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<br />r J <br />,J <br />I j <br />IJ <br />J <br />I J <br />I <br />J <br />IJ <br />I <br />,J <br />I J <br />I J <br />J <br />J <br />J <br />J <br />J <br />J <br />J <br />J <br />J <br />j <br />J <br /> <br />An important fact which must be remembered when considering the <br /> <br />benefits of the Animas-La Plata Project is that the San Juan Region is <br /> <br />an area of substantial and persistent unemplovment and under employment. <br /> <br />We expect much, if not all, of the benefits to be net increases to the <br /> <br />area. A recent study shows that for past Bureau of Reclamation projects, <br /> <br />even among those workers who were not "local" the percent who experienced <br /> <br />some unemployment in the six weeks prior to being employed in the project <br />1 <br />was as high as 47 percent. Thus, if one considers the severe unemploy- <br /> <br />ment of the Southern Ute and Mountain Ute tribes, the high unemployment <br /> <br />and under-employment of the region in general, and the past unemployment <br /> <br />experience of the non-local workers who have worked on past projects, it <br /> <br />is reasonable to expect the benefits to be net increases in value. <br /> <br />Finally, we feel that the Southwestern Water Conservation District <br /> <br />data presented in Table 1 are the best estimates of the benefits and the <br /> <br />benefit-cost ratios of the Animas-La Plata Project because the long run <br /> <br />real interest rete is much closer to 3.250 percent than to 6.625 percent. <br /> <br />Again, if one is honest in his desire to raise the discount rate due to <br /> <br />inflation he ought to be honest enough to then raise the projected <br /> <br />benefit by at least an equal rate and the net effect of this change <br /> <br />would be zero. <br /> <br />2 <br />