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I I I I I I I I I I I I I I I I I I I 0222. 2. Economic, financial and social; commerce, opportunity and quality of life Water users are impacted by water transfers, but so are members of the local and regional communities. For example, the dollar in the farmer's pocket pays taxes and is spent with the local merchant, and the merchant in turn pays taxes. The impacts of a dollar spent can val)' significantly: a dollar deposited with out of state bank works differently than the dollar paid to the local farm laborer. Transfer of water brings a one-time flow of cash to sellers; this mayor may not be spent in the study area. Some (perhaps most) may be used to repay lenders, including some local bank debts, which may increase local capital supply. However, there may be little need for additional capital in the locality so it will flow elsewhere. Transfer of water results in loss of acreage in irrigated agriculture: a. If water is transferred outside the study area, loss of agricultural production is greatest. b. If water is reallocated within the study area to agriculture, loss of production is Jessened--and possibly no loss occurs. Co Ifwater is reallocated to other uses within study area (e.g., M&I, wildlife, recreation), loss of agricultural production may be offset by economic gains in other sectors. d. Ifwater transfer requires construction of diversion works within the study area, rather than upstream, or requires revegetation of dried up land, there wiII be some temporal)' economic benefit and job creation which will offset some of the economic loss. e. Loss of irrigated acreage will reduce property values in the study area. Lower property values will adversely impact tax revenues of all local governments, school and special districts. Colorado constitution amendment 1 (1992) has added new restrictions on tax revenues. Transfer of water will result in loss of farming/ranching jobs. (Howe, Lazo and Weber 1990): a. If water is reallocated to other uses within the study area there will be some additional job growth in other sectors. b. Substantial economic development efforts would be needed to maximize job growth if water is reallocated within the state to other uses. Transfer of water will result in loss of agribusiness sales (farm machineI)', fuel, seed, herbicides) and jobs related to processing or transporting agricultural products (Taylor and Young 1991, 296-297): a. Loss of agricultural production and agribusiness sales will reduce retail and wholesale trade in the study area due to negative multiplier effect. b. If and when out-migration follows loss of local jobs, there will be further reduction of retail and wholesale trade in the study area. 2.9