The Impact of Micron Technology Virginia on the Economies of the ...

<strong>Micron</strong> employed 120 residents <strong>of</strong> the City <strong>of</strong> Manassas in 2005 with a total payroll <strong>of</strong> $8.5 million. Additionally, its operating
expenditures captured by vendors located in the City, added $49.2 million to the City’s economy, generated $11.7
million in new personal earnings to the benefit <strong>of</strong> City residents, and supported 400 jobs beyond those compensated for
directly by <strong>Micron</strong>.
<strong>Micron</strong>’s 1,013 workers had a total annual payroll <strong>of</strong> $68.8 million. This payroll spending added $137.6 million to the
state’s economy, generated $41.1 million in additional personal earnings to the benefit <strong>of</strong> state residents and supported a total
<strong>of</strong> 1,802 jobs nationwide. <strong>Micron</strong>’s operating outlays totaled $135.7 million in 2005 and added a total <strong>of</strong> $285.6 million to
the state’s economy, generated an additional $76.9 million in personal earnings, and supported 2,824 jobs nationwide.
Capital spending captured by state businesses over the 2002–2005 period totaled $179 million. This capital spending added
a total <strong>of</strong> $376.2 million to the state’s economy over this four-year period, generated $99.3 million in new personal earnings
for <strong>Virginia</strong> residents, and supported 3,760 jobs nationwide.
For the City <strong>of</strong> Manassas and State, <strong>Micron</strong>’s presence represents a major net fiscal benefit. At the City level, <strong>Micron</strong> was
responsible for generating revenues estimated at $5.6 million in FY 2005, including $5 million in real estate and other property
taxes. <strong>Micron</strong> received, directly or indirectly, an estimated $808,141 in locally funded services during the year, yielding
a net fiscal benefit <strong>of</strong> $4.85 million, or $4,787 per employee. In the absence <strong>of</strong> <strong>Micron</strong>’s net fiscal benefit, the City’s budget
would have had experienced a $3.665 million deficit and would have had to reduce its level <strong>of</strong> services or raise its real estate
tax rate. At the state level in FY2005, <strong>Micron</strong> paid $5.96 million in corporate taxes, payroll withholding, and unemployment
taxes.
Whether recurring economic benefits generated by operating outlays or one-time benefits flowing from capital expenditures,
these income and employment impacts are significant in their magnitudes. <strong>The</strong>y constitute important economic and fiscal
resources for local and state government far exceeding the direct dollar value <strong>of</strong> <strong>Micron</strong>’s direct outlay. As the operating
expenditures recur (and likely increase) annually, these expanded economic benefits will continue to accrue annually to the
City <strong>of</strong> Manassas, Prince William County, and the Commonwealth.