Tahlequah Daily Press

Local News

February 15, 2012

Cherokee Nation releases economic impact report

TAHLEQUAH — The Cherokee Nation on Tuesday released its economic impact report for 2010, which shows the tribe provides over 9,000 jobs, $831 million to Oklahoma state output and more than $257 million in income to Oklahoma residents.

The report, compiled by economists at the Steven C. Agee Economic Research and Policy Institute in the Meinders School of Business at Oklahoma City University, offers a 14-county estimate of the exponential economic impacts stemming from Cherokee operations.

Key findings in the report show Adair, Cherokee, Delaware, Rogers and Sequoyah as the counties havng the largest CN economic “footprint.”

“Direct impacts are heavily centered in Cherokee Nation government operations and hospitality and services,” states the report. “However, Cherokee Nation Businesses offers an important source of diversification of revenues, while providing stable industrial activity to rural Oklahoma communities.”

Cherokee Nation officials – including Principal Chief Bill John Baker, and Chief of Staff Chuck Hoskin Sr. – along with Sen. Jim Wilson, D-Tahlequah, and Rep. Mike Brown, D-Tahlequah, met with lawmakers Tuesday at the state capitol to provide insight about the report.

The report details “spillover” effects the tribe’s entities have, showing the link between industries and institutions with Cherokee involvement.

Russell Evans, executive director and research economist at the Steven C. Agee Economic Research and Policy Institute, discussed methodology for the study and touched on its findings.

“In short, our finding showed the Cherokee Nation and Cherokee Nation Businesses have more than $1 billion impact in northeastern Oklahoma, and either directly or indirectly support more than 13,500 jobs” said Evans. “The Cherokee Nation government operations employ more than 3,250 individuals, with the majority working and residing in the Cherokee Nation’s northeastern Oklahoma jurisdictional boundary.”

As vendors respond to demand from tribal operations, the ripple effect creates the need for additional jobs to provide goods and services, and new workers spend their income in the local economy purchasing goods for personal consumption, thereby creating a driving force in the economy.

According to Evans, CNB, which is wholly owned by the tribe, employs an additional 5,400 Oklahomans, making the Cherokee Nation the top employer in the region.

Cherokee County serves as the headquarters of the Cherokee Nation. Business operations range from governmental jobs to construction services to hospitality via the local casino.

The community also benefits from being home to W.W. Hastings Hospital, which draws patients from not only Oklahoma, but Northwest Arkansas.

“With the renovation of the Cherokee Nation Welcome Center in 2011, cultural tourism is on the rise, bringing new business to local companies,” states the report. “The combined influence of Cherokee Nation and CNB operations – including purchases from local vendors, economic response from those purchases, and county employees spending income locally – generated more than $135 million in county production, thereby supporting 3,736 jobs and $120 million in county income.”

Of the 14 counties within the tribe’s jurisdiction, Cherokee County garnered the lion’s share of both direct employment and direct income. In 2010, 30.52 percent of the tribe’s employees – or 2,747 individuals – reported to work in Cherokee County, and 36 percent, or $93,277,175, was paid in direct income to those employees. Rogers County followed with 2,669 employees and $67,433,376 in direct income.

Additionally, the tribe contributes directly to public schools and infrastructure. The CN tax commission donates 38 percent of its gross revenue to school districts within the 14 counties. The amount each school receives is determined by the number of students enrolled in the Johnson-O’Malley Program. Twenty percent of the gross goes back to road and bridge projects.

“The Cherokee Nation is a steady partner, helping with infrastructure projects and responding to both regular needs and emergencies,” said Baker. “Annually, the Cherokee Nation contributes millions of dollars to Oklahoma schools. ... We helped pave or imporve more than 650 miles of Oklahoma roadways. We are proud of the more than $9 million we donate each year to the general education fund of Oklahoma.”

Tahlequah Area Chamber of Commerce Executive Director David Moore said he is pleased with the report’s findings.

“CN is the single largest contributor to our local economy, not just directly but indirectly,” said Moore. “Not only do they employ a great number of Cherokee County citizens, but their economic impact can be felt in every store along Main Street. The Chamber enjoys a great working relationship with the Cherokee Nation and Chief Bill John Baker, and we appreciate the tribe’s effort to make the area better.”

Baker said one of his priorities is to quantify the tribe’s impact on the state’s economy.

“While we knew all along the impact was substantial, we were proud to see the significant impact our tribal and business operations have on the state of Oklahoma,” said Baker

 “This study serves as a report card of sorts, and I would have to say, humbly, that all Cherokees should take a moment to share in the pride that we feel for our tribe. I know that the nations believes very firmly and faithfully in taking care of Oklahomans, and we do that through job creation, health care, education and other fundamental services that a government should provide for its citizens, while helping their neighbors.”

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