...... 30 Table 60: Statewide Fiscal Impacts of Non-Installation Table 46: Economic Impacts of Federal Spending for Contracts with Utah Companies, 2019...... 38 Veterans by County, 2019...... 30 Table 61: Economic Impacts of Non-Installation DOD and Table 47: DOD Retired Civilians and Pension Payments by VA Contracts with Utah Companies by County, 2019. . . 38 County in Utah, 2019...... 31 Table 62: DOD Grants and Cooperative Agreements Table 48: Statewide Economic Impacts of DOD Retired in Utah, FY 2019...... 38 Civilians Pension Payments, 2019...... 32 Table 63: VA Grants to Utah Recipients, FY 2019...... 39 Table 49: Statewide Fiscal Impacts of DOD Retired Table 64: Statewide Economic Impacts of DOD and Civilians Pension Payments, 2019...... 32 VA Grants to Utah Recipients, 2019...... 39 Table 50: Economic Impacts of DOD Retired Civilians Table 65: Statewide Fiscal Impacts of DOD and VA Pension Payments by County, 2019...... 32 Grants to Utah Recipients, 2019...... 39 Table 51: Defense Contracts and Grants in Utah, Prime Table 66: Economic Impacts of DOD and VA Grants to Awards, FY 2000–FY 2019...... 33 Utah Recipients by County, 2019...... 39 Table 52: Value of Defense Contracts and Grants Table 67: Defense Employment in Utah, Selected Years Performed in Utah, FY 2019...... 34 1990–2019 ...... 40 Table 53: Utah Defense Contracts and Grants Comparison, Table 68: Estimated Defense Compensation in Utah, FY 2015 and FY 2019...... 34 Selected Years 1990–2019...... 42 Table 54: Total DOD and VA Contract and Grant Dollars Obligated in Utah by County, FY 2019...... 35

August 2021 I gardner.utah.edu 4 INFORMED DECISIONSTM Overview

Utah’s defense sector is an integral component of the state’s Comparison: FY 2015 and FY 2019 diverse economy. It brings in federal dollars that expand the Utah’s defense sector changed significantly since FY 2015. state’s economy and invest in its highly paid, middle-class Table 1 compares FY 2015 and FY 2019 employment and non- workforce. In recent years, federal defense spending in Utah has payroll spending by defense component. Some components significantly increased, warranting updated research to have grown markedly over the period, while others have measure the sector’s impact on Utah’s economy. tempered slightly. Overall, direct employment increased by The Utah Defense Alliance commissioned the Kem C. Gardner 62.8%, and non-payroll spending increased by 90.1% for the Policy Institute to assess the economic impacts of Utah’s period. All FY 2015 dollars presented here and throughout the defense industry. The Gardner Institute analyzed the impacts of report are inflation-adjusted to FY 2019 constant dollars based current operations of Hill Air Force Base, Dugway Proving on the Bureau of Labor Statistics CPI for urban areas in the West. Ground, Tooele Army Depot, the Utah National Guard, reserves, There are a few notable increases in employment and spending recruiting, and ROTC. The Institute also examined pensions and from FY 2015 to FY 2019. Hill Air Force Base direct jobs increased services for veterans, pensions for defense civilian retirees, and from 16,732 to 19,832 employees (19%), and the veteran benefits Department of Defense and Department of Veterans Affairs and medical offices increased their staff from 3,423 to 4,530 contracts and grants in Utah. employees (32%). Contracts and grants have grown considerably

Figure 1: Major Military Installations in Utah

Source: State of Utah, SGID and Kem C. Gardner Policy Institute

INFORMED DECISIONSTM 5 gardner.utah.edu I August 2021 Table 1: Direct Employment and Non-Payroll Spending for Utah Defense Sector Components, FY 2015 and FY 2019

Employment¹ Spending Category 2015 2019 Change 2015² 2019 Change Hill Air Force Base 16,732 19,832 18.5% $816,980,559 $885,631,461 8.4% Dugway Proving Ground 689 657 –4.6% $62,333,039 $56,766,679 –8.9% Tooele Army Depot 550 531 –3.5% $17,490,336 $19,532,602 11.7% Utah National Guard 9,280 7,831 –15.6% $53,340,220 $55,572,993 4.2% Reserves 4,163 3,978 –4.4% N/A N/A N/A Recruiting 230 263 14.3% N/A N/A N/A ROTC 69 82 18.8% N/A N/A N/A Veterans³ 3,423 4,530 32.3% $1,678,473,960 $1,772,847,416 5.6% DOD Retired Civilians N/A N/A N/A N/A $608,680,932 N/A Contracts and Grants⁴ 4,855 27,413 464.6% $1,023,062,716 $3,543,863,056 246.4% Total 39,991 65,117 62 .8% $3,651,680,832 $6,942,895,139 90 .1% N/A = not available Note: To avoid double-counting, reserves, recruiting, contracts and grants impacts reported here include only additional economic activity not included under a Utah military installation or other defense component in this table. 1. Employment consists of defense civilian and military jobs (36,875) as well as estimated direct private sector jobs (28,242) associated with defense retirement spending and other federal outlays. 2. All FY 2015 spending has been inflation adjusted into FY 2019 dollars. 3. Veteran employment includes direct employment from VA medical facilities, veterans homes, and benefits office and estimated direct contract jobs from grants. DOD military retiree pensions, including payments to survivors, are included in spending. 4. Grants and non-installation direct employment are estimates. Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model since FY 2015, rising from $1.0 to $3.5 billion, a 246.4% increase. The defense sector includes the Department of Defense Contract awards from just two companies, Northrop Grumman (DOD) and Department of Veterans Affairs (VA) employment, and L-3 Communications, accounted for nearly $2.3 billion military and federal civilian pensions, and contracts and grants. (65%) of this growth. In addition to these comparative increases, Economic impacts include direct economic activity, as well as FY 2019 analysis includes over $600 million in DOD retiree indirect and induced jobs, personal income, and GDP. For pension payments. example, 211,285 in total direct, indirect, and induced While many areas expanded, some installations experienced employment resulted from the direct economic activity of modest declines. Dugway Proving Ground employment was 65,117 defense jobs and sizeable federal outlays for contracts, 4.6% lower in FY 2019 compared with FY 2015, and spending grants, and pensions in Utah. FY 2019 was selected as the was 8.9% lower for the period. The number of Utah National principal year of study for these and other impacts because, at Guard personnel declined by 15.6% for the same timeframe. the time this research was undertaken, 2019 was the most However, part-time traditional guardsmembers represented recent common year for which reliable information was the vast majority of this reduction, while federal civilians and available from the disparate sources required for the analysis. active-duty personnel gained 157 and 156 jobs, respectively.

Economic Impacts Contracts and grants have Utah’s defense industry directly and indirectly supported 211,285 jobs—roughly the size of the state’s education and grown considerably since FY healthcare sectors combined—and $19.3 billion in economic activity during 2019 (Table 2). That year, federal defense 2015, rising from $1.0 to $3.5 spending was responsible for 10.3% of Utah’s jobs, 9.5% of its personal income, and 10.6% of its GDP. billion, a 246.4% increase.

August 2021 I gardner.utah.edu 6 INFORMED DECISIONSTM 45,000 Jobs (211,285) 10.3% 40,000 35,000 30,000 Personal Income ($13.9 Billion) 9.5% 25,000 20,000

GDP ($19.3 Billion) 10.6% Number of Jobs 15,000 10,000 5,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Share of State Total 0

1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $100,000 Military Civilian Defense $90,000 $64,215 $80,000 $100,000 $85,377 2019: $85,377 Table$70,000 2: Statewide Economic Impacts of Utah Defense Sector by Component,$90,000 2019 (Millions of Dollars) $80,000 $60,000 1990: $61,320 $62,929 $70,000 $50,000 Dugway Tooele Utah Reserves, DOD $54,907 $60,000 $40,000 Hill Air Proving Army National Recruiting, Civilian Contracts &2019: $62,929 Category Force Base Ground Depot Guard &$50,000 ROTC* Veterans Retirees Grants* Total $30,000 1990: $48,981 Total Employment 65,129 2,528 1,385 14,270 $40,0007,108 36,140 10,846 73,878 211,285 $20,000 $30,000 Personal Income $4,267.0 $172.7 $88.7 $707.4 $226.1 $3,282.8 $1,144.2 $4,035.7 $13,924.6 $10,000 (IConstant 2019 Dollars) $20,000 Gross Domestic Product $6,712.5 $266.7 $151.5 $1,363.9 $466.1 $3,215.3 $926.6 $6,227.8 $19,330.4

$0 Average Compensation per Job $10,000 * To avoid double-counting, reserves, recruiting, contracts and grants impacts reported here include only additional economic activity not included under a Utah military installation or other defense component2000 2001 2002 in2003 this2004 table.2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $0 Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model Defense Non-Defense 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Defense Non-Defense Figure 2: Share of Economic Impacts by Utah Defense Sector Component, 2019

Jobs

Personal Income

GDP

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Hill AFB Dugway Tooele Guard Reserves & Other Veterans Retired Civilians Contracts & Grants

Note: Reserves & Other comprises the reserve branch of each military service, as well as military recruiting and ROTC. Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model Hill AFB: 42.5% Table 3: Statewide Fiscal Impacts of Utah’s Defense Sector, 2019 Dugway: 2.0% (Millions of Dollars) Tooele: 0.9% $100,000 $244.3 Dugway Tooele Utah Reserves, DOD 2019: $85,377 Hill Air GuardProving: 7.5% Army National$90,000 Recruiting, Civilian Contracts Category Force Base Ground Depot Guard & ROTC* Veterans Retirees & Grants* Total Million $80,000 Reserves & Other: 2.5% Total State Revenues $211.7 $9.0 $4.4 $34.9 1990: $11.4$61,320 $162.5 $56.4 $206.8 $697.0 Veterans: 2.1% $70,000 Total State Operating Expenditures $107.8 DOD Civilian$4.0 Retirees: 0.7%$2.1 $16.7 $5.4 $157.3 $54.6 $104.9 $452.8 $60,000 Net State Operating Revenue $103 .9 Contracts$5 & .0 Grants: 41.7%$2 .3 $18 .2 $6 .0 $5 .2 $1 .8 $1012019: .9 $62,929$244 .3 * To avoid double-counting, reserves, recruiting, contracts, and grants fiscal impacts reported here$50,000 include only state revenue and expenses associated with economic activity not 1990: $48,981 included under a Utah military installation or other defense component. $40,000 Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model and the Gardner Policy Institute fiscal model 6% 1990: 5.5% $30,000 $20,000 5% Figure 2 shows the contribution of each defense component Fiscal$10,000 Impacts 4% in Utah in terms of employment, personal income, and GDP. Hill The$0 $19.3 billion in Utah economic activity supported by the Air Force Base (Hill AFB) accounts for 31% to 35% of these defense sector generated an estimated $697.0 million in state 3% economic impacts, followed by contracts and grants at 29% to income and1990 sales1991 1992 1993 tax1994 1995 revenue1996 1997 1998 1999 2000 during2001 2002 2003 2004 20192005 2006 2007 ( 2008 Table2009 2010 2011 3).2012 This2013 2014 2015 activity2016 2017 2018 2019 Defense Non-Defense 35%,2% and veterans at 17% to 24%. also attracted economic migrants to Utah, spurring an estimated 2019: 2.1% The defense sector’s total economic impacts have increased $452.8 million in state government spending for public and 1% nearly twofold since 2015, increasing by 102,000 jobs and $9.1 higher education, roads, public safety, etc. Subtracting operating

billionDefense Jobs as a Percent of All Utah 0% in inflation-adjusted GDP. Major factors that contributed expenditures from revenue results in a net fiscal impact of $244.3 to this increase include significant growth in non-installation million. Every component of Utah’s defense sector generated net 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 contract spending—primarily driven by $2.4 billion awarded to positive state fiscal impacts in 2019. Hill AFB and Contracts & Northrop Grumman and L-3 Communications—an overall Grants each accounted for over 40% of the net state revenue increase in employment and spending compared with 2015 generated by the defense industry in Utah (Figure 3). (Table 1), and the addition of DOD civilian retirees, who were not included in the previous report.

INFORMED DECISIONSTM 7 gardner.utah.edu I August 2021 45,000 Jobs (211,285) 10.3% 40,000 35,000 30,000 Personal Income ($13.9 Billion) 9.5% 25,000 20,000 45,000

10.6% Number of Jobs 15,000 GDPJobs ($19.3(211,285) Billion) 10.3% 40,000 10,000 35,000 5,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 30,000 Personal IncomeShare ($13.9 of State Billion) Total 9.5% 0 25,000

20,000 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $100,000 Military Civilian Defense

Number of Jobs 15,000 $90,000GDP ($19.3 Billion) 10.6% $64,215 10,000 $80,000 $100,000 $85,377 5,000 2019: $85,377 0.0%$70,000 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% $90,000 $80,0000 $60,000 Share of State Total 1990: $61,320 $62,929 $70,000

$50,000 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $100,000 $54,907 $60,000 $40,000 Military Civilian Defense 2019: $62,929 $90,000 $50,000 $30,000 1990: $48,981 $64,215 $40,000 $80,000 $100,000 $20,000 $85,377 $30,000 2019: $85,377 $70,000 $90,000 $10,000 (IConstant 2019 Dollars) $20,000$80,000 $60,000 1990: $61,320 $0 $62,929 Average Compensation per Job $10,000$70,000 $50,000

2000 $54,9072001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $60,000$0 $40,000 2019: $62,929 Defense Non-Defense $50,000 $30,000 1990 1990:1991 1992 1993 $48,9811994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $40,000 Defense Non-Defense $20,000 $30,000 $10,000 (IConstant 2019 Dollars) $20,000 Jobs

$0 Average Compensation per Job $10,000 Personal Income

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $0

GDP Defense Non-Defense 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0% 10% 20% 30% 40% 50% 60% 70%Defense 80% Non-Defense90% 100% Figure 3: Share of State Net Revenue Impacts from Utah Figure 5: Military and Federal Civilian Defense Hill AFB Dugway Tooele Guard Reserves & Other Veterans Retired Civilians Contracts & Grants Defense SectorJobs Component, 2019 Employment in Utah, 1990–2019

Personal Income 45,000 Jobs (211,285) Hill AFB: 42.5%10.3% 40,000 GDP 35,000 0% 10% 20% Dugway30%: 2.0% 40% 50% 60% 70% 80% 90% 100% 30,000 Personal IncomeHill AFB($13.9Dugway Billion) Tooele Tooele: 0.9%9.5%Guard Reserves & Other45,000 Veterans Retired Civilians Contracts & Grants $100,00025,000 Jobs (211,285)$244.3 10.3% 40,000 2019: $85,377 Guard: 7.5% $90,00020,000 35,000 Million $80,000

Number of Jobs 15,000 GDP ($19.3 Billion) Reserves & Other:10.6% 2.5% 30,000 Hill AFB: 42.5% 1990: $61,320 Personal Income ($13.9 Billion) Veterans: 2.1%9.5% $70,00010,000 25,000 DOD Civilian Retirees: 0.7% Dugway: 2.0% 5,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% $60,00020,000 ContractsTooele: 0.9% & Grants: 41.7% 2019: $62,929 Share of State Total $100,000$50,000 0 GDP ($19.3 Billion) 10.6% Number of Jobs 15,000 $244.3 1990: $48,981 2019: $85,377 Guard: 7.5% $40,000$90,00010,000 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $100,000 Military Civilian Defense Source: Kem C. GardnerMillion Policy Institute analysis using the REMI PI+ model and the 5,000 0.0%6% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% $30,000$80,000 Gardner$90,000 Policy1990: Institute 5.5% fiscal model Reserves & Other: 2.5% $64,215 Source: Bureau of1990: Economic $61,320 Analysis, Bureau of Labor Statistics Share of State Total Veterans: 2.1% $20,000$70,000$100,0000 $80,0005% DOD Civilian Retirees$85,377: 0.7% 2019: $85,377 $70,000 $10,000$60,000$90,0001990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Figure$100,0004% 4: Defense Share of Total EmploymentContracts in & Utah, Grants : 41.7% Figure$80,000 6: Average CompensationMilitary Civilianof Utah Defense Jobs,2019: 1990–2019 $62,929 $60,000 $50,000$0 1990: $61,320 1990–2019$90,000 $62,929 $70,000 $50,000 $64,215 1990: $48,981 3% $40,000$100,000 $80,000 $54,907 $60,0001990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019: $85,377 $40,0006% $85,377 $90,000 2019: $62,929 $70,000 1990: 5.5% $30,000$50,000 Defense Non-Defense $30,0002% 1990: $48,981 2019: 2.1% $40,000$80,000 $60,000 $20,000 1990: $61,320 $20,0005% $62,929 $30,000$70,000 $50,0001% $10,000 $10,000 $54,907 $60,000 4% (IConstant 2019 Dollars) $20,000 $40,000 $0 2019: $62,929

Defense Jobs as a Percent of All Utah 0% $50,000 $0 Average Compensation per Job $10,000 $30,000 1990: $48,981 3% $40,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $20,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $30,000 Defense Non-Defense Defense Non-Defense $10,0002% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (IConstant 2019 Dollars) $20,000 2019: 2.1% Defense Non-Defense

$0 Average Compensation per Job $10,000 1%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $0 Jobs

Defense Jobs as a Percent of All Utah 0% Defense Non-Defense 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Personal Income Defense Non-Defense 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 GDP Jobs Source: Bureau of Economic0% Analysis10% 20% 30% 40% Source:50% Bureau of Economic60% Analysis,70% Bureau of Labor80% Statistics, REMI90% PI+ historical data100% Personal Income Hill AFB Dugway Tooele Guard Reserves & Other Veterans Retired Civilians Contracts & Grants Federal DefenseGDP Employment Compensation per federal defense job in Utah has historically In 2019, military personnel and civilians with federal defense been considerably higher than Utah’s average compensation 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% jobs made up about 2.1% of Utah’s employmentHill AFB: 42.5% total, down rate, with the gap widening by over 50% in 2009 (Figure 6). Hill AFB Dugway Tooele Guard Reserves & Other Veterans Retired Civilians Contracts & Grants from 2.7% in 2010, and 5.5% in 1990 (Figure 4). In recent Even with some tapering in recent years, federal defense jobs in Dugway: 2.0% decades, the number of military personnel serving in Utah has Utah offered an average of $85,377 in compensation, 35.7% Tooele: 0.9% been more stable than the number of civilian jobs with the $100,000more than the $62,929 at non-defense jobs in 2019. $244.3 Hill AFB: 42.5% 2019: $85,377 DOD or VA. After falling from a high of moreGuard than: 7.5% 42,000 jobs in $90,000 1990, total federalMillion defense employment inDugway the state: 2.0% held fairly $80,000 Reserves & Other: 2.5% Tooele: 0.9% 1990: $61,320 steady above 30,000 jobs from 2000 to 2019Veterans (Figure: 2.1% 5). During $100,000$70,000 those years,$244.3 while defense employmentDOD increased Civilian Retirees 13.7%,: 0.7% 2019: $85,377 Guard: 7.5% $60,000$90,000 employment in the economy as a wholeContracts grew & Grantsby 44.2%,: 41.7% 2019: $62,929 Million $50,000$80,000 Reserves & Other: 2.5% resulting in defense’s shrinking share. 1990:1990: $48,981 $61,320 Veterans: 2.1% $40,000$70,000 DOD Civilian Retirees: 0.7% 6% 1990: 5.5% $30,000$60,000 Contracts & Grants: 41.7% 2019: $62,929 $20,000$50,000 5% 1990: $48,981 $10,000$40,000 4% 6% $0 1990: 5.5% $30,000 TM August3% 2021 I gardner.utah.edu 8 $20,000 INFORMED DECISIONS 5% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $10,000 Defense Non-Defense 2% 4% 2019: 2.1% $0 1% 3% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Defense Jobs as a Percent of All Utah 0% Defense Non-Defense 2% 2019: 2.1% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1%

Defense Jobs as a Percent of All Utah 0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Terms Used in This Report

Military personnel includes full-time active-duty personnel stationed in Indirect impacts are the changes in sales, labor income and employment Utah as well as part-time members of the reserves and the Utah within the region in backward-linked industries that supply goods National Guard: airmen at Hill Air Force Base (Hill AFB), Army soldiers and services to the business or industry under study. For example, at Dugway, reservists at Hill AFB and Fort Douglas, traditional jobs at a Utah defense contractor providing engineering services to guardmembers and full-time personnel in Utah Air and Army the military would be included in the indirect employment impacts. National Guard units throughout the state, full-time recruiters for each military service, active-duty ROTC faculty, and all other officers Induced impacts are the increased sales within the region from and enlisted service personnel at major installations or smaller sites. household spending of the income earned from the business or Civilian defense employees are federal government employees industry under study and from supporting businesses. These arise, classified in NAICS sectors 92811, national defense; 6211, offices of for example, when Hill Air Force Base personnel and Northrop physicians; or 622, hospitals. The latter two sectors represent U.S. Grumman employees spend their personal income to buy groceries, Department of Defense (DOD) and Department of Veterans Affairs movie tickets or car repairs from in-state establishments. (VA) doctors and clinics, and employees of the VA hospital. See entry Fiscal impacts are changes in state and county government revenues and below for NAICS. Civilian defense employees include DOD and VA expenditures resulting from the changes in economic activity. The employees who are not military personnel. estimated revenue impacts consist of state personal and corporate Guardmembers in the National Guard fulfill part-time military service in income taxes, state and county sales taxes, and property taxes. addition to civilian employment or other pursuits. Guardmembers Estimated expenditure impacts comprise state and local public customarily report for duty one weekend per month and two weeks education expenditures, state higher education expenditures, and per year. Active-duty personnel and DOD civilians serve with state and local non-education expenditures. guardmembers in the Utah National Guard. Employment in this report is a measure of jobs, not workers, unless Veterans are persons who gave military service for any duration in the otherwise specified. Full- and part-time jobs are counted equally, U.S. Armed Forces. and both wage and salary positions and the self-employed are Military retirees are individuals who served in the U.S. armed forces for included. Employment is reported by place of work, rather than at least 20 years of active duty or gave equivalent service in reserve place of residence. or National Guard units. Military personnel may receive early Compensation is the sum of wage and salary disbursements and retirement for medical or other special circumstances. supplements to wages and salaries, including contributions for health Department of Defense (DOD) civilian retirees are individuals who were insurance policies and retirement accounts. Companies report their DOD employees, whether they were paid appropriated or compensation by employees’ place of work. Compensation does not nonappropriated funds, under permanent or temporary appointment. include income from self-employment, personal investments, or The federal government employs both non-military civilians and government transfers. Compensation is used in the Trends in Defense retired military personnel who become civilian workers. In FY 2018, Employment and Compensation section to compare historical 48.4% of all DOD permanent full-time employees were veterans.7 defense employment with non-defense employment in Utah. ROTC refers to the Reserve Officer Training Corps. Utah college students Personal income includes income a person receives from all sources: wage can join ROTC units for the Army, Marine Corps, Navy and Air Force. and salary disbursements, supplements to wages and salaries, propri- Cadets and midshipmen study and train to become commissioned etors’ income, rent, dividends, interest and net transfer receipts. Person- officers upon graduation. al income is a more expansive, less focused concept than compensation and is reported by place of residence rather than place of work. Economic impacts are the changes in the size and structure of a region’s economy that occur when goods and services are purchased from Gross Domestic Product (GDP) is the most commonly used measure of vendors within the region with money generated outside the region. the contribution of a region to the national economy as it avoids In the strictest interpretation, economic impacts occur only when double-counting of intermediate sales and captures only the “value “new” money enters the regional economy and is then spent locally. added” by the region (or business) to final products. Value added is Such an inflow has the potential to expand the size and strength of the sum of employee compensation, indirect business taxes, and the region’s economy. Money spent outside the region is considered gross operating surplus; alternatively it can be thought of as total “leakage” and does not generate economic growth within the output or sales less the value of intermediate inputs purchased to region. Likewise, purchases of goods and services by local residents produce that output. Value added is equivalent to the GDP measure. from local vendors do not increase the economic base of the region; North American Industry Classification System (NAICS) was developed by they simply reshuffle existing resources. In this report economic U.S., Canadian and Mexican statistical agencies as a way to classify impacts are presented in terms of employment, personal income business establishments into sectors based on their production and gross domestic product (GDP). methods. NAICS numbers range from two digits at the highest level of Direct impacts are the changes in economic activity within the region aggregation to six digits for the most detail. See www.census.gov/naics. during the first round of spending. In this study these include the Fiscal year refers to the federal fiscal year (FY), which begins October 1 direct federal military and civilian employment and payroll, and of the previous year and ends September 30 of the year indicated. federal contract and other spending in the region.

INFORMED DECISIONSTM 9 gardner.utah.edu I August 2021 Hill Air Force Base

Table 4: Hill Air Force Base Federal Employees by County of Residence, 2019

County Civilians1 Military2 Total Box Elder 395 11 406 Cache 147 7 154 Davis 5,987 3,463 9,450 Iron 2 0 2 Millard 2 0 2 Morgan 216 15 231 Salt Lake 469 101 570 Sevier 2 0 2 Summit 29 1 30 Tooele 53 7 60 Utah 65 16 81 Uintah 0 2 2 Wasatch 2 0 2 Washington 3 1 4 Weber 4,786 602 5,388 Source: State of Utah, SGID and Kem C. Gardner Policy Institute None given 2,016 1,432 3,448 Located on the border of Davis and Weber counties, 30 miles Total 14,174 5,658 19,832 north of Salt Lake City, Hill Air Force Base is the largest military 1. Civilian employee numbers are estimates based on payroll amounts by county, with 86% of the data complete, assuming civilians from each county received the average installation in Utah. Hill AFB was the state’s sixth largest pay (including benefits) of all Hill civilian employees. Counts include 8 civilians with the 348th and 368th Recruiting Squadrons. Civilians do not include contractors or 1 employer in 2019. Hill employed 4,521 active-duty military employees of private businesses. personnel, 1,137 Air Force reservists, and 14,174 federal civilians, 2. The 1,432 military personnel for whom county information was not given either had a legal residence outside Utah, although they live in the state to work at Hill AFB, or no representing 10.1% of total jobs in Davis County (Table 4). An location was given. Counts include 45 military personnel with the 348th and 368th Recruiting Squadrons. additional 2,487 employees of government contractors and Source: Kem C. Gardner Policy Institute analysis of data provided by Hill Air Force Base private businesses worked on base. From 2015, Hill employment has grown by 3,100 jobs, increasing from 16,732 to 19,832 Table 5: Hill Air Force Base Employment and Non-Payroll individuals in 2019 (Table 5). Most of this increase came from Spending Comparison, FY 2015 and FY 2019 the addition of 2,369 federal civilians, while military personnel (Millions of Dollars) increased by 731 people. The largest share of Hill AFB’s federal workforce, 9,450 Area 2015* 2019 Difference Change employees, lived in Davis County, almost 455 of them on base. Employment 16,732 19,832 3,100 18.5% Another 5,388 employees lived in neighboring Weber County, Spending $819,623,360 $885,631,461 $68,650,902 8.4% Note: Spending consists of contracts, TRICARE, TDY, GPC purchases and education impact about 1,550 commuted from 13 other counties, and for almost aid for FY 2015 and FY 2019, respectively. 3,450 the county of residence is not known. Total federal civilian * All 2015 spending has been inflation adjusted to 2019 dollars. Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov and Hill and military wages paid by Hill AFB amounted to more than Air Force Base

$1.4 billion in 2019, 20.1% of all wages paid in Davis County. The Total federal civilian and average wage of federal employees at Hill AFB was $71,788, military wages paid by Hill AFB 47% above the countywide average of $48,860. According to data from USAspending.gov, Hill AFB’s FY 2019 amounted to more than $1.4 contract spending in Utah totaled almost $723.8 million. In addition, Hill AFB spent $116.0 million on healthcare (TRICARE) billion in 2019, 20.1% of all benefits,2 almost $9.8 million for temporary duty assignments wages paid in Davis County. (TDY) at the base, an estimated $33.1 million on in-state

August 2021 I gardner.utah.edu 10 INFORMED DECISIONSTM Table 6: Hill Air Force Base Non-Payroll Spending in Utah Table 8: Statewide Fiscal Impacts of Hill Air Force Base, 2019 by Industry, FY 2019 (Millions of Dollars) Prof., Sci., and Tech Services 37.87% Construction 60.29% Sector Amount Impact Manufacturing Amount 27.09% Utilities 15.58% Health Services Mining $160,782 Personal Income Tax Revenues 13.42% $103.5 Other Services 9.10% Construction Utilities $6,185,922 Corporate Income Tax Revenues 6.01% $7.4 Admin, Support, Waste Mgmt. 4.58% Educational Services 3.75% Construction $53,270,165 State Sales Tax Revenues $100.8 Wholesale Trade 3.39% Wholesale Trade 2.95% Information 2.39% Manufacturing $239,889,415 Total State RevenuesTransportation $211 .7 2.45% Manufacturing 2.07% Wholesale Trade $26,103,735 Retail Trade Non-Education Expenditures 1.84% $56.9 Retail Trade 1.33% Retail Trade $16,271,223 Admin,State Public Support, Education Waste Mgmt.Expenditures1.57% $24.1 Prof., Sci., and Tech Services 0.90% Accom. and Food Services Transportation $21,716,325 Higher Education Expenditures 1.36% $26.8 Educational Services 0.35% Utilities 0.70% Information $4,059,403 Total State Operating Expenditures $107 .8 Transportation 0.02% Other Services 0.49% Real Estate and Rental 0.00% Real Estate and Rental $181,121 Net State Operating Revenue $103 .9 Information 0.46% 0% 10% 20% 30% 40% 50% 60% 70% Professional, Scientific and Technical Services $335,417,941 Source: KemReal C. GardnerEstate and Policy Rental Institute analysis0.02% using the Gardner Policy Institute fiscal model Admin, Support, and Waste Management $13,898,542 Mining 0.02% Educational Services $33,211,917 FigureArts, Entertainment, 8: Statewide and EconomicRec. 0.00% Impacts of Hill Air Force 1,385 $88.7 $151.5 Health Care and Social Assistance $118,828,244 Base, 2019 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 100% 90% Arts, Entertainment, and Recreation $28,236 (Millions of Dollars) 80% $45.6 Accommodation and Food Services $12,055,632 65,129 $4,267.0 $6,712.5 70% 854 $82.2 100% 60% Other Services $4,352,857 90% 50% Total $885,631,461 80% $3,376.1 40% 70% $2,254.1 Note: Consists of contracts, TRICARE, TDY, GPC purchases and education impact aid. 45,297 30% 60% $43.1 Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov and Hill 20% 531 $69.3 50% Air Force Base 10% 40% 0% 30% $3,336.3 Employment Personal Income Gross Domestic Figure 7: Hill Air Force Base Non-Payroll Spending in Utah 20% $2,012.9 19,832 Product by Industry, FY 2019 10% Direct Federal Indirect & Induced 0% Prof., Sci., and Tech Services Employment Personal Income Gross Domestic 37.87% Construction 60.29% Manufacturing Product 27.09% Utilities 15.58% Health Services Direct Federal Indirect & Induced 13.42% Other Services 9.10% Construction 6.01% Traditional Guardmembers: 5,199: 66% Note:Admin, Does Support, not include Waste jobs Mgmt. of contract civilians4.58% or private businesses on base. These are Educational Services 3.75% included in the indirectWholesale and Tradeinduced jobs.3.39% Wholesale Trade 2.95% Source:Prof., Kem Sci., C. andGardner TechInformation Policy Services Institute analysis2.39% using the REMI PI+ model 55.13% Transportation 2.45% Admin, Support,Manufacturing Waste Mgmt. 2.07% 30.43% Total: Civilian: 1,262: 16% Retail Trade 1.84% Accom. and FoodRetail Services Trade 1.33%4.62% Admin, Support, Waste Mgmt. 7,831 1.57% governmentProf., Sci., and purchaseTechConstruction Services card0.90% 3.05%(GPC) purchases, and $2.9 million Accom. and Food Services 1.36% for educationEducational impactRetail Services Trade aid. Total0.35%2.34% in-state non-payroll spending Active Guard Personnel: 1,370; 18% Utilities 0.70% Transportation 0.02% Manufacturing 2.13% Other Services 0.49% amountedReal Estate to $885.6 and Rental million0.00% (Table 6 and Figure 7). This was an Information 0.46% Wholesale Trade 1.25% increase of $68.7 million (8.4%)0% 10% from20% 201530% (Table40% 5).50% Nearly60% 38%70% Information 0.43% Real Estate and Rental 0.02% of all spending was for professional, scientific and technical Mining 0.02% Finance and Insurance 0.27% Construction 67.01% services, 27.1% went toward manufacturing, and 13.4% went to Arts, Entertainment, and Rec. 0.00% Other Services 0.15% Real Estate and Rental 7.57% 1,385 $88.7 $151.5 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 100%the healthEducational care sector. Services 0.10% Other Services 6.60% 90%Hill AFB’sReal Estate employment, and Rental payroll0.07% and operational expenditures Manufacturing 5.38% Note: Consists of contracts, TRICARE, TDY, GPC purchases and education impact aid. 80% Health Services 0.02% $45.6 Prof., Sci., and Tech Services 4.17% Source: Kem C. Gardner65,129 Policy Institute analysis$4,267.0 of data from USASpending.gov$6,712.5 and Hill supported70% over854 65,000 full- and part-time jobs in Utah$82.2 in 2019 100%Air Force Base Admin, Support, Waste Mgmt. 3.71% and60%Arts, $4.3 Entertainment, billion in and personal Rec. 0.01% income (Table 7 and Figure 8). This 90% Utilities 1.62% 50%Management of Companies 80% 0.00% $3,376.1 consists40% of the 19,832 direct federal jobs with $2.0 billion in Retail Trade 1.45% Table70% 7: Statewide Economic$2,254.1 Impacts of Hill Air Force Base, 0% 10% 20% 30% 40% 50% 60% 45,297 30% Information 1.05% 60% personal income provided by the$43.1 base itself, plus an estimated 2019 (Millions of Dollars) 20% 531 $69.3 50% Wholesale Trade 0.56% additional10% 45,297 indirect and induced jobs and almost $2.3 40% Accommodation and Food Services 0.26% Direct Indirect & 0% 3 30% billion in personal income. Hill AFB’s operations contributed Transportation 0.24% Category Federal* Induced $3,336.3Total Employment Personal Income Gross Domestic 20% $2,012.9 2,528 $172.7 $266.7 19,832 $6.7100% billion to the state’s GDP. Product Educational Services 0.20% 10%Employment 19,832 45,297 65,129 90% Direct Federal Indirect & Induced Mgmt. of Companies and Enterprises 0.08% 0% Hill AFB’s activities also generate fiscal impacts for the state. Personal IncomeEmployment Personal$2,012.9 Income 2,254.1Gross Domestic$4,267.0 80% Mining 0.04% These arise through the changes$94.5 in income, employment, Gross Domestic Product $3,336.3 3,376.1 Product$6,712.5 70% $156.5 Health Care and Social Assistance 0.03% 1,871 Direct Federal Indirect & Induced output60% and population that result from the economic activity of Ag., Forestry, Fishing and Hunting 0.02% * Does not include jobs of contract civilians or private businesses on base. These are 50% included in the indirect and induced jobs. the base. Hill AFB’s activities directly and indirectly generated Arts, Entertainment, and Recreation 0.01% 40% Traditional Guardmembers: 5,199: 66% Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model 30% Finance and Insurance 0.00% Prof., Sci., and Tech Services 55.13% 20% $78.1 $110.2 0% 20% 40% 60% 80% TM Total:657 INFORMEDAdmin, Support, Waste DECISIONS Mgmt. 30.43% 11 10% Civilian:gardner.utah.edu 1,262: 16% I August 2021 Accom. and Food Services 4.62% 0% Employment7,831 Personal Income Gross Domestic Construction 3.05% Product Retail Trade 2.34% Active Guard Personnel: 1,370; 18% Direct Federal Indirect & Induced Manufacturing 2.13% Wholesale Trade 1.25% Information 0.43% Finance and Insurance 0.27% Construction 67.01% Other Services 0.15% Real Estate and Rental 7.57% Educational Services 0.10% Other Services 6.60% Real Estate and Rental 0.07% Manufacturing 5.38% Health Services 0.02% Prof., Sci., and Tech Services 4.17% Admin, Support, Waste Mgmt. Arts, Entertainment, and Rec. 0.01% 3.71% Utilities 1.62% Management of Companies 0.00% Retail Trade 1.45% 0% 10% 20% 30% 40% 50% 60% Information 1.05% Wholesale Trade 0.56% Accommodation and Food Services 0.26% Transportation 0.24% 2,528 $172.7 $266.7 100% Educational Services 0.20% 90% Mgmt. of Companies and Enterprises 0.08% 80% Mining 0.04% $94.5 70% $156.5 Health Care and Social Assistance 0.03% 1,871 60% Ag., Forestry, Fishing and Hunting 0.02% 50% Arts, Entertainment, and Recreation 0.01% 40% 30% Finance and Insurance 0.00% 20% $78.1 $110.2 0% 20% 40% 60% 80% 10% 657 0% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced an estimated $211.7 million in state tax revenues (Table 8). This Table 9: Economic Impacts of Hill Air Force Base by was partially offset by the additional population supported by County, 2019 the base, which required an estimated $107.8 million in state (Shares of County Totals, Millions of Dollars) government expenditures. The net fiscal impact was $103.9 Gross Domestic million in revenue. Employment Personal Income Product Table 9 presents the total impacts from Table 7 and Figure 8 County Number Share Number Share Number Share by county based on work that occurred at Hill AFB. While over Davis 39,172 20.4% $2,122.3 12.6% $4,299.6 28.3% 60% of Hill’s economic impacts remained in Davis County, Salt Lake 12,180 1.3% $885.6 1.4% $1,314.9 1.5% nearby counties also received large employment, personal Weber 7,561 5.4% $732.1 6.8% $568.0 5.3% income and GDP impacts in 2019 because of the base. Utah 2,712 0.8% $218.0 0.9% $217.6 0.8% Nearly 39,200 jobs held in Davis County were either performed Summit 606 1.4% $47.9 0.9% $78.5 1.6% at Hill AFB or indirectly supported by its spending and the Cache 855 1.1% $57.4 1.2% $70.8 1.3% spending of its employees. Those jobs represented 22.4% of Box Elder 1,003 3.4% $82.1 3.9% $69.8 2.6% county employment and generated $2.1 billion in personal Toole 229 1.0% $33.0 1.3% $22.8 1.0% income for county residents; this was half of the base’s total Morgan 284 5.7% $51.4 8.0% $16.1 6.0% personal income impact. An estimated $4.3 billion of GDP was All Others 527 0.2% $37.3 0.2% $54.4 0.2% created in Davis County alone, representing nearly two-thirds Total 65,129 3 .2% $4,267 .0 2 .9% $6,712 5. 3 7%. Note: Employment and GDP are by place of work. Personal income is by place of of Hill AFB’s total economic impact. residence. Shares equal employment, personal income and GDP impacts divided by total Salt Lake County had the second largest impacts, with an employment, personal income and GDP in the county (or state for the “Total” row), respectively. estimated 12,180 direct, indirect and induced jobs due to Hill Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model AFB. These jobs brought $885.6 million in income into the county, 1.4% of all personal income in Salt Lake County. Hill About 9% to 17% of Hill AFB’s total impacts went to Weber AFB’s activity also increased Salt Lake County’s GDP by an County in 2019: 7,561 jobs, $732.1 million in personal income, estimated $1.3 billion. Salt Lake County’s total employment, and $568.0 million in GDP. These impacts represented a larger personal income, and GDP impacts each represented about local share compared with Salt Lake County, accounting for 20% of Hill AFB’s total economic impact. Given the size of its between 5% and 7% of Weber County totals. Morgan County economy, these large impacts amounted to less than 2% of Salt also benefited from its close proximity to Hill AFB, boasting Lake County totals. economic impacts between 6% and 8% of county totals.

August 2021 I gardner.utah.edu 12 INFORMED DECISIONSTM Dugway Proving Ground

Table 10: Dugway Proving Ground Employees by County of Residence, 2019

County Employees County Employees Tooele 436 Millard 1 Utah 73 Uintah 1 Salt Lake 72 Sevier 1 Davis 12 Box Elder 1 Weber 11 Washington 1 Juab 10 Emery 1 Cache 7 Summit 1 Sanpete 4 Outside Utah 22 Iron 3 Total 657 Source: Dugway Proving Ground

Table 11: Dugway Proving Ground Employment and Non-Payroll Spending Comparison, FY 2015 and FY 2019

Area 2015* 2019 Difference Change Source: State of Utah, SGID and Kem C. Gardner Policy Institute Employment 689 657 –32 –4.6% Spending $62,534,677 $56,766,679 –$5,566,360 –8.9% Dugway Proving Ground (DPG) is located in the remote Skull Note: FY 2015 spending consists of contracts, and FY 2019 spending includes contracts, Valley, 85 miles southwest of Salt Lake City in the west desert of government purchase card transactions, and visitor spending. * All 2015 spending has been inflation adjusted to 2019 dollars. Tooele County. The base is surrounded by more than 260,000 Source: Kem C. Gardner Policy Institute analysis of data from Dugway Proving Ground and USAspending.gov acres of desert and mountain terrain. DPG tests detection and defensive equipment for chemical and biological agents with both live agents and nontoxic simulants. Personnel provide average wage of employees at Dugway Proving Ground was training in the use of this detection and defensive equipment. In $87,999, double the countywide average of $43,838. There addition, Michael Army Airfield features an 11,000-foot runway were an additional 801 military contractors and school, hotel, and is home to the Rapid Integration and Acceptance Center, credit union and other on-base workers not paid directly by the which conducts unmanned aerial vehicle testing and training. Department of Defense. In 2019, Dugway Proving Ground directly employed 635 According to data from USAspending.gov, Dugway Proving civilians and 22 military personnel, representing 2.7% of all jobs Ground‘s FY 2019 contract spending in Utah totaled almost in Tooele County. Most of these employees, 436 of them, lived $51.2 million. In addition, DPG spent $2.8 million on in-state in the county; the remainder commuted from 15 other counties government purchase card (GPC) purchases, and the installation in Utah and from out of state (Table 10). supported $2.7 million in visitor spending. Total in-state non- The significant number of transient personnel stationed at payroll spending amounted to $56.8 million (Table 12 and Dugway causes employee counts to shift from year to year. Figure 9). Over 55% was for professional, scientific and technical Compared with 2015, personnel decreased by 32 individuals services, with another 30.4% going to administrative, support (–4.6%) (Table 11). and waste management services, and 4.6% to accommodation Total direct civilian and military wages from DPG amounted and food services. FY 2019 spending was $5.6 million lower to $57.8 million, 7.5% of all wages paid in Tooele County. The (–8.9%) than inflation-adjusted 2015 spending, which did not include GPC or visitor amounts (Table 11). Along with its primary functions, Dugway hosts many civilian The average wage of employees and military personnel for events, trainings and inspections. at Dugway Proving Ground was These visitors bring federal and out-of-state dollars into Utah’s economy by spending their stipends on lodging, food and $87,999, double the countywide other travel-related expenses. In 2019, Dugway’s Rapid Integration and Acceptance Center (RIAC) alone hosted 1,015 average of $43,838. visitors.4 With data from defensetravel.dod.mil, Tooele-specific

INFORMED DECISIONSTM 13 gardner.utah.edu I August 2021 Prof., Sci., and Tech Services 37.87% Construction 60.29% Manufacturing 27.09% Utilities 15.58% Health Services 13.42% Other Services 9.10% Construction 6.01% Admin, Support, Waste Mgmt. 4.58% Table 12:Educational Dugway Services Proving Ground Non-Payroll Spending Table 13: Estimated Dugway Proving Ground Visitor 3.75% Wholesale Trade 3.39% Wholesale Trade in Utah by Industry, FY 20192.95% Spending in UtahInformation by Industry,2.39% FY 2019 Transportation 2.45% Manufacturing 2.07% Sector Retail Trade Amount Sector Estimated Amount 1.84% Retail Trade 1.33% Construction $1,730,913 Accommodations $1,749,534 Admin, Support, Waste Mgmt. 1.57% Prof., Sci., and Tech Services 0.90% ManufacturingAccom. and Food Services 1.36% $1,211,406 Food ServiceEducational Services 0.35% $869,397 Utilities Wholesale Trade 0.70% $710,477 Incidentals Transportation 0.02% $85,235 Other Services 0.49% Real Estate and Rental Retail Trade $1,329,196 Total 0.00% $2,704,166 Information 0.46% Information $243,687 Note: Visitor spending is included in0% accommodation10% 20% and30% food services40% 50% and retail60% trade70% Real Estate and Rental 0.02% sectors in Table 12 and Figure 9. Finance and InsuranceMining 0.02% $151,377 Source: Kem C. Gardner Policy Institute analysis of data from Dugway Proving Ground Arts,Real Entertainment,Estate and Rental and Rec. 0.00% $40,125 1,385 $88.7 $151.5 Professional, Scientific and Technical0% 5% Services10% 15% 20% 25% 30% 35%$31,295,92540% 45% 100%Table 14: Statewide Economic Impacts of Dugway Proving Ground,90% 2019 Management of Companies $2,440 80% $45.6 Admin, Support,65,129 and Waste Management$4,267.0 $6,712.5$17,275,555 (Thousands70% of854 Dollars) $82.2 100% 60% 90%Educational Services $57,077 50% Indirect & 80% Health Care and Social Assistance $3,376.1 $8,703 40%Category Direct Induced Total 70% $2,254.1 45,297 30% 60%Arts, Entertainment, and Recreation $4,156 Employment $43.1657 1,871 2,528 20% 531 $69.3 50% Accommodation and Food Services $2,620,580 10%Personal Income $78,140.5 $94,543.2 $172,683.8 40% 0% 30%Other Services $85,062 Gross Domestic Product $110,248.2 $156,457.4 $266,705.6 $3,336.3 Employment Personal Income Gross Domestic 20% $2,012.9 Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model Total 19,832 $56,766,679 Product 10% Source: Kem C. Gardner Policy Institute analysis of data from USAspending.gov and Direct Federal Indirect & Induced 0% Dugway ProvingEmployment Ground Personal Income Gross Domestic Product per diems for 2019 were used to estimate total RIAC visitor Figure 9: DugwayDirect Proving Federal GroundIndirect Non-Payroll & Induced Spending in spending for housing, food and other expenses. That year, RIAC Traditional Guardmembers: 5,199: 66% Utah by Industry, FY 2019 visitors spent an estimated $2.7 million for total travel (Table Prof., Sci., and Tech Services 55.13% 13). This consists of $1.7 million for lodging, $869,400 for food, Admin, Support, Waste Mgmt. 30.43% and $85,200Total: for incidentals. Civilian: 1,262: 16% Accom. and Food Services 4.62% DPG’s employment,7,831 payroll and operational expenditures Construction 3.05% supported approximately 2,528 full- and part-time jobs in Utah Retail Trade 2.34% Active Guard Personnel: 1,370; 18% in 2019 and $172.7 million in personal income (Table 14 and Manufacturing 2.13% Wholesale Trade 1.25% Figure 10). This consists of the 657 direct jobs, with $78.1 million Information 0.43% in personal income, at the Proving Ground itself, plus an Finance and Insurance 0.27% estimated additionalConstruction 1,871 indirect and induced jobs and67.01% $94.5 Other Services 0.15% million in personalReal Estate income. and Rental DPG’s7.57% operations contributed an Educational Services 0.10% estimated $266.7 Othermillion Services to the state’s6.60% GDP. Real Estate and Rental Manufacturing 5.38% 0.07% Dugway Proving Ground’s activities also generate fiscal Health Services 0.02% Prof., Sci., and Tech Services 4.17% impactsAdmin, for Support, the state. Waste Mgmt.These arise through the changes in Arts, Entertainment, and Rec. 0.01% 3.71% Utilities 1.62% Management of Companies 0.00% income, employment, output and population that result from Retail Trade 1.45% 0% 10% 20% 30% 40% 50% 60% the economic activity of the Proving Ground. In 2019, DPG’s Information 1.05% activities directlyWholesale and indirectly Trade 0.56% generated an estimated $9.0 Source: Kem C. Gardner Policy Institute analysis of data from USAspending.gov and Dugway Proving Ground millionAccommodation in state andtax Foodrevenues, Services consisting0.26% of almost $4.2 million in personal income Transportationtaxes, $727,1000.24% in corporate income taxes, 2,528 $172.7 $266.7 Educational Services 100% and almost $4.1 million in state0.20% sales taxes (Table 15). The 90% Mgmt. of Companies and Enterprises 0.08% 80% additional population supportedMining 0.04% by DPG’s economic impact $94.5 70% $156.5 Health Care and Social Assistance 0.03% 1,871 60% Ag., Forestry, Fishing and Hunting 0.02% 50% Arts, Entertainment, and Recreation 0.01% 40% 30% Finance and Insurance 0.00% 20% $78.1 $110.2 0% 20% 40% 60% 80% 10% 657 0% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced

August 2021 I gardner.utah.edu 14 INFORMED DECISIONSTM Prof., Sci., and Tech Services 37.87% Construction 60.29% Manufacturing 27.09% Utilities 15.58% Health Services 13.42% Other Services 9.10% Construction 6.01% Admin, Support, Waste Mgmt. 4.58% Educational Services 3.75% Wholesale Trade 3.39% Wholesale Trade 2.95% Information 2.39% Transportation 2.45% Manufacturing 2.07% Retail Trade 1.84% Retail Trade 1.33% Admin, Support, Waste Mgmt. 1.57% Prof., Sci., and Tech Services 0.90% Accom. and Food Services 1.36% Educational Services 0.35% Utilities 0.70% Transportation 0.02% Other Services 0.49% Real Estate and Rental 0.00% Information 0.46% 0% 10% 20% 30% 40% 50% 60% 70% Real Estate and Rental 0.02% Mining 0.02% Arts, Entertainment, and Rec. 0.00% 1,385 $88.7 $151.5 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 100% 90% 80% $45.6 65,129 $4,267.0 $6,712.5 70% 854 $82.2 100% 60% 90% 50% 80% $3,376.1 40% 70% $2,254.1 45,297 30% 60% $43.1 20% 531 $69.3 50% 10% 40% 0% 30% $3,336.3 Employment Personal Income Gross Domestic 20% $2,012.9 19,832 Product 10% Direct Federal Indirect & Induced 0% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced Traditional Guardmembers: 5,199: 66%

Prof., Sci., and Tech Services 55.13% Admin, Support, Waste Mgmt. 30.43% Total: Civilian: 1,262: 16% Accom. and Food Services 4.62% 7,831 Construction 3.05% Retail Trade 2.34% Active Guard Personnel: 1,370; 18% Manufacturing 2.13% Wholesale Trade 1.25% Information 0.43% Finance and Insurance 0.27% Construction 67.01% Other Services 0.15% Real Estate and Rental 7.57% Educational Services 0.10% Other Services 6.60% Real Estate and Rental 0.07% Manufacturing 5.38% Health Services 0.02% Prof., Sci., and Tech Services 4.17% Admin, Support, Waste Mgmt. Arts, Entertainment, and Rec. 0.01% 3.71% Utilities 1.62% Management of Companies 0.00% Retail Trade 1.45% 0% 10% 20% 30% 40% 50% 60% Table 15: Statewide Fiscal Impacts of Dugway Proving Figure 10: Statewide Economic Impacts of Dugway Proving Information 1.05% Ground, 2019 Ground, 2019 Wholesale Trade 0.56% (Thousands of Dollars) (Millions of Dollars) Accommodation and Food Services 0.26% Transportation 0.24% 2,528 $172.7 $266.7 Impact Amount 100% Educational Services 0.20% Personal Income Tax Revenues $4,188.8 90% Mgmt. of Companies and Enterprises 0.08% 80% Mining 0.04% Corporate Income Tax Revenues $727.1 $94.5 70% $156.5 Health Care and Social Assistance 0.03% 1,871 State Sales Tax Revenues $4,078.9 60% Ag., Forestry, Fishing and Hunting 0.02% 50% Arts, Entertainment, and Recreation 0.01% Total State Revenues $8,994 .8 40% Finance and Insurance 0.00% Non-Education Expenditures $2,021.1 30% 20% $78.1 $110.2 0% 20% 40% 60% 80% State Public Education Expenditures $1,021.1 10% 657 Higher Education Expenditures $853.3 0% Employment Personal Income Gross Domestic Total State Operating Expenditures $3,895 .5 Product Net State Operating Revenue $5,099 .3 Direct Federal Indirect & Induced

Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal model Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model

Table 16: Economic Impacts of Dugway Proving Ground by County, 2019 (Shares of County Totals, Thousands of Dollars)

Employment Personal Income Gross Domestic Product County Number Share Amount Share Amount Share Tooele 1,043 4.4% $66,638.5 2.6% $123,220.1 5.4% Salt Lake 1,062 0.1% $66,355.6 0.1% $108,371.8 0.1% Utah 219 0.1% $17,917.1 0.1% $16,831.4 0.1% Davis 78 0.0% $10,190.8 0.1% $6,049.7 0.0% Weber 50 0.0% $4,190.3 0.0% $3,968.3 0.0% All Others 77 0.0% $7,391.5 0.0% $8,264.3 0.0% Total 2,528 0 .1% $172,683 .8 0 .1% $266,705 .6 0 .1% Note: Employment and GDP are by place of work. Personal income is by place of residence. Shares equal employment, personal income and GDP impacts divided by total employment, personal income and GDP in the county (or state for the “Total” row), respectively. Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model caused an estimated $3.9 million in annual state government installation for the year. Salt Lake County was the next largest expenditures, comprising $2.0 million in non-education beneficiary. DPG’s operations directly and indirectly provided expenditures, $1.0 million in public education expenditures, 1,062 jobs and $66.4 million in personal income to Salt Lake and $853,300 in higher education expenditures. The net fiscal County, and added $108.4 million in GDP. impact was $5.1 million in revenue. The next three counties with the largest impacts from DPG Given the geographic distribution of DPG’s spending, the operations are all on the Wasatch Front, supporting at least 50 Proving Ground has economic impacts beyond its home county jobs, $4.2 million in personal income, and $4.0 million in GDP. of Tooele. Tooele captured the lion’s share of the impacts, with Another 17 counties have at least one resident whose job is DPG directly or indirectly providing 1,043 jobs and $66.6 million supported by DPG. The installation supports a total of $8.3 in personal income to Tooele county, adding $123.2 million to million in GDP created at workplaces in each of these counties the county’s GDP in 2019 (Table 16). About 3% of Tooele County grouped under “All Others” in Table 16. personal income and 5% of its GDP can be attributed to the

INFORMED DECISIONSTM 15 gardner.utah.edu I August 2021 Tooele Army Depot

Table 17: Tooele Army Depot Employees by County of Residence, 2019

County Employees County Employees Tooele 440 Weber 6 Salt Lake 51 Cache 1 Utah 19 Summit 1 Davis 13 Total 531

Source: Tooele Army Depot

Table 18: Tooele Army Depot Employment and Non-Payroll Spending Comparison, FY 2015 and FY 2019

Area 2015* 2019 Difference Change Employment 550 531 –19 –3.5% Spending $17,546,915 $19,532,602 $2,042,266 11.7% Note: Spending consists of contracts, government purchase card transactions, and other spending for FY 2015 and FY 2019, respectively. * All 2015 spending has been inflation adjusted to 2019 dollars. Source: Kem C. Gardner Policy Institute analysis of data from Tooele Army Depot

Source: State of Utah, SGID and Kem C. Gardner Policy Institute Table 19: Tooele Army Depot Non-Payroll Spending in Utah by Industry, FY 2019 Tooele Army Depot (TEAD) is located on the west side of Tooele City in Tooele County, 37 miles southwest of Salt Lake Sector Amount City. TEAD issues, receives, stores, tests, maintains, demilitarizes Utilities $3,042,290 ammunition. The Depot also develops, manufactures and fields Construction $11,777,092 equipment related to ammunition. Among its capabilities, the Manufacturing $404,700 Depot offers engineering services; explosives performance Wholesale Trade $661,374 Retail Trade $259,840 testing; logistical support; machining, fabrication, assembly Transportation $3,222 and repair; munitions renovation, maintenance and storage; Information $466,597 reclamation, demilitarization, disposal and recovery; research, Real Estate and Rental $379 development and prototyping; technical writing and training; Professional, Scientific and Technical Services $176,180 testing of energetic materials; and shipping container Admin, Support, and Waste Management $894,772 maintenance and repair. Educational Services $68,368 In 2019, the Tooele Army Depot had 529 civilian employees Other Services $1,777,788 and two military employees (the commanding officer and a Total $19,532,602 Navy Sergeant), representing about 2.2% of total employment Source: Tooele Army Depot in the county. Most of these employees, 440 people (83%), live in Tooele County; the remainder commute from Salt Lake, Utah, average wages of TEAD employees were $60,004 in 2019, 37% Davis, Weber, Cache and Summit counties (Table 17). Tooele higher than the countywide average of $43,838. employed 19 fewer individuals in 2019 than the 550 employed Depot non-payroll expenditures in Utah amounted to over in 2015, a decrease of 3.5% (Table 18). $19.5 million, consisting of $18.5 million in contracts and $1.0 mil- Total federal and civilian wages amounted to $31.9 million, lion in government purchase card purchases (Table 19 and Figure representing about 4.1% of all wages in Tooele County. The 11). Over half (60.3%) of all non-payroll expenditures in Utah were for construction, another 15.6% went to utilities, and 9.1% went to other services. From FY 2015, Tooele Army Depot’s spending in- From FY 2015, Tooele Army Depot’s creased by $2.0 million inflation-adjusted dollars (Table 18). In 2019, TEAD’s employment, payroll and operational spending increased by $2.0 million expenditures supported 1,385 full- and part-time jobs in Utah inflation-adjusted dollars. and $88.7 million in personal income (Table 20 and Figure 12). This consisted of the 531 jobs and $43.1 million in personal

August 2021 I gardner.utah.edu 16 INFORMED DECISIONSTM Figure 11: Tooele Army Depot Non-Payroll Spending in Table 21: Statewide Fiscal Impacts of Tooele Army Depot, Utah by Industry, FY 2019 2019 (Thousands of Dollars) Prof., Sci., and Tech Services 37.87% Construction 60.29% Manufacturing Impact Amount 27.09% Utilities 15.58% Health Services Personal Income Tax Revenues $2,150.9 13.42% Other Services 9.10% Construction Corporate Income Tax Revenues $133.6 6.01% Admin, Support, Waste Mgmt. 4.58% Educational Services 3.75% Wholesale Trade 3.39% State Sales Tax Revenues $2,094.5 Wholesale Trade 2.95% Information 2.39% Total State Revenues $4,379 .1 Transportation 2.45% Manufacturing 2.07% Non-Education Expenditures $1,075.3 Retail Trade 1.84% Retail Trade 1.33% State Public Education Expenditures $554.6 Admin, Support, Waste Mgmt. 1.57% Prof., Sci., and Tech Services 0.90% Accom. and Food Services 1.36% Educational Services 0.35% Higher Education Expenditures $447.0 Utilities 0.70% Transportation 0.02% Total State Operating Expenditures $2,077 .0 Other Services 0.49% Real Estate and Rental 0.00% Net State Operating Revenue $2,302 .1 Prof., Sci., and TechInformation Services 0.46% 37.87% Construction 0% 10% 20% 30% 40% 50% 60%60.29%70% Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal Real EstateManufacturing and Rental 0.02% 27.09% Source: Tooele Army DepotUtilities 15.58% model Health ServicesMining 0.02% 13.42% Other Services 9.10% Arts, Entertainment,Construction and Rec. 0.00%6.01% TableAdmin, 20:Support, Statewide Waste Mgmt. Economic4.58% Impacts of Tooele Army Table 22: Economic Impacts of Tooele Army Depot by Educational Services 1,385 $88.7 $151.5 0% 5%3.75%10% 15% 20% 25% 30% 35% 40% 45% 100% Wholesale Trade 3.39% Wholesale Trade Depot, 2019 (Thousands of Dollars) County, 2019 (Shares of County Totals, Thousands of Dollars) 2.95% 90% Information 2.39% Transportation 2.45% 80% Category Manufacturing Direct2.07%$45.6Indirect & Induced Total Gross Domestic 65,129Retail Trade $4,267.0 $6,712.5 70% 854 $82.2 100% 1.84% Retail Trade 1.33% Employment Personal Income Product 60%Employment 531 854 1,385 Admin,90% Support, Waste Mgmt. 1.57% Prof., Sci., and Tech Services 0.90% 50%Personal Income $43,063.3 $45,610.1 $88,673.4 County Number Share Amount Share Amount Share 80%Accom. and Food Services 1.36% $3,376.1 40% Educational Services 0.35% 70% Utilities $2,254.1 Gross Domestic Product $69,279.1 $82,220.0 $151,499.1 Tooele 698 2.9% $38,429.1 1.5% $84,165.8 3.7% 45,297 0.70% 30% Transportation 0.02% 60% $43.1 Other Services 0.49% Source:20% KemReal C. EstateGardner531 and Policy Rental Institute 0.00%analysis using the REMI PI+ model$69.3 Salt Lake 366 0.0% $26,617.9 0.0% $40,837.2 0.0% 50% Information 0.46% 10% Utah 103 0.0% $8,415.3 0.0% $8,404.1 0.0% 40% 0% 10% 20% 30% 40% 50% 60% 70% Real Estate and Rental 0% 30% 0.02% Figure 12: Statewide Economic Impacts of Tooele Army Davis 57 0.0% $5,438.7 0.0% $4,089.1 0.0% $3,336.3 Employment Personal Income Gross Domestic 20% Mining 0.02%$2,012.9 19,832 Depot, 2019 (Millions of Dollars) Product Weber 119 0.1% $5,888.9 0.1% $9,580.3 0.1% 10%Arts, Entertainment, and Rec. 0.00% Direct Federal Indirect & Induced 0% 1,385 $88.7 $151.5 All Others 42 0.0% $3,883.6 0.0% $4,422.5 0.0% Employment 0%Personal5% 10% Income15% 20% 25%Gross30% Domestic35% 40% 45% 100% Product 90% Total 1,385 0 .1% $88,673 .4 0 .1% $151,499 .1 0 1%. 80% Note: Employment and GDP are by place of work. Personal income is by place of residence. Direct Federal Indirect & Induced $45.6 65,129 $4,267.0 $6,712.5 70% 854 $82.2 Shares equal employment, personal income and GDP impacts divided by total employment, 100% 60% Traditional Guardmembers: 5,199: 66% personal income and GDP in the county (or state for the “Total” row), respectively. 90% 50% Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model 80% Prof., Sci., and Tech Services $3,376.1 55.13% 40% 70% $2,254.1 45,297 30% Admin,60% Support, Waste Mgmt. 30.43% Total: Civilian:$43.1 1,262: 16% 20% 531 $69.3 50%Accom. and Food Services 4.62% caused an estimated $2.1 million in state expenditures annually, 10% 7,831 40% Construction 3.05% 0% comprising $1.1 million in non-education expenditures, 30% Retail Trade 2.34% $3,336.3 Employment PersonalActive Income Guard Personnel:Gross 1,370; Domestic 18% 20% $2,012.9 $554,600 of public education expenditures, and $447,000 of 19,832 Product 10% Manufacturing 2.13% higher education expenditures. The estimated net fiscal impact Direct Federal Indirect & Induced 0% Wholesale Trade 1.25% Employment Personal Income Gross Domestic is over $2.3 million in revenue. Information 0.43% Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model Product Tooele Army Depot’s economic impact extends far beyond its Finance and Insurance 0.27% Construction 67.01% Direct Federal Indirect & Induced Other Services 0.15% Real Estate and Rental 7.57% immediate vicinity. Economic linkages carry dollars and jobs Traditional Guardmembers: 5,199: 66% Educational Services 0.10% income at the DepotOther itself, Services plus an6.60% estimated additional 854 from the military installation to most parts of Utah. Based on Real Estate and Rental Manufacturing 5.38% Prof., Sci., and Tech Services 0.07% 55.13% indirect and induced jobs and $45.6 million in personal income. measures of employment, personal income and GDP in 2019, Health Services 0.02% Prof., Sci., and Tech Services 4.17% Admin, Support, Waste Mgmt. 30.43% TEAD’s operationsTotal: contributed Civilian:an estimated 1,262: 16% $151.5 million to roughly one-half of TEAD’s economic footprint falls outside its Arts, Entertainment, and Rec. Admin, Support, Waste Mgmt. 3.71% Accom. and Food Services 0.01%4.62% the state’s GDP.7,831 Utilities 1.62% home county (Table 22). Management of Companies 0.00% Construction 3.05% In addition to the economicRetail Trade impacts1.45% just noted, Tooele Army Tooele County received the largest economic benefits from 0% 10% 20% 30% 40% 50% 60% Retail Trade 2.34% Depot has fiscal impactsInformation on theActive1.05% state’s Guard Personnel:finances. 1,370; These 18% arise the Army Depot: 698 full- and part-time jobs, $38.4 million in Manufacturing 2.13% Wholesale Trade through the changes in income,0.56% employment, output and personal income, and $84.2 million in local GDP (Table 22). Wholesale Trade 1.25% Accommodation and Food Services 0.26% Information 0.43% population that resultTransportation from the economic0.24% activity of the Depot. These impacts accounted for 2.9% of jobs in Tooele County and 2,528 $172.7 $266.7 100% Finance and Insurance 0.27% In 2019, TEAD’sEducational activitiesConstruction Services directly0.20% and indirectly generated67.01% an 3.7% of the value added (GDP) created at workplaces there in 90% Other Services 0.15% estimatedMgmt. of Companies $4.4Real million Estate and Enterprisesand in Rental state tax0.08% 7.57%revenues, consisting of $2.2 2019. That year, four other counties each owed at least 57 jobs, 80% Other ServicesMining 0.04% Educational Services 0.10%$94.5 million in personal income taxes, $133,6006.60% in corporate income $5.4 million in personal income, and $4.1 million in GDP to 70% $156.5 Health Care and Social Assistance 0.03% Real Estate1,871 and Rental 0.07% Manufacturing 5.38% 60% taxes,Ag., andForestry, almost Fishing $2.1 and million Hunting in 0.02%state sales taxes (Table 21). The Tooele Army Depot. In 17 counties, at least one local job was 50% Health Services 0.02% Prof., Sci., and Tech Services 4.17% additionalArts, Entertainment,Admin, population Support, and Waste Recreation supported Mgmt. 0.01% by TEAD’s economic impact supported directly or indirectly by TEAD. Arts,40% Entertainment, and Rec. 0.01% 3.71% 30% Finance and InsuranceUtilities 0.00%1.62% Management of Companies 0.00% 20% $78.1 $110.2 Retail TradeTM0%1.45%20% 40% 60% 80% 657 0% 10% 20% 30% 40% 50% 60% INFORMED DECISIONS 17 gardner.utah.edu I August 2021 10% Information 1.05% 0% Employment Personal Income Gross Domestic Wholesale Trade 0.56% Product Accommodation and Food Services 0.26% Direct Federal Indirect & Induced Transportation 0.24% 2,528 $172.7 $266.7 100% Educational Services 0.20% 90% Mgmt. of Companies and Enterprises 0.08% 80% Mining 0.04% $94.5 70% $156.5 Health Care and Social Assistance 0.03% 1,871 60% Ag., Forestry, Fishing and Hunting 0.02% 50% Arts, Entertainment, and Recreation 0.01% 40% 30% Finance and Insurance 0.00% 20% $78.1 $110.2 0% 20% 40% 60% 80% 10% 657 0% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced Utah National Guard

Source: State of Utah, SGID and Kem C. Gardner Policy Institute

The Utah National Guard has an armory readiness center or air number of federal technicians and active guard personnel by base in 15 of Utah’s 29 counties, and traditional guard soldiers 157 and 156 members, respectively. live in 14 counties (Table 23). However, most guard employees Utah’s National Guard employed a total of 7,831 full- and are located in Salt Lake County, where the headquarters and four part-time personnel and paid $309 million in wages and salaries other facilities are. There is also a strong presence in Utah County, in FY 2019. That year, the National Guard employed 5,199 with Camp Williams and several armories. traditional guardmembers, representing two-thirds of total Compared to FY 2015, the National Guard employed 1,449 employed. The remainder is made up of federal civilians and fewer employees (–15.6%) in FY 2019 (Table 24). However, the federally funded 1,262 state civilians employees (16%) and vast majority of this reduction was in part-time traditional 1,370 full-time military personnel (18%) (Figure 13). guardmembers. For the timeframe, the Guard increased the The National Guard comprises two branches, the Army and the Air Force. In FY 2019, the majority of Utah’s guard was part of Army Guard, which employed 5,907 personnel, about 75% of Utah’s National Guard the total (Table 25). For the same year, Air Guard employed employed a total of 7,831 1,924 personnel, about 25% of the total. The largest roles in each branch were 1,161 active guard personnel for Army Guard full- and part-time personnel and 337 federal technicians for Air Guard. The Utah National Guard spent $55.6 million of federal funds and paid $309 million in wages in Utah in FY 2019. This consists of contracts, government and salaries in FY 2019. purchase card transactions, and federal-reimbursed state spending. About two-thirds, $37.2 million, was spent on construction. Real estate and rental received $4.2 million,

August 2021 I gardner.utah.edu 18 INFORMED DECISIONSTM Prof., Sci., and Tech Services 37.87% Construction 60.29% Manufacturing 27.09% Utilities 15.58% Health Services 13.42% Other Services 9.10% Construction 6.01% Admin, Support, Waste Mgmt. 4.58% Educational Services 3.75% Wholesale Trade 3.39% Wholesale Trade 2.95% Information 2.39% Transportation 2.45% Manufacturing 2.07% Retail Trade 1.84% Retail Trade 1.33% Admin, Support, Waste Mgmt. 1.57% Prof., Sci., and Tech Services 0.90% Accom. and Food Services 1.36% Educational Services 0.35% Utilities 0.70% Transportation 0.02% Other Services 0.49% Real Estate and Rental 0.00% Information 0.46% 0% 10% 20% 30% 40% 50% 60% 70% Real Estate and Rental 0.02% Mining 0.02% Arts, Entertainment, and Rec. 0.00% 1,385 $88.7 $151.5 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 100% 90% 80% $45.6 65,129 $4,267.0 $6,712.5 70% 854 $82.2 100% 60% 90% 50% 80% $3,376.1 40% 70% $2,254.1 45,297 30% 60% $43.1 20% 531 $69.3 50% 10% 40% 0% 30% $3,336.3 Employment Personal Income Gross Domestic 20% $2,012.9 19,832 Product 10% Direct Federal Indirect & Induced 0% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced Traditional Guardmembers: 5,199: 66%

Prof., Sci., and Tech Services 55.13% Admin, Support, Waste Mgmt. 30.43% Total: Civilian: 1,262: 16% Accom. and Food Services 4.62% 7,831 Construction 3.05% Retail Trade 2.34% Active Guard Personnel: 1,370; 18% Manufacturing 2.13% Table 23: Utah National Guard Employees by County, FY 2019 Figure 14: Utah National Guard Non-Payroll Spending in Wholesale Trade 1.25% Utah by Industry, FY 2019 InformationCivilian0.43% Military Finance and FederalInsurance Fed-Reimbursed0.27% Active Guard Traditional Construction 67.01% County OtherTechnicians Services State0.15% Employees Personnel Guardmembers Real Estate and Rental 7.57% Beaver Educational Services3 0.10% 0 7 68 Other Services 6.60% Box ElderReal Estate and Rental0 0.07% 0 11 77 Manufacturing 5.38% Prof., Sci., and Tech Services 4.17% Cache Health Services3 0.02% 0 19 66 Admin, Support, Waste Mgmt. 3.71% Prof., Sci., and Tech Services 37.87% Arts, Entertainment, and Rec. 0.01% Carbon Construction0 0 7 60.29%89 Manufacturing Utilities 1.62% 27.09% Management of CompaniesUtilities 0.00% Iron 0 15.58%1 16 103 Retail Trade 1.45% Health Services 13.42% 0% 10% 20% 30% 40% 50% 60% Other Services 9.10% Information 1.05% Construction 6.01% Salt Lake 914 263 975 3,108 Admin, Support, Waste Mgmt. 4.58% Wholesale Trade 0.56% Educational Services 3.75% San Juan 0 1 1 28 Wholesale Trade 3.39% Accommodation and Food Services 0.26% Wholesale Trade 2.95% Sanpete Information8 2.39% 0 10 123 Transportation Transportation 0.24% 2.45% 2,528Manufacturing 2.07%$172.7 $266.7 100%Sevier 4 0 6 71 Educational Services 0.20% Retail Trade 1.84% Retail Trade 90% 1.33% Mgmt. of Companies and Enterprises 0.08% Admin, Support, Waste Mgmt. 1.57% Tooele 7 0 13 108 80%Prof., Sci., and Tech Services 0.90% Mining 0.04% Accom. and Food Services 1.36% Uintah 4 $94.5 0 3 59 70% Educational Services 0.35% $156.5 Health Care and Social Assistance 0.03% Utilities 0.70% 1,871 60%Utah Transportation23 0.02% 1 194 771 Ag., Forestry, Fishing and Hunting 0.02% Other Services 0.49% 50% Real Estate and Rental 0.00% Washington 16 4 39 263 Arts, Entertainment, and Recreation 0.01% Information 0.46% 40% 30% 0% 10% 20% 30% 40% 50% 60% 70% Finance and Insurance 0.00% Real Estate and Rental 0.02% Weber 9 1 69 265 20% $78.1 $110.2 0% 20% 40% 60% 80% Mining 0.02% 10%Total 657 991 271 1,370 5,199 Source: Utah National Guard Arts, Entertainment, and Rec. 0.00% Note:0% National Guard employees are by place of work. Source: KemEmployment C. Gardner1,385 Policy InstitutePersonal analysis$88.7 Incomeof Utah National GuardGross$151.5 data Domestic 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 100% Product 90% Table 26: Utah National Guard Non-Payroll Spending in 80%Table 24: Utah NationalDirect Federal Guard EmploymentIndirect & Induced and Non- $45.6 Utah by Industry, FY 2019 65,129 $4,267.0 $6,712.5 70% 854 $82.2 100% Payroll Spending Comparison, FY 2015 and FY 2019 60% 90% Sector Total 50% 80% Area 2015* 2019 Difference Change $3,376.1 40% Agriculture, Forestry, Fishing and Hunting $11,406 70% $2,254.1 45,297 30%Employment 9,280 7,831 –1,449 –15.6% 60% $43.1 Mining $22,486 20% 531 $69.3 50% Spending $53,512,767 $55,572,993 $2,232,773 4.2% 10% Utilities $902,923 40% Note:0% Spending consists of contracts, government purchase card transactions, and 30% federal-reimbursed state spending for FY 2015 and FY 2019, respectively. Construction $37,236,994 $3,336.3 Employment Personal Income Gross Domestic 20% $2,012.9 * All 2015 spending has been inflation adjusted to 2019 dollars 19,832 Product Manufacturing $2,990,986 10% Source: Kem C. Gardner Policy Institute analysis of data from Utah National Guard Direct Federal Indirect & Induced 0% Wholesale Trade $313,606 Employment Personal Income Gross Domestic Retail Trade $805,298 Product Figure 13: Utah National Guard Employees by Type, FY 2019 Transportation $131,511 Direct Federal Indirect & Induced Traditional Guardmembers: 5,199: 66% Information $583,632 Finance and Insurance $283 Prof., Sci., and Tech Services 55.13% Real Estate and Rental $4,204,802 Admin, Support, Waste Mgmt. 30.43% Total: Civilian: 1,262: 16% Professional, Scientific and Technical Services $2,314,946 Accom. and Food Services 4.62% 7,831 Management of Companies and Enterprises $43,856 Construction 3.05% Retail Trade 2.34% Active Guard Personnel: 1,370; 18% Admin, Support, and Waste Management $2,063,864 Manufacturing 2.13% Educational Services $110,306 Wholesale Trade 1.25% Health Care and Social Assistance $17,500 Source: Kem C. Gardner Policy Institute analysis of Utah National Guard data Information 0.43% Arts, Entertainment, and Recreation $5,000 Finance and Insurance 0.27% Construction 67.01% Table 25: Utah National Guard Employees by Service, Accommodation and Food Services $147,019 Other Services 0.15% Real Estate and Rental 7.57% FY 2019 Other Services $3,666,576 Educational Services 0.10% Other Services 6.60% Total $55,572,993 Real Estate and Rental 0.07% ManufacturingCivilian 5.38% Military Prof., Sci., and Tech Services 4.17% Source: Utah National Guard Health Services 0.02% Federal Fed-Reimbursed Active Guard Traditional Admin, Support, Waste Mgmt. Arts, Entertainment, and Rec. 0.01% Service Technicians State Employees3.71% Personnel Guardmembers Utilities 1.62% Management of Companies 0.00% Army 654 231 1,161 3,861 Retail Trade 1.45% 0% 10% 20% 30% 40% 50% 60% Air Force 337Information 1.05%40 209 1,338 Total Wholesale991 Trade 0.56%271 1,370 5,199 Source:Accommodation Kem C. Gardner and Policy Food Institute Services analysis0.26% of Utah National Guard data Transportation 0.24% 2,528 $172.7 $266.7 100% Educational Services 0.20% 90% Mgmt. of Companies and Enterprises 0.08% TM 80% INFORMED DECISIONSMining 0.04% 19 gardner.utah.edu I August 2021 $94.5 70% $156.5 Health Care and Social Assistance 0.03% 1,871 60% Ag., Forestry, Fishing and Hunting 0.02% 50% Arts, Entertainment, and Recreation 0.01% 40% 30% Finance and Insurance 0.00% 20% $78.1 $110.2 0% 20% 40% 60% 80% 10% 657 0% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced Table 27: Statewide Economic Impacts of the Utah National Table 28: Statewide Fiscal Impacts of the Utah National Guard, 2019 Guard, 2019 (Millions of Dollars) (Thousands of Dollars)

Indirect & Impact Amount Category Direct* Induced Total Personal Income Tax Revenues $17,158.7 Air Guard Employment 1,924 1,610 3,534 Corporate Income Tax Revenues $1,003.4 Army Guard Employment 5,907 4,829 10,736 State Sales Tax Revenues $16,708.8 Total Employment 7,831 6,439 14,270 Total State Revenues $34,870 9. Air Guard Personal Income $87.1 $59.1 $146.2 Non-Education Expenditures $8,956.9 Army Guard Personal Income $334.3 $226.9 $561.2 State Public Education Expenditures $3,027.9 Total Personal Income $421 .4 $286 .0 $707 .4 Higher Education Expenditures $4,686.5 Air Guard Gross Domestic Product $151.8 $105.4 $257.2 Total State Operating Expenditures $16,671 2. Army Guard Gross Domestic Product $653.1 $453.6 $1,106.7 Net State Operating Revenue $18,199 6. Total Gross Domestic Product $804 .9 $559 .0 $1,363 .9 Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal * Comprises active Guard personnel, traditional guardmembers, federal civilian model technicians and federal-supported state employees. Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model This impact analysis considers federal military and civilian Figure 15: Statewide Economic Impacts of the Utah employees, federally reimbursed state employees, and federally National Guard, 2019 funded spending. It does not consider state spending or (Millions of Dollars) employees. The Utah National Guard’s federal employment, 14,270 $707.4 $1,363.9 100% payroll and in-state spending supported nearly 14,300 jobs and 90% $707.4 millionHealth in personal Services income in Utah in 2019 (Table 2746.44% and 80% Construction 23.60% 6,439 $286.0 $559.0 Figure 15). Over 3,500 of these jobs and $146.2 million in 70% Manufacturing 11.26% 60% Admin,personal Support, income Waste are Mgmt. attributed to Air10.91% Guard, while Army Guard’s 50% share of totalOther impact Services are 10,7364.34% jobs and $561.2 million in 40% Prof., Sci., and Tech Services 1.23% 30% 7,831 $421.4 $804.9 personal income. The Guard’s federally funded operations Transportation 0.79% 20% contributed almost $1.4 billion to the state’s GDP; about $257.2 10% Public Administration 0.50% 0% millionAccomm. supported and Food Services by Air Guard,0.40% and $1.1 billion supported by Employment Personal Income Gross Domestic Wholesale Trade Product Army Guard. 0.15% Real Estate and Rental 0.15% Direct Federal Indirect & Induced National Guard activities also generate fiscal impacts for the Information state. These arise through the0.13% changes in income, employment, Note: Direct employment comprises active Guard personnel, traditional guardmembers, Retail Trade 0.08% federal civilian technicians and federal-supported state employees. output and populationUtilities that0.01% result from the economic activity of Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model 8,550 $258.0 $534.0 the National Guard. These0% amounted10% to20% $34.930% million40% in income50% 100% and sales tax revenues and $16.7 million in education and non- 90% almost80% 8% (Table3,124 26 and Figure 14). Of total spend, the Army education expenditures in 2019 (Table 28). The net fiscal impact 70% $312.4 Guard’s share was about 88% $165.7and Air Guard’s share was just wasJobs $18.2 (36,140) million in revenue. 1.8% 60% over50% 12%. Compared with 2015 inflation-adjusted data, the Personal Income ($3.3 Billion) 2.2% Guard’s40% spend was about $2.2 million (4.2%) higher in 2019 30% 5,426 GDP ($3.2 Billion) 1.8% (Table 24). 20% $92.3 $221.6 10% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 0% Employment Personal Income Gross Domestic Share of State Total Product Direct Federal Indirect & Induced

Jobs (10,846) 0.53%

1,282 $72.4 $143.2 Personal Income ($1.1 Billion) 0.78% 100% 90% GDP ($0.9 Billion) 0.51% 80% $80.0 70% 861 $47.9 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 60% Share of State Total 50% 40% 30% $63.2 20% 421 $24.5 $4.5 August10% 2021 gardner.utah.edu 20 INFORMED DECISIONSTM 0% I $4.0 Employment Personal Income Gross Domestic Product $3.5 Direct Federal Indirect & Induced $3.0 $2.5 $2.0 369 $18.0 $28.7 100% $1.5 90% 80% $1.0 70% $17.8 $0.5 60% 296 $14.7 50% $0.0 40%

30% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20% $10.9 Contracts Grants 10% 73 $3.4 0% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced Reserves, Recruiting, and ROTC

RESERVES Table 29: Reserves Employment in Utah, 2019

Service and Type Military Civilian Location Air Force 1,240 208 Hill AFB Reservists1 1,230 N/A Active duty 10 N/A Army2 3,138 162 Fort Douglas Reservists 2,824 N/A Active duty 314 N/A Navy 431 1 Fort Douglas Reservists 410 N/A Active duty 21 N/A Marine Corps3 244 2 Fort Douglas & Reservists 219 N/A Camp Williams Active duty 25 N/A Total 5,053 373 N/A = not available 1. Air Force Reserve civilians include 180 dual civilian/military personnel, Air Reserve Technicians, who count in both columns. 2. Reservist and active-duty employment estimated using nine-to-one ratio the Army Reserve in Utah provided in 2016. 3. Marine Corps employment includes 94 military personnel in the 2nd Battalion at Fort Douglas and 150 military personnel and 2 civilian employees in the 4th Battalion at Source: State of Utah, SGID and Kem C. Gardner Policy Institute Camp Williams. Source: America’s Army Reserve At a Glance: 2020; Defense Manpower Data Center; and The reserve branches of the armed forces employed 5,053 personal communication with the 419th Fighter Wing (Air Force), 76th Operational Response Command (Army), Navy Operational Support Center Salt Lake City, and 2nd and military personnel and 373 federal civilians in Utah in 2019 4th Battalions, 23rd Marines (Table 29). This level of employment represents a modest 14,270 $707.4 $1,363.9 100%Table 30: Statewide Economic Impacts of Military decrease from 5,106 reservists and 399 civilian employees in Health Services 46.44% Reserves,90% 2019 2015, a change of 79 jobs. Most military personnel were 80% 6,439 $286.0 $559.0 Construction 23.60% (Thousands70% of Dollars) reservists who drill on weekends and two weeks a year to Manufacturing 11.26% 60% Admin, Support, Waste Mgmt. 10.91% 50%Category Direct Indirect & Induced Total prepare for active-duty deployments. Active-duty personnel Other Services 4.34% 40% work full-time to train and support reservists. Employment 5,426 3,124 8,550 Prof., Sci., and Tech Services 1.23% 30% 7,831 $421.4 $804.9 In the 419th Fighter Wing, the Air Force employed 1,050 20%Personal Income $92,334.1 $165,700.9 $258,034.9 Transportation 0.79% traditional reservists, 180 dual military/civilian reservists, 10 10%Gross Domestic Product $221,631.3 $312,394.4 $534,025.8 Public Administration 0.50% 0% Accomm. and Food Services 0.40% Source: Kem C.Employment Gardner Policy Institute Personalanalysis using Income the REMI PI+ modelGross Domestic active guard reserves, and an additional 28 civilians in 2019. The Wholesale Trade Product 0.15% Army had 3,138 personnel based in Utah and reporting to the Real Estate and Rental 0.15% Figure 16: StatewideDirect Economic Federal ImpactsIndirect of& Induced Military 76th Operational Response Command at Fort Douglas. These Information 0.13% Reserves, 2019 included 162 civilian employees and an estimated 2,824 Retail Trade 0.08% (Millions of Dollars) Utilities 0.01% reservists and 314 active-duty military personnel. As for the 8,550 $258.0 $534.0 0% 10% 20% 30% 40% 50% Navy Reserve, 410 reservists plus 21 full-time military and one 100% civilian worked at Ft. Douglas. Finally, the 23rd Marine Regiment 90% 80% 3,124 operated two units in Utah. The 2nd Battalion consisted of 84 70% $312.4 $165.7 Jobs (36,140) 1.8% 60% 50% Personal Income ($3.3 Billion) 2.2% 40% The presence of military reserve 30% 5,426 GDP ($3.2 Billion) 1.8% 20% $92.3 $221.6 operations contributed an 10% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 0% Employment Personal Income Gross Domestic Share of State Total estimated $534.0 million to the Product state’s GDP in 2019. Direct Federal Indirect & Induced Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model Jobs (10,846) 0.53%

1,282 $72.4 $143.2 Personal Income ($1.1 Billion) 0.78% INFORMED DECISIONSTM 21 100% gardner.utah.edu I August 2021 90% GDP ($0.9 Billion) 0.51% 80% $80.0 70% 861 $47.9 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 60% Share of State Total 50% 40% 30% $63.2 20% 421 $24.5 $4.5 10% 0% $4.0 Employment Personal Income Gross Domestic Product $3.5 Direct Federal Indirect & Induced $3.0 $2.5 $2.0 369 $18.0 $28.7 100% $1.5 90% 80% $1.0 70% $17.8 $0.5 60% 296 $14.7 50% $0.0 40%

30% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20% $10.9 Contracts Grants 10% 73 $3.4 0% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced Table 31: Statewide Fiscal Impacts of Military Reserves, 2019 reservists and 10 active-duty personnel at Ft. Douglas, while (Thousands of Dollars) the 4th Battalion included 135 reservists, 15 active-duty personnel, and two civilians at Camp Williams. Impact Amount The statewide economic impact of military reserves Personal Income Tax Revenues $6,259.4 employment included 8,550 Utah jobs and $258.0 million in Corporate Income Tax Revenues $615.7 personal income (Table 30 and Figure 16). This consisted of the State Sales Tax Revenues $6,096.2 5,426 direct jobs with $92.3 million in personal income, plus Total State Revenues $12,971 .3 3,124 indirect and induced jobs and $165.7 million in personal Non-Education Expenditures $2,614.8 income. The presence of military reserve operations contributed State Public Education Expenditures $1,354.7 an estimated $534.0 million to the state’s GDP in 2019. Higher Education Expenditures $1,038.9 The associated fiscal impacts of the military reserves included Total State Operating Expenditures $5,053 .3 $13.0 million in state tax revenues and $5.1 million in state Net State Operating Revenue $7,918 .0 expenditures (Table 31). The net fiscal impact on the state was Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal model $7.9 million in revenues in 2019.

MILITARY RECRUITING

Source: State of Utah, SGID and Kem C. Gardner Policy Institute

For all branches of the military services, except for the Coast 421 jobs (Table 32) represents a more than 20% increase from the Guard, recruiters in Utah provide information and services for 342 military recruiting jobs the state had in 2015. residents who may be interested in a military career. In 2019, six For the Army, 105 military and 20 civilian personnel in the Salt counties had a recruiting storefront or office: Cache, Weber, Davis, Lake City Recruiting Battalion staffed 11 offices in five counties. Salt Lake, Utah, and Washington. Total recruiting employment of The Utah National Guard had a combined 105 recruiting

August 2021 I gardner.utah.edu 22 INFORMED DECISIONSTM 14,270 $707.4 $1,363.9 100% 90% Health Services 46.44% 80% 6,439 $286.0 $559.0 Construction 23.60% 70% Manufacturing 11.26% 60% Admin, Support, Waste Mgmt. 10.91% 50% Other Services 4.34% 40% Prof., Sci., and Tech Services 1.23% 30% 7,831 $421.4 $804.9 20% Transportation 0.79% 10% Public Administration 0.50% 0% Accomm. and Food Services 0.40% Employment Personal Income Gross Domestic Wholesale Trade Product 0.15% Real Estate and Rental 0.15% Direct Federal Indirect & Induced Information 0.13% Retail Trade 0.08% Table 32: Military Recruiting in Utah, 2019 Table 33: Statewide Economic Impacts of Military Utilities 0.01% 8,550 $258.0 $534.0 0% 10% 20% 30% 40% 50% 100%Recruiting, 2019 Personnel Recruiting (Thousands90% of Dollars) Service Military Civilian Total Sites 80% 3,124 Army 105 20 125 11 70% Indirect & $312.4 $165.7 Jobs (36,140) 1.8% Category Direct Induced Total Air Force* 45 8 53 8 60% 50%Employment 421 861 1,282 Personal Income ($3.3 Billion) 2.2% Utah Air National Guard* 11 0 11 1 40% Personal Income5,426 $24,490.4 $47,892.9 $72,383.3 Utah Army National Guard* 93 1 94 5 30% GDP ($3.2 Billion) 1.8% 20%Gross Domestic Product $63,183.6$92.3 $80,026.5 $221.6$143,210.1 Marine Corps 45 2 47 11 10% Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Navy 40 2 42 8 0% Employment Personal Income Gross Domestic Share of State Total Military Entrance Product 12 37 49 1 Processing Squadron Figure 17: Statewide Economic Impacts of Military Direct Federal Indirect & Induced Total 351 70 421 45 Recruiting, 2019 * Air Force and Guard personnel are also included in employee counts for Hill Air Force (Millions of Dollars) Jobs (10,846) 0.53% Base and the Utah National Guard, respectively. Source: Personal communications 1,282 $72.4 $143.2 Personal Income ($1.1 Billion) 0.78% 100% 90% GDP ($0.9 Billion) 0.51% 80% $80.0 Total recruiting employment 70% 861 $47.9 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 60% Share of State Total 50% of 421 jobs represents a more 40% 30% $63.2 than 20% increase from the 20% 421 $24.5 $4.5 10% 0% $4.0 342 military recruiting jobs Employment Personal Income Gross Domestic Product $3.5 the state had in 2015. Direct Federal Indirect & Induced $3.0 Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model $2.5 $2.0 employees at six Air and Army National Guard sites. The Air Table 34: Statewide369 Fiscal Impacts$18.0 of Military Recruiting,$28.7 2019 100% $1.5 Force employed 53 military personnel and civilian employees in (Thousands90% of Dollars) its 372nd Recruiting Group. While the 368th Recruiting 80% $1.0 70%Impact Amount Squadron has offices in five counties, the 348th Squadron for $17.8 $0.5 60%Personal Income296 Tax Revenues $14.7 $1,755.5 health professions operates from Hill Air Force Base. The Marine 50% $0.0 40%Corporate Income Tax Revenues $159.9 Corps dedicated 45 military and two civilian personnel to 30%State Sales Tax Revenues $1,709.8 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 recruiting from 11 locations in population centers statewide. 20% $10.9 Total State Revenues $3,625 .1 Contracts Grants The Navy was represented by 42 recruiting personnel at eight 10% 73 $3.4 Non-Education0% Expenditures $1,495.0 sites. Finally, the Military Entrance Processing Squadron Employment Personal Income Gross Domestic State Public Education Expenditures Product$361.9 employed 49 military and civilian personnel in Salt Lake City. Higher Education ExpendituresDirect Federal Indirect & Induced $869.4 The statewide impacts of 351 military and 70 federal civilian Total State Operating Expenditures $2,726 .2 recruiting jobs in 2019 included 1,282 total Utah jobs and $72.4 Net State Operating Revenue $898 .9 million in personal income (Table 33 and Figure 17). In addition Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal to the 421 direct federal jobs with $24.5 million in personal model income, total economic impacts included 861 indirect and induced jobs and $47.9 million of personal income. Recruiting activities contributed $143.2 million to state GDP. This activity also generated fiscal impacts of over $3.6 million in state income and sales tax revenues and $2.7 million in education and non-education expenditures (Table 34). The net impact was $898,900 in revenue.

INFORMED DECISIONSTM 23 gardner.utah.edu I August 2021 RESERVE OFFICER TRAINING CORPS

Table 35: ROTC Employment in Utah by County, 2019

Military Federal State County Personnel Civilian Civilian Total Cache – USU 10 1 2 13 Salt Lake – U of U 20 5 3 28 Utah – BYU 23 5 2 30 Weber – WSU 7 2 2 11 Total 60 13 9 82 Note: Civilian job counts separated by funding source. ROTC employees are by place of work. Source: ROTC program websites and personal communication

Table 36: Selected ROTC Cadets and Scholarships Paid in Utah, 2019–2020 Academic Year

Service/School Cadets Scholarships Stipends Air Force Brigham Young University1 110 $200,990 N/A Utah State University 142 $426,355 $250,223 University of Utah2 140 $408,880 $154,870 Army3 Source: State of Utah, SGID and Kem C. Gardner Policy Institute Brigham Young University4 248 $694,400 $525,000 Utah State University 78 $231,500 $37,860 The Army, Navy and Air Force all have Reserve Officer Training University of Utah5 77 $1,040,705 $209,160 Corps (ROTC) programs in Utah. ROTC programs at Utah’s Weber State University N/A N/A N/A universities employed 60 military personnel, 13 federal civilians, Navy/Marine Corps and 9 state employees in 2019 (Table 35). The total of 82 jobs University of Utah6 32 $498,635 $75,000 represents an increase from 75 ROTC jobs in 2015. Total 827 $3,501,466 $1,252,113 Army ROTC battalions educate student cadets at Utah State N/A = not available Note: University (USU), University of Utah (U of U), Brigham Young 1. Includes cadets attending Utah Valley University. Due to an incomplete information University (BYU), and Weber State University (WSU). With cross- request response, enrollment last updated for 2015–16 academic year. Scholarships for that year adjusted for inflation to 2019 dollars. Stipend estimate not available. town arrangements with Utah Valley University (UVU) and 2. Includes cadets attending Salt Lake Community College, Weber State University and Southern Utah University (SUU), the BYU battalion employed 14 Westminster College. 3. Does not represent all Army ROTC cadets and scholarships paid in Utah as the program military personnel and seven civilians in 2019. The U of U at Weber State University did not respond to Gardner Institute requests. battalion had nine military personnel, four civilians, and cross- 4. Includes cadets attending Utah Valley University and Southern Utah University. 5. Includes cadets attending Salt Lake Community College and Westminster College. town arrangements with Westminster College and Salt Lake 6. Includes cadets attending Weber State University and Westminster College. Community College. WSU’s Army ROTC battalion employed Source: Personal communication with individual Reserve Officer Training Corps programs seven military personnel and four civilians. Finally, four military personnel and two civilians were part of USU’s faculty and staff. During the 2019–2020 academic year, at least 809 ROTC There are Air Force ROTC detachments at the U of U, USU, and cadets attended Utah colleges and universities. Many of them BYU. The BYU detachment employs nine military personnel and received student aid from the Department of Defense, at least has a cross-town arrangement with UVU. The U of U detachment $3.5 million in scholarships and $1.5 million in stipends, employs six military personnel and one civilian and maintains collectively. The Gardner Institute did not receive complete cross-town arrangements with WSU, Westminster College, Salt responses from every Air Force and Army ROTC program. Lake Community College, and Ensign College. USU’s Air Force However, Table 36 is more complete than a corresponding table detachment employs six military personnel and one civilian. for 2015. Compared with the Institute’s previous study, Only the U of U has a Naval ROTC battalion, which also serves researchers were able to document 242 more cadets in the 2019– the Marine Corps. Five military personnel and three civilians 2020 academic year, as well as $1.8 million in additional student train cadets enrolled at the U of U and Westminster College. aid, after adjusting for inflation to $2.9 million in 2015. These

August 2021 I gardner.utah.edu 24 INFORMED DECISIONSTM 14,270 $707.4 $1,363.9 100% 90% Health Services 46.44% 80% 6,439 $286.0 $559.0 Construction 23.60% 70% Manufacturing 11.26% differences60% are largely due to improved ROTC program Admin,The state’sSupport, only Waste Naval Mgmt. ROTC unit involved10.91% 32 cadets at the U of 50% Other Services 4.34% responsiveness40% for this study, although some programs did grow. U, including two from Westminster, and one from WSU. Prof., Sci., and Tech Services 1.23% 30%From Fall 7,8312019 to Summer$421.4 2020, 392 college$804.9 students Scholarship and stipend recipients among these Navy and 20% Transportation 0.79% participated10% in Air Force ROTC programs. At USU, over $676,500 MarinePublic Corps Administration cadets received0.50% over $573,600 during the 2019– in 0%scholarships and stipends benefitted 142 Air Force cadets. 2020Accomm. academic and Food year. Services 0.40% Employment Personal Income Gross Domestic Wholesale Trade The U of U enrolled 140 cadets and provided Product$563,750 in The economic impact 0.15%of federal employment by ROTC Real Estate and Rental 0.15% student aid duringDirect the Federal academic year.Indirect Finally, & Induced 110 Air Force programs in 2019 included 369 jobs and $18.0 million in Information 0.13% cadets from BYU and UVU were awarded an estimated $201,000 personal incomeRetail (Table Trade 37 and0.08% Figure 18). The Gardner Institute in scholarships, aside from stipends. estimated economicUtilities impacts0.01% for the 2019 calendar year based on With three8,550 out of four programs$258.0 reporting, $534.0Army ROTC 2019–2020 academic-year0% inputs.10% This20% part of30% the analysis40% 50%does 100% involved90% at least 403 cadets in Utah during the 2019–2020 not include the nine civilian jobs at ROTC programs that were school80% year. 3,124A Utah County battalion enrolled 248 cadets from funded by the state government. Unlike federal military and 70% $312.4 $165.7 Jobs (36,140) 1.8% BYU,60% UVU, and SUU. They received a collective $1.2 million in civilian jobs, state-funded employment is supported by money scholarships50% and stipends. USU’s battalion had 78 cadets and fromPersonal within Income Utah, ($3.3 not Billion)outside dollars coming into the state.2.2% provided40% almost $269,400 in student aid. Finally, the U of U Economic impacts include 73 federal military and civilian jobs 30% 5,426 GDP ($3.2 Billion) 1.8% enrolled20% 77 cadets in Army ROTC$92.3 classes and paid $1.2$221.6 million in in direct employment at ROTC units, which provided annual student10% aid. Researchers did not receive information from WSU’s personal0.0% incomes0.5% estimated1.0% at $3.41.5% million. 2.0%Utah spending2.5% 0% Army ROTCEmployment program. Personal Income Gross Domestic from those personalShare incomes of State Totaland from $4.7 million in Product scholarships and stipends generated an additional 296 indirect Direct Federal Indirect & Induced Table 37: Statewide Economic Impacts of Federal ROTC and induced jobs and $14.7 million in personal income.5 Overall, Employment, 2019 ROTCJobs contributed (10,846) $28.7 million to 0.53%the state’s GDP. (Thousands of Dollars) The fiscal impacts associated with these economic impacts 1,282 $72.4 $143.2 Personal Income ($1.1 Billion) 0.78% 100% Indirect & include $902,200 in state income and sales tax revenues, and 90% GDP ($0.9 Billion) 0.51% 80%Category Direct Induced Total $671,800 in education and non-education expenditures (Table $80.0 70%Employment 861 $47.973 296 369 38).0.00% This produces0.20% a positive0.40% net revenue0.60% impact0.80% of $230,300.1.00% 60% Personal Income $3,374.0 $14,651.6 $18,025.6 Share of State Total 50% 40%Gross Domestic Product $10,920.1 $17,810.3 $28,730.4 Table 38: Statewide Fiscal Impacts of Federal ROTC Source:30% Kem C. Gardner Policy Institute analysis using the REMI PI+ model and student $63.2 Employment, 2019 and20% young adult spending421 profiles from the $24.5U.S. Department of Education, Integrated $4.5 Postsecondary10% Education Data System, and the U.S. Bureau of Labor Statistics, Consumer (Thousands of Dollars) Expenditure0% Survey $4.0 Employment Personal Income Gross Domestic Impact Amount Product $3.5 Personal Income Tax Revenues $437.2 Figure 18: StatewideDirect Economic Federal ImpactsIndirect &of Induced Federal ROTC $3.0 Employment, 2019 Corporate Income Tax Revenues $39.2 $2.5 (Millions of Dollars) State Sales Tax Revenues $425.8 Total$2.0 State Revenues $902 .2 369 $18.0 $28.7 100% Non-Education$1.5 Expenditures $362.1 90% 80% State$1.0 Public Education Expenditures $117.0 70% $17.8 Higher$0.5 Education Expenditures $192.7 60% 296 $14.7 Total State Operating Expenditures $671 .8 50% $0.0 40% Net State Operating Revenue $230 .3

30% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Note: Does not include the effects of scholarships and stipends, as we were unable to 20% $10.9 obtain complete data on these. Contracts Grants 10% 73 $3.4 Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal 0% model Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced

Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model and student and young adult spending profiles from the U.S. Department of Education, Integrated Postsecondary Education Data System, and the U.S. Bureau of Labor Statistics, Consumer Expenditure Survey

INFORMED DECISIONSTM 25 gardner.utah.edu I August 2021 Veterans

Table 39: Direct Effects Comparison for Veterans in Utah, FY 2015 and FY 2019 (Millions of Dollars)

Impact 2015* 2019 Change Direct Employment (jobs) 3,010 3,972 32.0% VA SLC Health Care System 2,365 3,174 34.2% VA Regional Benefit Office 645 798 23.8% Total Compensation $315.3 $423.1 34.2% Total VA Transfer Payments $642.9 $710.3 10.5% DOD military pensions $477.3 $475.6 –0.3% Construction Expenditures $3.8 $4.3 12.0% Medical Care Expenditures $527.6 $547.8 3.8% VA Grants to Utah Recipients $26.9 $34.8 29.5% Note: The VA SLC Health Care System and Regional Benefit Office did not have FY 2019 employment and payroll data available. FY 2020 data was substituted, as numbers were similar to FY 2019. * All 2015 spending has been inflation adjusted to 2019 dollars. Source: U.S. Department of Veterans Affairs, National Center for Veterans Analysis and Statistics; Salt Lake VA regional office and hospital; and USAspending.gov

Figure 19: Veterans by County in Utah, 2019

Rich 125 Cache 3,647 Box Elder Weber 16,500 2,545 Davis 18,863 Morgan 550 Source: State of Utah, SGID and Kem C. Gardner Policy Institute Daggett 82 Summit 1,687 Veterans in Utah impact the state and local economies in Salt Lake 41,883 several ways. There is a regional Department of Veterans Affairs Tooele Wasatch 4,115 1,023 Duchesne 903 (VA) benefits office and a VA hospital in Salt Lake City, plus Utah Uintah several clinics and vet centers throughout the state and four 17,223 1,614 veterans homes operated by the State of Utah. The VA and Juab 442 Carbon Department of Defense (DOD) annually send hundreds of 1,262 millions of dollars each in transfer payments and military Sanpete pension payments to Utah veterans. VA grants help fund the 1,293 Millard Emery provision of social services to veterans in the state, through 588 400 Grand 579 veterans homes, local government and nonprofit organizations. Sevier 1,293 From FY 2015 to FY 2019, total in-state federal spending on Beaver Piute Wayne behalf of veterans grew by 10.1%, increasing from $2.0 billion 317 129 106

Iron Gar eld 2,743 336 From FY 2015 to FY 2019, total San Juan in-state federal spending on behalf 556 Washington Kane of veterans grew by 10.1%, 9,444 569 increasing from $2.0 billion 82 41,883 Source: U.S. Department of Veterans Affairs, National Center for Veterans Analysis and Statistics; U.S. Department of Defense, Office of the Actuary, 2019 Statistical Report on the inflation-adjusted dollars to Military Retirement System; U.S. Census Bureau nearly $2.2 billion.

August 2021 I gardner.utah.edu 26 INFORMED DECISIONSTM inflation-adjusted dollars to nearly $2.2 billion (Table 39). Medical Facilities Additionally, there are millions of dollars of VA contract spending The medical facilities and veterans homes together employ in Utah that do not come through the local office or regional nearly 3,200 people with a payroll of $349.8 million, an increase contract office (see Defense Contracts and Grants section). of 809 jobs and $92.4 million in compensation from FY 2015 There were 130,817 veterans in Utah in 2019, 17,762 of which inflation-adjusted amounts. In FY 2019, the VA spent $4.3 were military retirees; this is a decrease of about 20,000 (13%) million on construction in Salt Lake County and $547.8 million veterans compared with 2015. The largest numbers of veterans on medical care statewide (Table 39). In addition, the VA funded were in Salt Lake, Davis, Utah and Weber counties (Table 40 and $34.8 million in grants to state, local and nonprofit organizations Figure 19). Retirees are concentrated in Davis, Salt Lake and in Utah. Almost $30.1 million of this grant money went to the Weber counties, with relatively strong presences in Utah and four veterans homes in the state. Washington counties too. Veterans represented 6.5% of Utah’s adult population in 2019. Table 41: VA Medical Care Expenditures in Utah by County of Patient Residence, FY 2019

Table 40: Veterans by County in Utah, 2019 Medical Care Expenditures Patients Served Military All Share of Adult Dollars Unique County Retirees Veterans Population County (Thousands) Share Patients Share Beaver 40 317 7.5% Beaver $1,410.9 0.3% 77 0.2% Box Elder 339 2,545 7.5% Box Elder $8,236.6 1.5% 693 1.9% Cache 474 3,647 4.5% Cache $8,668.0 1.6% 889 2.4% Carbon 87 1,262 8.5% Carbon $5,149.4 0.9% 403 1.1% Daggett 8 82 10.7% Daggett $347.4 0.1% 34 0.1% Davis 4,494 18,863 9.6% Davis $54,506.3 10.0% 4,619 12.3% Duchesne 48 903 7.0% Duchesne $5,647.1 1.0% 363 1.0% Emery 25 400 5.6% Emery $2,215.0 0.4% 161 0.4% Garfield 17 336 9.0% Garfield $881.1 0.2% 97 0.3% Grand 35 579 7.8% Grand $4,024.9 0.7% 271 0.7% Iron 319 2,743 7.6% Iron $7,153.2 1.3% 848 2.3% Juab 50 442 6.0% Juab $2,630.5 0.5% 165 0.4% Kane 48 569 10.4% Kane $1,724.5 0.3% 171 0.5% Millard 60 588 6.7% Millard $1,479.1 0.3% 138 0.4% Morgan 149 550 8.2% Morgan $2,260.5 0.4% 142 0.4% Piute 13 129 11.3% Piute $330.4 0.1% 31 0.1% Rich 10 125 8.1% Rich $394.7 0.1% 31 0.1% Salt Lake 4,076 41,883 5.5% Salt Lake $278,609.1 50.9% 13,750 36.7% San Juan 27 556 5.0% San Juan $2,244.6 0.4% 207 0.6% Sanpete 155 1,293 6.2% Sanpete $5,113.2 0.9% 402 1.1% Sevier 117 1,293 9.0% Sevier $4,530.4 0.8% 327 0.9% Summit 219 1,687 5.9% Tooele 495 4,115 9.5% Summit $3,794.1 0.7% 342 0.9% Uintah 88 1,614 6.9% Tooele $17,949.3 3.3% 1,160 3.1% Utah 1,941 17,223 4.4% Uintah $5,979.3 1.1% 530 1.4% Wasatch 117 1,023 4.9% Utah $44,100.5 8.1% 3,749 10.0% Washington 1,159 9,444 7.8% Wasatch $3,073.6 0.6% 284 0.8% Wayne 8 106 5.6% Washington $25,915.8 4.7% 3,364 9.0% Weber 3,144 16,500 10.8% Wayne $382.1 0.1% 35 0.1% Total 17,762 130,817 6 .5% Weber $49,011.4 8.9% 4,167 11.1% Note: Military retiree counts are for September 30 of each year. Veteran and adult Total $547,762 .9 100% 37,450 100% populations are estimated as of July 1. Source: U.S. Department of Veterans Affairs, National Center for Veterans Analysis and Note: Patients served and medical expenditures are attributed to the county where Statistics; U.S. Department of Defense, Office of the Actuary, 2019 Statistical Report on the patients live, not the location where care was received. Treatment per patient counted in Military Retirement System and supporting data received by email in response to an this table may range from a single office visit to a surgical procedure with preparatory information request; Kem C. Gardner Policy Institute Population Estimates testing and follow-up appointments to year-round daily care in a veterans home. Source: U.S. Department of Veterans Affairs, National Center for Veterans Analysis and Statistics

INFORMED DECISIONSTM 27 gardner.utah.edu I August 2021 Table 42: Income and Financial Support Received by Utah Veterans, FY 2019 (Thousands of Dollars)

Compensation Military Retiree Education & Insurance & County & Pensions1 Pensions2 Employment3 Indemnities4 Total Beaver $1,216.4 $768.1 $60.8 $30.8 $2,076.1 Box Elder $10,468.0 $7,256.5 $1,095.0 $108.1 $18,927.6 Cache $16,249.2 $13,331.9 $4,778.7 $138.1 $34,497.9 Carbon $6,060.1 $1,693.4 $257.2 $188.3 $8,198.9 Daggett $327.6 $173.4 $7.7 $0.0 $508.7 Davis $103,685.0 $121,813.9 $15,628.3 $1,272.8 $242,400.0 Duchesne $3,982.6 $962.5 $167.8 $17.6 $5,130.6 Emery $1,657.6 $591.1 $108.6 $33.5 $2,390.9 Garfield $1,198.9 $498.3 $37.1 $1.0 $1,735.3 Grand $2,269.4 $1,060.0 $67.0 $10.7 $3,407.2 Iron $14,454.9 $8,375.2 $8,081.5 $183.2 $31,094.7 Juab $2,431.4 $832.2 $219.4 $0.7 $3,483.7 Kane $2,963.9 $1,167.2 $110.8 $87.5 $4,329.4 Millard $2,439.8 $1,310.5 $101.6 $28.5 $3,880.3 Morgan $3,359.4 $5,180.5 $319.1 $32.7 $8,891.6 Piute $385.5 $277.6 $24.1 $26.8 $714.0 Rich $457.4 $304.4 $24.5 $0.0 $786.3 Salt Lake $180,963.4 $104,266.3 $30,557.5 $2,793.7 $318,580.9 San Juan $2,252.1 $686.6 $229.7 $7.8 $3,176.2 Sanpete $5,704.7 $3,057.2 $363.2 $45.2 $9,170.3 Sevier $5,264.8 $2,247.2 $194.7 $70.1 $7,776.8 Summit $4,620.1 $9,723.0 $739.7 $273.3 $15,356.0 Tooele $20,197.1 $10,758.8 $2,209.5 $176.3 $33,341.7 Uintah $4,959.3 $1,858.0 $394.4 $96.8 $7,308.6 Utah $65,353.6 $57,575.7 $13,294.3 $1,110.8 $137,334.4 Wasatch $3,616.1 $4,028.5 $425.8 $26.8 $8,097.2 Washington $53,645.2 $35,287.7 $7,254.9 $893.4 $97,081.1 Wayne $284.4 $123.1 $8.8 $29.1 $445.4 Weber $82,652.0 $80,434.8 $11,794.4 $981.3 $175,862.5 Total $603,120 .0 $475,643 .6 $98,556 .0 $8,664 .8 $1,185,984 5. 1. Compensation and pension expenditures include payments to veterans and their survivors from the VA related to disabilities and deaths, as well as burial and other benefits. 2. Military retiree pensions include $445.9 million in DOD payments to veterans who retired from the armed forces, usually after at least 20 years of service, as well as $29.7 million in DOD pensions for survivors of military retirees. 3. Education and employment expenditures support a group of VA programs for education and vocational rehabilitation and employment. 4. Insurance and indemnity expenditures by the VA include a variety of obligations not included elsewhere. Source: U.S. Department of Veterans Affairs, National Center for Veterans Analysis and Statistics; U.S. Department of Defense, Office of the Actuary

In FY 2019 the VA’s Salt Lake City Health Care System, which Benefits includes clinics, vet centers and veterans homes throughout Total transfer payments to veterans in Utah were $1.2 billion the state, served 37,450 unique patients who live in Utah (Table in FY 2019. These consisted of compensation and pension 41). Medical care expenses for these patients amounted to payments, education and employment benefits, and insurance $547.8 million, excluding administrative, facility maintenance and indemnities, all from the VA, and military retiree pensions and other overhead items. Just over half of the expenditures from the DOD (Table 42). The largest of these was VA were for patients who lived in Salt Lake County. Patients from compensation and pensions, totaling $603.1 million, an Davis, Weber and Utah counties together accounted for 26.9% increase of $107.8 million (34%) from FY 2015 inflation-adjusted of medical care spending. About 37% of Utah patients receiving data. Military retiree pensions were second at $475.6 million. medical care from the VA in FY 2019 lived in Salt Lake County, In FY 2019, the VA paid $98.6 million in education and down 2.7 percentage points from FY 2015. employment benefits and $8.7 million in insurance and indemnities; decreasing from FY 2015 inflation-adjusted

August 2021 I gardner.utah.edu 28 INFORMED DECISIONSTM amounts by 30.2% and 35.8%, respectively. Following the for veterans are sizable, accounting for 1.8% of employment, veteran population, the largest amounts of payments went to 2.2% of personal income, and 1.8% of GDP (Figure 21). Salt Lake ($318.6 million), Davis ($242.4 million), Weber ($175.9 Veteran spending also impacted the state’s finances. The million) and Utah ($137.3 million) counties. In addition, the combined effects of transfer payments, VA regional office and regional benefits office in Salt Lake City provides 798 jobs with a hospital employment and operations, and VA grants to Utah $73.3 million payroll, an increase of 153 jobs and $15.4 million in recipients produced an estimated $162.5 million in state income compensation from FY 2015. and sales taxes and $157.3 million in state education and non- education spending (Table 45). Federal funding for veterans’ Contracts Contract spending in Utah by the Department of Veterans Figure 20: Regional and Local Office VA Contract Spending Affairs, where the contracting office was either the regional in Utah by Industry, FY 2019 14,270 $707.4 $1,363.9 100%network contract office or the Salt Lake City office, amounted to 90%almost $53.1 million in FY 2019. This is 9.0% less compared with Health Services 46.44% 80% 6,439 $286.0 $559.0 Construction 23.60% 70%the $58.3 million in veteran contract spending in FY 2015 Manufacturing 11.26% 60%inflation-adjusted data. Three sectors accounted for 81.3% of Admin, Support, Waste Mgmt. 10.91% 50% Other Services 4.34% 40%the total: health care ($24.6 million), construction ($12.5 Prof., Sci., and Tech Services 1.23% 30%million), and7,831 manufacturing ($6.0$421.4 million). Another$804.9 10.9% ($5.8 Transportation 0.79% 20%million) went to administration and waste management (Table 10% Public Administration 0.50% 430% and Figure 20). Additional VA contract spending in Utah that Accomm. and Food Services 0.40% Employment Personal Income Gross Domestic Wholesale Trade did not come through the local office or regionalProduct network 0.15% Real Estate and Rental 0.15% contract office Directis included Federal in “ImpactsIndirect & Inducedof Non-Installation Information 0.13% Defense Contracts” in the Contacts and Grants section. Retail Trade 0.08% The impacts on Utah’s economy of federal spending on Utilities 0.01% veterans, comprising8,550 VA benefits,$258.0 VA operations, $534.0VA grants and 0% 10% 20% 30% 40% 50% 100%DOD pensions, include 36,140 jobs (direct plus indirect and 90% Note: Amounts are dollars obligated. 80%induced), $3.33,124 billion in personal income, and $3.2 billion in Source: Kem C. Gardner Policy Institute analysis of data from USAspending.com 70% $312.4 state GDP (Table14,270 44). The impacts$165.7$707.4 of military pensions$1,363.9 alone were Jobs (36,140) 1.8% 100%60% 90% Table 44: StatewideHealth Services Economic Impacts of Federal Spending46.44% 50%about 8,500 jobs, $900.5 million in personal income, and $735.6 Personal Income ($3.3 Billion) 2.2% Construction 40%million80% in state6,439 GDP. Statewide, $286.0the impact of federal$559.0 spending for Veterans, 2019 23.60% 30%70% 5,426 GDP ($3.2 Billion)Manufacturing 11.26% 1.8% 60% (Millions of Dollars) 20% $92.3 $221.6 Admin, Support, Waste Mgmt. 10.91% 10%50% Table 43: Regional and Local Office VA Contract Spending 0.0%Impact 0.5%Other Services1.0% 4.34%1.5% 2.0% Amount2.5% 40%0% in Utah by Industry, FY 2019 Prof., Sci., and Tech ServicesShare of1.23% State Total 30% Employment7,831 Personal$421.4 Income Gross $804.9Domestic Total Employment 36,140 20% Product Transportation 0.79% Sector Amount Personal Income $3,282.8 10% Direct Federal Indirect & Induced Public Administration 0.50% Utilities0% $4,095 GrossAccomm. Domestic and Food Product Services 0.40% $3,215.3 Employment Personal Income Gross Domestic Wholesale Trade Construction Product$12,523,851 Note:Jobs Comprises (10,846) the effects of compensation0.15% and0.53% pension payments, education and vocationalReal rehabilitation Estate and expenditures, Rental 0.15% insurance and indemnities expenditures, Manufacturing Direct Federal Indirect & Induced $5,974,792 1,282 $72.4 $143.2 constructionPersonal Incomeexpenditures,Information ($1.1 both Billion) regional 0.13% office and hospital employment,0.78% VA grants to 100%Wholesale Trade $81,296 in-state entities, and DOD pensions, including payments to survivors. Retail Trade 90% Source:GDP Kem($0.9 C. Billion) Gardner Policy Institute0.08% analysis0.51% using the REMI PI+ model 80%Retail Trade $44,539 Utilities 0.01% 70%Transportation $80.0$420,933 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 8618,550 $47.9$258.0 $534.0 Figure 21: Statewide Economic0% 10% Impacts20% of30% Federal40% 50% 100%60%Information $69,161 Share of State Total 50%90% Spending for Veterans, 2019 40%80%Real Estate and3,124 Rental $77,459 30%70% $312.4 Professional, Scientific and Technical $165.7Services $653,945 Jobs (36,140) 1.8% 20%60% $63.2 Admin, Support,421 and Waste Management$24.5 $5,787,533 $4.5 10%50% Personal Income ($3.3 Billion) 2.2% 40%0%Health Care and Social Assistance $24,638,962 $4.0 30% Employment5,426 Personal Income Gross Domestic GDP ($3.2 Billion) 1.8% Accommodation and Food Services Product$209,973 $3.5 20% $92.3 $221.6 Other Services $2,303,934 10% Direct Federal Indirect & Induced 0.0%$3.0 0.5% 1.0% 1.5% 2.0% 2.5% Public0% Administration $265,872 Employment Personal Income Gross Domestic $2.5 Share of State Total Total Product$53,056,343 Note: Comprises the effects of compensation and pension payments, education and Note: Amounts are dollars obligated. $2.0 369 Direct Federal $18.0Indirect & Induced$28.7 vocational rehabilitation expenditures, insurance and indemnities expenditures, Source: Kem C. Gardner Policy Institute analysis of data from USAspending.com 100% construction$1.5 expenditures, both regional office and hospital employment, VA grants to 90% in-stateJobs entities, (10,846) and DOD pensions, including payments0.53% to survivors. 80% Source:$1.0 Kem C. Gardner Policy Institute analysis using the REMI PI+ model 70% Personal Income ($1.1 Billion) 1,282 $72.4 $17.8$143.2 $0.5 0.78% 100%60% 296 INFORMED DECISIONSTM$14.7 29 gardner.utah.edu August 2021 50%90% $0.0GDP ($0.9 Billion) 0.51% I 40%80% 70% $80.0 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 30% 861 $47.9 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20%60% $10.9 ShareContracts of State TotalGrants 10%50% 73 $3.4 40%0% 30% Employment Personal Income Gross Domestic Product$63.2 20% 421 $24.5 $4.5 10% Direct Federal Indirect & Induced 0% $4.0 Employment Personal Income Gross Domestic Product $3.5 Direct Federal Indirect & Induced $3.0 $2.5 $2.0 369 $18.0 $28.7 100% $1.5 90% 80% $1.0 70% $17.8 $0.5 60% 296 $14.7 50% $0.0 40%

30% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20% $10.9 Contracts Grants 10% 73 $3.4 0% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced Table 45: Statewide Fiscal Impacts of Federal Spending for Table 46: Economic Impacts of Federal Spending for Veterans, 2019 Veterans by County, 2019 (Millions of Dollars) (Shares of County Totals, Millions of Dollars)

Impact Amount Gross Domestic Employment Personal Income Product Personal Income Tax Revenues $79.6 County Number Share Amount Share Amount Share Corporate Income Tax Revenues $5.3 Salt Lake 19,483 2.1% $1,372.6 2.2% $1,916.2 2.1% State Sales Tax Revenues $77.5 Utah 4,185 1.1% $419.5 1.6% $321.9 1.2% Total State Revenues $162 .5 Davis 4,192 2.1% $538.1 3.1% $306.9 2.0% Non-Education Expenditures $96.0 Weber 3,387 2.4% $351.4 3.2% $247.5 2.3% State Public Education Expenditures $43.4 Washington 1,493 1.5% $151.9 2.3% $116.0 1.6% Higher Education Expenditures $17.9 Summit 564 1.3% $73.3 1.3% $71.7 1.4% Total State Operating Expenditures $157 .3 Cache 812 1.0% $73.7 1.5% $59.4 1.1% Net State Operating Revenue $5 .2 Toole 378 1.6% $75.5 2.8% $35.3 1.5% Note: Comprises the effects of compensation and pension payments, education and vocational rehabilitation expenditures, insurance and indemnities expenditures, construction Box Elder 355 1.2% $42.1 2.0% $29.1 1.1% expenditures, both regional office and hospital employment, VA grants to in-state entities, and DOD pensions, including payments to survivors. Iron 347 1.3% $43.6 2.5% $25.3 1.3% Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal All Others 945 0.7% $141.0 1.4% $86.0 0.6% model Total 36,140 1 .8% $3,282 .8 2 .2% $3,215 .3 1 8%. education may offset somewhat the $17.9 million estimate for Note: Employment and GDP are by place of work. Personal income is by place of residence. Shares equal employment, personal income and GDP impacts divided by total higher education expenditures. However, much of the higher employment, personal income and GDP in the county (or state for the “Total” row), respectively. education spending is for economic migrants and dependents Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model of veterans who may not attract VA funding. Subtracting expenditures from taxes, the net fiscal impact was $5.2 million in revenue. spending for this population (Table 46). That year, because of Utah’s veteran population and supporting organizations this spending, Salt Lake County held 19,483 jobs and received provided far-reaching benefits to counties throughout Utah. over $1.3 billion and $1.9 billion in personal income and GDP, Table 46 shows combined direct, indirect and induced impacts, respectively. with emphasis on 10 counties which each derived at least 347 Three counties—Utah, Davis, and Weber—owe roughly 1% jobs and $25.3 million in personal income and GDP from federal to 3% of their jobs, personal income and GDP to federal spending for veterans in 2019. spending for veterans in the state. Each county benefitted from Salt Lake, the county with the largest economy and population between about 3,400 and 4,200 jobs, aggregate personal in Utah, can attribute about 2% of its economic activity in 2019 income between $351.4 million and $538.1 million, and GDP to veteran pensions, VA health care, and other VA and DOD between $247.5 million and $321.9 million.

August 2021 I gardner.utah.edu 30 INFORMED DECISIONSTM Department of Defense Retired Civilians

Many retirees who live in Utah once held civilian jobs with the Department of Defense (DOD) under permanent or temporary Total pension payments to retirees in appointments. The Office of Personnel Management (OPM)— which manages pensions for the federal civilian workforce— Utah were over $600 million in FY sends hundreds of millions of dollars annually in pension 2019, averaging $31,327 per retiree. payments to Utah DOD retirees. Since the vast majority of retiree pension money comes from outside of Utah, these dollars have an economic impact that grows the state’s economy. County or the Army Depot and Dugway Proving Ground in In 2019, Utah was home to a total of 19,430 retired DOD Tooele County. The largest numbers of retirees were in Weber civilians. The majority of these retirees live in counties in close (5,860), Davis (5,213), Salt Lake (2,973) and Tooele (1,656) proximity to a military installation, such as Hill AFB in Davis counties (Table 47 and Figure 22). While over 80% of all retirees resided within these four counties, at least six retirees resided Table 47: DOD Retired Civilians and Pension Payments by within each of the 25 other counties in Utah. County in Utah, 2019 Total pension payments to retirees in Utah were over $600 County Retirees Share Pension Payments* Share million in FY 2019, averaging $31,327 per retiree (Table 47). Beaver 20 0.1% $582,648 0.1% Following the retiree population, 81.3% of payments went to Box Elder 599 3.1% $18,022,716 3.0% Weber ($193.2 million), Davis ($171.8 million), Salt Lake ($81.5 Cache 325 1.7% $9,012,612 1.5% million) and Tooele ($48.2 million) counties. Carbon 28 0.1% $679,752 0.1% The impacts on Utah’s economy of federal pension spending Daggett 14 0.1% $278,832 0.0% by retired civilians include almost 11,000 jobs, $1,144.2 million Davis 5,213 26.8% $171,758,724 28.2% in personal income, and $926.6 million in state GDP (Table 48). Duchesne 41 0.2% $1,045,500 0.2% Emery 18 0.1% $524,328 0.1% Figure 22: DOD Retired Civilians by County in Utah, 2019 Garfield 12 0.1% $382,200 0.1% Rich 9 Cache 325 Grand 20 0.1% $503,004 0.1% Box Elder Weber 5,860 Iron 112 0.6% $3,558,480 0.6% 599 Davis 5,213 Juab 56 0.3% $1,386,852 0.2% Morgan 237 Daggett 14 Kane 29 0.1% $821,784 0.1% Summit 97 Millard 27 0.1% $630,900 0.1% Salt Lake 2,973 Morgan 237 1.2% $8,527,152 1.4% Tooele Wasatch Duchesne 1,656 49 Piute 8 0.0% $243,144 0.0% 41 Utah Uintah Rich 9 0.0% $325,284 0.1% 873 29

Salt Lake 2,973 15.3% $81,541,560 13.4% Juab 56 Carbon San Juan 6 0.0% $138,072 0.0% 28 Sanpete 81 0.4% $2,191,440 0.4% Sanpete Millard 81 Sevier 62 0.3% $1,376,280 0.2% Emery Grand 27 Summit 97 0.5% $3,061,860 0.5% 18 20 Sevier Tooele 1,656 8.5% $48,217,308 7.9% 62

Uintah 29 0.1% $714,708 0.1% Beaver Piute Wayne 20 Utah 873 4.5% $25,304,496 4.2% 8 10

Wasatch 49 0.3% $1,818,408 0.3% Iron Gar eld 112 Washington 966 5.0% $32,522,364 5.3% 12 San Juan 6 Wayne 10 0.1% $275,100 0.0% Weber 5,860 30.2% $193,235,424 31.7% Washington Kane 966 29 Total 19,430 100% $608,680,932 100%

* Annual pensions are calculated from monthly rates. 6 5,860 Source: Kem C. Gardner Policy Institute analysis of data from the United States Office of Personnel Management Source: Kem C. Gardner Policy Institute analysis of data from the United States Office of Personnel Management

INFORMED DECISIONSTM 31 gardner.utah.edu I August 2021 These totals represent between 0.51% and 0.78% of all Utah DOD civilian retiree spending also impacted the state’s jobs, personal income and GDP (Figure 23). finances. The combined effects of personal income tax revenues, While the impacts of retired civilians are sizable, these figures corporate income tax revenues, and state sales tax revenues alone do not account for the full extent of payments to civilian produced an estimated $56.4 million in state income and sales retirees. Prior to the late 1980s, DOD civilian retirees received taxes and $54.6 million in state education and non-education 14,270 $707.4 $1,363.9 100% only a pension and did not pay into or collect from Social spending (Table 49). Personal income and sales tax revenues 90% Health Services 46.44% 80% 6,439 $286.0 $559.0 Security. BeginningConstruction in1987, the previous23.60% arrangement was were the primary sources of income from retirees, each 70% replaced withManufacturing the Federal Employees11.26% Retirement System generating around $27.5 million in state revenue. However, 60% Admin, Support,6 Waste Mgmt. 10.91% 50% (FERS). In addition to a Basic Benefits plan (i.e., pension), the economic migrants and dependents of retirees prompted Other Services 4.34% 40% newProf., FERS Sci., and includes Tech Services Social Security1.23% and a Thrift Savings Plan, additional public investments—the largest being $33.3 million in 30% 7,831 $421.4 $804.9 20% similar to a standardTransportation 401(k). 0.79%Incorporating retiree Social Security non-education expenses. Netting out expenditures from taxes, 10% and 401(k)Public benefits Administration spent in0.50% Utah would paint a more accurate the net fiscal impact was $1.8 million in state operating revenue. 0% Accomm. and Food Services 0.40% Employment Personal Income Gross Domestic picture of the true value of retirement benefits for all DOD The economic activity of DOD retired civilians reached Wholesale Trade 0.15% Product civilian retirees. However, this data is not publicly available and communities throughout Utah, with at least six local jobs being Real Estate and Rental 0.15% Direct Federal Indirect & Induced would be difficultInformation to estimate.0.13% directly or indirectly supported by pension spending in every Retail Trade 0.08% county. Even with its far reach, three-fourths of all economic Table 48: StatewideUtilities Economic0.01% Impacts of DOD Retired impacts were in Salt Lake, Weber, and Davis counties. 8,550 $258.0 $534.0 Civilians Pension Payments,0% 201910% 20% 30% 40% 50% Salt Lake County had the largest share of economic benefits: 100% 90% (Millions of Dollars) 3,182 full- and part-time jobs and $236.1 million in personal 80% 3,124 70% $312.4 Impact Amount income, amounting to $337.0 million in local GDP (Table 50). $165.7 Jobs (36,140) 1.8% 60% Total Employment 10,846 Weber and Davis counties owe roughly 1% to 3% of their jobs, 50% Personal Income ($3.3 Billion) 2.2% personal income, and GDP to pension spending of civilian 40% Personal Income $1,144.2 5,426 1.8% retirees in the state. Residents of each county benefitted with 30% GrossGDP Domestic($3.2 Billion) Product $926.6 20% $92.3 $221.6 2,730 and 2,282 jobs, $313.0 and $286.0 million in personal 10% 0.0%Source: Kem C. Gardner0.5% Policy Institute1.0% analysis using1.5% the REMI PI+ model2.0% 2.5% 0% income, and $200.1 million and $165.6 million in GDP, Employment Personal Income Gross Domestic Share of State Total Product Figure 23: Statewide Economic Impacts of DOD Retired respectively. Tooele also had relatively large impacts, similarly Direct Federal Indirect & Induced Civilians Pension Payments, 2019 ranging between 1% and 3% of countywide jobs, personal income, and GDP. Jobs (10,846) 0.53%

1,282 $72.4 $143.2 Personal Income ($1.1 Billion) 0.78% Table 50: Economic Impacts of DOD Retired Civilians 100% Pension Payments, 2019 90% GDP ($0.9 Billion) 0.51% 80% (Shares of County Totals, Millions of Dollars) $80.0 70% 861 $47.9 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 60% Share of State Total Gross Domestic 50% Employment Personal Income Product 40% Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model County Number Share Amount Share Amount Share 30% $63.2 20% 421 $24.5 $4.5 Salt Lake 3,182 0.3% $236.1 0.4% $337.0 0.4% 10% Table 49: Statewide Fiscal Impacts of DOD Retired Civilians Weber 2,730 1.9% $313.0 2.8% $200.1 1.8% 0% $4.0 Employment Personal Income Gross Domestic Pension Payments, 2019 Davis 2,282 1.2% $286.0 1.7% $165.6 1.1% Product $3.5 (Millions of Dollars) Utah 867 0.2% $77.9 0.3% $68.4 0.3% Direct Federal Indirect & Induced $3.0 Impact Amount Washington 429 0.4% $48.2 0.7% $34.2 0.5% $2.5 Personal Income Tax Revenues $27.8 Toole 309 1.3% $65.8 2.5% $27.9 1.2% Corporate$2.0 Income Tax Revenues $1.7 Cache 330 0.4% $25.7 0.5% $26.5 0.5% 369 $18.0 $28.7 100% State$1.5 Sales Tax Revenues $27.0 Summit 155 0.4% $14.0 0.3% $20.4 0.4% 90% Box Elder 249 0.8% $33.0 1.6% $19.3 0.7% 80% Total$1.0 State Revenues $56 .4 70% All Others 314 0.2% $44.7 0.4% $27.1 0.2% $17.8 Non-Education$0.5 Expenditures $33.3 60% 296 $14.7 Total 10,846 0 .5% $1,144 .2 0 .8% $926 .6 0 5%. 50% State$0.0 Public Education Expenditures $15.1 40% Note: Employment and GDP are by place of work. Personal income is by place of Higher Education Expenditures $6.2 residence. Shares equal employment, personal income and GDP impacts divided by total

30% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 employment, personal income and GDP in the county (or state for the “Total” row), 20% $10.9 Total State Operating ExpendituresContracts Grants $54 .6 respectively. 10% 73 $3.4 Net State Operating Revenue $1 .8 Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model 0% Employment Personal Income Gross Domestic Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal model Product Direct Federal Indirect & Induced August 2021 I gardner.utah.edu 32 INFORMED DECISIONSTM 14,270 $707.4 $1,363.9 100% 90% Health Services 46.44% 80% 6,439 $286.0 $559.0 Construction 23.60% 70% Manufacturing 11.26% 60% Admin, Support, Waste Mgmt. 10.91% 50% Other Services 4.34% 40% Prof., Sci., and Tech Services 1.23% 30% 7,831 $421.4 $804.9 20% Transportation 0.79% 10% Public Administration 0.50% 0% Accomm. and Food Services 0.40% Employment Personal Income Gross Domestic Wholesale Trade Product 0.15% Real Estate and Rental 0.15% Direct Federal Indirect & Induced Information 0.13% Retail Trade 0.08% Utilities 0.01% 8,550 $258.0 $534.0 0% 10% 20% 30% 40% 50% 100% 90% 80% 3,124 70% $312.4 $165.7 Jobs (36,140) 1.8% 60% 50% Personal Income ($3.3 Billion) 2.2% 40% 30% 5,426 GDP ($3.2 Billion) 1.8% 20% $92.3 $221.6 10% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 0% Employment Personal Income Gross Domestic Share of State Total Product Direct Federal Indirect & Induced

Jobs (10,846) 0.53%

1,282 $72.4 $143.2 Personal Income ($1.1 Billion) 0.78% 100% 90% GDP ($0.9 Billion) 0.51% 80%Defense Contracts and Grants $80.0 70% 861 $47.9 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 60%In FY 2019, Utah’s economy benefited from $4.4 billion in Figure 24: Defense ContractsShare of State and Total Grants in Utah, Prime 50%federal funding from defense contracts and grants including all Awards FY 2000–FY 2019 40% 30%sub-awards. Much of this activity is included in impacts for Utah (Billions of Constant FY 2019 Dollars) $63.2 20%defense installations421 and organizations.$24.5 This section emphasizes $4.5 10% additional0% economic and fiscal impacts from Department of $4.0 DefenseEmployment (DOD) and DepartmentPersonal Income of VeteransGross AffairsDomestic (VA) Product $3.5 contracts and grants. An overview of all defense contracts and Direct Federal Indirect & Induced $3.0 grants to Utah recipients since 2000 is followed by a detailed presentation for FY 2019. Then, economic and fiscal impact $2.5 results for 2019 are given separately for non-installation $2.0 369 $18.0 $28.7 100%contracts and all grants. $1.5 90% 80% $1.0 70%DOD and VA Prime Contracts and Grants in Utah, $17.8 $0.5 60%FY 2000–FY296 2019 $14.7 50% $0.0 40%From FY 2015 to FY 2019, the total value of DOD and VA prime

30%contracts and grants in Utah grew by 23%, increasing $400 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20% million inflation-adjusted dollars. This is still well$10.9 below the Contracts Grants 10% 73 $3.4 20-year0% peak of $4.0 billion reached in 2007, just before the Note: Includes awards performed in Utah from the Department of Defense and Employment Personal Income Gross Domestic Department of Veterans Affairs. financial crisis (Figure 24 and Table 51). Total ProductDOD and VA Source: USAspending.gov contracts and grantsDirect fell Federal to a 20-yearIndirect low & Inducedof $1.4 billion in FY

Table 51: Defense Contracts and Grants in Utah, Prime Awards, FY 2000–FY 2019 (Millions of Constant FY 2019 Dollars)

Contracts Grants Contracts & Grants Fiscal Year DOD VA Total DOD VA Total DOD VA Total 2000 $1,473.4 $18.0 $1,491.3 $41.4 $1.9 $43.3 $1,514.7 $19.9 $1,534.6 2001 $1,865.4 $39.9 $1,905.3 $40.6 $2.1 $42.7 $1,906.0 $42.0 $1,948.0 2002 $2,204.4 $50.4 $2,254.8 $47.8 $2.1 $49.9 $2,252.2 $52.5 $2,304.7 2003 $2,713.1 $59.6 $2,772.7 $28.9 $2.2 $31.1 $2,742.0 $61.8 $2,803.8 2004 $2,636.4 $43.4 $2,679.8 $34.6 $2.3 $36.9 $2,671.0 $45.7 $2,716.7 2005 $2,983.3 $82.2 $3,065.5 $38.8 $2.2 $41.0 $3,022.1 $84.5 $3,106.5 2006 $3,060.4 $66.5 $3,127.0 $28.0 $2.3 $30.3 $3,088.4 $68.9 $3,157.3 2007 $3,898.4 $66.9 $3,965.3 $35.5 $0.0 $35.5 $3,933.9 $66.9 $4,000.7 2008 $2,331.6 $70.4 $2,402.0 $52.4 $0.1 $52.5 $2,384.0 $70.5 $2,454.5 2009 $2,643.2 $110.1 $2,753.4 $75.6 $0.0 $75.6 $2,718.8 $110.1 $2,829.0 2010 $3,071.1 $128.0 $3,199.2 $52.9 $16.2 $69.1 $3,124.0 $144.3 $3,268.3 2011 $2,721.6 $118.7 $2,840.3 $71.7 $11.5 $83.1 $2,793.3 $130.2 $2,923.5 2012 $2,849.8 $103.8 $2,953.6 $55.8 $27.6 $83.4 $2,905.6 $131.4 $3,037.0 2013 $1,618.5 $94.6 $1,713.0 $48.4 $1.4 $49.8 $1,666.8 $96.0 $1,762.8 2014 $1,723.4 $99.2 $1,822.6 $98.3 $20.8 $119.1 $1,821.7 $120.0 $1,941.7 2015 $1,437.8 $92.2 $1,530.0 $85.8 $29.3 $115.1 $1,523.6 $121.5 $1,645.1 2016 $1,198.8 $108.2 $1,307.0 $74.0 $2.0 $76.0 $1,272.8 $110.3 $1,383.0 2017 $1,441.1 $67.4 $1,508.5 $164.5 $30.4 $194.9 $1,605.7 $97.7 $1,703.4 2018 $1,631.2 $67.8 $1,699.0 $74.8 $27.0 $101.8 $1,706.0 $94.8 $1,800.8 2019 $1,864.0 $67.6 $1,931.7 $63.1 $34.8 $97.9 $1,927.2 $102.4 $2,029.6 Note: Amounts include dollars obligated each federal fiscal year for prime awards for contracts and grants funded by the DOD and VA for which Utah was given as the primary place of performance. Inflation adjustments are based on the Bureau of Labor Statistics CPI for urban areas in the West. Source: USAspending.gov

INFORMED DECISIONSTM 33 gardner.utah.edu I August 2021 Table 52: Value of Defense Contracts and Grants Performed in Utah, FY 2019 (Millions of Dollars)

Contracts Grants Contracts & Grants Type of Contract or Grant DOD VA Total DOD VA Total DOD VA Total Utah Prime Awards (Unadjusted)1 $1,864.0 $67.6 $1,931.7 $63.1 $34.8 $97.9 $1,927.2 $102.4 $2,029.6 Utah Prime Awards (Adjusted)2 $1,747.0 $58.6 $1,805.6 $63.1 $34.8 $97.9 $1,810.1 $93.3 $1,903.5 Add: Utah Sub-Awards for Non-Utah Primes3 $2,694.4 $0.6 $2,695.0 $6.5 $0.0 $6.5 $2,700.9 $0.6 $2,701.5 Subtract: Out-of-State Sub-Awards for Utah Primes3 $171.9 $0.5 $172.3 $5.7 $0.0 $5.7 $177.6 $0.5 $178.0 Total Awards (Net) $4,269 .5 $58 .7 $4,328 .2 $64 .0 $34 .8 $98 .7 $4,333 .5 $93 5. $4,427 .0 1. Adjusted amounts exclude contracts and grants to companies without a Utah presence, since most of the associated economic activity likely did not accrue to Utah. 2. Subcontracts and sub-grants performed in Utah for prime awards from outside the state are added to Utah prime awards. Sub awards performed outside of Utah under Utah prime awards are subtracted, since that portion of economic activity funded by the prime award accrues to states besides Utah. Source: USAspending.gov

2016, and increased every year since (through at least FY 2019) under an administration focused on national defense spending. From FY 2015 to FY 2019, the Contracts and grants included here are prime awards, without subcontracts or sub-awards for grants performed in Utah. total value of DOD and VA prime DOD contracting consistently makes up a majority share of contracts and grants in Utah grew total contract and grant prime awards, ranging from 87% to 97% depending on the year. Total grant awards typically are 23%, increasing $400 million between 1% and 11% of total awards. VA contracts make up the difference. In FY 2019, DOD contracts and grants accounted for inflation-adjusted dollars. 95% of total Utah awards; the remaining 5% came from the VA. Table 53: Utah Defense Contracts and Grants Comparison, FY 2019 Contracts and Grants FY 2015 and FY 2019 Economic impact analysis in this section includes defense (Millions of Dollars) contract and grant sub-awards, in addition to the prime awards Type of Contract or Grant 2019 20153 Difference Change in Table 51. Also, Table 52 shows a downward adjustment from Utah prime awards $2.0 billion in FY 2019 DOD and VA contracts and grants to $1.9 (unadjusted) $2,029.6 $1,619.1 $410.5 25.4% billion after verifying each contractor and grantee’s presence in Utah prime awards Utah. Additions and subtractions to account for in-state and (adjusted)1 $1,903.5 $1,542.5 $361.0 23.4% out-of-state contract and grant sub-awards combined add a Add: Utah sub-awards 2 noteworthy $2.5 billion. Total adjusted prime and sub-awards for non-Utah primes $2,701.5 $303.1 $2,398.5 791.4% Subtract: Out-of-state equal $4.4 billion, with 98% coming from the DOD. sub-awards for Utah primes2 $178.0 $69.9 $108.1 154.6% From FY 2015 to FY 2019, total in-state contract and grant Total Awards (Net) $4,427 .0 $1,775 .6 $2,651 3. 149 3%. spending increased by nearly 150%, from $1.8 billion inflation- Note: FY 2015 unadjusted amounts pulled from USAspending.gov in 2021 have changed adjusted dollars to over $4.4 billion (Table 53). When viewing slightly compared with the Gardner Institute’s 2017 report. Figure 24 and Table 51 uses the most current data from USAspending.gov, while this table uses FY 2015 data directly adjusted prime contacts and grants, Utah brought in $1.9 billion from the previous defense study for comparison’s sake. in FY 2019, an increase of about 23% compared with the $1.5 1. Adjusted amounts exclude contracts and grants to companies without a Utah presence, since most of the associated economic activity was not likely to have billion in FY 2015. Even larger than Utah’s gains in prime awards accrued to Utah. 2. Subcontracts and sub-grants performed in Utah for prime awards from outside the was the net $2.3 billion increase in sub-awards from FY 2015 to state are added to Utah prime awards. Sub awards performed outside of Utah under FY 2019. Subcontracts from just three organizations—Northrop Utah prime awards are subtracted, since that portion of economic activity funded by the prime award accrues to states besides Utah. Grumman, L-3 Communications, and Moog Inc.—represented 3. All FY 2015 spending has been inflation adjusted to FY 2019 dollars. 80% of all sub-award increases for the period, totaling $2.0 of Source: USAspending.gov $2.5 billion in net sub-awards. Of the three, Northrop Grumman and its subsidiary ATK Launch Systems accounted for $1.6 billion (62%) of Utah’s net sub-award contracts in FY 2019; the vast majority of these came from prime contracts through Lockheed Martin Corporation in California.

August 2021 I gardner.utah.edu 34 INFORMED DECISIONSTM Figure 25: Utah Defense Subcontracts, FY 2015–FY 2019 Table 54: Total DOD and VA Contract and Grant Dollars (Billions of Dollars; Annual Percentage Change) Obligated in Utah by County, FY 2019

$3.0 County Amount Share +76.1% Davis Prof., Sci., and Tech Services $2,247,454,530 50.8%56.02% $2.5$3.0 $2.7 Salt Lake Manufacturing $1,359,318,31738.46% 30.7% +76.1% Prof., Sci., and Tech Services 56.02% Utah Construction 3.09% $229,900,751 5.2% $2.0$2.5 $2.7 WholesaleManufacturing Trade 0.60% 38.46% Weber $171,913,244 3.9% Construction 3.09% +5.6% Educational Services 0.59% +156.1% Cache $168,681,903 3.8% $1.5$2.0 Admin., Support,Wholesale Waste Mgmt. Trade 0.53%0.60% $1.5 $1.4 Summit $112,100,323 2.5% +5.6% EducationalInformation Services 0.27%0.59% +156.1% $1.5 TooeleAdmin., Support, Waste Mgmt. 0.53% $81,931,654 1.9% $1.0 $1.5 Other Services 0.27% $1.4 Box Elder Information 0.27% $34,537,501 0.8% $0.8 -31.1% Health Care and Social Assistance 0.11% $0.5$1.0 Washington Other Services $9,010,709 0.2% $0.6 Retail Trade 0.02%0.27% $0.8 -31.1% AccommodationWasatchHealth Care and and Social Food Assistance Services 0.02%0.11% $7,266,798 0.2% $0.5 $0.0 $0.6 Iron TransportationRetail Trade 0.02% $2,521,860 0.1% 2015 2016 2017 2018 2019 AccommodationMorgan Public and Administration Food Services 0.00%0.02% $1,199,759 0.0% $0.0 Note: Amounts are for DOD and VA subcontracts performed in Utah, whether the Arts, Entertainment, andTransportation Recreation 0.00%0.02% associated prime2015 award was from2016 an in-state or2017 out-of-state company.2018 2019 Sanpete $693,020 0.0% Public Administration Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov Grand Mining 0.00% $430,024 0.0% Arts, Entertainment, and Recreation 0.00% Carbon 0% 10% 20% $24,67630% 40% 50% 0.0%60% Mining 0.00% Figure 26: Total DOD and VA Contracts and Grants by Uintah $15,749 0.0% San Juan 0% 10% 20% 30%$98340% 50% 0.0%60% Service, FY 2019 Air Force: $1,197.5: 27% Total $4,427,001,800 100% Note: Consists of prime contracts performed by companies with a presence in Utah, plus Air Force: $1,197.5: 27% 73,125 $3,995.1 $6,168.6 Other Defense: $430.9: 10% subcontracts100% performed in Utah where the prime contract place of performance is not Utah, minus subcontracts to out-of-state companies from in-state prime contracts, plus Total: Other Defense: $430.9: 10% grants80% to Utah recipients.73,125 $3,995.1 $6,168.6 Source:100% Kem C. Gardner46,023 Policy Institute analysis$2,195.8 of data from USASpending.gov 60% $4,199.5 $4,427.0Total: 80% Army: $761.5: 17% 40% 46,023 $2,195.8 Figure60% 27: Total DOD and VA Contract and Grant$4,199.5 Dollars in $4,427.0 $1,799.3 20% 27,102 $1,969.1 Army: $761.5: 17% Utah40% by County, FY 2019 (Thousands0% of Dollars) Navy: $2,037.1: 46% 20% Employment27,102 Personal$1,799.3 Income Gross Domestic $1,969.1Product 0% Direct Federal RichIndirectCache & $168,681.9Induced Navy: $2,037.1: 46% Employment Personal Income Gross Domestic Weber $171,913.2 Box Elder Product $34,537.5Direct Federal IndirectDavis & $2,247,454.5 Induced 1,839 $87.2 $129.0 Note: The “Other Defense” category includes contracts and grants from the Department of 100% Morgan $1,199.8 Veterans Affairs, Defense Logistics Agency, Defense Contract Management Agency, Salt Lake $1,359,318.3 Missile DefenseProf., Sci.,Agency, and Defense Tech Services Health Agency, Defense Advanced Research Projects52.37% 80% 1,839 $87.2$43.6 $129.0 Agency, U.S. Special OperationsManufacturing Command, and 12 other offices within the DOD. 100% 970 Daggett 35.97% Summit $91.3 Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov 60% $112,100.3 Prof., Sci., and TechConstruction Services 4.23% 52.37% 80% Manufacturing 40% 970 $43.6 Educational Services 1.64% 35.97% Tooele Wasatch $91.3 60% $81,931.7 $7,266.8 Duchesne HealthAward Care amounts and Social Constructionof Assistance subcontracts1.50%4.23% where Utah is the primary 20% 869 $43.6 Utah Uintah$37.7 Admin, Support,Educational Waste Services Mgmt. 1.27%1.64% 40% $229,900.8 $15.7 place of performance have increased in recent years, rising by 0% Health Care Publicand Social Administration Assistance 0.92%1.50% 20% Employment869 Personal$43.6 Income Gross Domestic over 150% from FY 2016 to FY 2017 and over 75% from FY 2018 Product$37.7 Admin, Support,Wholesale Waste Mgmt. Trade 0.55%1.27% Juab Carbon 0% Direct Federal Indirect$24.7 & Induced to FY 2019 (FigurePublic AdministrationTransportation 25). Back in FY0.51%0.92% 2015 and FY 2016, companies Employment Personal Income Gross Domestic Wholesale Trade Product performed less thanOther $1 Services billion in0.40%0.55% defense subcontracts in Utah, Direct FederalSanpete Indirect & Induced TransportationInformation 0.51% $693.0 adjusted for inflation. By FY 2019,0.35% defense subcontracts reached Millard Emery Grand Other Services $430.0 $2.7 billion. Utilities 0.14%0.40% Accommodation and FoodInformation Services 0.07%0.35% Sevier Figure 26 displaysRetail theUtilities $4.4Trade billion0.06%0.14% in total contracts and grants Beaver brokenAccommodation outReal by and service.Estate Food and Services In Rental FY 2019,0.01%0.07% the Navy supported over $2 Piute Wayne billion in contracts RetailandMining grantsTrade 0.00%0.06%in Utah, 46% of the $4.4 billion Arts, Entertainment,Real Estate and Recreationand Rental 0.01% Iron total. The Air Force was the next0.00% largest, supporting $1.2 billion $2,521.9 Gar eld Mining 0.00% San Juan or 27%, followed by the Army 0%at $76210% million20% 30% and other40% 50% defense60% $1.0 Arts, Entertainment, and Recreation 0.00% making up the remaining $431 million. Washington 0% 10% 20% 30% 40% 50% 60% Kane The $4.4 billion of defense contract and grant spending in $9,010.7

Utah in FY 2019 was spread across 17 of the state’s 29 counties. $1.0 $2,247,454.5 The same two counties accounting for the majority share of Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov

INFORMED DECISIONSTM 35 gardner.utah.edu I August 2021 $3.0 +76.1% Prof., Sci., and Tech Services 56.02% $2.5 $2.7 Manufacturing 38.46% Construction 3.09% $2.0 Wholesale Trade 0.60% +5.6% Educational Services 0.59% +156.1% $1.5 Admin., Support, Waste Mgmt. 0.53% $1.5 $1.4 Information 0.27% $1.0 Other Services 0.27% $0.8 -31.1% Health Care and Social Assistance 0.11% $0.5 $0.6 Retail Trade 0.02% Accommodation and Food Services 0.02% $0.0 Transportation 0.02% 2015 2016 2017 2018 2019 Public Administration 0.00% Arts, Entertainment, and Recreation 0.00% Mining 0.00%

0% 10% 20% 30% 40% 50% 60%

Air Force: $1,197.5: 27%

73,125 $3,995.1 $6,168.6 Other Defense: $430.9: 10% 100% Total: 80% 46,023 $2,195.8 $4,427.0 60% $4,199.5 Army: $761.5: 17% 40% $1,799.3 20% 27,102 $1,969.1 0% Navy: $2,037.1: 46% Employment Personal Income Gross Domestic Product Direct Federal Indirect & Induced contracts in FY 2015—Davis and Salt Lake—accounted for Figure 28: DOD and VA Contracts and Grants in Utah by more than 80% of total DOD and VA contract and grant Industry, FY 2019 1,839 $87.2 $129.0 100% spending in FY 2019. Organizations in Davis County received Prof., Sci., and Tech Services 52.37% 80% $43.6 over $2.2 billion, 51% of the statewide total (Table 54 and Figure Manufacturing 35.97% 970 60% $91.3 27). Salt Lake County captured 31%, with $1.4 billion. Utah Construction 4.23% County came in third with $230.0 million and 5% of the total. Educational Services 1.64% 40% Health Care and Social Assistance 1.50% 20% 869 $43.6 The remaining 14 counties received a combined $590.3 million $37.7 Admin, Support, Waste Mgmt. 1.27% 0% in defense spending, 13% of the total. Public Administration 0.92% Employment Personal Income Gross Domestic Wholesale Trade Product 0.55% Direct Federal Indirect & Induced Transportation 0.51% Table 55: DOD and VA Contracts and Grants in Utah by Other Services 0.40% Industry, FY 2019 Information 0.35% Utilities 0.14% Sector Amount Accommodation and Food Services 0.07% Mining $166,770 Retail Trade 0.06% Utilities $6,201,858 Real Estate and Rental 0.01% Construction $187,360,995 Mining 0.00% Arts, Entertainment, and Recreation Manufacturing $1,592,481,939 0.00% Wholesale Trade $24,563,110 0% 10% 20% 30% 40% 50% 60% Retail Trade $2,536,942 Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov Transportation $22,644,621 Information $15,595,093 Table 57: Number of Utah Contracts and Contractors from Real Estate and Rental $263,312 DOD and VA, FY 2019 Professional, Scientific and Technical Services $2,318,506,672 Type of Contract DOD VA Total Admin, Support, and Waste Management $56,151,314 Prime Contracts 22,407 657 23,064 Educational Services $72,663,228 Subcontracts 1,301 1 1,302 Health Care and Social Assistance $66,533,324 Total Number of Contracts 23,708 658 24,366 Arts, Entertainment, and Recreation $6,000 Contractors Receiving Prime Awards* 776 204 N/A Accommodation and Food Services $3,315,138 Contractors Receiving Sub Awards* 114 1 N/A Other Services $17,493,861 N/A = not available Public Administration $40,517,623 * Column totals are not shown for the number of contractors, since an undetermined number of companies received both prime and sub-awards. Similarly, row totals are Total $4,427,001,800 omitted because some companies performed contracts for both the DOD and VA. * $37.1 million of the public administration amount consists of DOD grants to the Utah Source: USAspending.gov National Guard. Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov Analyzing DOD and VA spending by industry reveals that just Table 56: Top 10 Defense Contractors in Utah, FY 2019 two sectors—professional, scientific and technical services and

Company Amount Share manufacturing—accounted for 88% of all FY 2019 defense contracts and grants in Utah. The professional, scientific and Northrop Grumman $1,664,276,281 38.5% technical services sector received 52% of defense spending in L-3 Communications $735,883,230 17.0% the state, with $2.3 billion in contracts and grants, while Moog Inc. $181,389,688 4.2% manufacturing received 36%, almost $1.6 billion (Table 55 and Boeing $174,245,237 4.0% Figure 28). The next largest sector was construction, with 4% and Klune Industries $146,043,957 3.4% $187.4 million. All other sectors’ shares were less than 2% each. Utah State University* $132,168,277 3.1% Of the $4.3 billion in defense contracts in Utah, $3.3 billion Triumph Gear Systems $110,362,135 2.5% (76%) went to 10 contractors. (Table 56). The largest was HHI Corporation $71,182,211 1.6% Northrop Grumman and its subsidiaries (such as ATK), winning Rockwell Collins $44,691,228 1.0% $1.7 billion in contracts, 39% of the total. L-3 Communications Sarcos Robotics $37,385,760 0.9% received $735.9 million, 17%. Moog Inc. came in a distant third, Total $3,297,628,005 76 .2% with $181.4 million, representing 4% of all contracts. Note: Includes subsidiaries and joint ventures. Shares are of total FY 2019 DOD and VA Between 776 and 1,095 companies performed DOD or VA contracts of $4.4 billion. Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov contracts in Utah during FY 2019, depending on the degree of overlap in companies with both prime and subcontracts and

August 2021 I gardner.utah.edu 36 INFORMED DECISIONSTM companies working for both DOD and VA (Table 57). These Figure 29: Non-Installation DOD and VA Contracts companies and other organizations performed over 23,700 Performed in Utah by Industry, FY 2019 DOD contracts and nearly 660 VA contracts, for a total of 24,366 (Share of Total) defense$3.0 contracts in FY 2019. Details for federal grants are +76.1% Prof., Sci., and Tech Services 56.02% discussed in “Impacts of Defense Grants” below. $2.5 $2.7 Manufacturing 38.46% Construction 3.09% Impacts$2.0 of Non-Installation Defense Contracts Wholesale Trade 0.60% +5.6% Educational Services 0.59% Utah’s military bases and organizations+156.1% are not the only $1.5 Admin., Support, Waste Mgmt. 0.53% conduits for DOD and VA contract dollars coming$1.5 into the state. $1.4 Information 0.27% Though Utah’s defense establishment directly and indirectly $1.0 Other Services 0.27% attracts federal funds, most contract and grant funding does $0.8 -31.1% Health Care and Social Assistance 0.11% $0.5 not pass through in-state$0.6 military installations. In addition to Retail Trade 0.02% the $848.4 million in contracts that the Gardner Institute was Accommodation and Food Services 0.02% $0.0 Transportation 0.02% able to assign2015 to a2016 Utah military2017 installation2018 or VA2019 office, companies in Utah received an additional $3.5 billion (80%) in Public Administration 0.00% Arts, Entertainment, and Recreation 0.00% DOD and VA contracts in FY 2019. The majority of these contract Mining 0.00% dollars—almost $2 billion (56%)—went to professional, 0% 10% 20% 30% 40% 50% 60% scientific and technical services firms (Table 58 and Figure 29). An additional $1.3 billion purchased manufacturing services Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov (38%), and nearly $108 million went towardAir Force: construction $1,197.5: 27% (3%). Northrop Grumman was the largest non-installation Table 59: Statewide Economic Impacts of Non-Installation DOD and VA73,125 Contracts with Utah$3,995.1 Companies, 2019$6,168.6 contractor, claiming $1.6 billion—aboutOther Defense: 46%—of $430.9: non-10% 100% (Millions of Dollars) installation awardsTotal: in FY 2019. Over $1.5 billion of this flowed 80% 46,023 $2,195.8 through Northrop’s Innovation Systems office in Magna, in Salt 60% Indirect & $4,199.5 $4,427.0 Category Direct* Induced Total Lake County. L-3 Communications wasArmy: $761.5:the next 17% largest 40% Employment 27,102 46,023 73,125 contractor, taking $725 million, a 21% share of all non- $1,799.3 20% 27,102 $1,969.1 installation contracts. About $364 million of this went to L-3’s Personal Income $1,799.3 $2,195.8 $3,995.1 0% Communication Systems-West office inNavy: Salt $2,037.1: Lake City. 46% Gross DomesticEmployment Product Personal$1,969.1 Income $4,199.5Gross Domestic$6,168.6 Product These additional DOD and VA contracts supported over * Direct employment and personalDirect Federal income were estimatedIndirect by & theInduced REMI PI+ model and were not obtained directly from the contract recipients. 73,000 jobs in Utah in 2019 and $4.0 billion in personal income Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model 1,839 $87.2 $129.0 100% Table 58:Prof., Non-Installation Sci., and Tech Services DOD and VA Contracts 52.37% (Table80% 59 and Figure 30). This includes$43.6 over 27,100 jobs at the Performed in UtahManufacturing by Industry, FY 2019 35.97% 970 contractors60% themselves, paying $1.8 billion in personal$91.3 income. Construction 4.23% Sector Amount Educational Services 1.64% Non-installation40% contracts contributed almost $6.2 billion to MiningHealth Care and Social Assistance 1.50% $5,982 state20% GDP. The869 associated fiscal impacts$43.6 included $204.7 million $37.7 ConstructionAdmin, Support, Waste Mgmt. 1.27% $107,693,619 in 0%state income and sales tax revenues and $103.9 million in state Public Administration Employment Personal Income Gross Domestic Manufacturing 0.92% $1,338,391,774 expenditures, for net revenues of $100.8 million (Table 60). Wholesale Trade Product Wholesale Trade 0.55% $20,887,051 Direct Federal Indirect & Induced Transportation 0.51% Recipients of the $3.5 billion in DOD and VA non-installation Retail Trade $629,685 Other Services 0.40% contracts produced direct employment, personal income and Transportation $544,725 Information 0.35% GDP impacts in every county in Utah during 2019. Between Information Utilities 0.14% $9,438,518 33% and 42% of impacts went to Salt Lake County, where these AccommodationProfessional, Scientific and Food and Services Technical 0.07%Services $1,949,292,431 additional defense contracts provided nearly 24,000 jobs, $1.4 Admin, Support, and WasteRetail Management Trade 0.06% $18,414,465 Real Estate and Rental billion in personal income, and $2.6 billion in GDP (Table 61). Educational Services 0.01% $20,591,896 Mining 0.00% Davis County job impacts were larger than Salt Lake County’s, Health Care and Social Assistance $3,984,647 Arts, Entertainment, and Recreation 0.00% with an impressive 29,305 jobs. The county was second in Arts, Entertainment, and Recreation $5,995 0% 10% 20% 30% 40% 50% 60% personal income and GDP, amounting to $1.2 billion and $2.1 Accommodation and Food Services $617,614 billion, respectively. With Davis being smaller than Salt Lake, Other Services $9,351,333 these impacts represented a significantly larger share of Davis’ Public Administration $20,044 Total $3,479,869,780 economy, accounting for 15.3% of total jobs, 7.1% of total Source: Kem C. Gardner Policy Institute analysis of data from USASpending.gov personal income, and 13.9% of GDP.

INFORMED DECISIONSTM 37 gardner.utah.edu I August 2021 $3.0 +76.1% Prof., Sci., and Tech Services 56.02% $2.5 $2.7 Manufacturing 38.46% Construction 3.09% $2.0 Wholesale Trade 0.60% +5.6% Educational Services 0.59% +156.1% $1.5 Admin., Support, Waste Mgmt. 0.53% $1.5 $1.4 Information 0.27% $1.0 Other Services 0.27% $0.8 -31.1% Health Care and Social Assistance 0.11% $0.5 $0.6 Retail Trade 0.02% Accommodation and Food Services 0.02% $0.0 Transportation 0.02% 2015 2016 2017 2018 2019 Public Administration 0.00% Arts, Entertainment, and Recreation 0.00% Mining 0.00%

0% 10% 20% 30% 40% 50% 60% Figure 30: Statewide Economic Impacts of Non-Installation Beyond Salt Lake and Davis, impacts begin to taper with DOD and VA Contracts with Utah Companies, 2019 Weber, Utah, Cache, and Summit counties. However, these Air Force: $1,197.5: 27% (Millions of Dollars) impacts are still significant, with each county having at least 1,100 jobs, $90 million in personal income, and $145 million in Other Defense: $430.9: 10% 73,125 $3,995.1 $6,168.6 100% GDP, which make up between 1% and 7% of county totals. Total: 80% $2,195.8 46,023 $4,199.5 $4,427.0 60% Impacts of Defense Grants Army: $761.5: 17% 40% Both the DOD and the VA fund grants to Utah recipients; $1,799.3 20% 27,102 $1,969.1 these totaled $98.8 million in FY 2019. Nearly 60% of the DOD’s 0% $64.0 million in grants to the state went to the Utah National Navy: $2,037.1: 46% Employment Personal Income Gross Domestic Product Guard ($37.1 million) to help fund its operations (Table 62). Direct Federal Indirect & Induced Another $24.3 million went to Utah universities, companies and Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model nonprofit organizations to support scientific, medical, 1,839 $87.2 $129.0 100% sustainability and technological research. The remaining $2.6 Prof., Sci., and Tech Services 52.37% Table 60: Statewide Fiscal Impacts of Non-Installation 80% $43.6 million went to Herriman City, the Governor’s Office of Economic Manufacturing 35.97% Contracts with970 Utah Companies, 2019 60% $91.3 Development, Layton City, and the Department of Construction 4.23% (Millions of Dollars) Educational Services 1.64% 40% Environmental Quality. After the National Guard, the University Health Care and Social Assistance 1.50% Impact20% 869 $43.6 Amount of Utah was the largest single recipient of DOD grants, with $37.7 Admin, Support, Waste Mgmt. 1.27% Personal0% Income Tax Revenues $96.9 $20.0 million. Other large defense grantees in FY 2019 were Public Administration 0.92% Employment Personal Income Gross Domestic Product Brigham Young University with $2.1 million, Herriman City with Wholesale Trade 0.55% Corporate Income Tax Revenues $13.4 Direct Federal Indirect & Induced $1.4 million, and Utah State University with $1.1 million. Transportation 0.51% State Sales Tax Revenues $94.4 Other Services 0.40% The Department of Veterans Affairs funded $34.8 million in Total State Revenues $204 .7 Information 0.35% grants to Utah recipients in FY 2019. All of these funds went to Non-Education Expenditures $53.8 Utilities 0.14% either veterans homes across the state or to other organizations Accommodation and Food Services 0.07% State Public Education Expenditures $27.8 providing social services to veterans, such as the Road Home and Retail Trade 0.06% Higher Education Expenditures $22.3 Real Estate and Rental 0.01% the Housing Authority of Salt Lake City (Table 63). The largest Mining 0.00% Total State Operating Expenditures $103 .9 beneficiaries were veterans homes, receiving $6.1 to $8.7 million, Arts, Entertainment, and Recreation 0.00% Net State Operating Revenue $100 .8 followed by the Road Home ($1.0 million). The remaining social 0% 10% 20% 30% 40% 50% 60% Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal model service organizations each received from $12,000 to over

Table 61: Economic Impacts of Non-Installation DOD and Table 62: DOD Grants and Cooperative Agreements in VA Contracts with Utah Companies by County, 2019 Utah, FY 2019 (Shares of County Totals, Millions of Dollars) Recipient Amount Employment Personal income Gross Domestic Product Utah National Guard $37,089,291 County Number Share Amount Share Amount Share University of Utah $20,012,269 Salt Lake 23,889 2.6% $1,392.8 2.3% $2,575.6 2.9% Brigham Young University $2,135,455 City of Herriman: National Guard and Military Operations Davis 29,305 15.3% $1,200.5 7.1% $2,113.2 13.9% $1,400,000 and Maintenance Projects Weber 5,463 3.9% $499.9 4.7% $408.9 3.8% Utah State University $1,067,388 Utah 4,758 1.3% $364.4 1.4% $406.4 1.5% GOED: Procurement Technical Assistance Program $620,438 Cache 5,387 6.8% $221.6 4.4% $298.6 5.4% Western Institute for Biomedical Research $567,753 Summit 1,162 2.7% $91.0 1.7% $145.5 3.0% Layton City Corporation: HAFB and Utah Test and Training $346,177 All Others 3,161 1.0% $224.9 1.0% $220.4 0.8% Range (UTTR) Land Use Study

Total 73,125 3 .6% $3,995 .1 2 .7% $6,168 .6 3 .4% Colorado State University: Dugway Cultural Resource $233,433 Note: Employment and GDP are by place of work. Personal income is by place of Support residence. Shares equal employment, personal income and GDP impacts divided by total Utah DEQ: Environmental Restoration Program $218,000 employment, personal income and GDP in the county (or state for the “Total” row), respectively. Space Environment Corporation $153,072 Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model Canines With A Cause Foundation, Inc. $150,000 Total $63,993,276 Source: Kem C. Gardner Policy Institute analysis of data from USAspending.gov

August 2021 I gardner.utah.edu 38 INFORMED DECISIONSTM $3.0 +76.1% Prof., Sci., and Tech Services 56.02% $2.5 $2.7 Manufacturing 38.46% Construction 3.09% $2.0 Wholesale Trade 0.60% +5.6% Educational Services 0.59% +156.1% $1.5 Admin., Support, Waste Mgmt. 0.53% $1.5 $1.4 Information 0.27% $1.0 Other Services 0.27% $0.8 -31.1% Health Care and Social Assistance 0.11% $0.5 $0.6 Retail Trade 0.02% Accommodation and Food Services 0.02% $0.0 Transportation 0.02% 2015 2016 2017 2018 2019 Public Administration 0.00% Arts, Entertainment, and Recreation 0.00% Mining 0.00%

0% 10% 20% 30% 40% 50% 60%

Air Force: $1,197.5: 27%

73,125 $3,995.1 $6,168.6 Other Defense: $430.9: 10% 100% Total: 80% 46,023 $2,195.8 $4,427.0 60% $4,199.5 Army: $761.5: 17% 40% $1,799.3 20% 27,102 $1,969.1 0% Table 63: VA Grants to Utah Recipients,Navy: FY $2,037.1: 2019 46% Figure 31:Employment Statewide EconomicPersonal Impacts Income of DODGross and Domestic VA Product Grants to Utah Recipients, 2019 Recipient Amount Direct Federal Indirect & Induced (Millions of Dollars) George E. Wahlen Ogden Veterans Home $8,676,378 1,839 $87.2 $129.0 Central Utah Veterans Home, Payson $8,094,434 100% SouthernProf., Utah Sci., Veterans and Tech Home, Services Ivins $7,877,25452.37% 80% $43.6 Utah State Veterans ManufacturingNursing Home, Salt Lake City 35.97%$6,076,719 970 60% $91.3 The Road Home Construction 4.23% $1,034,114 Educational Services 1.64% 40% Homeless Veterans Fellowship $1,019,436 Health Care and Social Assistance 1.50% 20% 869 $43.6 Housing Authority of Salt Lake City $907,301 $37.7 Admin, Support, Waste Mgmt. 1.27% 0% First Step House,Public Inc. Administration 0.92% $531,940 Employment Personal Income Gross Domestic National Ability CenterWholesale Trade $294,415 Product 0.55% Direct Federal Indirect & Induced The University of UtahTransportation 0.51% $250,000 Continue Mission Other Services 0.40% $12,404 Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model Information 0.35% Total $34,774,395 Utilities 0.14% Table 65: Statewide Fiscal Impacts of DOD and VA Grants Source: Kem C. Gardner Policy Institute analysis of Department of Veterans Affairs data fromAccommodation USAspending.gov and Food Services 0.07% to Utah Recipients, 2019 Retail Trade 0.06% (Thousands of Dollars) Table 64: StatewideReal Estate and Economic Rental 0.01% Impacts of DOD and VA Mining 0.00% Impact Amount Grants to Utah Recipients, 2019 Arts, Entertainment, and Recreation 0.00% Personal Income Tax Revenues $2,116.0 (Thousands of Dollars) 0% 10% 20% 30% 40% 50% 60% Corporate Income Tax Revenues $207.1 Indirect & State Sales Tax Revenues $2,060.5 Category Direct* Induced Total Total State Revenues $4,383 .6 Employment 869 970 1,839 Non-Education Expenditures $1,365.1 Personal Income $43,601.7 $43,630.9 $87,232.6 State Public Education Expenditures $707.0 Gross Domestic Product $37,712.5 $91,317.8 $129,030.4 Higher Education Expenditures $565.7 * Direct employment and personal income were estimated by the REMI PI+ model and Total State Operating Expenditures $2,637 .7 were not obtained directly from the contract recipients. Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model Net State Operating Revenue $1,745 .9 Source: Kem C. Gardner Policy Institute analysis using the Gardner Policy Institute fiscal model $1,000,000. VA grants are included in the economic and fiscal impacts shown below and in the Veterans section. Salt Lake captured over 45% of the impacts, with defense In modeling the economic and fiscal impacts of DOD and VA grants providing 884 jobs and $39.2 million in personal income, grants, the Gardner Institute did not include DOD grants to the and adding $70.9 million to its local GDP in 2019. Utah County Utah National Guard, assuming these amounts were captured was the next largest beneficiary. Defense grants directly and by their spending numbers, or to Utah cities, the Governor’s indirectly provided 331 jobs, $15.7 million in personal income, Office of Economic Development, or the Department of and $19.4 million in GDP. Weber, Washington and Davis counties Environmental Quality. After these adjustments, Institute were the next largest beneficiaries, as detailed in Table 66. researchers modeled $58.5 million of DOD and VA grants in Utah. The economic impacts of these grants consisted of 1,839 Table 66: Economic Impacts of DOD and VA Grants to Utah jobs and over $87.2 million in personal income in 2019. This Recipients by County, 2019 includes an estimated 869 direct jobs created by grant recipients (Shares of County Totals, Thousands of Dollars) with $43.6 million in personal income. The grants contributed Employment Personal Income Gross Domestic Product to an estimated $129.0 million to the state’s GDP (Table 64 and County Number Share Amount Share Amount Share Figure 31). These impacts led to $4.4 million in state tax revenues Salt Lake 884 0.1% $39,235.5 0.1% $70,938.2 0.1% and $2.6 million in expenditures, for a net state fiscal impact of Utah 331 0.1% $15,722.5 0.1% $19,399.8 0.1% $1.7 million in revenue (Table 65). Weber 249 0.2% $8,813.9 0.1% $13,760.5 0.1% The universities, veterans homes and other Utah organizations Washington 182 0.2% $6,132.0 0.1% $10,829.1 0.1% Davis 67 0.0% $8,545.4 0.1% $5,109.3 0.0% receiving DOD or VA grants in 2019 are spread across eight All Others 126 0.0% 8,783 0.0% 8,993 0.0% counties, mostly along the Wasatch Front. Including indirect Total 1,839 0 .1% $87,232 .6 0 .1% $129,030 .4 0 .1% and induced effects from the $58.5 million in grants modeled, Note: Employment and GDP are by place of work. Personal income is by place of residence. these organizations’ activity supported employment (at least Shares equal employment, personal income and GDP impacts divided by total employment, personal income and GDP in the county (or state for the “Total” row), respectively. one job) and production in a total of 19 counties. Source: Kem C. Gardner Policy Institute analysis using the REMI PI+ model

INFORMED DECISIONSTM 39 gardner.utah.edu I August 2021 Trends in Defense Employment and Compensation $3.5 The analysis of defense employment and personal income in from 2000 to 2019. For the same period, while defense Utah in previous sections thus far has relied on detailed employment$3.0 increased 14%, employment in the economy as a information reported directly from defense organizations for whole$2.5 grew by 44%, resulting in defense’s shrinking share.

2019. Similar extensive data collection for previous years was Between$2.0 1990 and 2019, the total number of defense jobs not feasible. In this section, we show 29-year trends in defense statewide decreased by almost a fifth, 18%. The decline occurred $1.5 employment and compensation in Utah based primarily on mainly in the early 1990s due to military downsizing (Table 67). data from the Bureau of Economic Analysis (BEA) and the Utah's$1.0 economy has become increasingly diversified with Billions of 2019 Dollars Bureau of Labor Statistics (BLS). The difference in 2019 job totals robust$0.5 non-defense employment growth of 118% for the same from the two approaches is 6%, 34,694 jobs according to BEA period. However, in recent years total defense employment has $0.0 and BLS versus 36,875 jobs reported by Utah defense been on the mend, increasing from 32,565 to 34,694 jobs

organizations for this study. between 1990 20151991 1992 1993 and1994 1995 2019,1996 1997 1998 a1999 7%2000 2001 increase.2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Federal defense employmentMilitary includesCivilian the Defense military, whether Defense Employment in Utah, 1990–2019 active-duty employment or part-time employment in reserve Since 1990, when Utah’s federal defense employment or National Guard units. It also includes federal civilian exceeded 42,000 jobs, defense efforts have required an employment8% for national security and medical care provided by increasingly smaller share of the state’s growing labor force the VA7% and1990: DOD. 6.8% Defense-related private sector employment (Figure 32 and Figure 33). In 2019, military personnel and civilians that 6%relies on federal funding, such as jobs at defense with federal defense jobs made up about 2.1% of Utah’s contractors,5% is not available for this time series, but we have employment total, down from 2.3% in 2015 and 5.5% in 1990. In included4% such defense-related economic activity for 2019 in recent decades, the number of military personnel serving in Utah other sections of this report. 3% has been more stable than the number of federal civilian jobs At 19,399 jobs in 1990, military employment in Utah2019: was 2.9% the 2% with the DOD or VA. Considering all federal defense employment highest it had been in the previous 20 years. Since then, the in the state, employment held fairly steady above 30,000 jobs numberof Total Utah Compensation 1% of military jobs has declined to 16,661 in 2019. Military

Defense Compensation as a Percentage 0%

Figure 32: Military and Federal Civilian Defense Figure 33:1990 Defense1991 1992 1993 1994 1995 Share1996 1997 1998 1999 of2000 Total2001 2002 2003 Employment2004 2005 2006 2007 2008 2009 2010 2011 in2012 2013 Utah,2014 2015 2016 2017 2018 2019 Employment in Utah, 1990–2019 1990–2019

45,000 6% Jobs (211,285) 10.3% 40,000 1990: 5.5% 35,000 5%

30,000 4% Personal Income ($13.9 Billion) 9.5% 25,000 3% 20,000 2%

Number of Jobs 15,000 GDP ($19.3 Billion) 10.6% 2019: 2.1% 10,000 1% 5,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 0% 0 Share of State Total Defense Jobs as a Percent of All Utah 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $100,000 Military Civilian Defense $90,000 Source: Bureau of Economic Analysis, Bureau of Labor Statistics Source: Bureau of Economic Analysis, Bureau of Labor Statistics $64,215 $80,000 $100,000 2019: $85,377 $85,377 $90,000 $70,000 Table 67: Defense Employment in Utah, Selected Years 1990–2019 $80,000 $60,000 1990: $61,320 $62,929 Category$70,000 1990 1995 2000 2005 2010 2015 2019 $50,000 $54,907 Military$60,000 19,399 16,695 16,222 17,608 16,886 15,962 16,661 $40,000 2019: $62,929 Federal$50,000 Civilian 23,075 14,134 14,291 16,232 16,881 16,603 18,033 $30,000 1990: $48,981 Total$40,000 Defense 42,474 30,829 30,513 33,840 33,767 32,565 34,694 $20,000 $30,000 Share of All Utah Jobs 5.5% 3.2% 2.7% 2.8% 2.7% 2.3% 2.1% $10,000 (IConstant 2019 Dollars) $20,000 Source: Bureau of Economic Analysis; Bureau of Labor Statistics, Quarterly Census of Employment and Wages

$0 Average Compensation per Job $10,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $0 August 2021 gardner.utah.edu 40 INFORMED DECISIONSTM Defense Non-Defense I 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Defense Non-Defense

Jobs

Personal Income

GDP

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Hill AFB Dugway Tooele Guard Reserves & Other Veterans Retired Civilians Contracts & Grants

Hill AFB: 42.5%

Dugway: 2.0% Tooele: 0.9% $100,000 $244.3 2019: $85,377 Guard: 7.5% $90,000 Million $80,000 Reserves & Other: 2.5% 1990: $61,320 Veterans: 2.1% $70,000 DOD Civilian Retirees: 0.7% $60,000 Contracts & Grants: 41.7% 2019: $62,929 $50,000 1990: $48,981 $40,000 6% 1990: 5.5% $30,000 $20,000 5% $10,000 4% $0 3% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Defense Non-Defense 2% 2019: 2.1% 1%

Defense Jobs as a Percent of All Utah 0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 45,000 Jobs (211,285) 10.3% 40,000 35,000 30,000 Personal Income ($13.9 Billion) 9.5% 25,000 20,000

GDP ($19.3 Billion) 10.6% Number of Jobs 15,000 10,000 5,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Share of State Total 0

employment includes full-time active-duty personnel as well as Figure 34: 1990 Compensation1991 1993 1994 1995 1996 1997 1998 1999 per2000 2001 Utah2002 2003 2004 Job,2005 2006 2007 Defense2008 2009 2010 2011 2012 versus2013 2014 2015 2016 2017 2018 2019 $100,000 larger numbers of part-time soldiers in the National Guard and Non-Defense, 1990–2019Military Civilian Defense $90,000 armed forces$64,215 reserves. Military employment does not include $80,000 $100,000 civilians employed by the DOD. $85,377 2019: $85,377 $70,000 $90,000 Federal civilian employment in Utah related to defense is $80,000 $60,000 1990: $61,320 predominantly in the national security sector, NAICS 92811$62,929 for $70,000 $50,000 civilians employed$54,907 by the armed forces, including the National $60,000 $40,000 2019: $62,929 Guard. A smaller medical component includes civilians $50,000 $30,000 1990: $48,981 employed by DOD or VA at federal medical facilities, such as the $40,000 $20,000 VA Medical Center in Salt Lake City, the 74th Medical Group at $30,000 $10,000 Hill Air Force Base and the U.S. Army Medical Command in (IConstant 2019 Dollars) $20,000

$0 Average Compensation per Job $10,000 Tooele. These jobs related to military health care are categorized

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $0 as NAICS 622 for hospitals or NAICS 6211 for federal physicians’ Defense Non-Defense offices. In 2019, 83% of federal civilian defense employment 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 was in the national security sector, with 14,881 jobs in 15 Defense Non-Defense counties in Utah. Source: Bureau of Economic Analysis, Bureau of Labor Statistics, REMI PI+ historical data Statewide,Jobs the number of federal civilian defense jobs declinedPersonal Income by 22% from 1990 to 2019, while the total number of Figure 35: Military and Federal Civilian Defense Estimated civilian jobsGDP more than doubled. Federal civilian defense Total Compensation in Utah, 1990–2019 employment in Utah fell 43% from over 23,000 in 1990 to a 25- 0% 10% 20% 30% 40% (Billions50% of Constant60% 201970% Dollars) 80% 90% 100% year low below 13,300 in 1998. That change was driven by Hill AFB Dugway Tooele Guard Reserves & Other Veterans Retired Civilians Contracts & Grants reduced civilian employment in the national security sector $3.5 following the Cold War and Gulf War, and the base realignment $3.0 and closure rounds in the early 1990s. However, Utah has Hill AFB: 42.5% $2.5 benefitted from a substantial increase in federal civilian defense $2.0 jobs since 2000, with employment risingDugway 26% to: 2.0% over 18,000 Tooele: 0.9% $1.5 jobs in 2019. Nearly half (46%) of that growth came from federal $100,000 civilian employment$244.3 in hospitals. Over this period the number 2019: $85,377 $90,000$1.0 of national security jobs in Utah increasedGuard : 7.5%by 16%, while Billions of 2019 Dollars Million $80,000$0.5 Reserves & Other: 2.5% medical jobs for federal civilians grew by a robust 118%. 1990: $61,320 Veterans: 2.1% $70,000$0.0 DOD Civilian Retirees: 0.7% $60,000

Compensation from Defense Employment, 1990–2019 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Contracts & Grants: 41.7% 2019: $62,929 From 1990 to 2019, compensation per federal defense job in $50,000 Military Civilian Defense Utah remained considerably higher than Utah’s average 1990: $48,981 Source:$40,000 Bureau of Economic Analysis, Bureau of Labor Statistics, REMI PI+ historical data compensation6% rate, with the gap widening over the period 1990: 5.5% $30,000 (Figure 34). Compensation per federal defense job, including $20,0008% 5% military and civilian employment, grew by 40% in inflation- duty military1990: personnel,6.8% on the other hand, earn considerably $10,0007% adjusted dollars over 29 years. In contrast, steady growth in non- more than the average civilian employee in Utah. 4% 6% defense compensation resulted in a 29% gain from 1990 to 2019. Over$0 30 years, aggregate federal defense compensation for 3% 5%

In 1990, federal defense jobs in Utah offered an average of military and1990 civilian1991 1992 1993 1994 1995 employees1996 1997 1998 1999 2000 2001 in2002 2003 Utah2004 2005 2006 rose2007 2008 2009 14%2010 2011 2012 in2013 inflation-2014 2015 2016 2017 2018 2019 $61,320 in compensation, 25% more than the $48,981 at non- 4% Defense Non-Defense 2% adjusted dollars, from $2.6 billion in 1990 to $3.0 billion in 2019 defense jobs (both in inflation-adjusted 2019 dollars). 2019:By 2019, 2.1% (Figure3% 35). This growth occurred in spite of the fact that the 2019: 2.9% the 1%federal defense advantage had grown to 36%, with federal number2% of federal defense jobs in the state fell 18% during the defense jobs offering an average of $85,377 in compensation sameof Total Utah Compensation 1%period (Table 67). Total defense compensation has

Defense Jobs as a Percent of All Utah 0% versus $62,929 for all other Utah jobs. increased by about $244 million since 2015. Defense Compensation as a Percentage 0%

Average1990 1991 compensation1992 1993 1994 1995 1996 1997 1998 1999 per2000 2001 military2002 2003 2004 2005 job2006 2007 2008 in2009 Utah2010 2011 2012 was2013 2014 $52,8502015 2016 2017 2018 2019 Civilians accounted for more than two-thirds (70%) of the 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 in 2019, lower than average compensation per civilian job. 2019 compensation total. From 2000 to 2019, military However, over two-thirds of the military personnel in Utah are compensation and federal civilian defense compensation grew reserve or Guard members with part-time military obligations at comparable rates, 54% and 50%, respectively. 6% that allow them to pursue other full-time employment. Active- 1990: 5.5% 5%

4% INFORMED DECISIONSTM 41 gardner.utah.edu I August 2021 3%

2% 2019: 2.1% 1%

0%

Defense Jobs as a Percent of All Utah 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $3.5

$3.0

Table$2.5 68: Estimated Defense Compensation in Utah, Selected Years 1990–2019 (Millions of Constant 2019 Dollars) $2.0 Category 1990 1995 2000 2005 2010 2015 2019 $1.5 Military $771 $674 $570 $1,058 $1,052 $787 $881 $1.0

FederalBillions of 2019 Dollars Civilian $1,833 $1,311 $1,389 $1,734 $1,977 $1,931 $2,081 Total$0.5 Defense $2,605 $1,984 $1,959 $2,793 $3,029 $2,718 $2,962

Share$0.0 of Utah Compensation 6.8% 4.0% 3.2% 4.0% 4.0% 3.0% 2.9% Source: Bureau of Economic Analysis, Bureau of Labor Statistics, REMI PI+ historical data

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Military Civilian Defense Figure 36: Defense Share of Total Compensation in Utah, From 1990 to 2000, military compensation in Utah fell from 1990–2019 $771 million to $570 million in inflation-adjusted 2019 dollars.

8% War in Afghanistan and Iraq in a post-9/11 environment brought increased pay, with compensation fluctuating between $964 7% 1990: 6.8% million and $1.1 billion from 2003 to 2010. Since then, military 6% compensation to Utahns has declined somewhat to $881 5% million in 2019. However, compensation has steadily increased 4% year-over-year since 2015, growing nearly 12% by 2019. This is 3% largely due to increased military spending from changes in 2019: 2.9% 2% political leadership.

of Total Utah Compensation 1% Compensation received by federal civilian employees in de- fense jobs in Utah amounted to $2.1 billion in 2019. That rep-

Defense Compensation as a Percentage 0% resents a 14% increase since 1990 and a 65% increase since the 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20-year low in 1999, based on inflation-adjusted amounts. From Source: Bureau of Economic Analysis, REMI PI+ historical data 2015 to 2019, federal civilian compensation has increased 9%. In 2019, 82% of federal civilian defense compensation came 6% From 19901990: 5.5%to 2019, the share of total Utah compensation from national security jobs, down from 94% in 1990. Civilian earned5% by defense employees fell from 6.8% to 2.9% (Figure 36). compensation from federal medical centers for veterans and During each year from 1990 to 2019, federal defense activity in 4% service members in Utah, primarily in Salt Lake and Davis Utah accounted for a larger share of the state’s employee counties, increased by a staggering 220%, from $118.1 million compensation3% than of its jobs (compare Figure 33, above, and in 1990 to $382.0 million in 2019. In recent history, federal Figure2% 36). For example, 2.1% of Utah employment in 2019 civilian medical compensation has outperformed national 2019: 2.1% came from federal defense jobs, while these jobs paid 2.9% of security, increasing by 15% compared to 7% since 2015. 1% total compensation in the state. As shown in Figure 34, above, Recent history has shown small gains in total defense compensation0% rates at federal defense jobs in Utah have employment and compensation in Utah, and this trend is consistentlyDefense Jobs as a Percent of All Utah been above the state’s average. expected to continue. In 2020, Northrop Grumman was the 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 While aggregate defense compensation fell from 1990 to prime awardee for the Ground Based Strategic Deterrent (GBSD) 1999, Utah is nearing peak numbers, as defense compensation contract, which will replace the United States’ current ground was $3.03 billion in 2010 and reached $2.96 billion in 2019, ballistic missile force. The United States Air Force manages the even after accounting for inflation (Table 68). project and Northrop has elected to locate its operations in the Falcon Hill National Aerospace Research Park adjacent to Hill Air Force Base. Northrop Grumman was awarded $13.3 billion in Northrop Grumman was awarded September 2020, and the full program is estimated to cost more $13.3 billion in September 2020, than $75 billion dollars over its 30-year lifespan. This project alone will create thousands of high-paying federal jobs in Utah and the full program is estimated to for years to come. cost more than $75 billion dollars over its 30-year lifespan.

August 2021 I gardner.utah.edu 42 INFORMED DECISIONSTM Methodology

This section addresses how researchers collected information amounts were based on average pay for federal civilians and and analyzed data to estimate the economic and fiscal impacts military personnel in Utah. of the many components of Utah’s defense sector in 2019 and The three military installations (Hill AFB, Tooele, and Dugway) acknowledges the useful assistance from various individuals. and the Utah National Guard provided non-payroll spending amounts for FY 2019 in response to our information requests. Data Collection Where necessary, these data were supplemented with publicly Much of the data used in this study was obtained directly available federal spending data from USAspending.gov. from defense organizations in Utah. The Gardner Institute USAspending.gov was also the principal source for VA contracts requested information on their employment, payroll and other and grants, as well as DOD contracts and grants not directly tied in-state spending. The researchers’ goal was to find reliable data to a Utah defense organization. DOD and VA retirement on all economic activity related to defense in the state. Defense pensions and benefits received by Utahns were provided by the organizations provided totals and, in many cases, detail at the VA and USAspending.gov. DOD retired civilian counts and industry and county levels. We relied on numbers, explanations pensions were provided by the United States Office of Personnel and context provided by helpful individuals at all levels of these Management (OPM). This data collection and analysis organizations (see Acknowledgments). determined the in-state portion of non-payroll defense In some instances, workload or disclosure concerns at the spending by industry and often by county, for use in estimating organizations limited staff’s ability to respond fully to Gardner economic impacts. Institute requests. The previous Gardner defense study, published data, and economic models were used to make Estimating Economic Impacts conservative estimates to fill these gaps. In particular, the REMI PI+, developed by Regional Economic Models, Inc., is a Department of the Treasury provides detailed records covering dynamic, multi-regional simulation model that forecasts most federal expenditures at USAspending.gov, and the economic, population and labor market impacts for many years Department of Veterans Affairs (VA) releases county-level into the future. REMI provides year-by-year estimates of the expenditure data. Public data and analysis also verified and regional effects of specific economic or policy changes. The supplemented complete responses. model incorporates input-output relationships, general The vintage of the most recent data available from the many equilibrium effects, econometric relationships and economic sources needed for this study varied by source, generally between geography effects. 2019 and 2020, calendar year or federal fiscal year (unless Although REMI has many complex, interrelated submodels otherwise noted). At the time the data collection process was and features, the essential logic of the model derives from the undertaken, 2019 was the most recent common year for which cohort component, economic base and input-output complete, reliable information could be obtained from the submodels. The REMI model connects these submodels disparate published and unpublished sources employed. through labor, capital, financial and product markets. It For this study, Gardner Institute researchers met with simulates the size and composition of the population and personnel from Hill Air Force Base, Dugway Proving Ground, economy over time. If there is an increase in the production of Tooele Army Depot, and Utah National Guard. Onsite and virtual an export base industry in a region, the region’s employment meetings included discussions of operations at each defense and income increase as well. REMI produces estimates of these organization and data needed for the study. Follow-up to clarify increases over multiple years. information requests and receive and interpret responses was REMI PI+ version 2.3.1 aided in the analysis of the economic conducted by phone and email. The research did not require impacts of defense activity in Utah. Much of the research was on-site meetings for VA centers and the many reserves, devoted to collecting information appropriate for the model recruiting, and ROTC units in Utah. and the research questions. Researchers entered county-level Employment and payroll data were provided by contacts at inputs, data permitting, and resorted to statewide inputs for a the three military installations (Hill AFB, Tooele and Dugway), few defense components lacking local employment, payroll or the Utah National Guard, and the VA medical center and spending information. benefits office. For the other defense organizations with Direct defense employment was entered in REMI as military employees in Utah—20 reserve, recruiting or ROTC units— or federal civilian jobs, except for a few hundred state employment information was obtained directly, and payroll government employees receiving federally reimbursed pay. For

INFORMED DECISIONSTM 43 gardner.utah.edu I August 2021 most jobs, researchers specified pay reported by employers, Estimating Fiscal Impacts making adjustments to capture benefits that were part of Personal income taxes and sales taxes were estimated from compensation. To fill gaps where precise pay information was the personal income impacts calculated by the REMI PI+ model. lacking, researchers turned to 2019 Utah averages for each type Corporate income taxes were estimated from annual output of job. Personal income from veteran and military pensions was (sales) impacts by industry calculated by REMI. These were entered as transfers to veterans. Researchers inputted multiplied by multiyear average ratios of tax revenues to nonpayroll defense spending in Utah for each of 23 NAICS personal income or output. sectors to capture unique industry characteristics, including, for Government expenditures were calculated on a per-capita example, variation in supply chains and employee pay. In many basis from the annual population impacts. Non-education cases, researchers were able to specify the county in Utah where expenditures are based on the total population impact and nonpayroll spending occurred. include all state budget operating expenditures except those The complexity of the economic activities of each in-state for higher education and public education. Higher-education defense organization varied considerably. All required multiple expenditures are based on the college-age population impacts, model runs with reviews and adjustments to calibrate the and public-education expenditures are based on the school- software and conform it to Utah defense realities and economic age population impacts. Expenditure estimates are based on reason. Final specifications were organized into 12 model multiyear averages of per capita budgeted amounts. scenarios. The fiscal impact model also estimates local sales and Caution was exercised not to overstate economic impacts. property tax revenues, county operating expenditures, and The study design avoided double-counting civilian jobs countywide public education expenditures (aggregated from supported by federal outlays for contracts and grants. district-level data). Sales and residential and personal property Researchers nullified REMI’s government spending estimates tax revenues are estimated from the personal income impacts; when actual expenditure data were available. After verifying commercial and industrial property taxes are estimated from the locations of hundreds of companies, Utah defense spending employment impacts. Expenditures are calculated on a per- going to out-of-state companies was excluded. Researchers capita basis from either the total population impacts or the modeled economic impacts only for defense employment and school-age population impacts. As with state revenues and spending funded by sources originating outside Utah, expenditures, county-level estimates are based on multiyear essentially the federal government, since economic activity average ratios. supported by dollars recirculating within the state does not The fiscal impact estimates generated in this report should be generate a similar economic impact. Finally, analysts took into viewed as broad measures. This methodology relies on account the distinct prevalence of part-time military historical data and assumes a linear relationship between taxes employment in reserve and National Guard units. These and paid and personal income, industry output and employment. other steps improved the accuracy of study results. For REMI output, standard measures were selected to capture the direct, indirect and induced effects of defense operations and spending. The results focus on Utahns, their jobs and income in 2019, and the monetized value added they created. Researchers also generated an array of outputs to inform the fiscal impact estimates.

Endnotes 1. Utah Department of Workforce Services (November 2020). Largest Employers by County. https://jobs.utah.gov/wi/data/library/firm/majoremployers.html 2. Healthcare (TRICARE) beneficiaries include active-duty personnel, retirees, and families in Utah. 3. Hill AFB’s direct employment of 19,832 federal jobs includes 19,822 jobs in Davis County and 10 recruiters with the 348th and 368th Recruiting Squadrons working across the state. 4. DPG provided the Gardner Institute RIAC-specific visitation for FY 2019, since base-wide visitation was unavailable. 5. Methods for estimating student expenditure categories for ROTC stipend amounts follow a 2019 report by the Gardner Institute, supplemented by Consumer Expenditure Survey estimates for adults under age 25 in the West. Oh, A., Benway, DJ, & Spolsdoff, J. (July 2019). Utah System of Higher Education: State Aid Project. Kem C. Gardner Policy Institute, University of Utah. https://ushe.edu/wp-content/uploads/pdf/reports/gardner-policy/USHE_Comprehensive_Tuition- Aid_Report.pdf 6. United States Office of Personnel Management (n.d.). Retirement Services: FERS Information. https://www.opm.gov/retirement-services/fers-information/ 7. United States Office of Personnel Management (November 2020). Employment of Veterans in the Federal Executive Branch. https://www.fedshirevets.gov veterans-council/veteran-employment-data/employment-of-veterans-in-the-federal-executive-branch-fy2018.pdf

August 2021 I gardner.utah.edu 44 INFORMED DECISIONSTM Acknowledgements

The Gardner Institute would like to thank the following Reserves: individuals for their invaluable assistance in gathering and Michael Giersch, Command Executive Officer, 76th Operational interpreting data regarding Utah’s defense industry. Response Command, Fort Douglas, U.S. Army Sgt Solis, Inspector Instructor Staff, Company C, 4th Light Armored Hill Air Force Base: Reconnaissance Battalion, U.S. Marine Corps Mark W. McLeod, Director, Financial Management, Hill Air Force Base, Cpl Stewart, Company F, 2nd Battalion, 23rd Marine Regiment, U.S. U.S. Air Force Marine Corps Alan Cook, Cost Chief, Cost and Economics Division, Hill Air Force Cdr Jonathan Ward, Commanding Officer, Navy Operational Support Base, U.S. Air Force Center Salt Lake City, U.S. Navy Lesha Steed, Lead Operations Research Analyst, Cost and Economics Kari Tilton, Chief of Public Affairs, 419th Fighter Wing, Hill Air Force Division, Hill Air Force Base, U.S. Air Force Base, U.S. Air Force Dugway Proving Ground: Recruiting: Col Scott D. Gould, Commander, Dugway Proving Ground, U.S. Army John Flores, Personnel Security Specialist, Salt Lake City Recruiting Vincent M. Liddiard, Chief of Staff, Dugway Proving Ground, U.S. Battalion, U.S. Army Army Cpl Anika Lewis, Marketing and Communication Representative, Robert Davis, Program Analyst, BioTesting Division, Dugway Proving Recruiting Station Salt Lake City, U.S. Marine Corps Ground, U.S. Army Daniel Puleio, Public Affairs, Navy Talent Acquisition Group Rocky Jim Keetch, Director, Mission and Installation Contracting Command, Mountain, U.S. Navy Dugway Proving Ground, U.S. Army Lt Col Scott Black, 348th Recruiting Squadron, 372nd Recruiting Brian Peterson, Director, Resource Management, Dugway Proving Group, Hill Air Force Base, U.S. Air Force Ground, U.S. Army Lt Col Jason Haney, 368th Recruiting Squadron, 372nd Recruiting Ross Rosengren, Resource Manager, Resource Management, Dugway Group, Hill Air Force Base, U.S. Air Force Proving Ground, U.S. Army Michael Norton, State Resource Manager, Utah National Guard Marshall Smith, Public Affairs Officer, Salt Lake City Military Entrance Tooele Army Depot: Processing Squadron, U.S. Department of Defense Col Todd W. Burnley, Commander, Tooele Army Depot, U.S. Army Don Fanning, Chief of Staff, Tooele Army Depot, U.S. Army ROTC: Aaron Lee, Director, Civilian Personnel Advisory Center, Tooele Army Jack Sturgeon, Recruiting Operations Officer, Army ROTC, Brigham Depot, U.S. Army Young University Traci Rydalch, Director, Resource Management, Tooele Army Depot, Lt Col Jeremy Bourque, Commanding Officer, Army ROTC, University U.S. Army of Utah Erin Trinchitella, Director, Base Operations, Tooele Army Depot, U.S. Tod Goodwin, Human Resources, Army ROTC, Utah State University Army Joseph Costello, Supply Technician, Naval ROTC, University of Utah TSgt Kelli Fuggent, Faculty, Air Force ROTC, Brigham Young University Utah Air National Guard: TSgt Jacob Welcome, NCOIC of Personnel, Air Force ROTC, University Maj Gen Michael J. Turley, Adjutant General, Utah Air National Guard, of Utah U.S. Air Force TSgt Raymond Bennett, NCOIC of Personnel, Air Force ROTC, Utah Lt Col Rick Rodrigues, Commander, 151st Comptroller Flight, Utah Air State University National Guard, U.S. Air Force SMSgt Adrian Broadhead, Finance Superintendent, 151st Veterans: Comptroller Flight, Utah Air National Guard, U.S. Air Force Kimberly Albers, Assistant Director, Salt Lake City Regional Office, U.S. Department of Veterans Affairs Utah Army National Guard: Jill Atwood, Public Affairs Officer, Salt Lake City Health Care System, Maj Gen Jefferson S. Burton, Adjutant General, Utah Army National U.S. Department of Veterans Affairs Guard, U.S. Army Anthony Jarmusz, Public Affairs Specialist, Salt Lake City Health Care Michael J. Norton, State Resource Manager, Utah Army National System, U.S. Department of Veterans Affairs Guard, U.S. Army General Assistance: Kevin Sullivan, Executive Director, Utah Defense Alliance Levi Pace, Senior Research Economist, Gardner Policy Institute Kathleen Ludwig, Administrative Specialist, Office of the Actuary

INFORMED DECISIONSTM 45 gardner.utah.edu I August 2021 Partners in the Kem C. Gardner Policy Institute Advisory Board Community Conveners Cameron Diehl Sterling Nielsen Ex Officio (invited) Lisa Eccles Cristina Ortega The following individuals Michael O. Leavitt Governor Spencer Cox Spencer P. Eccles Jason Perry and entities help support Mitt Romney Speaker Brad Wilson Christian Gardner Ray Pickup the research mission of the Senate President Board Kem C. Gardner Gary B. Porter Kem C. Gardner Policy Institute. Stuart Adams Scott Anderson, Co-Chair Kimberly Gardner Taylor Randall Representative Brian King Legacy Partners Gail Miller, Co-Chair Natalie Gochnour Jill Remington Love Senator Karen Mayne Dr. Michael Good Brad Rencher The Gardner Company Doug Anderson Mayor Jenny Wilson Deborah Bayle Brandy Grace Josh Romney Mayor Erin Mendenhall Intermountain Healthcare Cynthia A. Berg Clark Ivory Charles W. Sorenson Clark and Christine Ivory Roger Boyer Mike S. Leavitt James Lee Sorenson Foundation Wilford Clyde Derek Miller Vicki Varela KSL and Deseret News Sophia M. DiCaro Ann Millner Ted Wilson Larry H. & Gail Miller Family Foundation Mountain America Credit Union Kem C. Gardner Policy Institute Staff and Advisors Salt Lake City Corporation Leadership Team Levi Pace, Senior Research Economist Salt Lake County Natalie Gochnour, Associate Dean and Director Shannon Simonsen, Research Coordinator University of Utah Health Jennifer Robinson, Associate Director Joshua Spolsdoff, Senior Research Economist Paul Springer, Senior Graphic Designer Utah Governor’s Office of Shelley Kruger, Accounting and Finance Manager Economic Opportunity Colleen Larson, Administrative Manager Laura Summers, Senior Health Care Analyst Natalie Young, Research Analyst WCF Insurance Dianne Meppen, Director of Survey Research Pamela S. Perlich, Director of Demographic Research Faculty Advisors Zions Bank Juliette Tennert, Chief Economist Nicholas Thiriot, Communications Director Matt Burbank, College of Social and Executive Partners James A. Wood, Ivory-Boyer Senior Fellow Behavioral Science Mark and Karen Bouchard Adam Meirowitz, David Eccles School of Business The Boyer Company Staff Elena Patel, David Eccles School of Business Nathan Seegert, David Eccles School of Business Salt Lake Chamber Max Backlund, Senior Research Associate Samantha Ball, Senior Research Associate Senior Advisors Sustaining Partners Mallory Bateman, Senior Research Analyst Andrea Thomas Brandley, Research Associate Jonathan Ball, Office of the Legislative Fiscal Analyst Clyde Companies Mike Christensen, Scholar-in-Residence Silvia Castro, Suazo Business Center Dominion Energy Phil Dean, Public Finance Senior Research Fellow Gary Cornia, Marriott School of Business Staker Parson Materials and John C. Downen, Deputy Director of Economic Wes Curtis, Community-at-Large Construction and Public Policy Research Theresa Foxley, EDCUtah Dejan Eskic, Senior Research Fellow Dan Griffiths, Tanner LLC Emily Harris, Demographer Emma Houston, University of Utah Michael T. Hogue, Senior Research Statistician Beth Jarosz, Population Reference Bureau Mike Hollingshaus, Senior Demographer Darin Mellott, CBRE Thomas Holst, Senior Energy Analyst Chris Redgrave, Community-at-Large Meredith King, Research Associate Wesley Smith, Western Governors University Jennifer Leaver, Senior Tourism Analyst

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