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The Economic Impact of Nebraska Military Assets: an Update for Fiscal Year 2018

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The Economic Impact of Nebraska Military Assets: an Update for Fiscal Year 2018 A Bureau of Business Research Report From the University of Nebraska—Lincoln The Economic Impact of Nebraska Military Assets: An Update for Fiscal Year 2018 Prepared for the Nebraska Commission on Military and Veteran Affairs November 15, 2019 Dr. Eric Thompson Director University of Nebraska Bureau of Business Research Dr. Mitchel Herian Project Director University of Nebraska Bureau of Business Research Mr. Phillip O’Donnell Military Affairs Liaison Commission on Military and Veteran Affairs State of Nebraska Table of Contents 1. Introduction .......................................................................................................................................... 7 2017 and 2018 Economic Impact of Nebraska Military Assets ................................................................. 7 2019 Commission Recommendations ...................................................................................................... 7 Preliminary Results and Impact of recent Nebraska Legislation and Regulatory Reform ...................... 16 Recent Congressional Actions Related to BRAC ..................................................................................... 23 The Current Report ................................................................................................................................. 24 2. Military Assets and Spending ............................................................................................................. 25 Offutt Air Force Base ............................................................................................................................... 25 55thWing. ............................................................................................................................................. 25 USSTRATCOM ...................................................................................................................................... 26 557th Weather Wing. ........................................................................................................................... 26 Additional Units on Offutt AFB. .......................................................................................................... 26 Nebraska National Guard, Air National Guard, and Nebraska Emergency Management Agency ......... 28 National Guard and NEMA Spending ...................................................................................................... 31 Reserve Components .............................................................................................................................. 31 Army Reserve ...................................................................................................................................... 31 Air Force Reserve ................................................................................................................................ 33 U.S. Marine Corps Reserve.................................................................................................................. 33 Navy Reserve ....................................................................................................................................... 33 U.S. Army Corps of Engineers. ................................................................................................................ 33 National Strategic Research Institute. .................................................................................................... 35 3. Department of Defense Military Retiree and Veterans Affairs Spending ........................................ 36 Military Retirees paid by the DoD ........................................................................................................... 36 U.S. Department of Veterans Affairs ...................................................................................................... 36 GI Bill Spending and Utilization ............................................................................................................... 42 Nebraska Department of Veterans’ Affairs............................................................................................. 43 4. Economic Impact Analysis .................................................................................................................. 45 Economic Impact Methodology .............................................................................................................. 45 Economic Impact of Military Spending ................................................................................................... 46 Offutt Air Force Base. .......................................................................................................................... 46 National Guard. ................................................................................................................................... 48 1 Reserve Forces. ................................................................................................................................... 48 Overall Annual Economic Impact of Nebraska Military Assets ........................................................... 50 Economic Impact of Military Retirement Pensions ................................................................................ 50 Economic Impact of Veterans Affairs Spending ...................................................................................... 51 Economic Impact of the Army Corp of Engineers ................................................................................... 53 Economic Impact of GI Bill Benefits for Higher Education ...................................................................... 53 Summary of Annual Economic Impact .................................................................................................... 54 5. Veterans in the State of Nebraska and Recent Population Trends .................................................. 55 Settlement of Military Veterans in the State of Nebraska: Impacts on the Labor Force ...................... 55 Projected Change in Veteran Populations in Nebraska .......................................................................... 57 6. Impact of Tax Policies in Nebraska and Iowa .................................................................................... 60 7. Trends in GI Bill Utilization in Nebraska ............................................................................................ 63 Tuition Assistance Programs ................................................................................................................... 65 In-State Tuition and Tuition Assistance Programs for Veterans and Dependents ................................. 66 8. Profile of County Veteran Service Officers ........................................................................................ 68 9. Military Leave Benefits to Employees in Each State ......................................................................... 74 10. Review of State Veteran Services Websites .................................................................................. 77 Appendix A. About the University of Nebraska-Lincoln Bureau of Business Research ........................... 82 2 Table of Tables Table 1. The Annual Economic Impact on Military Bases, Military Retirement System Payments and Veterans Affairs Spending on the State of Nebraska, FY 2018 ..................................................................... 6 Table 2. Total State Funding to Nebraska Army National Guard in Relation to Federal Funding ................ 9 Table 3. Total Military Construction Funds to Nebraska Army National Guard ........................................... 9 Table 4. Total State and Federal Funding to Nebraska Army National Guard to Support Maintenance and Sustainment of Facilities and Infrastructure ............................................................................................... 10 Table 5. Offutt AFB and USSTRATCOM Military and Civilian Personnel FY 2018 ....................................... 28 Table 6. Offutt AFB and USSTRATCOM Payroll/Benefits and Expenditures FY 2018 ................................. 28 Table 7. Nebraska National Guard Employment, Fiscal Year 2018 ............................................................. 30 Table 8. Nebraska National Guard Payroll, Benefits, and Operations, Fiscal Year 2018 ............................ 31 Table 9. Army Reserve Personnel and Expenses ........................................................................................ 32 Table 10. Air Force Reserve Personnel and Expenses ................................................................................. 33 Table 11.U.S. Army Corp of Engineers Nebraska Personnel and Payroll .................................................... 34 Table 12. U.S. Army Corps of Engineers Civil Works Spending in Nebraska, FY 2018 ................................ 34 Table 13. Nebraska Military Retirees and Pension/Retirement Compensation, FY 2018 .......................... 36 Table 14. Total VA Spending in Nebraska, FY 2018 (in millions) ................................................................. 40 Table 15. FY 2018 GI Bill Utilization in Nebraska (Top 25 Most Utilized Schools) ...................................... 43 Table 16. Nebraska Department of Veterans’ Affairs Appropriations, 2017-2019 Biennium .................... 44 Table 17. Direct Employment, Employee Compensation and Output Impact of Offutt Air Force Base ..... 47 Table 18. The Annual Economic
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