H.R. No. 679


R E S O L U T I O N
WHEREAS, The Boeing Company, the world's largest manufacturer of commercial jetliners and military aircraft, is the principal anchor tenant at KellyUSA, the former Kelly Air Force Base site being redeveloped as a business and industrial park by the City of San Antonio; and WHEREAS, Boeing's operations at KellyUSA provide high-quality maintenance, repair, overhaul, and support services under contracts awarded by the United States Air Force to optimize utilization of the KC-135, C-17, KC-10, and C-130 aircraft fleets; and WHEREAS, A recent study of 2004 financial and contract data by the Center for Community and Business Research, a division of the Institute for Economic Development at The University of Texas at San Antonio, highlights Boeing's positive economic impact on KellyUSA, the City of San Antonio, and the State of Texas; and WHEREAS, Boeing is a major contributor to the redevelopment and success of KellyUSA, investing more than $82 million for facilities and infrastructure, accounting for 29 percent of the private sector jobs, and leasing 17 percent of the marketable space at the business park since beginning operations there in 1998, according to the study; and WHEREAS, Boeing's impact on the City of San Antonio is illustrated by comparing the $62,000 average annual salary of production workers at Boeing's KellyUSA site in 2004 with the $33,000 average annual salary for all other workers in the metro area that year; the higher-skilled and higher-wage jobs at Boeing improve the makeup of the labor pool and ultimately improve the quality of life for all San Antonio residents; and WHEREAS, Additionally, San Antonio companies accounted for more than half of Boeing's suppliers and received 83 percent of the company's financial commitments to purchase goods and services in 2004; the study found that Boeing paid $29.2 million for goods and services from 208 Texas suppliers during this period; and WHEREAS, The total positive impact of Boeing's San Antonio operations on the Texas economy in 2004 was $357.1 million: the company's expenditures provided a direct economic impact of $163.7 million; the indirect impact of supplier activity amounted to $39.5 million; and spending by Boeing employees on consumer goods added another $153.9 million; and WHEREAS, In 2004, according to the study, Boeing's operations at KellyUSA employed 1,436 persons and spawned 1,336 supplier-related jobs; these 2,772 workers, in turn, leveraged another 1,402 jobs, resulting in 4,174 jobs in Texas that can be attributed to Boeing's San Antonio operations; and WHEREAS, The Institute for Economic Development study concludes that Texas will receive a projected benefit of more than $2 billion in economic activity if the U.S. Air Force continues aircraft maintenance programs at KellyUSA that expire in 2009; these include the KC-135 and KC-10 contracts that employ approximately 900 Boeing workers in San Antonio; and WHEREAS, In light of the importance of these aircraft maintenance programs to KellyUSA, the City of San Antonio, and the State of Texas, as well as to the readiness and effectiveness of U.S. armed services missions, it is critical that the U.S. Air Force continue aircraft maintenance programs currently performed at KellyUSA; now, therefore, be it RESOLVED, That the House of Representatives of the 79th Texas Legislature, 3rd Called Session, hereby recognize The Boeing Company for its contributions to KellyUSA, the City of San Antonio, and the State of Texas and urge the United States Air Force to continue aircraft maintenance programs currently performed at KellyUSA. Uresti ______________________________ Speaker of the House I certify that H.R. No. 679 was adopted by the House on May 15, 2006, by a non-record vote. ______________________________ Chief Clerk of the House