BOULDER - The annual net economic benefit of federally funded research facilities and their affiliates in Colorado is about $1.1 billion, according to a new study conducted by the Business Research Division at the University of Colorado's Leeds School of Business.

The CO-LABS Economic Impact Study quantifies a long-standing belief that the federal labs are a coveted and integral part of state and local economies. The study was commissioned by the Boulder Economic Council on behalf of CO-LABS Inc., a nonprofit consortium of federally funded scientific laboratories, universities, businesses, local governments and legislators including the economic council and the University of Colorado.

CO-LABS, formed last year, wants to make sure people are aware of the economic impact of the labs to the state's economy and make sure the labs stay here. In 2006 Colorado lost a bid to Wyoming to host a $75 million federal supercomputing lab. In 2004, Oklahoma gave Colorado a wakeup call when it attempted to move two NOAA weather laboratories from Boulder to Norman. The attempt was unsuccessful but proved the labs' economic desirability.

The net economic benefits of the federal laboratories for Boulder, Jefferson and Larimer counties totaled $376.7 million, $363.5 million and $105.8 million, respectively, for the fiscal year 2007, the study said. The Denver metro region, which includes Broomfield, Adams, Arapahoe, Denver, Douglas and Jefferson counties benefits from the facilities totaled nearly $490.6 million.

The economic impact of the labs for the state is expected to grow to $1.25 billion in fiscal year 2008 and $1.55 billion in 2009, according to the study. The federal labs' fiscal year runs from October to September.

The leading economic benefits are generated by jobs, payroll, new construction and renovation at the facilities, employee spending and visitors to the area. The net economic benefit is the total of economic benefits less the cost of providing local government services to a facility and its employees including tax breaks and credits.

The most economically beneficial labs in the state are the U.S. Geological Survey in Lakewood, $257 million; University Corporation for Atmospheric Research in Boulder, $207 million; National Renewable Energy Laboratory in Golden, $194 million; National Institute of Standards and Technology in Boulder, $112 million; and the National Oceanic and Atmospheric Administration in Boulder, $107 million.

The federal labs account for about 6,200 jobs statewide with an average annual salary of $64,350, and average total compensation including benefits is $90,627 per worker. About 3,000 of those jobs are in Boulder County at seven labs and their affiliates, and 800 are employed by the labs in Larimer County. In fiscal year 2007 Boulder County had 2,548 full-time federal lab employees, 357 part-time workers and 229 contract workers. Larimer County had 547 full-time federal lab employees, 142-part-timers and 155 contract workers.

Frances Draper, executive director of the Boulder Economic Council, led the effort to form CO-LABS and in May turned the reins over to DeAnne Butterfield, the consortium's first executive director hired in mid-May.

Butterfield most recently was the coordinator of the Boulder County Civic Forum, a program of The Community Foundation serving Boulder County. From 1992 to 1999 she was co-founder and then executive director of the Rocky Flats Local Impacts Initiative, a coalition of public, private, worker and community-based entities that planned for the future of the Rocky Flats nuclear weapons plant south of Boulder.

The University of Colorado at Boulder, Colorado State University in Fort Collins and the Colorado School of Mines in Golden also benefit from the labs, collaborating on research and spinning off new companies that locate near the facilities.

Surrounding counties also receive an economic benefit, primarily from the spending of the employees who reside in those respective counties.

Construction at the facilities in the study topped $12 million in fiscal year 2007 with indications that construction expenditures in Colorado will increase to $54.7 million and $155.4 million in 2008 and 2009, resulting in nearly 3,460 construction-related jobs over the three-year period, the study predicted.

The labs also have a positive impact on the hospitality industry generating approximately $1.1 million annually from 104,000 day visits and 37,300 room nights in Boulder, Jefferson and Larimer counties through conferences, tours and technical training events.