Study examines economics of military bases

Researchers from the School of Public and Environmental Affairs are evaluating the effects of military installations.

It will focus  primarily on the Atterbury-Muscatatuck Complex, on the state and local economy.

The study is done in conjunction with the Indiana National Guard through the Indiana Complex Operations Partnership.

The team is studying four counties that support military bases: Bartholomew, Brown, Jennings and Johnson, as well as nine surrounding counties and Indiana as a whole.

Conclusions have shown these bases have positive economic and social effects in these areas, with hotels and restaurants benefitting the most.

“Dollars and cents cannot fully explain the impact of this National Guard location,” Barry Rubin, SPEA professor and leader of the study, said in a press release. “Instead, I am encouraging a holistic approach in which all aspects of the bases’ interactions with the community are
examined.”

A month-long exercise organized by U.S. Army North and U.S. Northern Command during the summer cost $18 million, with about $6 million spent in areas near the location of the exercise.

“The local economy is booming and the surrounding cities are really benefiting from this exercise also,” a North Vernon resident said. “Every time I go through North Vernon, to Columbus or to Seymour, I see a lot of military vehicles. I have noticed a lot of them stopping at local businesses.”

The researchers plan to complete the study in May 2013. There will be a presentation to the Indiana National Guard and government and economic development officials.

“Not only can a value be placed on the hours of service, but there is also value to this type of social capital for surrounding counties,” Rubin said.


— Sydney Murray