Study: Local economy would take $73 million hit with prison closure

[September 28, 2011]  A study issued by the Regional Economics Applications Laboratory, Institute of Government and Public Affairs, University of Illinois, on the economic effects of the closure of Logan Correctional Center shows just how important the prison is to the local economy. The report was made for the Illinois Department of Corrections. The following are excerpts from that study:

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The economic impact of the closure of public facilities on local economies varies according to the size of the facilities and its direct economic footprint on the economy and the size and economic composition of the community itself.

In times of high unemployment, as in the present case, the economic impacts are likely to be felt more strongly as the possibilities of employees finding alternative jobs may be significantly reduced. While re-location is an option for many employees, there is no guarantee that job prospects will be better elsewhere in the state - or even in other parts of the country. Further, given the depressed state of the housing market, with many communities experiencing times on the market in excess of 14 months, employees who have invested in homes may not be able to contemplate relocation.

The impacts reveal that every job at Logan Correctional Center creates 0.3 additional jobs in the region. Further the closure of this facility is likely to reduce state and local (sales) income taxes and thus may have a negative impact on the provision of other public services - schools, health care, road maintenance and so forth. In essence, these may be the aggregations of parts of many jobs - the check-out clerk at the grocery store, a bank teller, auto repair shop mechanic and so forth. About $27 m worth of total income (direct, indirect and induced) can be attributed to the facility

The study concluded that when adding up all economic factors both directly and indirectly attributed to the lost jobs if the prison closed, the economic loss to the area would total $73,334,212.

Currently area residents are in the process of a drive that includes petitions and letters to the governor and legislators to keep Logan Correctional Center open. The city of Lincoln, the Logan County Board, the chamber of commerce, the development partnership and various other agencies have come out in support of keeping the prison open.

Plans are being developed for a town hall meeting in support of keeping the correctional center open.

[Text from file; LDN]