Georgia Drought More Costly than Predicted

Drought conditions around Lake Lanier in Georgia during 2007-2009 were more costly to the region's economy than originally predicted according to a recent report.

Georgia's drought in 2007-09 severely damaged the economy around Lake Lanier, costing the region millions more than earlier anticipated, a new report shows.

The 98-page study took two years to compile, cost $180,000 and was commissioned by the nonprofit 1071 Coalition. It covers Georgia's Hall, Forsyth, Gwinnett, Dawson and Lumpkin counties, which border the lake and contain the majority of the businesses and properties most dependent upon it. These counties had a 2009 population of more than 1.2 million, according to U.S. Census Bureau estimates.

''When you aggregate all the numbers, the total negative effect, it's in the $300 million range for one year,'' said Alex Laidlaw, 1071 Coalition president. ''If the drought was prolonged in any significant way at those levels, we'd probably see that number climb exponentially.''

The report, prepared by Bleakley Advisory Group, PBS&J and Georgia State University economist Dr. Bruce Seaman, said when lake elevations fell to 50-year lows in 2008, commercial activity followed suit. The problem was compounded because lake levels were 10 feet or more below its full level throughout the entire boating season, said Gary Mongeon, vice president at Bleakley.

From 2007 to 2008, annual earnings fell 11.6 percent for commercial marinas on leased land. Annual visits fell by 11 percent, and overnight stays dropped 13 percent.

The drought took its toll on real estate and sales, as well.

Property value of boats taxed within the five counties surrounding the lake dropped $389,500, or 10 percent. Additionally, there was a 61.7 percent decrease in the number of new boats registered and a 54 percent decrease in the number of arms-length sales of lakefront properties.

The annual loss of output - the value of all goods and services sold in the region - fell by between $29 million to $37 million. This sparked a corresponding reduction in salaries and wages ranging from $17 million to $21 million, the report said.

The study also looked at the economic impact of increased stream flows from Lanier on the downstream economies.

Mongeon said his research found that increasing flows to the river basin above normal rates produced little economic impact downstream, whether it was agriculture, hydroelectric or fishing. He stressed the study looked at economic impact only, and did not include environmental considerations.