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Arizona military installations boost local economy

10:12 AM MST on Tuesday, July 22, 2008

By Delane Cleveland, Fox 11 News

These days, it seems all you hear is doom and gloom about the economy, but there’s one employer that hasn’t been hit by the looming threat of recession, and is helping to keep Tucson’s economy flying high.

 

A new study that was released on Monday, July 21, shows that Arizona’s military installations contribute more than $9 billion to the state’s economy. At Davis-Monthan Air Force Base, Governor Janet Napolitano brought some rare positive economic news regarding the military’s impact on the state.

 

“The actual contribution was more than $9.1 billion dollars,” says Napalitano. That’s a $4 billion increase from the last study, released five years ago. And it’s visible in the form of more than 96,000 jobs and $401 million in tax payments.

 

The Governor says this study is yet another tool to help lure more missions to Arizona’s military bases, and ensure their long-term survival. “In my discussions with the Pentagon, among other things it’s very clear they go where they feel support, and there’s a lot of support here from the community for the military,” she says.

 

A key challenge that Arizona faces is it’s rapidly growing population and the potential for encroachment on the military bases. “Whenever you have military bases close to urban areas, you’re going to have those issues,” says Napolitano.

 

Those issues are the subject of ongoing discussion in the Legislature, but when the military pumps $9 billion into the state’s economy, it’s a problem lawmakers are willing to try and solve. More than 10,000 military and civilian workers are employed at Davis-Monthan, and make nearly $455 million in salaries according to the Economic Impact Study.

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