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

(in the city, state, and nation) beyond those directly compensated for by <strong>Micron</strong>.
Table 5: <strong>The</strong> Economic <strong>Impact</strong> <strong>of</strong> Annual Operations Outlays by <strong>Micron</strong>** (in millions <strong>of</strong> 2005 dollars)
Jurisdiction Operating Total Personal Jobs
<strong>of</strong> Vendor Outlay (1) Output (2) Earnings (3) Supported (4)
City <strong>of</strong> Manassas $49.2 $63.2 $11.7 400
Prince William** $78.2 $121.3 $22.4 767
Northern <strong>Virginia</strong>* $134.7 $217.6 $59.4 2232
<strong>Virginia</strong>*** $135.7 $285.6 $76.9 2824
Sources: <strong>Micron</strong> <strong>Technology</strong>, Inc., GMU Center for Regional Analysis Notes: (1) reported by location <strong>of</strong> vendor; (2) the total value <strong>of</strong> goods and services generated directly and indirectly as a result
<strong>of</strong> the initial operating outlays within the jurisdiction; (3) the additional earnings generated within the respective jurisdiction from the new economic activities supported by the operating outlays; (4)
the additional new jobs supported nationwide by the spending and re-spending <strong>of</strong> the new operating expenditures. *Manassas and Prince William County totals are included in Northern <strong>Virginia</strong> and
Northern <strong>Virginia</strong> totals are included in <strong>Virginia</strong> impact totals. **<strong>The</strong>se economic impacts recur annually.
Operations spending accruing to businesses located in Prince William County totaled $78.2 million in 2005. This spending
added $121.3 million to the County’s economy, reflecting a multiplier <strong>of</strong> 1.551, generated additional personal earnings to
the benefit <strong>of</strong> County residents totaling $22.4 million, and supported 767 jobs in the County, state, and nation beyond those
on the <strong>Micron</strong> payroll.
<strong>The</strong>se economic benefits accruing to the City <strong>of</strong> Manassas and Prince William County, and those captured elsewhere in
Northern <strong>Virginia</strong>, added a total <strong>of</strong> $217.6 to its gross regional product in 2005, generated $59.4 in new personal earnings
for Northern <strong>Virginia</strong> residents (beyond <strong>Micron</strong>’s Northern <strong>Virginia</strong> workers with a payroll <strong>of</strong> $61.7 million), and supported
2,232 jobs within the region, state, and nation.
At the state level, these multipliers are larger reflecting its more complex and self-contained economy (less monetary leakage
to adjacent jurisdictions). <strong>The</strong> $135.7 million in direct operating outlays spent by <strong>Micron</strong> in the State generated $285.6
million in total economic impact reflecting a multiplier <strong>of</strong> 1.9057; that is, for each additional $1 spent by <strong>Micron</strong> within
the Commonwealth <strong>of</strong> <strong>Virginia</strong>, its gross state product realizes a total benefit <strong>of</strong> $1.91. Additionally, $76.9 million in new
personal earnings were generated in 2005 to the benefit <strong>of</strong> state residents with operating outlays supporting 2,824 jobs (fulltime,
year-round equivalent) beyond the 1,013 workers directly compensated by <strong>Micron</strong>. <strong>The</strong>se additional business sales
and personal earnings have important fiscal implications to the State as well as to the local jurisdictions where their vendors
are located and their workers reside.
<strong>The</strong> Fiscal <strong>Impact</strong> <strong>of</strong> <strong>Micron</strong> on the City <strong>of</strong> Manassas
Calculating the revenue and expenditure flows generated by <strong>Micron</strong> in the City <strong>of</strong> Manassas involved application <strong>of</strong> the
GMU fiscal model that allocates the City’s operating revenues and expenditures to their direct sources. <strong>The</strong> basis for this
analysis was the City’s 2005 Comprehensive Annual Financial Report (CAFR).
<strong>The</strong> fiscal model was modified and updated to reflect the revenue and expenditure allocations by land use type for the City
<strong>of</strong> Manassas (this model had been used recently for another project in the City using data from the 2005 CAFR). Based on
this analysis, it had been determined that the non-property tax revenues associated with non-residential land uses generated
$639.09 on a per-employee basis. Actual revenues paid by <strong>Micron</strong> to the City for real estate and for other forms <strong>of</strong> property
were used to determine the total revenue base associated with <strong>Micron</strong>.
Similarly, this fiscal analysis calculated the non-residential demands on city services as expressed on a per-employee basis;