Hermiston School District commissioned Elesco Limited of Bend, Ore., to provide an economic impact analysis of the district’s proposed $104 million construction bond. The 10-year analysis utilized the current proposed construction budget, which totals more than $108 million, inclusive of the potential state matching grant funds.
According to the study, a total of 540 direct sub-contractors are expected to be used over the four-year construction phase, resulting in over $24 million in direct labor income. In addition to the direct income, an additional 250 jobs are expected to be created, as a result of indirect and induced effects, bringing total construction labor income for the projects in excess of $34 million.
The remaining $83 million project budget is expected to be utilized to purchase capital construction materials and supplies. Based upon Elesco’s use of the nationally recognized IMPLAN model, Umatilla County is said to be approximately 75 percent self-sufficient in the construction sector, and it imports about 25 percent of commodities through trade with other counties. This means that approximately $63 million in district construction-related purchases is expected to remain in the local Umatilla County economy.
In addition to the construction cost, the district expects to increase employment by approximately 95 individuals, 20 of which would be directly related to the construction. While payroll costs will be escalating, other operating, maintenance, repairs and overhead expenditures are expected to see only slight increases, primarily due to the new buildings being more efficient and requiring less repairs. The district saw significant savings in maintenance, repairs and overhead from the schools built during the 2008 school bond.
Combined, the analysis reveals that, over the ten-year time span, the district is expected to spend nearly $187 million on new construction related purchases, over 78 percent more than the original community bond request.