Military contributes $48 billion to state economy

North Carolina has fashioned itself as the “Nation’s Most Military-Friendly State,” and a recent report by the N.C. Department of Commerce shows how the state economy has benefited from the military presence.

The report states that the military contributes $48 billion annually to the state, about 10 percent of the entire state economy.The military supports 540,000 jobs in North Carolina, of which 340,000 are in the private sector.

Josh Ellis, spokesman for the N.C. Department of Commerce, said the goal of the report was to demonstrate how much of the economy is supported by the military across the state.

“North Carolina has the third-largest active military population in the country,” Ellis said. “But the bulk of the jobs supported here are the over 300,000 private-sector jobs in places like grocery stores and retail shops.”

Many universities in the state also benefit from the military sector research grants awarded by the Department of Defense.N.C. State University is using military funding to research use of green materials to counter chemical weapons, and Duke University is using grants to develop materials to allow jet planes to be invisible to radar, among other projects.

Having the Army Research Office in Raleigh supports research programs nationally and bolsters area universities such as UNC-CH, N.C. State and Duke, said Scott Dorney, executive director of the North Carolina Military Business Center, which helps businesses secure federal military contracts.

“Having it in our backyard is a huge boost,” Dorney said.

Michael Walden, professor of economics at N.C. State, said the military is a benefit to the local economy, especially in the private sector.

“If you think of them as a company, it will employ some civilian workers as well as the military servicemen and -women,” Walden said. “They will spend a lot of their salary and aid packages locally.”

Currently, in-state tuition is given to active-duty military members and their dependents regardless of where they live, Dorney said. But some military veterans who were stationed out of state are not considered North Carolina residents after they leave active service.

The UNC-system Board of Governors recently passed a resolution that requests a policy change from the N.C. General Assembly to give the board the authority to determine residency for veterans.

Dorney said the Post-9/11 GI Bill, which provides armed services veterans with financial aid for higher education, and ROTC programs have a sizable impact by allowing students the opportunity to pursue higher education and develop skills that are beneficial to the military and civilian life.

“We have a huge participation by military members in community colleges, particularly online and nearby the bases,” Dorney said. “Authorizing in-state tuition for active-duty (military members) and their children has bolstered the reputation of North Carolina as a military-friendly state.”

Dorney said the military influence is not concentrated in just areas with military installations, such as Fort Bragg near Fayetteville. He said 83 counties across the state include contractors that receive federal money for military projects.

“This equates to a lot of jobs and revenues across the state, and it benefits everyone because they pay taxes on billions of dollars of income and it helps fund the public services in the state,” he said.

Another significant aspect of the impact of the military on the economy is the nearly 800,000 veterans living in North Carolina — the ninth-largest population in the country.

“Individuals who leave the military are seen as a great resource and have valuable skills like work ethic and discipline that are always in demand in the private sector,” Walden said.

state@dailytarheel.com