The Voice

The Pfizer Effect

WCC's President Whitworth discusses $1 million annual loss in tax revenue

Michael Fitzgerald

Issue date: 1/29/07 Section: Inside WCC

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Media Credit: Michael Fitzgerald, Chan Park

Pharmaceutical company Pfizer announced severe job cuts and plant closings all over the nation on Jan 22, including its Ann Arbor facility, the city's biggest taxpayer.

While the entire community will suffer over $12.9 million in lost tax resources, WCC is set to lose roughly $1 million a year when Pfizer finally leaves the community. The Ann Arbor plant closed due to company-wide cutbacks of about $2 billion. It isn't clear exactly when the company will completely vacate; some estimates fall as far as 2010.

WCC President Larry Whitworth is calm about the situation, noting that the college receives around $85 million a year from local taxes in its total budget, "In the big picture, this is not all that significant."

Whitworth was confident that there would be no severe cuts to the college, such as job losses, since Pfizer's move will be a gradual one, "We'll be able to adjust."

While WCC may be in the clear on budgetary concerns, Pfizer's closing may create a ripple effect through the community could affect the school.

Pfizer's Ann Arbor facility brought many researchers to the city and those researchers bring family with them. Whitworth believes that many of WCC's international students may disappear as the facility closes its doors.

Researchers aren't the only ones working at the Pfizer facility. The drug company's job openings may have included opportunity for electric, plumbing, HVAC, and health students here at WCC. The closing is just one less opportunity for students who wish to stay in Michigan after graduating.

Pfizer donated over $2 million to Washtenaw United Way in 2006, roughly 25% of their total donations for the year. Whitworth served as General Campaign Chair of the organization that year and was very concerned about the loss.

"It affects everyone in this city." Whitworth went on to note that people United Way helps often pursue higher education, "Once they stabilize, WCC is there."

Pfizer announced the closing as part of a series of cutbacks. Patents on key drugs for the company such as Lipitor, Zoloft, and Norvasc have or will soon expire while drugs set to replace them failed due to safety problems.

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