For every $1 million in annual government spending, which result is a better deal?

 Proposed $92 million investment in Harrisburg's incinerator1,5$200 million investment in Pennsylvania recycling over the past 6 years2
Ongoing jobs3 created or sustained10 jobs5,62,442 jobs2,9
Annual wages paid3$0.6 million5,7$87 million2,10
Ongoing businesses4 (economic diversity and resiliency) created or sustained2 businesses898 businesses2,11

Footnotes:

  1. Mayor's office is considering an 820-ton-per-day incinerator. Harrisburg itself collects about 142 tons per day, including residential and businesses.

  2. PA Department of Environmental Protection, 2001. PA invested $200 million over the last 6 years. Average annual spending is $33.3 million ($200 million divided by 6 years).

  3. Construction and other one-time jobs were not included, though recycling should provide more of these as well.

  4. Indirectly connected service businesses (e.g. food service) were not included, though recycling should provide far more of these as well.

  5. $92 million municipal bond proposed. Low-side assumption of 4.5% interest, insured, level debt repayment of 25 years (estimated life of the incinerator) would result in annual payment of 6.2 million. To be extra conservative, no bond insurance or issuance costs (likely to be several million in total) were included.

  6. 61 jobs divided by $6.3 million a year equals 10 jobs for every $1 million spent annually.

  7. $3.7 million in wages dicided by $6.2 million per year equals $0.6 million in wages for every $1 million spent annually.

  8. Businesses divided by $6.2 million equals 1.5 businesses divided by $1 million. 1.5 businesses are being rounded upward to 2. This might be higher if malfunctions at the incinerator become so common that more companies are required to fix problems on a regular basis. Assuming successful operations, this number would be expected to include the operator, prime vendors for combustion and air pollution control systems, suppliers of chemicals (ammonia, lime and activated carbon), ash haulers and landfill staff, primary engineering consultants on retainer, and auditors.

  9. PA Department of Environmental Protection, 2001. 81,322 jobs divided by $33.3 million a year equals 2,442 jobs for each $1 million spent annually.

  10. PA Department of Environmental Protection, 2001. Nearly $2.9 billion in payroll divided by $33.3 million per year equals $87 million for each $1 million spent annually.

  11. PA Department of Environmental Protection, 2001. 3,247 recycling and reuse establishments divided by $33.3 million a year equals 98 businesses for each $1 million spent annually.


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