n Federal Tax Impact n Spending by the ports industry and ports users generate substantial tax revenue for the federal government. The total economic impact of Georgia’s deepwater ports on tax collections by the federal government in fiscal year 2021 is $7.4 billion. Comparisons to Previous Estimates I n 2020, the Georgia Ports Authority retained the University of Georgia’s Terry College of Business to estimate the economic impact of Georgia’s deepwater ports on the state’s economy. Economic impact estimates for FY 2019 were published in The Economic Impact of Georgia’s Deepwater Ports: FY 2019 (July 2020). The methods used were very similar to those used in this study. The FY 2019 impacts of Georgia’s deepwater ports were 496,719 full- and part-time jobs, $122 billion in sales, $51 billion in state GDP, and $29 billion in income. The job impact therefore is 13 percent higher in FY2021 than in FY2019. In 2018, the economic impact estimates for FY 2017 were published in The Economic Impact of Georgia’s Deep- water Ports: FY 2017 (2018). The FY 2017 impacts of Georgia’s deepwater ports were 439,220 full- and part-time jobs, $106 billion in sales, $44 billion in state GDP, and $25 billion in income. In 2012, the economic impact esti- mates for FY 2011 were published in The Economic Impact of Georgia’s Deepwater Ports: FY 2011 (2012). The methods used were very similar to those used in this study. The FY 2011 impacts of Georgia’s deepwater ports were 352,146 full- and part-time jobs, $66.9 billion in sales, $32.4 billion in state GDP, and $18.5 billion in income. In 2015, the FY 2014 impacts of Georgia’s deepwater ports were $84 billion in sales, $33 billion in state GDP, $20 billion in income, and 369,193 full- and part-time jobs. In 2012, the FY 2011 impact of Georgia’s deepwater ports were $66.9 billion in sales, $32.4 billion in state GDP, $18.5 billion in income, and 352,146 full- and part-time jobs. In 2010, the FY 2009 impact of Georgia’s deepwater ports were $61.7 billion in sales, $26.8 billion in state GDP, $15.5 billion in income, and 295,443 full- and part-time jobs. In 2004, the FY 2003 impact of the ports were $35.4 billion in sales, $17.1 billion in gross state product, $10.8 billion in income, and 275,968 full- and part-time jobs. In 1997, Booz-Allen & Hamilton, Inc. conducted a study and published its results (for 1996) in Economic Impacts of Georgia’s Deepwater Ports of Savannah and Brunswick (March 20, 1998). Instead of using actual cargo volumes and standard macroeconomic input-output modeling systems (e.g., MARAD Port Economic Impact Kit, IMPLAN, RIMS, or REMI) to measure direct, indirect, and induced economic impacts, Booz-Allen & Hamilton relied primarily on direct survey methods, which they said is “somewhat unique.” Due to the unique character of their methods as well as the use of non-conventional definitions of standard economic impact terms, it is very difficult to make meaningful direct comparisons of their results to the results of this study, or to those of other port economic impact studies. Booz-Allen & Hamilton found that the total economic impact of Georgia’s deepwater ports on output (sales) and employment were $22.3 billion and 76,672 jobs, respectively. Their estimates of the economic impact on tax collec- tions by state and local governments was $569 million, and that the economic impact on wages was $1.7 billion. The estimates produced by the Terry College of Business (based on data for FY 2003) were considerably larger. The order of magnitude of Booz-Allen & Hamilton’s output impact ($22.3 billion), however, appears to be somewhat reasonable considering that: (1) the Port of Savannah and the Port of Brunswick both experienced exceptionally rapid growth in cargo volumes from 1996-2003 (implying that direct spending by the ports industry was much smaller in 1996 than it was in 2003); (2) Georgia’s overall economy was much smaller in 1996 than it was in 2003 (implying that ports-related impacts were much smaller in 1996 than in 2003); (3) the survey-based approach did not capture all of the direct eco- nomic impacts; (4) the survey-based approach is incapable of capturing many of the indirect economic impacts; and (5) the survey-based approach does not capture any of the induced economic impacts. In 1999, Georgia Southern University applied more conventional input-output modeling techniques to re-estimate the ports’ 1996 economic impact. However, it appears that they relied on Booz-Allen & Hamilton’s estimate of di- 9
