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<br />2. Economic, financial and social; commerce, opportunity and quality or lire <br /> <br />Water users are impacted by water transfers, but so are members of the local and regional <br />communities. For example, the dollar in the farmer's pocket pays taxes and is spent with the local <br />merchant, and the merchant in turn pays taxes. The impacts of a dollar spent can vary significantly: <br />a dollar deposited with out of state bank works differently than the dollar paid to the local farm <br />laborer. Transfer of water brings a one-time flow of cash to sellers; this mayor may not be spent <br />in the study area. Some (perhaps most) may be used to repay lenders, including some local bank <br />debts, which may increase local capital supply. However, there may be little need for additional <br />capital in the locality so it will flow elsewhere. <br /> <br />Transfer of water results in loss of acreage in irrigated agriculture: <br /> <br />a. If water is transferred outside the study area, loss of agricultural production is <br />greatest. <br />b. If water is reallocated within the study area to agriculture, loss of production is <br />lessened--and possibly no loss occurs. <br />c. If water is reallocated to other uses within study area (e.g., M&I, wildlife, recreation), <br />loss of agricultural production may be offset by economic gains in other sectors. <br />d. Ifwater transfer requires construction of diversion works within the study area, rather <br />than upstream, or requires revegetation of dried up land, there will be some <br />temporary economic benefit and job creation which will offset some of the economic <br />loss. <br />e. Loss of irrigated acreage will reduce property values in the study area. Lower <br />property values will adversely impact tax revenues of aIlloca1 governments, school <br />and special districts. Colorado constitution amendment 1 (1992) has added new <br />restrictions on tax revenues. <br /> <br />Transfer of water will result in loss of farming/ranching jobs. (Howe, Law and Weber 1990): <br /> <br /> <br />a. If water is reallocated to other uses within the study area there will be some <br />additional job growth in other sectors. <br />b. Substantial economic development efforts would be needed to maximize job growth <br />if water is reallocated within the state to other uses. <br /> <br />Transfer of water will result in loss of agribusiness sales (farm machinery, fuel, seed, herbicides) and <br />jobs related to processing or transporting agricultural products (Taylor and Young 1991, 296-297): <br /> <br />a. Loss of agricultural production and agribusiness sales will reduce retail and wholesale <br />trade in the study area due to negative multiplier effect. <br /> <br />b. If and when out-migration follows loss of local jobs, there will be further reduction <br />of retail and wholesale trade in the study area. <br /> <br />2-9 <br />