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Study: State Loses $77 Million if Out of State Workers Build Gas Plant

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Friday, December 9, 2011   

CHARLESTON, W. Va. - West Virginia would lose millions of dollars if Marcellus jobs go to workers brought in from outside the state, according to a new study from the Marshall University Center for Business and Economic Research. It examines the construction of a natural gas processing plant like one now being built by a Texas company in the northern West Virginia panhandle.

Dave Efaw is secretary-treasurer of the West Virginia State Building and Construction Trades. He summarizes the study's bleak findings for the local economy: that the state would lose nearly $77 million in wages and another $27 million in tax revenue and spending.

"If the workers are from out of the state, most of the wages go back to wherever they live, wherever they pay taxes. We lose the tax base, we lose the wages, and we lose the money spent from that point."

Some in the industry have argued that out-of-state workers stimulate the economy by staying at motels and eating at restaurants. The Marshall study found that impact small.

Corky DeMarco, executive director of the West Virginia Oil and Natural Gas Association, acknowledges it would be better to have local workers in those jobs – but says the state lacks workers with the specific skills.

"It may be good for the motel worker, but it's not good for the realty market in a particular area. But we can't stop an industry because we don't have certain skill sets right now."

According to Efaw, there are plenty of skilled local workers willing and able to do these types of jobs. He points out that West Virginians have been building gas pipelines and chemical plants for decades. And he says getting those jobs would be much better for the state than settling for lower-pay service sector jobs.

"These jobs will be good paying jobs for skilled workers, which will, in return, bring more tax base and spending back to West Virginia."

Industry trade groups have said discouraging out-of-state labor could drive away a growing business, but Efaw counters that the natural gas industry has to come to West Virginia, because that's where the gas is.




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