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Oklahoma’s Five Military Installations: AN E CONOMIC I MPACT R EPORT
Transcript

Oklahoma’s Five Military Installations: an Economic impact REpoRt

What’s InsIdeExecutive Summary

The Economic Impact of Major Military Installations in Oklahoma

Altus Air Force Base

Fort Sill

Oklahoma 21st Century Foundation

330 NE 10th StreetOklahoma City, OK 73104 www.ok21stcentury.com

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McAlester Army Ammunition Plant

Tinker Air Force Base

Vance Air Force Base

Acknowledgements

Oklahoma Department of Commerce

900 North Stiles Ave. Oklahoma City, OK 73104

www.okcommerce.gov

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Oklahoma’s 5 Military Installations

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executIve summaryOklahoma’s military installations are vital to the nation - not only to train our warfighters, but also to manufacture and repair the material used to equip our men and women in uniform. Beyond providing for our national security, the military installations in Oklahoma (Altus AFB, Fort Sill, McAlester Army Ammu-nition Plant, Tinker AFB, and Vance AFB) have a tremendous economic impact in the state. They are economic engines that employ Oklahomans. Illustrating the importance of these installations:

• Over69,100militarypersonnel,federalcivilianpersonnelandcontractorswere employedatOklahoma’smilitaryinstallationsinFY2010.• Thesejobs,andtheoperationsattheinstallations,supportedanadditional 64,700jobsinOklahoma’seconomyforatotalemploymentimpactofmorethan 133,800jobsinthestate.• ImpactsonOklahoma’sGrossDomesticProduct(GDP),whichisvalue-added economicactivity,totaledmorethan$9.6billioninFY2010,whichwasmore than7%ofthesizeofthestate’sentireeconomy.• MilitaryinstallationsinOklahomapaidaveragewagesof$43,675inFY2010, whichwas$5,438higherthanOklahoma’saveragewageof$38,237. • Thejobsimpactedbythemilitaryinstallations(direct,indirectand inducedjobs)paidaveragewagesof$41,742,whichwas$3,505higherthan Oklahoma’saveragewageof$38,237.• ThemilitaryinstallationsinOklahomahadatotalwageandsalarypayrollof morethan$3.0billioninFY2010.Thiscreatedanadditional$2.6billionin wageandsalarypayrollinthestateforatotalimpactof$5.6billion.

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the economIc Impact of major mIlItary InstallatIons In oklahomaThemissionoftheDepartmentofDefenseis“toprovidethemilitaryforcesneededtodeterwarandtopro-tectthesecurityofourcountry.”Inordertomeetitsmission,notonlydomilitaryforcestrainatinstallationsaroundthecountry,butournation’smilitaryreadinessandeffectivenessarealsoensuredbythemilitaryinstallationsthatmanufacture,maintainandrepairthemilitarymaterialtosupplythewarfighter.

Themilitary installations inOklahomaarevi-taltothepreparednessofournation’smilitaryforces. VanceAFB provides undergraduatepilottraining.AltusAFBtrainspilotsinlarger,multi-engineaircraftsuchastheC-17andKC-135. FortSill, theoldestmilitary installationinOklahoma,providesbasiccombat traininginaddition to trainingartillerymen– theKingofBattle. McAlesterArmyAmmunitionPlantensuresthatournation’swarfightershavetheammunitionandexplosivesneededfor train-ingaswellasinbattle.TinkerAFBmaintains,repairs,andoverhaulsmilitaryaircraftinaddi-tion toprovidingadditionalstrategiccapabili-ties to the military.

WiththreeAirForcebasesandtwoArmyinstallations,thereisanobviouspresenceofAirmenandSoldiersinOklahoma.However,eventhoughthereisnotaNavybaseinOklahoma,thereisalsoasignificantpres-enceofNavySailorsandMarinesinthestate.FromTinkerAFB,theNavyoperatesStrategicCommunica-tionsWingONEwhichprovidescommunicationstostrategicforces,includingnuclearsubmarines,aroundtheglobe.FromFortSill,adetachmentoftheUSMarineCorpstrainsMarineartillerymen.

Inadditiontotheactivedutymilitarypersonnelsta-tionedateachoftheseinstallations,therearesizeablenumbersoffederalcivilianemployeesandcontractorsthatalsoworkatorinconjunctionwiththemilitaryinstallationstoprovideforthesecurityofournation.

ThisreportestimatesthesizeoftheeconomicimpactsofthefivemilitaryinstallationsinOklahoma–AltusAFB,FortSill,McAlesterAAP,TinkerAFBandVanceAFB.ThereportdoesnotcontainorrelatetheimpactsoftotalspendingoroperationsoftheUSDepartmentofDefenseortheOklahomaMilitaryDepartmentinOklahoma.Thatis,therearenationaldefenseandse-curityactivitiesperformedwithinthestatethatarenotdirectlyrelatedtothefivemilitaryinstallations.

Activitiesnotdetailedinthiseconomicimpactreportinclude(1)MilitaryRecruiting,(2)VeteransAffairsHospitals,(3)theArmyCorpsofEngineers,and(4)theOklahomaNationalGuard.Eachoftheseorganiza-tionsservesvitalrolesinthepreparedness,morale,

“As a people, Oklahomans have a deep-rooted respect for the men and women who wear the uniforms of our nation’s Armed Forces. We can never repay the debt of gratitude owed to them for their service on our behalf, but we fully support them as they serve at home and around the world to protect our freedom. Not only do we acknowledge the sacrifice of our military personnel, but we also appreciate the enormous contribution our five major military installations have on our state’s economy through military contracts and opera-tions, thousands of private-sector jobs support-ing the military’s mission and millions of dollars in private-sector investment and research.”

-Mary Fallin, Governor, State of Oklahoma

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Economic ActivityInFY2010,therewere69,190militarypersonnel,militarytrainees,federalcivilianpersonnel,andcontractorsstationedoremployedatthefivemilitaryinstallationsinOklahoma.Consideredassingle-siteestablishments,thesefivemilitaryinstallationsareamongthelargestemployersinthestate,andcombinedtheyhaveatre-mendousimpactuponthestate’seconomy.Totalpayrollassociatedwiththemilitaryinstallationswasgreaterthan$3.0billioninFY10,almost5%oftotalwageandsalarydisbursementsinthestate.

Inadditiontotheindividualsemployedorstationedatthemilitaryinstallations,therewere22,029activedutymilitarydependentsconnectedwiththemilitarypersonnelinOkla-homa.Theyalsocontributetotheeconomyandsocialfab-ricofthestate.

Thereareseveralactivitiesthatoccurateachoftheinstal-lations beyond the employment activities directly associ-atedwiththemilitaryinstallation.Forexample,eachoftheinstallationsrequiresmaterials,equipmentandsuppliestooperateandtheyalsocontractforservicestobeperformedat the installation. Total services contracts and procure-mentatthefivemilitary installationsequaled$1.37billioninFY2010.

Tomaintainandextendtheoperationsoftheinstallations,constructionprojectsarenecessarytomaintainandupgraderunways,hangars,infrastructure,buildings,familyhousing,etc.Thesecategoriesarereportedasmilitaryconstruction,operations&maintenanceconstruction,militaryfamilyhous-ingconstruction,etc.Forsimplicity,allconstructionactivitywillbereferredtoasmilitaryconstructioninthereport;howev-er,inthesimulation,constructionactivitieswereseparatedintotheappropriatecategories.InFY2010,totalmilitary constructiondollarsspentatthemilitaryinstallationsinOklahomatotaled$336.2million.

Economic ImpactsTheeconomicactivityat themilitary installationscreates impacts throughoutOklahoma’seconomy. Theseimpactsresultfromtheoperationsandthedemandsthattheinstallationshavetofulfillconstruction,procure-mentandservicecontracts.Economicimpactsalsooccurasaresultofthewagesandsalariesthatarepaidtomilitaryservicemen/women,federalcivilianpersonnelandcontractors.Thesewagesarespentintheeconomyonitemssuchashousing,clothing,andutilities.Furthermore,theimpactsthataregeneratedfromtheopera-tionofthemilitaryinstallationsarenotlimitedtothelocalareaintheimmediateproximityofthemilitaryinstal-lation.Rather,theimpactsspreadthroughoutthestate’seconomy.Whilethereisnotamilitaryinstallationin

andhealthofthemilitaryanditsveterans,butnoneofthesewereincludedintheeconomicimpactreportinordertofocusontheactivitiesandeconomicimpactsoftheactivemilitaryinstallations.Alsonotincludedinthereportweretheimpactsthatretiredveteranshaveupontheeconomy.ManyretiredveteranschoosetoliveinanareathatisincloseproximitytoamilitaryinstallationoraVAHospital,andtheycontributetotheeconomy.However,theywerenotincludedinthereportinordertofocusontheimpactsoftheactivemilitaryinstallations.

Throughoutthereport,wheninstallationsormilitaryunitsarereferredtoasbeing“inactivated”,thisistheterminologythatthemilitaryhasusedinitsownreportsratherthanreferringtotheunitorinstallationasbeing“deactivated.”Similarly,thereportrespectsotherterminologyusedinthemilitaryanddefenseindustry.Forexample,“Soldier”isusedasopposedto“soldier”whenreferringtoapersonservingintheUSArmy.

“Thousands of Oklahomans call support-ing the military their job, but countless other Oklahomans consider personal support of our military a special duty. Hundreds of Oklahoma businesses support the military and defense industry as a part of its supply chain. This includes not only the military installations in Oklahoma, but installations and forces worldwide. Emerging opportunities in areas like unmanned aerial systems and information systems security are further areas of growth that are facilitated by the presence of the military installations in Oklahoma.”-Dave Lopez, Oklahoma Secretary

of Commerce & Tourism

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northeastOklahoma,manymanufacturersandprofessionalservicefirmsinthatareasupplymaterialorprovideservicesforthemilitary installations in the state.

In FY 2010, the total employment impacts created in Oklahoma’s economyfromtheemploymentandoperationsatthefivemilitary installations equaled 133,848jobs. Statewide employment, which in-cludes military, farm and proprietors’ em-ploymenttotaled2,134,374jobsinOklaho-ma in2010(Source:BureauofEconomicAnalysis, Table SA25N.) Therefore, themilitary installations in Oklahoma impact one out of every 16 jobs in the state, or6.3%oftotalemploymentinOklahoma.

FY2010impactsincludedconstructionprojects;however,sincetheimpactsresultingfromconstructionproj-ectsaretemporaryandgenerallyonlylastforthedurationoftheconstructionproject,theemploymentim-pactsafterFY2010donotincludeconstructiondollars.Withoutanyconstructionprojects,totalemploymentimpactsareprojectedtobe131,914jobsbyFY2015.

Approximately116,000jobs,or87%ofthetotalstatewideemploymentimpact,occurinthevariousregionaleconomies, which are primarily those coun-ties that surroundand include themilitaryinstallations. Each of the military installa-tions is the largest employer in its respec-tive region.

Gross Domestic Product is a measure ofvalue-added economic activity and not ameasure of sales of finished goods in aneconomy.Forexample,ifawidgetassem-blyplantuses$150ofcomponentsandper-forms$100ofvalue-addedactivitytoplaceor service the componentson thewidget,onlythe$100ofvalue-addedactivitywillbecountedinGDP.

Outputisanalternativemeasureofthesizeoftheeconomythatmeasuresthesalesoffinishedgoodsandservices in theecono-my.Usingthepreviousexample,outputwouldbemeasuredas$250sincethecomponentsandvalue-addedactivitiesproduceafinishedwidget.

Oklahoma’sRealGDPequaled$133.464billionin2010(Source:BureauofEconomicAnalysis,GDP.)ThefivemilitaryinstallationsinOklahomahadatotalimpactof$9.611billiononthestate’sGDPinFY2010,approximately7.2%oftheactivityinthestate’seconomy.Thefivemilitaryinstallationsareestimatedtogenerate$10.2billioninGDPimpacts,evenwithoutconstructionactivity,byFY2015.InFY2010,outputisestimatedtohavebeen$18.2billion.Thiswasestimatedtoincreaseto$19.2billionbyFY2015assumingactivitiesandoperationsremainstableatthemilitaryinstallations. Therelativesizeoftheimpactsintheregionaleconomiesvariesfromoneinstallationtothenextwhencom-

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paredtothetotalemploymentandGDPin the respective regional economies. The regional impacts at Vance AFB,McAlester AAP and Tinker AFB rangefrom4%to7%of thetotalemploymentandtotalGDPintheregionaleconomy.TheimpactsatAltusAFBareestimatedto be approximately 19% for total em-ploymentandapproximately23%oftotalGDPintheregionaleconomy.Likewise,atFortSill theemployment impactsareestimated to be about 33%of the totalemployment and the GDP impacts areestimated to be approximately 40% ofregionalGDP.Whileeachofthemilitaryinstallationsisvitaltothestate’secono-my,AltusAFBandFortSillaretheprima-ryenginesoftheirregionaleconomies.

Onelastindicatoroftheimpactofthemil-itaryinstallationsisthedifferenceinwag-es.Oklahoma’saveragewageequaled$38,237in2010(Source:BureauofLa-borStatistics,QCEWdata);however,theaverage wage of jobs impacted by themilitaryinstallationsequaled$41,742,orabout9%higherthantheaveragestatewage. Similarly, the averagewagesofjobs impacted by each of the installa-tions are greater than the average re-gional wage near the installations. While average wages at Fort Sill’s impactedjobsare slightlyhigher, averagewagesat McAlester AAP’s impacted jobs aremarkedly higher than the average re-gionalwage.Thismaybeexplainedbythecompositionofthejobsateachofthemilitaryinstallations.FortSillhasarela-tivelyhighproportionofjobsthataretrainees(27.3%oftotalimpactedjobs),whoarejuststartingacareer,andMcAlesterAAPhasaveryhighproportionoffederalcivilianemployees(51.8%oftotalimpactedjobs).

Inthenextfewsections,moredetailsaboutthestatewideimpactsofeachofthemilitaryinstallationsare provided.

ªSources & ResourcesSourceforregionalemployment:EconomicModelingSpecialists,Inc.SourceforregionalGDP:EconomicModelingSpecialists,Inc.Sourceforregionalwage:EconomicModelingSpecialists,Inc.EconomicImpactSoftware:REMIPolicyInsight+,RegionalImpactModelingInc.

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Altus Air Force BAse“FOrgIng COMBAT MOBIlITy FOrCES...DEPlOyIng AIrMEn WArrIOrS”

• Altus AFB employed 4,181 military personnel, federal civilians and contractors in FY 2010, which created an additional 4,202 jobs for a total employment impact of 8,383 jobs in Oklahoma’s economy. • Average wages for the military personnel, federal civilians and contractors at Altus AFB equaled $45,400, which was 49% greater than the $30,400 average wage in the region’s economy.• Altus AFB contributed $519.7 million to the state’s economy in FY 2010.

Mission & Background

LocatedinsouthwestOklahoma,borderingthecityofAltus,AltusAFBemploysnearly4,200militarypersonnel,contractorsandfederalcivilianpersonnel.AltusAFBwasactivatedinJanuary1943as

AltusArmyAirFieldwiththemissionoftrainingnewpilotsonmulti-enginedaircraft,asimilarmissiontothatwhichthebasepresentlyperforms.AltusArmyAirFieldwasinactivatedtowardstheendofWWIIandremainedinactiveforseveralyears.WiththeonsetoftheColdWarandhostilitiesinKorea,therewasaneedfortrainingAirmeninlargeraircraft,andAltusAFBwasreactivatedinAugust1953asatrainingbasefortrans-portaircraft.AircraftthathavebeenstationedatAltusAFBincludetheC-47,B-47,KC-135,B-52,C-141,C-5,andC-17aircraft.Presently,KC-135StratotankersandC-17GlobemastersarestationedatAltusAFB.

The97thAirMobilityWingisthehostunitatAltusAFBandwasactivated inFebruary1942as the97thBom-bardmentGroupatMacDillField,FL.Afterservingdur-ingWWII in theEuropeanTheatre, the97thBombard-mentGroupoperatedforabriefperiodinAlaskaandthenwastransitionedtoSmokyHillAFB(SmokyHillAFBwasredesignatedSchillingAFB in1957and later closed in

“The city of Altus is proud to be home to Altus Air Force Base. Besides the obvi-ous economic value that the base brings to Southwest Oklahoma it also brings community diversity which adds value to our area. Our base members are active participants in our community and many choose to serve in the civic clubs and churches. This service brings a new perspective to our thought process and enables us to provide a better quality of life to our community. We truly perceive the base to be a part of our community and value the relation-ship that we share.”

-David Webb, Mayor, City of Altus

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Economic Activity & Impacts

InFY2010,therewere4,181peopleemployedatAltusAFB.Thisincludes1,874militarypersonnel,1,278federalappropriatedfundcivilians,and1,029contractorsandotherciviliansemployedonthebase.Combined,totalpayrollforthesepersonneltotaled$182.1million.Associatedwiththemilitaryactive-dutypersonnelare1,038dependents,andaswitheachoftheinstallationsthathaveactivedutypersonnel,theeconomicimpactsimulationsincorporatethepresenceofthemilitarydepen-dents.

InadditiontotheemploymentandpayrolldirectlycreatedbytheUSDepartmentofDefenseinsouthwestOklahoma,thereareadditionaldirectimpactsintheeconomyfrommilitaryconstructionprojects($64.3million);servicecontracts($15.5million);andmaterials,equipmentandprocurementexpenditures($18.6million).Health/TRICAREexpensesandImpactAidtothelocalcommunityareincludedinthematerials,equipmentandprocurementcategory.

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eport1967)nearSalina,KSin1948.In1951,the97thBombardmentWingthentrans-ferredtoBiggsAFB,TX(BiggsisnowapartoftheFortBlissArmycomplexnearElPaso,TX). While atBiggsAFB, the97th Bombardment Wing helped de-velopaerial boom refuelingprocedures.TheWingwastransferredtoBlytheville/EakerAFB in easternArkansas in July1959andoperatedthereuntil1992whenEakerAFBclosedasaresultofthe1991BRACround.

In 1992, the 97th Bombardment WingwasinactivatedatEakerAFBandreacti-vatedatAltusAFBasthe97thAirMobil-ityWing.The97thAirMobilityWingcon-sistsofthe97thMissionSupportGroup,the97thMedicalGroup, the97thMain-tenanceDirectorate,andfoursquadronswithin the97thOperationsGroup. Ad-ditionally, theHQAirMobilityCommandDetachment 2 is also stationedatAltusAFB. It certifies the performance of allC-17, KC-135, and KC-46 flight crewsimulatorsanddevicesworldwide. The97thAirMobilityWingpresentlyoperatestheonlyheavymobilityandairrefuelingschoolhouseintheUSAF.Inadditiontothe airfield atAltusAFB, the 97thAirMobilityWing also trains at theBurnsFlat/Clinton-Sherman AirfieldinwesternOklahoma.

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In FY 2010, the total em-ployment impacts createdin Oklahoma’s economyfrom the employment andoperations at Altus AFBequaled 8,383 jobs. Theimpacts inFY2010 includ-ed construction projects;however, since the impacts resulting from constructionprojectsaretemporaryandgenerally only last for thedurationoftheconstructionproject,theemploymentim-pactsafterFY2010donotincludeconstructiondollarsandmaybeviewedas theoperationalimpactsofAltusAFB.

In FY 2010, the employ-ment impactsofAltusAFBweresplitbetween58%intheprivatesectorand42%in the government sec-tor. Without construction activities, the employment impactsareevenlysplitbe-tweentheprivateandgov-ernment sectors.

IfAltusAFB continues op-erations at similar levels experienced in FY 2010,employmentimpactswouldaverage7,336jobsinOkla-homa’s economy after FY2010. If the levelofactiv-ity is significantly different,thentheimpactswoulddifferfromtheestimate.Approximately10%oftheeconomicimpactsresultingfromtheoperationsofAltusAFBoccuroutsideofthelocalregion.

Totalearningsincludewages,salaries,benefitsandproprietor’sincome,andAltusAFB’simpactonrealtotalearningsinthestate’seconomytotaled$449.2millioninFY2010.ByFY2015,realearn-ingsimpactsareprojectedtobe$468.4milliontothestate’seconomy.

Alsodepictedinthesamegraphasrealearningsisrealdisposablepersonalincome,whichistheamountofmoneythatcanbespentorsavedintheeconomy.Thedifferencebetweenearningsanddisposableincomeisthedeductionoftaxesfromearningsandtheinclusionofinterest,rentanddivi-

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ªSources & ResourcesSourceformission&background:AltusAFB

Sourcefordatausedasinputsineconomicimpactmodel:AltusAFB

Sourceforregionalwage:Economic ModelingSpecialists,Inc.

EconomicImpactSoftware:REMIPolicyInsight+,RegionalImpactModelingInc.

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eportdendincome.TheoperationsandemploymentatAltusAFBhada$344.0millionimpactonOklaho-ma’srealdisposableincomeinFY2010.Thisisestimatedtoincreaseto$365.6millionbyFY2015.

GrossDomesticProductisameasureofvalue-addedeconomicactivityandnotameasureofsalesoffinishedgoodsinaneconomy.Forexample,ifawidgetas-semblyplantuses$150ofcomponentsandperforms$100ofvalue-addedactiv-ity to place or service the componentsonthewidget,onlythe$100ofvalue-add-edactivitywillbecountedinGDP.

Output is an alternative measureofthesizeoftheeconomy that measures the salesoffinishedgoodsandservices in the economy.

Usingthepreviousexample,outputwouldbemeasuredas$250sincethecomponentsandvalue-addedactivitiesproduceafinishedwidget.

TheemploymentandoperationsatAltusAFBareestimatedtohavecontributed$519.7milliontoOklahoma’sGrossDomesticProductinFY2010.WithoutanestimateforconstructionprojectsafterFY2010,theinstallation’simpactdecreasesto$491.2millioninFY2011whichincreasesafterwardsto$508.0millionbyFY2015.InFY2010,outputisestimatedtohavebeen$991.0million.Thisisestimatedtobe$971.1millionbyFY2015.

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Fort sillFIrES CEnTEr OF ExCEllEnCE (FCOE)

• Fort Sill employed or trained 33,756 military personnel, federal civilians and contractors in FY 2010, which created an additional 19,463 jobs for a total employment impact of 53,219 jobs in Oklahoma’s economy. • Average wages for the military personnel, trainees, federal civilians and contractors at Fort Sill equaled $35,500, which was 4% greater than the $34,100 average wage in the region’s economy.• Fort Sill contributed $4.1 billion to the state’s economy in FY 2010.

Mission & Background

FortSillisamajorArmytraininginstallationlocatednearLawtononover94,000acresinsouthwestOklahoma.FortSillprovidesbasiccombattrainingforSoldiersenteringtheArmyandadvancedin-dividualtrainingforSoldiersandMarinesinFieldArtilleryandAirDefenseArtilleryoccupations.Thedurationoftrainingrangesfrom5to33weeksforSoldiers,Non-commissionedOfficers(NCOs)andCommissionedOfficersofallranks.

OfallthemilitaryinstallationsinOklahoma,FortSillistheoldest.EachofOklahoma’sotheractivemilitaryinstallationswereactivatedororiginatedduringWWII;however,theoriginsofFortSillareover70yearsolderthaneachoftheothermilitaryinstallations.MajorGeneralPhillipSheridanstakedoutthesiteofwhatwouldbe-comeFortSillinJanuary1869,andthetroopsandcavalrystationedatthelocationfoughtdur-ingtheIndianWarsandincampaignsagainsthostiletribesthatwereraidingsettlementsinKansasandTexas.Afterpeacewiththeplainstribes,theinfantryandcavalrystationedatFortSillwerereplacedwithartilleryunits.

TheSchoolofFireforFieldArtillerywasactivat-edinSeptember1911totrainSoldiersinartilleryoperations,firesupportandtoadvancetheirar-

“Lawton’s long-term commitment to the suc-cess and growth in missions at Fort Sill can be measured by the addition of 9,300 persons who have moved into Comanche County over the past three years. This military growth is expected to create 6,100 new jobs over the next three to five years with fifty percent of those jobs coming in the non-military sector of the regional economy. For 2010, the Lawton metropolitan area ranks 15th nationally in GDP growth ( 6.9% ) and 2nd nationally in per-sonal income growth ( 8.9% ).” -Fred L. Fitch, Mayor, City of Lawton

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tilleryskills.TheschoolwascreatedafterPresi-dent Theodore Roos-evelt sent Capt. DanMoore to learn tacticsandartillerytrainingpro-ceduresfromEuropeanArtillery Schools. Cap-tainMoorebecame thefirstCommandantoftheField Artillery School.The schoolwas closedin1916duringtheMexi-can Revolution when troops from Fort Sillwere sent to protect the border, but was reac-tivated in 1917 to trainSoldiers after the USenteredWWI.

FortSillpresentlytrainsSoldiersandMarinesincombinedfiressupportoperationsincludingrocketsystems,missilesystems,andhowitzerstoprovidesupporttothejointwarfightingcommander.Ten-antunitsatFortSillincludethe75thFIRESBrigade,the214thFIRESBrigadeandthe31stAirDe-fenseArtilleryBrigadewhichareactive,deployableunits.OtheractiveunitsatFortSillincludeaUSMarineCorpsDetachmentaswellasthe77thArmyBand.TrainingBrigadesincludethe428thFieldArtilleryBrigade,whichprovidesAdvancedIndividualTrainingforFieldArtillery;the6thAirDefenseArtilleryBrigade,whichprovidesAdvancedIndividualTrainingforAirDefenseArtillery;andthe434thFieldArtilleryBrigade,whichprovidesbasiccombattraining.

The2005BRACroundrecommendedrelocatingAirDefenseArtilleryunitsfromFortBlisstoFortSilland,sincethattime,the31stAirDefenseArtilleryBrigadeandthe6thAirDefenseArtillerySchoolhavemovedtoFortSill.ThemoverequiredtheconstructionandrenovationofFortSillinfrastruc-tureandhousing.TherelocationoftheAirDefenseArtillerySchoolenabledtheUSArmytoestab-lisha“NetFiresCenter”fortraining.

Economic Activity & Impacts

InFY2010,therewere27,284militarypersonnelthatwereeitherstationedortrainedatFortSill.Ofthesepersonnel,12,747wereactivedutypersonnelstationedforthefullyearatFortSill.Theremainderweretrainees,cadetsorpersonnelwhowerenotstationedattheinstallationforthefullyear,andthesepersonnelwerecountedaspart-yearresidentsofFortSillintheeconomicimpactsimulation.

Inadditiontomilitarypersonnel,therewere2,989federalappropriatedfundciviliansand3,483con-tractors,privatebusinessesandnon-appropriatedfundciviliansworkingatFortSill.Combined,totalpayrollforthemilitarypersonnel,federalciviliansandcontractorsworkingatFortSillexceeded$1.1billion.

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Asabasictraining,FieldArtil-lery andAirDefenseArtillerytraining installation, friendsand family will visit the Sol-diers when they graduate.Since the spending that oc-curs when friends and fam-ilyvisitgraduatingSoldiersissignificant, the impacts thatresult from this consumptionare included in the totaleco-nomicimpactofFortSill.

Inadditiontotheemploymentand payroll directly createdbytheUSDepartmentofDe-fense in southwest Oklaho-ma,thereareadditionaldirectimpacts intheeconomyfrommilitary construction projects($195.7million);servicecon-tracts ($243.8 million); andmaterials, equipment andprocurement expenditures($234.4million).Health/TRI-CARE expenses and ImpactAid to the local communityareincludedinthematerials,equipment and procurementcategory.

InFY2010,thetotalemploy-mentimpactscreatedinOkla-homa’s economy from theemployment and operationsat Fort Sill equaled 53,219full-timeequivalentjobs.TheimpactsinFY2010includeconstructionprojects;however,sincetheimpactsresultingfromconstruc-tionprojectsare temporaryandgenerallyonly last for thedurationof theconstructionproject, theemploymentimpactsafterFY2010donotincludeconstructiondollars.

InFY2010,theemploymentimpactsofFortSillweresplitbetween48%intheprivatesectorand52%inthegovernmentsector.IfFortSillcontinuesoperationsatsimilarlevelsexperiencedinFY2010,employmentimpactswouldaverage52,056jobsinOklahoma’seconomyafterFY2010.Ifthelevelofactivityissignificantlydifferent,thentheimpactswoulddifferfromtheestimate.

Totalearningsincludewages,salaries,benefitsandproprietor’sincome,andFortSill’simpactonrealtotalearningsinthestate’seconomytotaled$2.7billioninFY2010.ByFY2015,realearningsimpactsareprojectedtobe$3.1billioninthestate’seconomy.

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ªSources & ResourcesSourceformission&background:FortSill Sourcefordatausedasinputsineconomicimpactmodel:FortSill

Sourceforregionalwage:EconomicMod-eling Specialists, Inc.

EconomicImpactSoftware:REMIPolicyInsight+,RegionalImpactModelingInc.

Alsodepicted in thesamegraphasrealearningsisrealdisposableper-sonal income, which is the amount ofmoneythatcanbespentorsavedin theeconomy. Thedifferencebe-tween earnings and disposable in-comeisthedeductionoftaxesfromearnings and the inclusion of inter-est, rentanddividend income. Theoperations and employment at FortSillhada$2.2billionimpactonOkla-homa’srealdisposableincomeinFY2010.Thisisestimatedtoincreaseto$2.5billionbyFY2015.

Gross Domestic Product is a mea-sureofvalue-addedeconomicactiv-ityandnotameasureofsalesoffin-ishedgoodsinaneconomy.Forexample,ifawidgetassemblyplantuses$150ofcomponentsandperforms$100ofvalue-addedactivitytoplaceorservicethecomponentsonthewidget,onlythe$100ofvalue-addedactivitywillbecountedinGDP.

Outputisanalternativemeasureofthesizeoftheeconomythatmeasuresthesalesoffinishedgoodsandservicesintheeconomy.Usingthepreviousexample,outputwouldbemeasuredas$250sincethecomponentsandvalue-addedactivitiesproduceafinishedwidget.

TheemploymentandoperationsatFortSillareestimatedtohavecontributed$4.1billiontoOkla-homa’sGrossDomesticProductinFY2010.ByFY2015,theinstallation’simpactisestimatedtoincreaseto$4.3billion.InFY2010,outputisestimatedtohavebeen$8.0billion.Thisisestimatedtoincreaseto$8.3billionbyFY2015.

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McAlester ArMy AMMunition PlAnt“TrAnSFOrMIng InDuSTrIAl POWEr InTO MIlITAry rEADInESS”

Mission & Background

Located on over 44,000 acres in southeast Oklahomanear McAlester, the McAlesterArmyAmmunition Plant(AAP)currentlyemploysover1,700federalcivilianper-sonnelandonemilitarycommander.McAlesterAAPwasestablishedinMay1943asMcAlesterNavalAmmunitionDepotwiththemissionofproducing,storingandmanag-ing conventional ammunition. In 1977, theDepot wastransferredfromtheNavytotheArmyaftertheUSArmywasdesignatedastheSingleManagerforConventionalAmmunitionbyadirectiveissuedbytheUSDepartmentof Defense. In addition to producing and storing con-ventionalammunitionandmissiles,McAlesterAAPalsorenovatesexplosivesandammunitionaswellasdemili-tarizesequipmentandexplosivesfortheUSDepartmentofDefense.

TheArmyDepotactivitiesinSavanna,GAwererecommendedforclosureinthe1995BRACround,andinthelate1990’stheactivitieswererelocatedtoMcAlesterAAP.ThetrainingfortheDefenseAmmunitionCentermovedtoOklahomaasapartoftheactivitiesrelocatedfromSavanna,andthetrainingattheDefenseAmmunitionCenterisperformedinpartnershipwithOklahoma’scollegesystem.Similarly,inthe2005BRACround,theRedRiverMunitionsCenterinTexaswasrecom-mendedtobeclosedandthestorage,maintenanceanddemilitarizationfunctionsweretransferrednotonlytotheBlueGrassArmyDepotinKentuckybutalsotoMcAlesterAAP.The2005BRAC

• McAlester AAP employed 1,758 military personnel, federal civilians and contractors in FY 2010, which created an additional 1,493 jobs for a total employment impact of 3,251 jobs in Oklahoma’s economy. • Average wages for the federal civilians, contractors and military personnel at McAlester AAP equaled $53,200, which was more than 80% greater than the $29,300 average wage in the region’s economy.• McAlester AAP contributed $203.8 million to the state’s economy in FY 2010.

“The McAlester Army Ammunition Plant/Defense Ammunition Center is a primary pillar for our community and one which provides long term stability, tremendous economic benefits and a sense of patriotism in supporting our military and warfighters.”

-Kevin Priddle, Mayor, City of McAlester

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Economic Activity & Impacts

InFY2010,therewere1,685federalappropriatedfundcivilians,72non-appropriatedfundcivilians,andonemilitarycommanderemployedatMcAlesterAAP.Combined,thetotalpayrollforthesepersonnelequaled$151.8million.WhilemostofthepersonnelemployedatMcAlesterAAParefederalcivilianemployees,theactivitiesthattheyperformmorecloselymatchactivitiesperformedinmanufacturingandlogisticsindustriesthanmostotherfederalcivilianfunctions.Forthisreason,theeconomicimpactsimulationincorporatedthemanufacturingindustrythatperformsmanufacturing,storingandmanagingammunition.

InadditiontotheemploymentandpayrolldirectlycreatedbytheUSDepartmentofDefenseinsoutheastOklahoma,thereareadditionaldirectimpactsintheeconomyfrommilitaryconstructionprojects($2.2million); service contracts ($32.0million);andmaterials,equipmentand procurement expenditures($42.3million).Health/TRICAREexpensesandImpactAidtothelo-calcommunityareincludedinthematerials,equipmentandprocure-ment category.

InFY2010,thetotalemploymentimpacts created in Oklahoma’seconomy from the employmentandoperationsatMcAlesterAAPequaled3,251jobs.Theimpactsin FY 2010 include constructionprojects; however, since the im-pacts resulting from constructionprojectsaretemporaryandgener-

roundalso(1)closedtheKansasAAPandrelo-catedthesensor-fuzedweaponandclusterbombfunctionstoMcAlesterAAPand(2)closedtheLoneStarAAP,whichisadjacenttotheRedRiverDepot,andrelocateditsstorageanddemilitariza-tionfunctionstoMcAlesterAAP. M

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allyonlylastforthedurationof the construction project,theemploymentimpactsaf-ter FY 2010 do not includeconstructiondollars.

InFY2010,theemploymentimpacts of McAlester AAPwere split between 39% intheprivate sector and61%in the government sec-tor. Employment impacts would average 3,331 jobsin Oklahoma’s economy ifMcAlester AAP continuesoperations at similar levels experienced inFY2010. Ifthelevelofactivityissignifi-cantlydifferent,thentheim-pactswoulddifferfromtheestimate.

Totalearningsincludewages,salaries,benefitsandproprietor’sincome.McAlesterAAP’simpactonrealtotalearningsinthestate’seconomytotaled$222.7millioninFY2010.ByFY2015,realearn-ingsimpactsareprojectedtobe$268.1millioninthestate’seconomy.

Alsodepictedinthesamegraphasrealearningsisrealdisposablepersonalincome,whichistheamountofmoneythatcanbespentorsavedintheeconomy.Thedifferencebetweenearningsanddisposableincomeisthedeductionoftaxesfromearningsandtheinclusionofinterest,rentanddividendincome.TheoperationsandemploymentatMcAlesterAAPhada$154.3millionimpactonOklahoma’srealdisposableincomeinFY2010.Thisisestimatedtoincreaseto$190.7millionbyFY2015.

Gross Domestic Product isa measure of value-addedeconomicactivityandnotameasureofsalesoffinishedgoods inaneconomy. Forexample, if a widget as-sembly plant uses $150 ofcomponents and performs$100ofvalue-addedactivityto place or service the com-ponentsonthewidget,onlythe$100ofvalue-addedac-tivitywillbecountedinGDP.

Output is an alternative measure of the size of theeconomy that measures the

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ªSources & ResourcesSourceformission&background:McAlesterAAP

Sourcefordatausedasinputsineconomicimpactmodel:McAlesterAAP

Sourceforregionalwage:EconomicModelingSpecialists,Inc. EconomicImpactSoftware:REMIPolicyInsight+,RegionalImpactModelingInc.

salesoffinishedgoodsandservicesintheeconomy.Usingthepreviousexample,outputwouldbemeasuredas$250sincethecomponentsandvalue-addedactivitiesproduceafinishedwidget.

TheemploymentandoperationsatMcAlesterAAPareestimatedtohavecontributed$203.8milliontoOklahoma’sGrossDomesticProductinFY2010.ByFY2015,theinstallation’simpactisestimat-edtoincreaseto$223.7million.InFY2010,outputisestimatedtohavebeen$422.9million.Thisisestimatedtoincreaseto$463.8millionbyFY2015.

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tinker Air Force BAse“TO DElIVEr AnD SuSTAIn AIr POWEr...AnyTIME, AnyPlACE!”

Mission & Background

• Tinker AFB employed 26,296 military personnel, federal civilians and contractors in FY 2010, which created an additional 36,867 jobs for a total employment impact of 63,163 jobs in Oklahoma’s economy.• Average wages for the military personnel, federal civilians and contractors at Tinker AFB equaled $55,000, which was 43% greater than the $38,500 average wage in the region’s economy.• Tinker AFB contributed $4.4 billion to the state’s economy in FY 2010.

LocatedincentralOklahomainOklahomaCitynearMidwestCityandDelCity,TinkerAFBisamajormilitaryinstallationthatprovidesdepotmaintenancetoaircraftintheUSAF,theAirForceReserve,theAirNationalGuard,Navyandforeignalliedmilitaries.InApril1941,theWarDepartmentan-nouncedthelocationofanairmaterialdepottobenamedMidwestAirDepot,whichlaterbecametheOklahomaCityAirDepotwhenitwasactivatedinMarch1942.AdjacenttotheDepot,DouglasAircraftCompanybuiltanassemblyplant,Building3001,andassembledC-47cargoplanesatthefacilityduringWWII.Duringthewar,theinstallationwasnamedTinkerAFBinhonorofMajorGener-alClarenceTinker,wholosthislifeinabombingmission.AfterWWII,theOklahomaCityAirDepotassumedcontroloftheDouglasbuildings,includingBuilding3001,whenDouglasceasedproductionofcargoplanes.

ThehostunitatTinkerAFBistheOkla-homa City Air Logistics Center (OC-ALC),which is composed of the 72ndAir BaseWing, the 76th MaintenanceWing,andtheOC-ALCAerospaceSus-tainment Directorate. TheOC-ALC isthelargestofthreeairlogisticscentersin theAir Force and has recently ex-panded toBuilding 9001,which is theformer General Motors plant on the

southsideofthebaseandleasedfromOklahomaCounty.Presentlythe76thMaintenanceWingisresponsibleforthemaintenance,repairandoverhauloftheUSAF’sfleetofKC-135,B-52,B-1,E-3,C-130andtheNavy’sE-6aircraft.Withagingaircraft,theOklahomaCityAirLogisticsCenterhas

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“Oklahoma City is a patriotic community that enthu-siastically supports the men and women serving in the Air Force and Navy operations at Tinker AFB. As our largest employer, Tinker AFB is a valued member of this community. We share their values and honor their service.”-Mick Cornett, Mayor, City of Oklahoma City

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Economic Activity & Impacts

InFY2010,therewere26,296peopleemployedatTinkerAFB.Thisincludes7,595militaryperson-nel,15,469federalappropriatedfundcivilians,and3,232contractorsandotherciviliansemployedonthebase.Combined,totalpayrollforthesepersonnelexceeded$1.4billion.Associatedwiththemilitaryactive-dutypersonnelare5,655dependents,andaswitheachoftheinstallationswithactivedutypersonnel,theeconomicimpactsimulationsincorporatethepresenceofthemilitarydepen-dents.TheemploymentandpayrollfiguresincludeSailorsintheUSNavysinceithasasizeablepresenceatTinkerAFB.

InadditiontotheemploymentandpayrolldirectlycreatedbytheUSDepartmentofDefenseincen-tralOklahoma,thereareadditionaldirectimpactsintheeconomyfrommilitaryconstructionproj-ects($59.5million);servicecontracts($574.8million);andmaterials,equipmentandprocurement($110.5million)expenditures.Health/TRICAREexpensesandImpactAidtothelocalcommunityareincludedinthematerials,equipmentandprocurementcategory.

beenreplacingpartsontheaircraftthatwerenevermeant tobe replaced. Theworkper-formed at theOC-ALC ensures that aircraftaresafeastheydisassembleandthenrebuildthemfromthegroundup. TheWing isalsoresponsibleformaintenanceandoverhaulonover22,000engines fora rangeofbomber,refueling,cargoandfighteraircraft.

There are several associate units stationedat TinkerAFB. One of those is the Navy’sStrategic Communications Wing ONE, which operates the E-6B aircraft to provide com-munications to strategic forces. The ap-proximately 1,500 Sailors and contractorsrepresenta largepresenceofNavyperson-nelintheheartofthecountry.InadditiontotheNavy’spresence,otherassociateunitslocatedatTinkerAFBincludethe38thCyberspaceEngineeringGroup,theDefenseLogisticsAgency,theDe-fense Information Systems Agency,the552ndAirControlWing,the507thAirRefuelingWing,andthe448thSup-plyChainManagementWing,whichisapartoftheGlobalLogisticsSupportCenter among other associate units.

"As one of the leaders in the community that was built because of Tinker Air Force Base, I can not begin to say how important the base is to all Midwest Cityans. The thing I can say is their sacrifice to the country is immeasurable by the freedoms they give to each of us. Our support for the men and women in uniform is so small compared to what they provide for us. The families we have come to know personally, as we share everyday life, have brought us everlasting friendships. Thank you for your service and the quality of life you have brought to our community."

-Jack Fry, Mayor, City of Midwest City

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In FY 2010, the total employ-ment impacts created inOkla-homa’s economy from theemployment and operationsat TinkerAFB equaled 63,163jobs. The impacts inFY2010include construction projects;however, since the impacts re-sulting from construction proj-ectsare temporaryandgener-ally only last for the durationof theconstructionproject, theemployment impacts after FY2010 do not include construc-tiondollars.

InFY2010,theemploymentim-pactsofTinkerAFBweresplitbetween 60% in the privatesectorand40%inthegovern-mentsector.TinkerAFB’sem-ployment impacts would aver-age64,321jobsinOklahoma’seconomy if itcontinuesopera-tions at similar levels experi-encedinFY2010.Ifthelevelofactivityissignificantlydiffer-ent,thentheimpactswoulddif-ferfromtheestimate.

Total earnings include wages,salaries, benefits and propri-etor’s income. Tinker AFB’simpact on real total earnings in the state’seconomy totaled$4.1billioninFY2010.ByFY2015, real earnings impactsareprojectedtobe$4.6billioninthestate’seconomy.

Alsodepicted in thesamegraphasrealearnings isrealdisposablepersonal income,which is theamountofmoneythatcanbespentorsavedintheeconomy.Thedifferencebetweenearningsanddisposableincomeisthedeductionoftaxesfromearningsandtheinclusionofinterest,rentanddivi-dendincome.TheoperationsandemploymentatTinkerAFBhada$3.2billionimpactonOklahoma’srealdisposableincomeinFY2010.Thisisestimatedtoincreaseto$3.8billionbyFY2015.

GrossDomesticProductisameasureofvalue-addedeconomicactivityandnotameasureofsalesoffinishedgoodsinaneconomy.Forexample,ifawidgetassemblyplantuses$150ofcomponentsandperforms$100ofvalue-addedactivitytoplaceorservicethecomponentsonthewidget,onlythe$100ofvalue-addedactivitywillbecountedinGDP.

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ªSources & ResourcesSourceformission&background:TinkerAFB

Sourcefordatausedasinputsineconomicimpactmodel:TinkerAFB

Sourceforregionalwage:EconomicModelingSpecial-ists, Inc.

EconomicImpactSoftware:REMIPolicyInsight+, RegionalImpactModelingInc.

Outputisanalternativemeasureofthesizeoftheeconomythatmea-sures the salesof finishedgoodsandservicesintheeconomy.Us-ing the previous example, outputwouldbemeasuredas$250sincethecomponentsandvalue-addedactivities produce a finished wid-get.

TheemploymentandoperationsatTinkerAFBareestimatedtohavecontributed$4.4billiontoOklaho-ma’s Gross Domestic Product inFY2010.ByFY2015,theinstal-lation’s impact is estimated to in-creaseto$4.9billion.InFY2010,output is estimated to have been$8.1 billion. This is estimated toincreaseto$8.8billionbyFY2015.

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“Del City is a devoted community that eagerly supports the men and women of Tinker Air Force Base, the United States military and their mission. Our community is very fortunate to be next to the larg-est single-site employer in the state of Oklahoma. Tinker AFB is vital to our community employ-ing over 26,000 military and civilian employees. Del City recognizes the challenges confronting American service men and service women and their families with the sacrifices they make everyday protecting our nation’s freedom.”

-Brian Linley, Mayor, City of Del City

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VAnce Air Force BAse“DEVElOP, DElIVEr, DEPlOy TO Fly...FIghT...AnD WIn”

Mission & Background

• Vance AFB employed 2,699 military personnel, federal civilians and contractors in FY 2010, which created an additional 2,876 jobs for a total employment impact of 5,575 jobs in Oklahoma’s economy. • Average wages for the military personnel, federal civilians and contractors at Vance AFB equaled $49,100, which was 51% greater than the $32,400 average wage in the region’s economy.• Vance AFB contributed $250.1 million to the state’s economy in FY 2010.

LocatedinnorthwestOklahomaadjacenttoEnid,VanceAFBemploysnearly2,700militaryperson-nel,contractorsandfederalcivilianpersonnel.VanceAFBoriginatedasaflightschoolandtrainedthousandsofpilotsforWWII.ItwasactivatedasEnidArmyFlyingSchoolonFebruary11,1942andlaterdeactivatedwhenthedemandforpilotsdecreasedonJuly2,1945–betweentheWWIIsurren-deringdatesofGermanyandJapan.ThemilitaryinstallationwasreactivatedonJanuary13,1948andnamedforLt.Col.LeonVance,aWWIIMedalofHonorrecipientwhowasbornandraisedinEnid,OK.

The71stFlyingTrainingWingisthehostunitatVanceAFBandwasactivatedinAugust1948asthe71stTacticalReconnaissanceWingbasedinOkinawa.TheWingwasactiveforaweekandthennon-oper-ationalfor2monthsbeforetheUSAFinactivatedtheWinginOctober1948.Afterreactivationandredesig-nation as the 71st Strategic Reconnaissance Wing in 1954,itservedinLarsonAFB,WAuntil1957(LarsonAFBclosedin1966)whenitwasinactivated.Itwasreactivatedandredesignatedasthe71stSurveillanceWingin1961atEntAFB,COandwasstationedthereuntil1967(EntAFBclosedin1976).Itwasredes-ignatedthe71stMissileWarningWingin1967andmovedtoMcGuireAFB,NJwhereitoperatedfrom1968until1971.Itwasredesignatedasthe71stFly-ingTrainingWingin1972,andsincethenhasbeen

“Vance Air Force Base is a very impor-tant asset to the City of Enid as well as northwest Oklahoma. Our area has been a tremendous supporter of the base since its opening in 1941. We take great pride in knowing that when our men and women are deployed that they are well trained to do their jobs of protecting the U.S.A.’s freedom. Also, their families will have our entire community’s support.”

- Bill Shewey, Mayor, City of Enid

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stationedatVanceAFB.The71stFlyingTrainingWingcon-sistsofthe71stMissionSupportGroup,the71stMedicalGroup,andfiveflyingtrainingsquadronswithinthe 71st Operations Group.The71stFlyingTrainingWingprovidesJointSpe-cializedUndergradu-atePilotTrainingtomilitary personnel intheUSAirForce,Navy,andMarineCorps as well as internationalstudentpilots.InFY2010,theWingtrained493pilotsandgraduated332pilots.

The71stFlyingTrainingWingatVanceAFBtrainsstudentsintheT-1AJayhawk,theT-6ATexanIIandtheT-38CTalonaircraft.Withover56,000sortiesflowninFY2010,VanceAFBisoneofthebusiestairportsintheUS.InadditiontousingtheairfieldatVanceAFB,theWingalsousesKegel-manAuxiliaryField,whichisontheeastsideofGreatSaltPlainsLakeinOklahoma,theBurnsFlat/Clinton-ShermanAirfieldinwesternOklahoma,andWoodringMunicipalAirportnearEnid.

Economic Activity & Impacts

InFY2010,therewere2,699peopleemployedatVanceAFB.Thisincludes1,318militaryperson-nel,215federalappropriatedfundcivilians, and 1,166 contractorsand other civilians employed onthe base. Combined, total pay-roll for these personnel equaled$132.7million inFY2010. Asapilot training installation, friendsand family visit students whentheygraduate frompilot training,and the impacts that result fromthedollarsspentintheeconomyareincludedinthetotaleconomicimpactofVanceAFB.

In addition to the employmentand payroll directly created bythe US Department of Defensein northwest Oklahoma, there

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are additional direct impactsin the economy from militaryconstruction projects ($14.5million); service contracts($8.7 million); and materials,equipment and procurement($49.8 million) expenditures.Health/TRICARE expensesand Impact Aid to the localcommunityareincludedinthematerials,equipmentandpro-curement category.

InFY2010, the totalemploy-mentimpactscreatedinOkla-homa’s economy from theemployment and operationsat VanceAFB equaled 5,575jobs.Sincemuchoftheoper-ationsofVanceAFBareperformedbyciviliancontractors,approximatelytwo-thirdsoftheemploymentimpactsoccurredintheprivatesectorwiththeremainingone-thirdoccurringinthegovernmentsector.

AfterFY2010,muchofthedecreaseinemploymentisaresultoftheexclusionofmilitaryconstruc-tionprojectsfromtheeconomicimpactsimulation.Theoperationsoftheinstallationareassumedtorequiresimilarlevelsofserviceandprocurementcontractsneededforoperationsgoingforward,butsinceconstructionprojectsaretemporaryandcanvaryfromoneyeartothenext,constructionvariableswerenotincludedafterFY2010.

Withoutconstructionprojects,employmentimpactswouldaverage5,215jobsinOklahomainFY2015ifVanceAFBoperatesatsimilarlevelsexperiencedinFY2010.Ifthelevelofactivityissignifi-cantlydifferent,thentheimpactswoulddifferfromtheestimate.Approximately10%oftheeconomicimpactsresultingfromtheoperationsofVanceAFBoccursoutsideofthelocalregion.

Totalearningsincludewages,salaries,benefitsandproprietor’sincome.VanceAFB’simpactonrealtotalearningsinthestate’seconomytotaled$312.2millioninFY2010.ByFY2015,realearn-ingsimpactsareprojectedtobe$336.8millioninthestate’seconomy.

Alsodepictedinthesamegraphasrealearningsisrealdisposablepersonalincome,whichistheamountofmoneythatcanbespentorsavedintheeconomy.Thedifferencebetweenearningsanddisposableincomeisthedeductionoftaxesfromearningsandtheinclusionofinterest,rentanddividendincome.TheoperationsandemploymentatVanceAFBhada$250.1millionimpactonOklahoma’srealdisposableincomeinFY2010.Thisisestimatedtoincreaseto$271.8millionbyFY2015.

GrossDomesticProductisameasureofvalue-addedeconomicactivityandnotameasureofsalesoffinishedgoodsinaneconomy.Forexample,ifawidgetassemblyplantuses$150ofcomponentsandperforms$100ofvalue-addedactivitytoplaceorservicethecomponentsonthewidget,onlythe$100ofvalue-addedactivitywillbecountedinGDP.

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ªSources & ResourcesSourceformission&background:VanceAFB

Sourcefordatausedasinputsineconomicimpactmodel:VanceAFB

Sourceforregionalwage:EconomicModelingSpecialists,Inc.

EconomicImpactSoftware:REMIPolicyInsight+,RegionalImpactModelingInc.

Output is an alternative measure of the size of the economy thatmeasures the sales of finishedgoodsandservicesintheecono-my.Usingthepreviousexample,output would be measured as$250 since the components andvalue-added activities produce afinishedwidget.

Intotal, theemploymentandop-erations at VanceAFB are esti-matedtohavecontributed$346.0million toOklahoma’sGrossDo-mesticProductinFY2010.With-out an estimate for constructionprojects after FY 2010, the in-stallation’s impact decreases to$342.6million inFY2011but in-creasesto$354.0millionbyFY2015.InFY2010,outputisestimatedtohavebeen$653.8million.Thisisestimatedtoincreaseto$665.2millionbyFY2015.

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AcknowledgeMentsThemilitaryanddefenseindustryaremajorenginesinthestate’seconomythatgenerateemploy-mentanddriveeconomicdevelopment.TheGovernoroftheStateofOklahoma,theHonorableMaryFallin,theOklahomaSecretaryofCommerce&Tourism,theHonorableDaveLopez,andtheOklahomaSecretaryofVeteransAffairs,theHonorableRitaAragon,providedthevision,leadershipandsupporttorecognizethemilitary’scontributiontothestate’seconomy.Furthermore,areportofthisscopeisnotpossiblewithoutcooperationfromcommandersanddeputycommandersateachoftheinstallations.Iappreciatetheirsupportandtheassistanceoftheirstaff.

Altus Air Force Base The men and women of the 97th Air Mobility Wing

ColonelAnthonyKrawietz;97thAirMobilityWingCommanderColonelCaseyEaton;97thAirMobilityWingViceCommanderColonelJamesPecciaIII;97thMissionSupportGroupCommanderMajorOlgaAcosta;97thComptrollerSquadronCommander

Fort Sill The men and women of the FIRES Center of Excellence

MajorGeneralDavidHalverson;CommandingGeneralFiresCenterandFortSillKirbyBrown;DeputytotheCommandingGeneralColonelPaulHossenlopp;FortSillGarrisonCommanderRobertJameson;FortSillReportTeamLead

McAlester Army Ammunition Plant The men and women at the McAlester Army Ammunition Plant

ColonelTimothyBeckner;McAlesterAAPCommanderGaryReasnor;McAlesterAAPCivilianDeputyRobertBailey;McAlesterAAPBusinessDevelopmentRobertMabray;McAlesterAAPDirectorofResourceManagement

Tinker Air Force Base The men and women of the OC-ALC and associate units at Tinker AFB

MajorGeneralP.DavidGillett,Jr.;OklahomaCityAirLogisticsCenterCommanderMajorGeneralBruceLitchfield;SpecialAssistanttotheAFMCCommanderRossE.Marshall;ExecutiveDirector,OklahomaCityAirLogisticsCenterColStevenJ.Bleymaier,ViceCommander,OklahomaCityAirLogisticsCenterVinceHowie;Director,Plans&ProgramsDirectorate,OC-ALC

Vance Air Force Base The men and women of the 71st Flying Training Wing

ColonelRussellMack;71stFlyingTrainingWingCommanderColonelRogerWitek;71stFlyingTrainingWingViceCommanderColonelKurtMeidel;71stOperationsGroupCommanderColonelMichaelMcDaniel;71stMissionSupportGroupCommanderColonelDougCurry;71stMedicalGroupCommanderLt.ColonelMichaelMerritt;71stOperationsGroupDeputyCommanderLt.ColonelRichardWard;71stMissionSupportGroupDeputyCommander

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Norwouldthisreporthavebeenpossiblewithouttheadviceandassistancefromamyriadofother stakeholders,veterans,colleagues,andmentors.Inadditiontocolleagueswhoprovidedsupport,AldwynSappleton,DebraLeaandJenniferLovell,thefollowingstakeholders,veteransandmentorsshouldbeacknowledgedfortheiradviceandrecommendationsthroughouttheproject:

DeidreMyers;Policy,Research&EconomicAnalysisDivisionDirector, OklahomaDepartmentofCommerce

DaveWagie,PhD(BrigadierGeneral,USAF,RET);Dir.ofAerospaceEconomicDev., OklahomaDepartmentofCommerce

Dr.RobertDauffenbach;UniversityofOklahomaAssociateDeanforResearch& GraduatePrograms

MikeSeney;SeniorVP,PolicyAnalysis&StrategicPlanning,TheStateChamberofOklahoma

Oklahoma Military Strategic Planning CommissionMichaelCooper;ChairmanOMSPCandVanceAFBrepresentative;DaveRalston(MajorGeneral,USArmy,RET);FortSillrepresentativeDr.JoeLeverett;AltusAFBrepresentativeRobertConner;TinkerAFBrepresentativeMarkJordan;McAlesterAAPrepresentativeMajorGeneralMylesDeering;AdjutantGeneral,OklahomaNationalGuardSecretaryRitaAragon(MajorGeneral,USAF,RET);OklahomaSecretaryofVeteransAffairs

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"The quality of life we experience in Oklahoma is enhanced and amplified by the contributions of all our military members and their families. ‘Military’ meaning the total of Active, Guard, Reserve, Veterans, and all the members of the community who support them emotionally, mentally, and spiritually. These dedicated Oklahomans enrich our lives with their patriotism, in-tegrity and service before self. Their drive for excellence makes all Oklahoma the winner and recipient of the greatest gift - love. It is such an honor to serve them."

-Rita Aragon, Oklahoma Secretary of Veterans Affairs

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Research, economic analysis and written content by Jon Chiappe, Deputy Division Director of Policy, Research and Economic Analysis; Oklahoma Department of Commerce

Oklahoma’s Five Military Installations: an Economic impact REpoRt


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