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• in each. Therefore, at a minimum, almost $60,000 of this tax should have been <br />returned to the area for alleviating impacts. <br />As noted, the previous discussion centered only on the direct expenditures of <br />WSCC in the area. Bowever, for each dollar spent in the area by WSCC, a <br />multiplier effect takes place. A dollar received by an employee or a local <br />business from WSCC is spent on other goods and services in the area and is in <br />turn spent on additional goods and services. This multiplier effect increases <br />the fiscal impact of each dollar spent by WSCC. <br />The income multiplier to be used in this analysis is 2.02. In other words, <br />for every dollar spent by WSCC an additional $1.02 is spent through the <br />multiplier effect. The use of this multiplier is substantiated by two <br />documents: The Utah input-Output Study referred to in the previous chapter, <br />and A Guide to Methods for Impact Assessment of Western Coal/Energy <br />Development, prepared by the Western Coal Planning Assistance Project for the <br />Missouri River Basin Commission (January, 1979). <br />• Using this multiplier for 1979 and 1980 expenditures, while WSCC had direct <br />expenditures in terms of payroll and purchases of goods and services of <br />$6,312,441 and $10,941,849 respectively, the multiplier impact of these <br />expenditure levels was approximately $12,751,131 and 522,102,535, <br />respectively. These levels of expenditures relate only to personnel and <br />business income levels for the two years. In addition, these expenditure <br />levels also generate higher levels of tax collections, especially sales tax <br />collections. Therefore, the income multiplier effect benefits not only the <br />people and businesses of the area, but local government tax receipts. <br />The addition of 31 workers at WSCC would have some impact on these figures. <br />Considering an average annual salary of 521,000 for each worker, the payroll <br />would be increased $651,000 and a multiplier effect of an additional 5664,020 <br />for a total impact of $1,315,020 to the area's economy. <br />This analysis is not intended to show that Western Slope Carbon Corporation <br />• spends enough money in Delta County to alleviate all the impacts of its <br />development. Rather, it is intended to show that there are financial benefits <br />46 <br />