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Massachusetts Statewide Airport Economic Impact Study Update TECHNICAL REPORT

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Massachusetts Statewide Airport Economic Impact Study Update TECHNICAL REPORT Massachusetts Massachusetts Statewide Airport Economic Impact Study Update TECHNICAL REPORT MASSACHUSETTS STATEWIDE AIRPORT ECONOMIC IMPACT STUDY UPDATE DECEMBER 2014 Prepared for: Prepared by: MASSACHUSETTS DEPARTMENT OF CDM SMITH INC. TRANSPORTATION AERONAUTICS 8805 Governor’s Hill Drive, Suite 305 DIVISION Cincinnati, Ohio 45249 513-583-9800 With assistance from: AIRPORT SOLUTIONS GROUP, LLC SPOTLIGHT COMMUNICATIONS MASSACHUSETTS STATEWIDE AIRPORT ECONOMIC IMPACT STUDY UPDATE TABLE OF CONTENTS CHAPTER 1: STUDY SUMMARY INTRODUCTION ................................................................................................................ 1-1 STUDY BACKGROUND ...................................................................................................... 1-2 STUDY FINDINGS .............................................................................................................. 1-5 SUMMARY ........................................................................................................................ 1-8 CHAPTER 2: SOCIOECONOMIC OVERVIEW OF MASSACHUSETTS INTRODUCTION ................................................................................................................ 2-1 POPULATION .................................................................................................................... 2-1 GROSS STATE PRODUCT AND INDUSTRY MIX .................................................................. 2-5 EMPLOYMENT .................................................................................................................. 2-7 PER CAPITA PERSONAL INCOME ...................................................................................... 2-8 SUMMARY ........................................................................................................................ 2-8 CHAPTER 3: STUDY APPROACH INTRODUCTION ................................................................................................................ 3-1 THE ECONOMIC MODELING PROCESS ............................................................................. 3-1 SURVEYS, DATA COLLECTION METHODS, AND MODEL ASSUMPTIONS .......................... 3-4 On-Airport Tenants .................................................................................................... 3-5 Construction Impacts ................................................................................................. 3-6 Commercial Service Visitors....................................................................................... 3-7 General Aviation Visitors ........................................................................................... 3-9 STUDY MULTIPLIERS....................................................................................................... 3-11 SUMMARY ...................................................................................................................... 3-12 CHAPTER 4: AIRPORT EMPLOYMENT, PAYROLL, AND OUTPUT IMPACTS INTRODUCTION ................................................................................................................ 4-1 EMPLOYMENT IMPACTS .................................................................................................. 4-2 Employment from On-Airport Activity ...................................................................... 4-2 Employment from Commercial Service Visitor Spending .......................................... 4-3 Employment from General Aviation Visitor Spending ............................................... 4-4 Total Employment ...................................................................................................... 4-4 PAYROLL IMPACTS ........................................................................................................... 4-5 Payroll from On-Airport Activity ................................................................................ 4-5 Payroll from Commercial Service Visitor Spending ................................................... 4-5 TABLE OF CONTENTS i MASSACHUSETTS STATEWIDE AIRPORT ECONOMIC IMPACT STUDY UPDATE Payroll from General Aviation Visitor Spending ........................................................ 4-6 Total Annual Payroll ................................................................................................... 4-6 OUTPUT IMPACTS ............................................................................................................ 4-7 Output from On-Airport Activity ................................................................................ 4-7 Output from Commercial Service Visitor Spending ................................................... 4-8 Output from General Aviation Visitor Spending ........................................................ 4-8 Total Annual Output .................................................................................................. 4-9 SUMMARY ........................................................................................................................ 4-9 CHAPTER 5: ADDITIONAL AREAS OF ANALYSIS INTRODUCTION ................................................................................................................ 5-1 QUALITATIVE AIRPORT BENEFITS .................................................................................... 5-1 TAX IMPACTS .................................................................................................................... 5-5 State and Local Sales Tax Rates ................................................................................. 5-5 Lodging and Restaurant/Prepared Meals Tax Rates ................................................. 5-5 Rental Car Tax Rates .................................................................................................. 5-6 State Income Taxes .................................................................................................... 5-6 Aviation Fuel Taxes .................................................................................................... 5-6 Sales Tax Estimation Methodology ............................................................................ 5-6 Taxes Generated by On-Airport Businesses .............................................................. 5-7 Taxes Generated by Commercial Service Visitors ..................................................... 5-9 Taxes Generated by General Aviation Visitors ........................................................ 5-10 Taxes Paid by Employees of On-Airport Businesses ................................................ 5-10 Taxes Paid by Employees Supported by Visitor Spending ....................................... 5-11 State Income Taxes Paid by Employees of On-Airport Businesses .......................... 5-11 State Income Taxes Paid by Employees Supported by Visitor Spending ................. 5-11 Aviation Fuel Taxes .................................................................................................. 5-11 Total Airport-Related Taxes ..................................................................................... 5-12 Tax Summary ............................................................................................................ 5-12 SUMMARY ...................................................................................................................... 5-13 CHAPTER 6: AVIATION EDUCATION CASE STUDY INTRODUCTION ................................................................................................................ 6-1 PREPARING FOR TAKEOFF – LEARNING ABOUT AVIATION ............................................. 6-2 Visiting the Community Airport ................................................................................. 6-2 EAA Young Eagles ....................................................................................................... 6-3 Wright Flight Program ................................................................................................ 6-3 Real World Design Challenge ..................................................................................... 6-4 Civil Air Patrol ............................................................................................................. 6-4 Other Educational Initiatives ..................................................................................... 6-5 LEAVING THE GROUND – BECOMING PART OF AVIATION .............................................. 6-6 TABLE OF CONTENTS ii MASSACHUSETTS STATEWIDE AIRPORT ECONOMIC IMPACT STUDY UPDATE Secondary School Education ...................................................................................... 6-6 Dedicated Aviation Training ....................................................................................... 6-7 Flight Training Schools ............................................................................................ 6-7 Aviation Maintenance Training School ................................................................... 6-9 SOARING INTO THE ATMOSPHERE – A CAREER IN AVIATION ......................................... 6-9 Flight Training & Aviation Management Degree Programs ..................................... 6-10 Bridgewater State University ................................................................................ 6-10 Westfield State University .................................................................................... 6-11 North Shore Community College .......................................................................... 6-12 Aircraft
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