ECONOMIC? 



INTRODUCTION 



This analysis summarizes the economic 

 impacts of the timber sale and 

 focuses on market activities that 

 directly or indirectly benefit the 

 Montana education system and the 

 local economy. The Enabling Act of 

 18 8 9 and the State of Montana 

 Constitution require that income be 

 generated from State forestlands for 

 the school trust fund and to provide 

 funding for public buildings. 



ANALYSIS AREA 



The analysis centers on Flathead 

 County in northwestern Montana, where 

 the Dog/Meadow Timber Sale Project is 

 located. Most of the economic 

 impacts related to this timber sale 

 project are likely to occur in 

 Flathead County because of its well- 

 developed wood-product industry. 



FLATHEAD COUNTY 



Flathead County, located in the 

 northwest corner of Montana, is the 

 fourth most populous county in the 

 State. The population in Flathead 

 County increased by 15,253 residents 

 between 1990 and 2000, a growth rate 

 of 2.3 percent . The average age in 

 Flathead County is 3 7.2 years, a 

 slightly younger population than the 

 State average of 37.8 years. 



The Montana Office of Public 

 Instruction indicates that over 

 13,000 kindergarten through grade 12 

 school children were enrolled in 

 Flathead County public schools in the 

 2000/2001 school year. Since 1991, 

 the enrollment in high schools has 

 increased more than 23 percent. 



The woods product industry is the 

 largest producer in the County, 

 accounting for approximately 21 

 percent of the County' s gross 

 product . 



Total employment in Flathead County 

 shows that nearly 30,200 workers 

 earned $697 million in wages in 1999; 

 an average annual wage of $23,152. 

 This average annual wage is about the 



same as the Statewide annual wage. 

 The average annual wage of workers in 

 the forestry industry is $49,490, 

 almost 2.14 times as much as the 

 average wage earner in Flathead 

 County. Lumber workers earn an 

 average of $34,574 per years, or 

 nearly 50 percent more than the 

 average wage earner. Forestry and 

 lumber workers account for 1,955 

 jobs, or about 6 percent of the jobs 

 in Flathead County. Forestry and 

 lumber, combined, produce 

 approximately 9.8 percent of the 

 areas wage and salary income. 



ALTERNATIVE EFFECTS 

 DIRECT AND INDIRECT EFFECTS 



• Direct and Indirect P^ffech ofj\o-^lctinn 

 . Ilternatice ,1 on Economics 



No people would be employed or earn 

 income from this timber sale 

 project under this alternative. No 

 money would be earned from this 

 timber sale in support of schools 

 or public buildings. 



• Direct and Indirect flffectit of. let ion 

 ^Ilternatice li on Economics 



The estimates in this analysis 

 compare the action alternative to 

 the no-action alternative. These 

 estimates of the employment, 

 income, or wages associated with 

 this sale are not intended to be 

 absolute. 



If the estimated harvest volume of 

 60,221 tons of timber sells for an 

 estimated stumpage of $27.82 per 

 ton, the total revenue earned for 

 the stumpage would be $1,675,000. 

 Of this, the revenue for the school 

 trust would be $1,212,600. This 

 would be enough money to educate 

 2 01 students in grades kindergarten 

 through 12 for 1 year. This 

 estimate is based on a student cost 

 per year of $6,038, as provided by 

 the Montana Office of Public 

 Instruction. 



This timber sale project would 

 provide approximately 94 jobs to 



Page III -18 



Dog/Meadow Timber Sale Project Draft EA 



