That’s not very good news for the Colorado Springs economy that’s already hurting for sales tax revenue.
“It’s certainly going to have an economic impact,” said UCCS finance professor Tom Zwirlein. “It’s just taking away 4,500 people who spend money on a lot of things here. And, this was unexpected.”
The nearly 4,500 who will deploy next year are in addition to the nearly 4,500 already serving there, and several thousand more are training for an upcoming deployment to Iraq.
Zwirlein expects that the sectors most affected will be the retail, restaurants and housing.
“Apartment vacancy rates will go up,” he said. “And, when this sort of thing happens, the families that are left behind often move back home with parents or other relatives.”
Zwirlein also said sales tax revenues will suffer, compounding problems for a city budget that’s already seen massive cuts to city services.