Study: ARRA funds positive impact on area

The $1.6 billion in American Recovery and Reinvestment Act funding awarded to contractors at the Savannah River Site was successful in retaining and creating 4,600 jobs in the local community, as well as creating 86 cents of regional economic impact for every dollar of regionally spent stimulus funds, according to an economic impact study unveiled at USC Aiken.

The American Recovery and Reinvestment Act Flow Down to Local Community study, commissioned by Savannah River Nuclear Solutions and compiled by USCA's O'Connell Center for Executive Development, studied the impact of the $819 million in funding received and used by SRNS and Savannah River Remediation between April 2009 and October 2010.

The study considered the immediate impact and ripple effect on the five-county region including Aiken, Allendale and Barnwell counties in South Carolina, and Columbia and Richmond counties on Georgia, where $282 million of the funding during the time period was spent.

"These funds were certainly welcome and definitely needed for the local economy," said the study's leader and USCA associate professor of economics Dr. Sanela Porca. "(President Barack Obama) initiated the first step toward the recovery, not just here locally, but nationwide."

The study, compiled in conjunction with Augusta State University and Claflin University, found that the $282 million had a regional impact of about $525 million, and helped to create 2,420 jobs at SRNS and SRR, as well as 2,180 jobs created indirectly.

While ARRA jobs were created for specific projects and most workers have or will move on when their projects end, SRNS President & CEO Garry Flowers said that some of the jobs were able to be retained under SRNS' base workforce.

The funding came at an important time, the study found, as all five counties experienced increased unemployment numbers from 2008 to 2009, and a large portion of the five-county region was operation using economic reserves.

During the presentation, videos were shown that included testimonials from employees in local industries, including hotels, restaurants and stores, who said that their businesses also improved due to the increased number of people in the area as a result of ARRA funding.

Flowers said that he knew what SRNS spending of ARRA money would mean for SRNS and subcontractor employees, but he said he did not known how the local and regional economy would be impacted. He expected the funding to be a success, he said.

"I think we wanted to see a third party confirmation of what we expected and believed we would see," Flowers said.

Funding used during the study period - $728 million by SRNS and $91 million by SRR - were used to complete and make progress on various projects.

Among the projects completed by SRNS using ARRA funding included the decommissioning of K-Area Cooling Tower, closure of M Area Operable Unit and demolition of P-Reactor and R-Reactor discharge stacks, among others.

Progress has been made on the total decommissioning of P and R Reactor and P-Area Ash Basin remediation, as well as transuranic waste disposition.

SRR used ARRA funds for salt disposition, tank closure and facility operations.

To date, $989 million has been spent by SRNS and $144 million by SRR, according to SRNS spokesperson Paivi Nettamo.

"The goal of the Environmental Management Recovery Act program is to create jobs, stimulate the economy and accelerate legacy waste cleanup at each of our sites," said Cynthia Anderson, chief operating officer of the DOE Office of EM. "As this study indicates, SRS is one extraordinary example of how we've accomplished these objectives."

Contact Anna Dolianitis at adolianitis@aikenstandard.com.