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Big Impact

Minot AFB adds million of dollars to economies of local communities

Airman 1st Class Marcus Watkins, 5th Maintenance Squadron non-destructive inspection apprentice, cleans iron particles off of a piece of equipment at Minot Air Force Base on Jan. 25, shown in this photo by Senior Airman Jonathan McElderry.

MINOT AIR FORCE BASE – Nearly 20 years ago, Minot Air Force Base had an economic impact of $268 million on the local area and a total payroll of $159.7 million.

Those figures are from the base’s fiscal year 2000 economic impact report prepared by the Budget Office of the 5th Bomb Wing Comptroller.

Today, the Minot base – home of the 5th Bomb Wing with its B-52 bombers and the 91st Missile Wing overseeing 150 Minuteman III intercontinental ballistic missiles in northwest and north central North Dakota – has an economic impact slightly more than twice the amount reported nearly 20 years ago.

In fiscal year 2018, the base contributed $543.1 million to the local economy and its payroll was $361.4 million, according to 2nd Lt. Trevor Violette, budget officer for the 5th base’s Comptroller Squadron.

Violette reported the findings at a February meeting of the Minot Area Chamber of Commerce’s Military Affairs Committee.

The report is prepared each year to inform community leaders and others of the economic impact Minot AFB has on the local area.

Property and Buildings

Minot AFB consists of over 5,304 acres of land, said Violette. He said the base also has right of way easements for over 19,000 acres that make up the Minot missile complex.

The base has 474 industrial buildings and 1,606 family housing units, 14 dormitories/visiting quarters and 14 temporary lodging facilities. In addition, there are miles of utility distribution lines, roads, flightline runways and taxiways, over 1,100 vehicles and many more items including communication and electronic systems that need to be maintained, Violette said.

Population

“Obviously, it takes a great deal of manpower to operate the Minot base,” Violette said.

On Sept. 30, 2018, the base had 5,353 active-duty military personnel assigned to the Minot base. Accompanying military family members totaled 6,055, Violette said.

“Civilian employees also make up a significant portion of the workforce at Minot Air Force Base,” Violette said. The base has 1,015 civilian employees.

Combining military members, military family members and civilian employees, the base has a total population of 12,423 people.

In looking at yearly population of the base, there was a 2 percent increase from fiscal year 2017 to fiscal year 2018, according to Violette.

Payroll

The 5,353 active-duty military personnel had a payroll of more than $305 million and reserve forces had a payroll of $900,000, for a total military payroll of $306,430,076, Violette said.

He said 53 percent of the base’s airmen and their families live off base in Minot or the surrounding communities.

The total civilian payroll comes to more than $55 million. Combining military personnel and civilian payroll, the base’s total payroll is more than $361 million. Violette said much of the payroll is spent in local communities.

The 2018 payroll of $361.4 million in fiscal year 2018 is a slight decrease compared to the 2017 fiscal year payroll of $381.7 million.

Maintenance and Construction

“Each year many dollars are spent on maintaining buildings, roads and other infrastructure at Minot Air Force Base,” Violette said.

During fiscal year 2018, $42.3 million was spent on construction projects and $10.5 million on service contracts.

“Many dollars are spent in the community to keep Minot Air Force Base running,” Violette said. He said the commissary and Base Exchange spent more than $1.8 million while health care services under the Tricare program spent more than $21.4 million and education services more than $9 million, among other procurements. Total other procurements came to more than $42.3 million.

“Altogether money spent for construction, services and other procurements totaled $87 million,” Violette said.

Fiscal year 2018 had a decrease in construction, services and other procurements driven by a slight decrease in construction projects, Violette said.

Indirect jobs

The number of indirect jobs shows how the money ripples through the local economy. In fiscal year 2018, 1,985 indirect jobs were created in the Minot area. Based on an annual wage of $47,476, the 1,985 indirect jobs have a dollar value of more than $94 million, Violette said.

Total economic impact

“To determine the total economic impact of the Minot community, we add the annual payroll of the base, the base’s annual expenditures – construction, services, material and equipment – and the value of indirect jobs created. This produces a grand total of over $543.1 million. This figure represents the economic contributions of Minot Air Force Base makes to the local community,” Violette said.

He said a look at the multi-year economic impact chart shows the overall trend of the past five years has been fairly constant in actual dollars since 2014.

He said the Minot area also has 1,442 military retirees with a gross payroll of $33.1 million. He said these dollars also contribute to the economy of the local community. A five-year comparison of military retirees’ pay shows an annual increase each year.

He said the fiscal year 2018 economic impact of Minot AFB on the local community was slightly lower than fiscal year 2017. A slight decrease in construction projects was one of the key factors in the slightly lower economic impact.

“The bottom line: Minot Air Force Base will continue to have a positive economic impact on the city of Minot and surrounding communities in FY19 and beyond,” Violette said.

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