Supes receive economic impact report on CCC closure

An economic impact report shared with the Lassen County Board of Supervisors Tuesday detailed the possible negative fiscal impact the proposed closure of the California Correctional Center could have on the county.

The analysis, prepared by the Center for Economic Development at California State University, Chico, reports CCC’s direct economic contributions to the community through the total payroll, number of CCC employees, the number of employees living in Lassen County and the number of employees commuting to Lassen County. It examines how the loss of those contributions could result in decreased economic activity, jobs, revenue and the tax base.

“We asked them to do it for us because no other analysis, that we’re aware of, has been done regarding the closure of CCC,” County Administrative Officer Richard Egan told the board. Deputy Administrative Officer Tony Shaw added if the state had conducted one, it has not been shared with the county.

The report, which was prepared using IMPLAN Group LLC. 2019 data, details CCC’s direct and induced effects.

For the direct effect, which is the prison’s contribution, including 1,025 people directly employed, the total value added, meaning the direct or induced impact on the GDP, is $102,288,091.28. The induced effect, referring to the impact the prison has on the economy though expenditures of those who made labor income in the prison, has a total value added of $19,601,519.22. Together, CCC has a total impact of $120.89 million on GDP, the report showed.

Moreover, the analysis showed the top 10 economic sectors impacted. Topping the list was the prison it’s self, followed by limited services restaurants, hospitals, individual and family services, general merchandise stores, doctors offices, full-service restaurants, religious organizations, food and beverage stores and other local government enterprises.

“Limited-services restaurants and hospitals would be most affected by the prison’s closure in terms of individuals likely to lose their jobs, but numerous other sectors will also see their ability to employ those impacted,” read the report.

Furthermore, the analysis listed CCC contributes about $5.67 million in taxes to state and local governments, and about $15.89 millions to the federal government.

During the Tuesday meeting, the board asked Shaw if the report was being shared.

“I’ve forwarded this report to everybody I can,” Shaw said.

He also thanked the state controller’s office and Senator Brian Dahle’s office for providing the needed data points allowing Chico State to compile the report.

210608 CCC Economic Impact Analysis