per capita. The average annual wage 

 in forestry is $49,490 or nearly 

 2 . 14 times as much as the average 

 wage earner in Flathead County. 

 Lumber workers earn on average 

 $34,574 per year or nearly 50 

 percent more than the average wage 

 earner. In employment terms, 

 forestry and lumber workers account 

 for 1,955 jobs, or about 6 percent, 

 of the area employment. Other 

 industries supported by tourism 

 actually supply substantially more 

 jobs: eating and drinking 

 establishments, hotels and lodging, 

 and amusement and recreation 

 services employ 4,792 workers, 

 nearly 16 percent of the County's 

 wage and salary employees, or over 

 twice as many as the forestry and 

 lumber industries. However, wages 

 are lower in the tourism- supported 

 industries . The lower wage means 

 that over twice as many workers 

 produce less in terms of annual wage 

 income in the County. Forestry and 

 lumber, combined, produce 

 $68,247,000 in annual wage income 

 (9.8 percent of all regional wage 

 and salary income) whereas the 

 tourist-related industries (lodging, 

 restaurants, and recreation) yield 

 $50,000,000 (7.2 percent of all 

 regional wage and salary income) in 

 annual wage and salary income. 

 Income in tourist-related industries 

 and proportional decreases in forest 

 industries would lead to a lower 

 average wage in Flathead County and 

 a lowered ability for individual 

 residents to purchase goods and 

 services. 



ALTERNATIVE EFFECTS 



DIRECT EFFECTS 



This EA provides for 2 alternatives: 



• No-Action Alternative A - No 

 employment, income, or school 

 trust fund effects that result 

 from Action Alternative B would 

 occur . 



• Action Alternative B - The 

 estimates provided in the 

 following analysis are for the 



purpose of comparing the "action" 

 alternative to the "no-action" 

 alternative and are not intended 

 as an absolute estimate of the 

 employment, income, or wages 

 associated with the sale. 



The estimated stumpage volume rate 

 and income, together with an 

 estimate of revenue to the trust, is 

 shown in TABLE F-2 - ESTIMATED 

 REVEtfUES FROM THE DOG MEADOW TIMBER 

 SALE. The stumpage value was 

 estimated using the most current 

 transaction evidence equation. The 

 transaction evidence appraisal 

 method uses a multivariate 

 regression equation to estimate the 

 bid price based on past sale 

 characteristics and the market data. 



TABLE F-2 - ESTIMATED REVEIfUES FROM 

 THE DOG/MEADOW TIMBER SALE 



TABLE F-3 - ESTIMATED NUMBER OF 

 STUDENTS SUPPORTED BY 1 YEAR'S 

 ESTIMATED SALE REVENUE shows that 

 the trust revenue would provide 

 enough money to pay for the 

 education of 201 students in the 

 kindergarten through grade 12 levels 

 for 1 year; this estimate is based 

 on an annual student cost of $6,038, 

 as determined from information 

 provided by the Montana Office of 

 Public Instruction. 



TABLE F-3 - ESTIMATED NUMBER OF 

 STUDENTS SUPPORTED BY 1 YEAR'S 

 ESTIMATED SALE REVENUE 



Appendix F - Economic Analysis 



Page F-3 



