The Economic Impact of the Cherokee Nation: Fiscal Year 2016 Impact Report. April 3, 2017

Transcription

1 The Economic Impact of the Cherokee Nation: Fiscal Year 2016 Impact Report April 3, 2017 Prepared for: The Cherokee Nation Prepared by: Russell R. Evans, Ph.D. Partner, Economic Impact Group, LLC Assistant Professor of Economics Oklahoma City University And Kyle Dean, Ph.D. Managing Partner, Economic Impact Group, LLC Assistant Professor of Economics Oklahoma City University 1 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

2 Cherokee Nation Economic Impact: Summary and Key Findings Cherokee Nation s government and business operations provide substantial economic opportunities to northeastern Oklahoma counties. Some economic impacts are tangible and straightforwardly estimated. These include changes in regional employment, labor income, and local production of goods and services. Some economic impacts are less easily calculated but just as real and just as important. These include productivity gains from increasing education, improved health outcomes and social assistance. That this impact report focuses on the former set of impacts should not distract the reader from the reality and significance of the latter. Cherokee Nation s economic influence in northeastern Oklahoma has grown substantially since our last report from fiscal year Annual operations by the Cherokee Nation now support more than $2 billion in local production of goods and services, ranging from retail purchases to new construction and manufacturing to new demand for local health care and education. Production of the $2 billion of local goods and services requires support from 17,788 local jobs generating labor income payments of $786 million. The economic importance of the Cherokee Nation to northeast Oklahoma continues to grow with the expanding economic footprint of Cherokee operations. Since the fiscal year 2014 report, Cherokee Nation direct output (Cherokee Nation production plus Cherokee Nation purchases from local vendors) increased by 23 percent, Cherokee Nation direct employment increased by 5 percent and Cherokee Nation direct income payments to local labor increased by 12 percent. 2 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

3 The Cherokee Nation s economic influence is spread broadly across their 14-county jurisdiction. Output impacts were greatest in Tulsa County, supporting production of nearly $593 million in local goods and services. The significant economic impacts in Tulsa County have much to do with the structure of the regional economy. The density of the city concentrates local vendors in a single location, allowing Cherokee Nation operations in other counties to find support from Tulsa area vendors. Additionally, the robust local economy traps greater economic flows within the economy, offering larger multiplier effects in Tulsa County relative to rural county economies. In contrast, the Nation s largest relative economic influence is in its home and namesake Cherokee County, where operations support 5,910 jobs and generate income payment to local labor of $221 million per year. Total Economic Impact County Tulsa $ 592,845,564 2,626 $ 181,111,107 Rogers $ 386,392,526 2,923 $ 135,058,712 Cherokee $ 275,978,502 5,910 $ 220,939,602 Delaware $ 186,069,971 1,372 $ 56,055,469 Adair $ 67,944, $ 37,155,894 Sequoyah $ 152,134,970 1,200 $ 49,809,218 Muskogee $ 113,015, $ 40,345,024 Mayes $ 163,017, $ 24,841,632 Washington $ 48,875, $ 16,860,973 Nowata $ 26,440, $ 10,291,696 Craig $ 14,337, $ 10,529,663 Wagoner $ 6,697, $ 1,274,918 Ottawa $ 3,207, $ 989,474 McIntosh $ 1,856, $ 696, County Total $ 2,038,809,833 17,788 $ 785,960,054 The economic influence of the Cherokee Nation not only provides economic opportunity in each county, but serves more broadly as a single source that connects the regional economies together. This connectivity, combined with the development of regional amenities and expressions of creativity, are the cornerstones of successful regional economic development. 3 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

4 The Economic Footprint of the Cherokee Nation The direct economic footprint of the Cherokee Nation is an estimate of the Nation s economic influence before accounting for any multiplier, or spillover impacts. It is simply a description of what the Cherokee Nation does throughout the 14-county region and what they purchase directly from local vendors. No economic models are required to arrive at the measure of direct economic influence. Instead, measures of direct economic contributions represent a careful accounting of what the Cherokee Nation does and what they purchase within each county. As discussed previously, the concentration of local vendors in Tulsa County supports the largest Cherokee Nation influence over local production. Cherokee Nation operations and output solicited directly from Tulsa County vendors account for more than $360 million in Tulsa County production. Tulsa, Rogers, Cherokee, Delaware, Mayes, Sequoyah and Muskogee counties all enjoy a direct output impact in excess of $60 million. Cherokee Nation Output County Output Share Tulsa $ 360,136, % Rogers $ 350,258, % Cherokee $ 168,465, % Delaware $ 165,235, % Mayes $ 139,592, % Sequoyah $ 123,216, % Muskogee $ 75,060, % Adair $ 42,298, % Washington $ 37,743, % Nowata $ 24,023, % Craig $ 8,411, % Ottawa $ 1,525, % Wagoner $ 1,270, % McIntosh $ 666, % 14-County Total $ 1,497,900, % The portion of the direct output impact that is vendor purchases serve as inputs to county-specific economic impact models. Purchases solicited from Cherokee Nation operators constitute new demand for a good or service from a local vendor. The vendor responds to the new demand by proportionately increasing their demand for inputs to their production process, including new purchases of supplies, materials, labor, etc. This vendor response is an important source of economic impact and is reported for each county in the body of this report. 4 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

5 Cherokee Nation employment is simply an estimate from internal documents and human resource reports of the annual employment levels of the Cherokee Nation by county. They do not include estimates of the employment required by the local vendors that support the Cherokee Nation these employment estimates are included as part of the economic impact calculations. For Cherokee Nation Businesses, direct employment is an estimate of the annual average employee counts for each CNB location aggregated at the county level. For the Cherokee Nation government, the best data-supported estimate of employment is a count of W-2 forms distributed by CN operations in each county. Cherokee Nation direct employment is greatest in Cherokee County, where they support 3,580 jobs in the local economy, accounting for 37.5 percent of the Nation s direct employment footprint. Similar important employment impacts are realized in Rogers, Delaware, Sequoyah, Adair and Muskogee counties, as these six counties account for nearly 90 percent of the Cherokee Nation direct employment footprint. Total direct employment of 9,551 jobs supported in the region fails to account for the estimated 1,682 contract workers, which are working throughout the U.S. and even globally. This number fails to account for turnover employment at Cherokee Nation Businesses that can provide valuable short run and transitory employment to individuals in the community. In total, Cherokee Nation's economic activities provide direct employment opportunities to more than 11,000 people. Cherokee Nation Employment County Employment Share Cherokee 3, % Rogers 2, % Delaware 1, % Sequoyah % Adair % Muskogee % Tulsa % Mayes % Washington % Nowata % Craig % Wagoner - 0.0% Ottawa - 0.0% McIntosh - 0.0% 14-County Total 9, % 5 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

6 Cherokee Nation income impacts are estimated and reported consistently with estimates of direct employment. Income estimates are pulled from internal payroll reports and W-2 distributions with adjustments made for benefits. As such, reported labor income estimates may be better construed as compensation impacts as they include the estimate value of benefits with matching FICA contributions, retirement benefits, health care benefits, paid vacation, etc. income impacts, like direct employment impacts, are greatest in Cherokee County. income in Cherokee County is estimated at more than $168 million, accounting for 35 percent of the Cherokee Nation direct income impacts. Income impacts are significant in Rogers, Delaware, Sequoyah, Tulsa, Adair and Muskogee counties, as these top seven counties Cherokee Nation Income County Income Share Cherokee $ 168,339, % Rogers $ 117,109, % Delaware $ 45,665, % Sequoyah $ 38,181, % Tulsa $ 30,537, % Adair $ 21,800, % Muskogee $ 19,775, % Mayes $ 10,947, % Washington $ 9,652, % Nowata $ 9,266, % Craig $ 7,267, % Wagoner $ - 0.0% Ottawa $ - 0.0% McIntosh $ - 0.0% 14-County Total $ 478,544, % account for 92 percent of the Cherokee Nation direct income impact. 6 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

7 Economic Impact Calculations: Key Concepts and Definitions Economic impact models estimate the total economic activity that results from a new source of economic influence. The new economic influence is often referred to as an economic stimulus. Consider as an example an existing regional economy operating at normal levels when a new economic influence is injected into the economy in the form of demand for a new home. The development of the new home serves as a regional economic stimulus, and the total economic activity that results from home construction likely exceeds the value of the new home. New home construction may require purchases from local lumberyards. The lumberyard, in turn, requires additional labor hours to fill the new order. The lumberyard requires, as well, new purchases from their wholesale provider to maintain inventory levels, which in turn require a trucking or distribution service to make the lumber delivery to the lumberyard. At each layer of activity, new income is generated as workers work extra hours to accommodate the new order, wholesale purchase and delivery. A portion of the extra income will be spent locally on restaurant meals, entertainment, clothing, health care and other industries. The spending starts a second wave of economic activity as these providers respond much as the lumberyard did to meet the new demand. By the end of the process, the total new production in the local economy and the total new employment and income generated in the local economy exceed that which was required simply to build the new home. The difference between the new economic influence and the total economic influence is referred to as the economic multiplier, or economic spillover effect. Estimating the total economic impact of the Cherokee Nation involves building models of the 14 counties operating at normal levels. Cherokee Nation purchases from local vendors in those counties serve as an economic stimulus in those counties, just as the original purchase from the lumberyard did in the illustration above. A second source of economic impacts stems from the change in local income as Cherokee Nation employees carry their paychecks home to their home counties to be spent in the local economy. 7 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

8 The process begins by identifying the Cherokee Nation direct economic footprint in each county. The direct impact to output (local production), employment and income was summarized and presented previously. The table below reviews and defines the components of the Cherokee Nation direct economic footprint as defined in this report. SOURCES OF DIRECT ECONOMIC FOOTPRINT CN and/or CNB production of goods and services: For CNB entities, total revenue serves as the measure of production; Output for CN operations, budget allocations serve as a proxy for production. Labor Income Employment Vendor Purchases Measure of labor compensation, including salary and benefits paid to Cherokee Nation employees; direct labor income is reported by the county in which the job is located. CN and/or CNB employees, both full- and part-time; direct employment is reported by the county in which the job is located. First-line purchases of inputs by CN and CNB operations; reported in this document as a source of direct output. The Cherokee Nation s direct economic footprint and total economic impact are reported for three broad measures of local economic activity. They are output (or local production of goods and services), employment (includes both full- and part-time employment) and labor income (includes the total value of compensation, including wage payments and benefits). The measures of economic activity are summarized and defined below, with all dollar measures reported in 2016 values. ECONOMIC IMPACT CONCEPTS Output Employment Income The value of all goods and services produced in the local economy. The number of jobs supported in the local economy; includes both fulland part-time employment and may represent either a new job or expansion of hours from an existing job. The value of compensation, including wages, salaries and benefits. 8 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

9 The economic impact concepts and sources of direct economic footprint are defined exactly as in previous reports. However, the impact methodology has changed considerably for the FY 2016 report, necessitating a brief overview of the process and the impact reported. Previous impact reports were estimated in a single-region framework. In this approach, a county s economy was stimulated by an initial bundle of vendor purchases and/or an initial increase in household income from Cherokee Nation labor payments. The impacts include all spillover, or multiplier activity, that stayed within the county. The impacts reported in previous studies omitted important spillovers that occurred outside the original county but within the Cherokee Nation jurisdiction. The impacts also omitted all feedback effects from spillovers back into the original county. These omitted impacts are estimated and reported for the first time in this study. To capture these previously omitted impacts, multiregional input-output models were developed for each county, explicitly linking via estimated trade flows the economy of one county with that of every other Cherokee Nation county. Consider as an example the relationship between Cherokee County and Rogers County in a simple two-region model. Cherokee Nation vendor purchases from vendors in Rogers County serves as a source of direct economic influence in Rogers County. As vendors respond to this new demand, additional economic activity is realized. A portion of this new economic activity will occur outside of Rogers County, with some of the activity realized in Cherokee County. These spillover impacts into Cherokee County are now estimated, recorded and reported with the impact estimates in Cherokee County. This newly captured activity may induce feedback effects supporting additional economic activity in Rogers County. These feedback effects are now estimated, recorded and reported with the Rogers County impacts. Thus, for both vendor purchases and household spending, there are two new sources of impacts captured feedback impacts and county spillover impacts that were not available using the single region models in previous reports. 9 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

10 The multiregional modeling approach brings to light economic impacts that were known to exist but were unaccounted for in previous reports. This methodological innovation advances the understanding of the importance of Cherokee Nation activity on the regional economy. ALL SOURCES OF ECONOMIC ACTIVITY CN Contribution CN Vendor Purchases CN Vendor Response and Feedback Impacts CN Spillover Impacts from Outside County Vendor Purchases CN Employee & Vendor Spending and Feedback Impacts CN Spillover Impacts from Outside County Employee and Vendor Income Spend economic impact from operations; specifically includes production from internal operations, employment at the location of the job and income at the location of the job. Value of the goods and services purchased by a CN/CNB entity from a local vendor; measured at the location of the vendor. Measures indirect economic activity resulting from the change in activity by the vendor, including feedback effects; measured and reported for the county in which the vendor is located. Measures indirect economic activity in the reported county resulting from a vendor purchase in another CN county; measured and reported at the impact county. Measures the economic activity generated by households as they spend a portion of their income locally; measured at the county of residence of the employee. Measures the economic activity generated in the reported county from household spending originating in another CN county; measured and reported at the impact county. Total economic impacts are estimated and reported for each source of economic activity above. While the multiregional approach employed in this report disproportionately benefits counties that serve as regional trade hubs, all counties benefit from this more complete capture of economic activity. 10 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

11 County Specific Economic Impact Summaries Adair County Cherokee Nation Total Economic Impacts CN Contribution $ 25,110, $ 21,800,056 CN Vendor Purchases $ 17,187,617 CN Vendor Response and Feedback Impacts $ 5,515, $ 10,518,589 Vendor Purchases $ 441,730 6 $ 138,452 CN/Vendor Employee Spending and Feedback Impacts $ 19,446, $ 4,642,227 Impacts from Outside County $ 241,954 2 $ 56,570 Total $ 67,944, $ 37,155,894 Economic impacts in Adair County support nearly $68 million in county production of goods and services while supporting 902 jobs and $37 million in local income payments. Cherokee Nation government and business operations directly support 491 jobs in the county and purchase more than $17 million in goods and services from county vendors. 11 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

12 Cherokee County Cherokee Nation Total Economic Impacts CN Contribution $ 89,049,567 3,580 $ 168,339,496 CN Vendor Purchases $ 79,415,897 CN Vendor Response and Feedback Impacts $ 30,676,326 1,692 $ 32,647,728 Vendor Purchases $ 459,480 3 $ 79,120 CN/Vendor Employee Spending and Feedback Impacts $ 75,938, $ 19,792,411 Impacts from Outside County $ 438,299 3 $ 80,847 Total $ 275,978,502 5,910 $ 220,939,602 Cherokee County is home to the Cherokee Nation s largest employment base, with direct government and business operations supporting 3,580 jobs and $168 million in labor compensation payments. Cherokee Nation operations directly produce $89 million in goods and services while directly purchasing $79 million in additional goods and services from Cherokee County vendors. Cherokee County enjoys significant multiplier effects, with Cherokee Nation activity ultimately supporting $276 million in local production, 5,910 jobs and $221 million in local labor income. 12 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

13 Craig County Cherokee Nation Total Economic Impacts CN Contribution $ 2,470, $ 7,267,870 CN Vendor Purchases $ 5,941,042 CN Vendor Response and Feedback Impacts $ 2,242, $ 2,258,861 Vendor Purchases $ 402,287 3 $ 120,893 CN/Vendor Employee Spending and Feedback Impacts $ 3,149, $ 847,015 Impacts from Outside County $ 131,435 1 $ 35,024 Total $ 14,337, $ 10,529,663 Cherokee Nation operations directly support 149 jobs, $7 million in labor income and nearly $2.5 million in local production and directly purchase another $6 million in local goods and services from local vendors. Regional economic linkages generate multiplier effects sufficient to support total Craig County activity of $14 million in output, 273 jobs and $10.5 million in labor income. 13 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

14 Delaware County Cherokee Nation Total Economic Impacts CN Contribution $ 146,810,375 1,039 $ 45,665,636 CN Vendor Purchases $ 18,424,693 CN Vendor Response and Feedback Impacts $ 7,005, $ 6,919,891 Vendor Purchases $ 235,747 2 $ 57,751 CN/Vendor Employee Spending and Feedback Impacts $ 13,477, $ 3,383,945 Impacts from Outside County $ 117,092 1 $ 28,246 Total $ 186,069,971 1,372 $ 56,055,469 Delaware County enjoys a significant Cherokee Nation presence, with operations directly accounting for $147 million in county production and supporting 1,039 jobs. Additionally, Cherokee Nation entities directly purchase more than $18 million from Delaware County vendors. In total, Cherokee Nation operations support $186 million in county output, 1,372 jobs and $56 million in local labor income. 14 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

15 Mayes County Cherokee Nation Total Economic Impacts CN Contribution $ 120,696, $ 10,947,766 CN Vendor Purchases $ 18,896,711 CN Vendor Response and Feedback Impacts $ 7,612, $ 9,951,158 Vendor Purchases $ 1,887, $ 441,093 CN/Vendor Employee Spending and Feedback Impacts $ 13,049, $ 3,264,610 Impacts from Outside County $ 875,599 7 $ 237,005 Total $ 163,017, $ 24,841,632 Mayes County economic impacts continue to grow with Cherokee Nation business expansion in the county. Cherokee Nation operations now directly support 245 county jobs, $11 million in labor income and nearly $121 million in local production. Including multiplier, spillover and feedback effects, total economic impacts total $163 million in county goods and services production, 781 jobs, and $25 million in local labor compensation. 15 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

16 McIntosh County Cherokee Nation Total Economic Impacts CN Contribution $ 0 - $ 0 CN Vendor Purchases $ 666,054 CN Vendor Response and Feedback Impacts $ 221,919 6 $ 453,672 Vendor Purchases $ 385,245 2 $ 103,224 CN/Vendor Employee Spending and Feedback Impacts $ 269,802 2 $ 69,102 Impacts from Outside County $ 313,738 2 $ 70,674 Total $ 1,856, $ 696,672 While not home to direct Cherokee Nation operations, McIntosh County nonetheless enjoys a small economic impact by virtue of purchases from local vendors and county residents spending a portion of their Cherokee Nation income in their home county. In total, Cherokee Nation impacts support nearly $2 million in county production, 13 jobs and nearly $700,000 in local labor income payments. 16 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

17 Muskogee County Cherokee Nation Total Economic Impacts CN Contribution $ 53,261, $ 19,775,489 CN Vendor Purchases $ 21,799,358 CN Vendor Response and Feedback Impacts $ 8,916, $ 12,246,329 CN Spillover Impacts from Outside County Vendor Purchases $ 5,877, $ 1,666,743 CN/Vendor Employee Spending and Feedback Impacts $ 18,308, $ 5,594,439 CN/Vendor Employee Spending Spillover Impacts from Outside County $ 4,853, $ 1,062,024 Total $ 113,015, $ 40,345,024 Muskogee County experiences economic benefits both from a direct Cherokee Nation presence in the county as well as from direct vendor purchases from local suppliers. Cherokee Nation operations directly produce more than $53 million in local goods and services while directly purchasing nearly $22 million in additional goods and services from local vendors. The direct operations support 373 jobs while the vendor responses and feedback effects support an additional 358 jobs in the county. Including local household spending, feedback and spillover effects, Muskogee County enjoys an economic impact of $113 million in local production, 952 local jobs and $40 million in local labor income payments. 17 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

18 Nowata County Cherokee Nation Total Economic Impacts CN Contribution $ 21,949, $ 9,266,342 CN Vendor Purchases $ 2,074,256 CN Vendor Response and Feedback Impacts $ 629, $ 627,423 Vendor Purchases $ 61,626 1 $ 23,154 CN/Vendor Employee Spending and Feedback Impacts $ 1,702, $ 368,217 Impacts from Outside County $ 22,576 0 $ 6,560 Total $ 26,440, $ 10,291,696 Nowata County impacts have increased significantly with the expansion of Cherokee Nation operations in the county. Current reports indicate Cherokee entities directly account for 212 jobs, $9 million in local labor income and nearly $22 million in county production. Additionally, Cherokee Nation businesses and government operations purchase $2 million in locally produced goods and services. In total, Cherokee Nation operations, purchases and local household spending changes support 263 county jobs, $10 million in county income, and $26 million in county production of goods and services. 18 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

19 Ottawa County Cherokee Nation Total Economic Impacts CN Contribution $ 0 - $ 0 CN Vendor Purchases $ 1,525,443 CN Vendor Response and Feedback Impacts $ 620, $ 710,095 Vendor Purchases $ 215,047 1 $ 46,319 CN/Vendor Employee Spending and Feedback Impacts $ 744,306 6 $ 207,781 Impacts from Outside County $ 101,851 1 $ 25,279 Total $ 3,207, $ 989,474 While not home to direct Cherokee Nation activity, Ottawa County nonetheless feels the economic influence of the Cherokee Nation by way of $1.5 million in local vendor purchases and local spending of Cherokee Nation employees residing in Ottawa County. Total Ottawa County economic impacts support more than $3 million output, 53 jobs and nearly $1 million in county income. 19 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

20 Rogers County Cherokee Nation Total Economic Impacts CN Contribution $ 328,551,580 2,159 $ 117,109,043 CN Vendor Purchases $ 21,706,701 CN Vendor Response and Feedback Impacts $ 9,462, $ 11,619,083 Vendor Purchases $ 3,996, $ 847,240 CN/Vendor Employee Spending and Feedback Impacts $ 21,289, $ 5,214,149 Impacts from Outside County $ 1,386,248 7 $ 269,197 Total $ 386,392,526 2,923 $ 135,058,712 A strong Cherokee Nation business and employee presence in Rogers County continues to complement significant vendor purchases and exert a significant economic influence in the county. Cherokee Nation operations directly employ 2,159 jobs associated with $117 million in labor income and more than $328 million in local production. Combined with nearly $22 million in local vendor purchases, household spending and all multiplier effects, Cherokee Nation activity in Rogers County supports $386 million in local output, 2,923 local jobs and $135 million in local income. 20 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

21 Sequoyah County Cherokee Nation Total Economic Impacts CN Contribution $ 106,661, $ 38,181,840 CN Vendor Purchases $ 16,555,354 CN Vendor Response and Feedback Impacts $ 6,261, $ 5,661,428 Vendor Purchases $ 877, $ 312,838 CN/Vendor Employee Spending and Feedback Impacts $ 21,280, $ 5,485,881 Impacts from Outside County $ 498,406 7 $ 167,231 Total $ 152,134,970 1,200 $ 49,809,218 Cherokee Nation activities directly account for 825 Sequoyah County jobs associated with $38 million in local labor income and the local production of $107 million of goods and services. Cherokee Nation business and government operations combine to purchase an additional $16.5 million from local vendors. The vendor response, local household spending, feedback effects and outside county spillovers combine to support a significant multiplier process. In total, Cherokee Nation operations support 1,200 Sequoyah County jobs, nearly $50 million in local income and $152 million in county production of goods and services. 21 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

22 Tulsa County Cherokee Nation Total Economic Impacts CN Contribution $ 228,688, $ 30,537,748 CN Vendor Purchases $ 131,447,404 CN Vendor Response and Feedback Impacts $ 101,069,356 1,489 $ 104,813,033 Vendor Purchases $ 26,866, $ 9,247,773 CN/Vendor Employee Spending and Feedback Impacts $ 93,085, $ 32,292,323 Impacts from Outside County $ 11,688, $ 4,220,230 Total $ 592,845,564 2,626 $ 181,111,107 Tulsa County benefits from its status as a regional trade center, enjoying significant spillover impacts from activities that originated in outside counties in addition to their local impacts. Cherokee Nation operations are estimated to directly account for 265 jobs in the county, supporting $30.5 million in local income payments and $229 million in output. Tulsa also experiences a concentration of vendor purchases of more than $131 million. In total, Tulsa County economic impacts from Cherokee Nation operations support $593 million county output, 2,626 local jobs and $181 million in local labor income payments. 22 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

23 Wagoner County Cherokee Nation Total Economic Impacts CN Contribution $ 0 - $ 0 CN Vendor Purchases $ 1,270,861 CN Vendor Response and Feedback Impacts $ 310, $ 145,846 Vendor Purchases $ 536,818 4 $ 204,374 CN/Vendor Employee Spending and Feedback Impacts $ 4,270, $ 808,320 Impacts from Outside County $ 309,106 2 $ 116,378 Total $ 6,697, $ 1,274,918 Wagoner County economic impacts are the result of more than $1 million in local vendor purchases and significant local household spending of county residents from Cherokee Nation income earned in other counties. Impacts from all sources support 48 jobs, more than $1 million in labor income and nearly $7 million in county output. 23 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC

24 Washington County Cherokee Nation Total Economic Impacts CN Contribution $ 29,554, $ 9,652,902 CN Vendor Purchases $ 8,188,658 CN Vendor Response and Feedback Impacts $ 4,833, $ 5,203,275 Vendor Purchases $ 692,258 6 $ 251,038 CN/Vendor Employee Spending and Feedback Impacts $ 5,207, $ 1,616,403 Impacts from Outside County $ 398,768 3 $ 137,355 Total $ 48,875, $ 16,860,973 Cherokee Nation operations in Washington County directly support 213 jobs, $10 million in labor income and $30 million in local production. Cherokee Nation entities combine to purchase more than $8 million in output from Washington County vendors, while Cherokee Nation payrolls provide a significant source of household income to be spent in the local economy. The combined influence of Cherokee Nation operations, vendor purchases and household spending patterns support a total of 475 jobs, $17 million in local labor income and $49 million in Washington County output. 24 Cherokee Nation FY 2016 Economic Impact Report Economic Impact Group, LLC