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Economic impact of university system grows to $9.7
billion
NGCSU and GC local impact is $234 million
DAHLONEGA
– According to a newly
released study, the combined economic impact in the northeast Georgia
region of North Georgia College & State University and Gainesville
College was $234 million, with an employment impact of 2,910 jobs during
fiscal year 2004.
The University
System of Georgia's $9.7 billion annual economic impact on the state of
Georgia indicates that the economic clout of the USG's 34 public colleges
and universities continues to increase.
The study, which spanned fiscal year 2004, was conducted by the Selig Center
for Economic Growth in the University of Georgia's Terry College of
Business. It was initially released in 2000 covering Fiscal Year 1999,
updated in 2002 to report Fiscal Years 2000 and 2001, and has just been
updated again to show a $1.7 billion increase in the System's economic
impact since the 2002 study (identified as $8 billion in Fiscal Year 2001).
Unlike the first two studies, this year's data did not include the impact of
campus construction projects, so the effect on the local economy of North
Georgia's new Physical Plant and Materials Management complex as well as the
new Pennington Military Leadership Center building projects was not taken
into account.
In addition to the $9.7 billion in "output impact" generated by the
University System, the study found that public higher education is
responsible for 2.8 percent of Georgia's workforce, or 106,831 full- and
part-time jobs.
The Intellectual Capital Partnership Program, an initiative of the Board of
Regents' Office of Economic Development, commissioned the study by Dr.
Jeffrey M. Humphreys, director of economic forecasting for the Selig Center.
"The
single biggest factor driving the increase in the System's economic impact
is the significant growth in the number of students enrolled in Georgia's
public colleges and universities," Humphreys said. "Not only are there more
students, but they are spending more. And of course, with more students,
institutions are spending more to serve them."
The $9.7 billion
"output impact" is a measure of sales in a community. The study calculated
spending by each of the System's 34 institution on salaries and benefits,
operating supplies and expenses ($3.8 billion), as well as spending by
students who attend that particular institution ($2.6 billion). Of the $9.7
billion total, $6.4 billion (66 percent) is initial spending by the
institutions and students; $3.3 billion (34 percent) is the multiplier
effect of those dollars as they are spent again in the region. Humphreys
found that on average, for every dollar of initial spending in a
community by University System institutions, an additional 52 cents was
generated for the local economy hosting a college or university.
Yet another component
of the study is the analysis of the employment impact of all 34 institutions
on their host communities. The impact on jobs is significant, accounting
for $4.4 billion in salaries and wages for 106,831 full- and part-time
employees. Approximately 62 percent of these jobs are off-campus
positions in either the private or public sectors and 38 percent are
on-campus employees of the University System. The study found that on
average, for each job created on campus, there are 1.7 off-campus jobs
that exist due to spending related to the institution. Jobs related to
the University System account for about one in every 36 Georgia jobs.
Humphreys notes that the figures do not include spending by people who visit
USG campuses to attend meetings, athletic events and reunions, spending by
USG retirees living in a community, and income earned by USG employees
through consulting and other activities.
"Another important aspect of this study is that we have very detailed data
across institutions that can be used for a wide range of planning purposes
by the Board of Regents or other state and local agencies and the private
sector," said Humphreys.
The counties covered in the study related to North Georgia were Lumpkin,
Hall, Dawson, White, Forsyth, and Union.
Gainesville College's area of impact includes Hall, Gwinnett, Jackson,
White, Habersham, Lumpkin, Banks and Forsyth.
Seven institutions in the metro Atlanta area – Georgia Institute of
Technology, Georgia State University, Clayton College & State University,
Kennesaw State University, Southern Polytechnic State University, Atlanta
Metropolitan College and Georgia Perimeter College – accounted for $2.9
billion of the University System's $9.7 billion total, and 37,239 jobs.
The System's largest institution – the University of Georgia with 33,405
students – has the single greatest economic impact: $2 billion on the
Athens-area economy, or 21 percent of the System's total statewide economic
impact.
"This Economic Impact Report continues to be an invaluable study," said
Joy Hymel, executive director of the University System's Office of Economic
Development. "It conclusively demonstrates that beyond the almost
incalculable benefits colleges and universities offer communities through a
more educated society, cultural opportunities and other activities, our
campuses have an ongoing and powerful economic impact on communities large
and small." |