June 9th, 2011
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Author: A preliminary report released today by the University of Alabama estimates that the April 27 tornadoes will cost the state between 5,600 and 13,200 jobs and take a bite of between an $835 million and $1.3 billion out of its gross domestic product this year.
The UA’s Center for Business and Economic Research study also projects that Alabama will see a reduction in tax collections between $19.1 million and $44.5 million, and lose between $4.4 million and $10.2 million in local sales tax revenue.
In a surprising finding, the report estimates that recovery activities involving cleanup, assistance, and rebuilding should pump $2.6 billion into Alabama’s economy in 2011, with the state spending between $80 million and $100 million on cleanup, mostly from federal sources and insurance claim payments.
That led UA to project that spending on recovery will exceed damages and include net gains of $2.9 billion in Alabama’s gross domestic product, creating 51,700 jobs earning $29,800 per worker, or a total of $1.5 billion.
The projections are based on economic effects only, not quality-of-life factors such as fatalities, displacement, and mental and physical health issues, UA stressed.
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