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<br />12 <br /> <br />{4} A shift in the mix of basic economic activity away from traditional, <br />more stable sources {e.g., agriculture, trade, services} into construc- <br />tion and operational employment related to energy development. <br /> <br />(5) Housing demand, both for permanent and temporary housing, quickly ex- <br />ceeds the supply; prices increase substantially. <br /> <br />(6) The incidence of social problems, such as burglary, vandalism, tru- <br />ancy, dropping out of school, child abuse, alcoholism, depression, <br />divorce and the demand for welfare, increase at rates far above the <br />rate of population increase. <br /> <br />(7) Deterioration of the quality of life. In the private sector, prices <br />may increase, retail outlets and services may become overcrowded, <br />and medical services are likely to be strained. In the public sec- <br />tor, public services and facilities (recreation, streets, water, <br />sewer) fail to keep pace with population growth. Public sector fi- <br />nancial problems, particularly at the municipal level, become severe. <br /> <br />(8) Employee turnover increases and productivity drops. <br /> <br />(g) In the early stages of growth, there is a lack of planning or concern <br />over growth management. <br /> <br />(10) There is usually uncertainty as to the magnitude and permanence of <br />energy projects and, hence, their social and economic impacts. <br /> <br />Scoping the Problem <br />One of the first tasks undertaken by the Boom Town Financing Study staff <br />and the Governor's Advisory Committee was to attempt to define the scope <br />of the problem within the limits of the study effort. The staff reviewed <br />and analyzed pertinent literature in the field and developed a preliminary <br />information base. Using these data as a starting point, the staff and the <br />Advisory Committee met at regular work sessions to discuss and further <br />define the issues. <br /> <br />The result of the Committee's initial deliberations was to limit the scope <br />of the inquiry to front-end financing problems likely to be experienced by <br />