SNOWFIGHTING PAYS DIVIDENDS

Alexandria, VA (March 22, 2004)…The kids may love it when a major snowstorm closes down schools for a couple days, but the economy takes a major hit when snowstorms strike.

In a dozen snowfighting states, for example, the daily cost of a major snowstorm could total as much as $3 billion.   U.S. transportation agencies spend about $2 billion a year keeping winter roads safe and passable.  Costs include lost wages of some hourly employees, lost, non-recovered retail sales and diminished government tax receipts, according to a study by Global Insight, Inc., an economic forecasting firm.

Those costs would be imposed if transportation agencies are unable to remove snow and ice from streets and highways in a timely fashion. The researchers noted that there are many additional costs beyond the scope of the study, so the cost calculation is a “conservative estimate.”  On the other hand, governments at every level have recognized the value of snowfighting response, and invested in programs to keep roads open and safe – and reducing the storm cost burden.

The Salt Institute released the report, noting that most agencies’ annual snowfighting budgets are less than the costs of a single storm not effectively managed by road maintenance crews.  “Fighting winter storms may be the most cost-effective use of taxpayer dollars known to man,” said Salt Institute president Richard L. Hanneman.

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The states and provinces included in the Global Insight studies include the following:

• Illinois

• Indiana

• Iowa

• Michigan

• Minnesota

• Missouri

• New Jersey

• New York

• Ohio

• Pennsylvania

• Virginia

• Wisconsin

• Ontario

• Quebec

Information on Global Insight, Inc. can be found on the company website: http://www.globalinsight.com.

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