Closing of tobacco plant could hurt Macon worse than feared

<p>The closing of a tobacco plant could cost Macon thousands more jobs than originally feared, according to a Georgia Tech study on the Brown & Williamson closure.</p><p>The tobacco company has said it will shut down its plant employing 2,100 because of its pending merger with the larger R.J. Reynolds Co. Employees who want to stay on will have to move to Winston-Salem, N.C., where Reynolds is based.</p><p>Macon could lose more than four times the number of plant jobs because of a ripple effect on the local economy, maybe losing 9,000 jobs, according to a study by the Georgia Tech Economic Development Institute.</p><p>And local governments say they could lose millions in tax revenues paid by Brown & Williamson and its employees.</p><p>Already Bibb County commissioners were bracing for a loss of some $5 million in yearly property tax revenue. The Georgia Tech study ups that figure to $6.4 million for 2005 alone. Add to that another $920,000 in yearly sales tax losses for the county and the County Commission could lose more than 10 percent of a $70 million annual budget.</p><p>Local officials were shocked by the study.</p><p>I dont see how that can be, said Pat Topping, vice president of the Macon Economic Development Commission.</p><p>Tech researchers insist the study is accurate as possible, predicting a fallout from the plant closing that could extend across all economic sectors.</p><p>For example, a B&W employee who loses a $26 an hour job _ the average salary at the plant _ may get another job but its unlikely to pay as well. That translates into less money to spend in restaurants or in retail stores, which has a ripple effect throughout the retail sector and would lower sales tax revenues. Likewise, companies that do business directly with B&W will take a hit as that business dries up.</p><p>Bill Riall, a Georgia Tech economist who worked on the study, previously has said fallout from the closure ultimately could cost the state 14,000 jobs in a ripple effect.</p><p>Bibb County Commission Chairman Tommy Olmstead received the report Tuesday and told The Macon Telegraph he plans to study it more before commenting on it in depth.</p><p>Lee, who lives in Macon, said the studys findings showed about what I thought they would. Im sad its so much, Lee said. Thats a lot of money.</p>