Five times as many workers may be needed to construct a power plant as

Five times as many workers may be needed to construct a power plant as to operate it. The numbers may be even more disproportionate for a major pipeline or dam. When the construction ends, a substantial reduction in population is virtually guaranteed. Hence, there may be no justification for providing an infrastructure necessary to maintain adequate levels of service during the construction period.

Money necessary to build water systems, schools and roads and to fund salaries and maintenance costs is mismatched by traditional taxing programs. The construction project is usually not subject to local property tax until it nears completion, which may be five years after the impact has occurred. Alternative sources of tax revenue cannot begin to cover the cost of providing the necessary services. Even if some governments have money, they may not be the right governments. Some entities may suffer the impact of development without being able to tax it. For example, a development may be located in the county just outside the limits of an incorporated city. The county will be entitled to tax the property while the city may receive most of the project population and demand for services.

The 1960s and 1970s witnessed a new boomtown era in the West. The typical contemporary boomtown is fuelled by a quest for energy in the form of a fossil-fuelled electric generating plant, a hydroelectric dam or a new mine. The energy project is typically located near a small community or is forced to start a community from scratch. Often, the boomtown is poorly planned and under-financed. Long-time residents find their community changed for the worse and newcomers find the town an undesirable place to live.

The boomtown is characterized by inadequate public services, undesirable labour conditions, confusion in community structure, and deterioration of the quality of life arising from rapid population growth due to a major economic stimulus. Accelerated growth is the most distinguishing characteristic of a boomtown.

Studies have shown that large-scale development in sparsely populated areas causes major social problems. Housing, street and water systems construction, school development and police and fire protection lag far behind population growth. Rent and property tax increases join with a rise in the general cost of living to harm persons on fixed incomes. Education in the community may suffer. One result of boomtown living is higher incidence of divorce, depression, alcoholism and attempted suicide. Until recently, planners have ignored or understated such problems. While the boomtown promotes an ―us against them‖ mentality — the old timers versus persons brought to the community by the boom — the fact remains that all parties suffer. Newcomers may blame oldtimers for a lack of support just as old-timers may blame them for a deterioration of community life. Consequences of the boomtown also harm the project developer. The undesirable community results in poor worker productivity and frequent worker turnover, factors that delay construction and push projects over budget. Problems of rapid growth in some boomtowns are compounded by the fact that most of the population disappears with the completion of project construction.

1. It can be inferred from the passage that which of the following are possible ways in which a boomtown is affected by poor planning and under-financing?

I. Unsatisfactory labour conditions
II. Inadequate police protection
III. Poor community relations

A. II only
B. I and III only
C. II and III only
D. I, II, and III
E. I only


2. The passage suggests that there is often a lack of services associated with boomtowns. The author claims that all of the following are possible causal factors for the lack of services associated with a boomtown EXCEPT:

A. the expected loss of a substantial number of residents after the completion of a project.
B. lack of support from long-time residents.
C. the location of an energy project just outside the limits of an incorporated city.
D. the time lag between the beginning of project construction and the onset of tax payments for it.
E. the mismatch between funds needed and traditional taxing programs


3. The tone of the author‘s discussion of traditional taxing programs in regard to boomtowns can best be described as:

A. outraged
B. concerned
C. disbelieving
D. complacent
E. mocking