Defense cuts slow economy in Killeen-Temple MSA

KILLEEN-TEMPLE-FORT HOOD – The Killeen-Temple-Fort Hood metropolitan statistical area ranked No. 63 in the Milken Institute’s Best-Performing Cities study. The region peaked at No. 1 two years ago.

Defense cuts caused the Killeen-Temple metro area to fall from leading a nationwide economic index to a place in the top third.

The area fell to fifth in 2011 after population decreases at Fort Hood. The region was second in 2009 and 13th in 2008. It was rated No. 33 in 2007.

The population of Fort Hood stands at 45,000, down from about 48,000, the count given in February 2011 by Maj. Gen. William Grimsley, the former deputy commander of III Corps and Fort Hood.

Fort Hood is the largest single-site employer in Texas. In December, a study by the Texas comptroller’s office showed that Fort Hood’s economic impact was $25.3 billion statewide.

Killeen-Temple leads the U.S. in Milken’s five-year index of wage and salary growth, and is sixth in job growth. The period was from 2006 to 2011.

Milken’s study of the largest 200 U.S. cities is based on jobs, wages and technology performance.