The economic impact of University System of Georgia institutions on their regional economies in fiscal year 2011: a needs assessment study

The Economic Impact of University System of Georgia Institutions
on their Regional Economies in FY 2011
May 2012
A Needs Assessment Study Commissioned by
Georgia's Intellectual Capital Partnership Program (ICAPP)
Dr. Jeffrey M. Humphreys, Director Selig Center for Economic Growth
Terry College of Business The University of Georgia
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The Economic Impact of University System of Georgia Institutions on their Regional Economies in FY 2011
Executive Summary The statewide economic impact of the University System of Georgia's 35 institutions in fiscal year 2011 includes: n $13.2 billion in output (sales); n $9.4 billion in gross regional product; n $6.1 billion in income; and n 131,990 full- and part-time jobs (3.4 percent of all jobs in Georgia). These benefits permeate both the private and public sectors of the host communities. For example, for each job created on campus there are two off-campus jobs that exist because of spending related to the college or university. These economic impacts demonstrate that continued emphasis on colleges and universities as a pillar of the state's economy translates into jobs, higher incomes, and greater production of goods and services. In addition to the system-wide impact summarized here, the following chapters quantify the economic benefits that each institution conveys to the community in which it is located. Each institution's benefits are estimated for several categories of college/university-related expenditures: spending by the institutions themselves for salaries and fringe benefits, operating supplies and expenses, and other budgeted expenditures; spending by the students who attend the institutions; and spending by the institutions for capital projects.
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Introduction
How much does a region benefit economically from hosting an institution of higher education? Traditionally, the benefits are discussed in broad, qualitative terms that often fail to satisfy those who demand tangible evidence of the economic linkages between the academic community and the community as a whole; however, this report quantifies the economic benefits that the University System of Georgia's institutions convey to the communities in which they are located.
The benefits are estimated for three important categories of college/university-related expenditures: spending by the institutions themselves for salaries and fringe benefits, operating supplies and expenses, and other budgeted expenditures; spending by the students who attend the institutions; and spending by the institutions for capital projects (construction). The economic impact estimates are based on regional input-output models of each institution's regional economy, certain necessary assumptions, and available data on annual spending in the specified categories. Moreover, the emphasis is on funds received by residents in the region that hosts each college or university. The study reports expenditures and impacts for the 2011 fiscal year--July 1, 2010 through June 30, 2011.
The study does not account for all of the short-term impacts of the 35 institutions on their host communities, however. For example, there are no dollar amounts estimated for several sources of college/university-related spending because doing so would require collecting survey data, a task beyond the resources available to this study. In addition, the study neither quantifies the many long-term benefits that an institution of higher education imparts to the host community's economic development nor does it measure intangible benefits (such as cultural opportunities, intellectual stimulation, and volunteer work) to local residents. Finally, the study is not a net benefit analysis; it estimates only economic benefits and does not calculate what the presence of a tax-exempt college/university costs the community.
Economic Impact Highlights
In the simplest terms, the total economic impact of all 35 institutions on their host communities was $13.2 billion in FY 2011. The output impact of each institution is the change in regional output that is due to spending by the institution and spending by the students who attend that particular college or university. Of the FY 2011 total, $9.5 billion (72 percent) is initial spending by the institutions and students; $3.7 billion (28 percent) is the induced or re-spending (multiplier) impact. Dividing the FY 2011 total output impact ($13.2 billion) by initial spending ($9.5 billion) yields an average multiplier value of 1.39. On average, therefore, every dollar of initial spending generates an additional 39 cents for the economy of the region that hosts the institution.
In FY 2011, value added comprises $9.4 billion (71 percent) of the $13.2 billion output impact, with domestic and foreign trade comprising the remaining $3.8 billion (29 percent). The $9.4 billion value-added impact equals 2.3 percent of Georgia's state GDP. Labor income received by residents of the communities that host one or more institutions equals $6.5 billion, and represents 69 percent of the value-added impact.
The collective or rolled-up employment impact of all 35 institutions on their host communities in FY 2011, including multiplier effects, is 131,990 full- and part-time jobs. Approximately 34 percent of these positions are on campus (University System employees) and 66 percent are off-campus positions in either the private or public sectors. On average, for each job created on campus there are two off-campus jobs that exist because of spending related to the institution. The 131,990 jobs generated by the University System account for 3.4 percent of all the jobs in Georgia in 2011, or about one job in twenty-nine.
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n Short-Term Economic Impact Of a College or University n

Methodology

The total annual economic impact of college- or university-related spending is defined to consist of the net changes in regional output, value added, labor income, and employment that are due to initial spending by the institution (for operations as well as personnel services) and its students. The total economic impact includes the impact of the initial round of spending and the secondary, or indirect and induced spending--referred to as the multiplier effect--that occurs when the initial expenditures are re-spent. Figure 1 provides a schematic representation of impact relationships.
Indirect spending refers to the changes in inter-industry purchases as a region's industries respond to the additional demands triggered by spending by the college or university, its faculty and staff, and its students. It consists of the ripples of activity that are created when an institution and its employees and students purchase goods or services from other industries located in the host community. Induced spending is similar to indirect spending except that it refers to the additional demand triggered by spending by the region's households as their income increases due to changes in production. Basically, the induced impact captures the ripples of activity that are created when households spend more due to increases in their earnings that were generated by the direct and indirect spending.
The sum of the direct, indirect, and induced economic impacts is the total economic impact, which is expressed in terms of output (sales, plus or minus inventory), value added (gross regional product), labor income, or employment. Total industry output is gross receipts or sales, plus or minus inventory, or the value of production by industry (including households) for a given period of time. Total output impacts are the most inclusive, largest measures of economic impact. Because of their size, output impacts typically are emphasized in economic impact studies and receive much media attention. One problem with output as a measure of economic impact, however, is that it includes the value of inputs produced by other industries, which means that there inevitably is some double counting of economic activity. The other measures of economic activity (value added, labor income, and employment) are free from double counting and provide a much more realistic measure of the true economic impact of a college or university on its regional economy.
The regional economic areas are the host communities, including the surrounding counties from which employees and students commute. The effects of expenditures that go to people, businesses, or governments located outside the regions are not included in the value-added, labor income, and employment impact estimates.
The multiplier concept is common to most economic impact studies. Multipliers measure the response of the local economy to a change in demand or production. In essence, multipliers capture the impact of the initial round of spending plus the impacts generated by successive rounds of re-spending of those initial dollars. The magnitude of a particular multiplier depends upon what proportion of each spent dollar leaves the region during each round of spending. Multipliers therefore are unique to the region and to the industry that receives the initial round of spending.
Figure 2 illustrates the successive rounds of spending that might occur if a person buys an item locally. Assume that the amount spent is $100 and that the appropriate regional output multiplier is 2.0. The initial injection of spending to the region is $100, which creates a direct economic impact of $100 to the regional economy. Of that $100, only $50 is re-spent locally; the rest flows out of the region through non-local taxes, non-local purchases, and income transfers. After the first round of spending, the total economic impact to the region is $150. During the second round of re-spending, $25 is re-spent locally and $25 leaks out of the region, a 50 percent leakage. Now the total economic impact to the region is $175. After seven rounds of re-spending, less than $1 remains in the local economy, but the total economic impact has reached almost $200. The induced (multiplier effect) impact to the region ($100) equals the total impact ($200) minus the direct impact ($100).
The multiplier traces the flows of re-spending that occur throughout the region until the initial dollars have completely leaked to other regions. Obviously, multiplier effects within large, self-sufficient areas are likely to be larger than those in small, rural, or specialized areas that are less able to capture spending for necessary goods and services. Multiplier effects also vary greatly from industry to industry, but in general, the greater the interaction with the local economy, the larger the multiplier for that industry. For example, personal services, business services, and

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entertainment industries have intricate relationships with local supporting industries, and therefore have relatively high multiplier values. Conversely, electric, gas, and sanitary services usually are less intertwined with local supporting industries, and their multipliers are lower.
n Analytic Approach n
Estimating the economic impact of the University System of Georgia institutions on their regional economies in FY 2011 involved four basic steps. First, initial spending (and employment) for each institution were obtained for Budget Unit "A" and "Budget Unit "B"; and then the institutional expenditures were allocated to industrial sectors recognized by the economic impact modeling system. Second, spending by students was estimated and then allocated to industrial sectors. Third, expenditures associated with capital projects (construction) funded were obtained for each institution and were allocated to the appropriate industrial sectors. Finally, the IMPLAN Version 3.0 modeling system was used to build regional economic models that are specific to each institution. Please note that the prior editions of this study relied on the IMPLAN Version 2.0 modeling system.
The geographic areas corresponding to the regional models that were built for each institution, which include the labor force directly involved in their economic spheres, are reported in Appendix 1. These geographic areas are based on an analysis of commuting patterns data obtained from the U.S. Census Bureau.
For analytical purposes, all dollar amounts were converted to inflation-adjusted dollars, but the amounts expressed in this report are in 2011 dollars. Type SAM (social accounting matrices) multipliers from the IMPLAN modeling system were used to estimate the economic impacts associated with all categories of spending. Type SAM multipliers capture the original expenditures resulting from the impact, the indirect effects of industries buying from industries, and the induced effects of households' expenditures based on information in the social account matrix. The multipliers account for Social Security and income tax leakage, institutional savings, commuting, inter-institutional transfers, and people-to-people transfers.
Whenever appropriate, the IMPLAN software applied margins to convert purchaser prices to producer prices. In input-output models, all expenditures are in terms of producer prices, which allow all spending to be allocated to the industries that actually produce the good or service. The margins are derived form U.S. Bureau of Economic Analysis data. Moreover, margins were selected according to type of consumer to which these applied. For example, households pay transportation, wholesale, and the full retail margins. In contrast, institutions of higher education may pay little or no retail margin as they have typically more buying power than a household. In addition, some sectors of the model do not have margins. For instance, because there usually are no wholesalers or retailers involved when someone rents a room, hotels and other lodging do not have margins.
The model's default estimates of the local economy's regional purchase coefficients were used to derive the ratio of locally purchased to imported goods. The regional purchase coefficient represents the proportion of the total demands for a given commodity that is supplied by the region to itself. The regional purchase coefficients were estimated with an econometric equation that predicts local purchases based on each region's unique characteristics. In addition, the entire analysis was conducted using the full range of industrial sectors in order to avoid aggregation bias.
n Initial Spending by the Institutions n
Institution-specific data on expenditures for personnel services and number of positions were obtained from the Board of Regents for FY 2011. The expenditure amounts were treated as an industry change and are reported in the first column of Tables 1 and 2, respectively. These amounts were allocated to various economic sectors recognized by the IMPLAN software based on the typical expenditure pattern for households of moderate income.
Institution-specific data on expenditures for operating expenses (non-personnel services) for FY 2011 were obtained from the Board of Regents. These amounts were treated as an industry change and are reported in the first column of Tables 1 and 2, respectively.
To avoid double-counting, the estimates of initial spending do not include expenditures arising from two budgetary classes: auxiliary enterprise funds (self-supporting activities for housing, food service, bookstore, athletics, and other) and student activity funds (cultural and recreational programs operated by students). The spending associated with such activities is included in the student's personal expenditures, however.
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The expenditures and impact reported in Tables 1-3 for Georgia Health Sciences University do not account for spending by the hospital and clinics operating by MCG Health, Inc., which became a not-for-profit corporation in July 2000. Expenditures and impacts for MCG Health, Inc., are reported in Appendix 3, however.
Since a detailed analysis of spending patterns at each institution was not practical, budgeted expenditures for operating expenses were allocated to various economic sectors based on a typical expenditure pattern estimated for U.S. colleges that was developed by the IMPLAN modelers.
Institution-specific data on capital projects (construction) also were obtained from the Board of Regents. The expenditures were allocated to the fiscal year of reported funding, regardless of whether or not all of the funds were actually spent during fiscal year 2011. Therefore, the amounts for capital expenditures and their impacts are not included in the economic impacts expressed in Tables 1-3, but they are reported in Appendix 2.
It should be noted that previous editions of this study did not include the impacts of public/private ventures. The FY 2011 capital project impacts therefore are not directly comparable to those for FY 2004 or earlier fiscal years.
n Students' Personal Expenditures n
College students spend significant amounts of money in the local economy as a part of their living expenses, so the dollar value of this spending was estimated. Since a detailed survey of students' spending habits at each institution was not practical, typical expenditure levels per student per semester were estimated based on data obtained from several sources: (1) annual Consumer Expenditure Surveys conducted by the U.S. Bureau of Labor Statistics (BLS); (2) a special BLS study that appeared in the July 2001 issue of the Monthly Labor Review that examined the expenditures of college-age students and non-students; and (3) a sample of recent estimated costs of attendance prepared by individual institutions. Although the estimated costs of attendance prepared by individual institutions were not detailed enough to be used in the IMPLAN modeling system, they did provide information for a profile of average expenditures for some of the items typically purchased by students.
Although the Consumer Expenditure Surveys cover households consisting of one person at various income levels, no recent data are available specifically for college students; therefore, to adapt the data for this study, spending estimates for several categories of goods or services were increased, decreased, or eliminated. For example, compared to a weighted average of lower-income households, students' expenditures for books and for eating out were increased substantially, while students' expenditures for groceries, cash contributions, insurance and pensions, and health care were reduced. Because spending for vacation and travel do not take place locally, these expenditures were eliminated entirely. In addition, expenditures for tuition were eliminated because of possible double counting. Institutions receive payments from students for tuition, which in turn support the institutions' expenditures, which has already been estimated. After adjustment, the average expenditure per student by semester was estimated at $3,816 for Summer 2010, $6,360 for Fall 2010, and at $6,360 for Spring 2011.
The final step in estimating students' personal expenditures was to multiply the number of semesters of student spending by the average spending per semester. For FY 2011, these amounts are reported in the first column of Tables 1 and 2. The number of semesters of students' spending equals each institution's FTE enrollment as reported in the Semester Enrollment Report issued by the Board of Regents.
Results
This section describes the economic benefits that the University System of Georgia's 35 institutions conveyed to their host communities in FY 2011. The estimates represent the economic impact of spending by an institution, its faculty and staff, and its students. Based on the methodology and available data described earlier, the IMPLAN modeling system was used to calculate four indicators of impact--total output, total value-added, total income, and total employment--for each category of initial spending. All dollar amounts are reported in 2011 dollars.
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Total Initial Spending
For each institution, total initial spending accruing to the institution's regional economy is the combination of three types of spending--spending by the institution for personnel services, spending by the institution for operating expenses, and spending by that institution's students. Estimates of initial spending for FY 2011 are reported in the first column of Tables 1 and 2. Spending by the institutions for capital projects is reported in Appendix 2.
For FY 2011, total initial spending for all 35 institutions was $9.5 billion. Spending originating from personnel services accounted for 35 percent ($3.4 billion) of initial spending, spending due to operating expenses accounted for 25 percent ($2.3 billion) of initial spending, and students' personal expenditures accounted for 40 percent ($3.8 billion) of initial spending.
Total Output Impact
The output impact was calculated for each category of initial spending, based on the impact of the first round of spending and the impacts generated by the re-spending of these amounts--the multiplier effect. Total output impacts are the most inclusive, largest measures of economic impact. Conceptualized as the equivalent of business revenue, sales, or gross receipts, total output is the value of productions by all industries, including households. Output impacts for FY 2011 are reported in the second column of Tables 1 and 2.
Measured in the simplest and broadest possible terms, the total economic impact of the 35 institutions of the University System of Georgia was $13.2 billion in FY 2011 (Table 1). This amount represents the combined impact of all 35 institutions on their host communities. Of the FY 2011 output impact, $9.5 billion (72 percent) was initial spending by the institutions and students, while $3.7 billion (28 percent) was the induced/re-spending impact or multiplier effect (i.e., the difference between output impact and initial spending). The multiplier captures the regional economic repercussions of the flows of re-spending that take place throughout the region until the initial spending has completely leaked to other regions. The average multiplier value for all institutions in FY 2011 was 1.39, obtained by dividing the total output impact ($13.2 billion) by initial spending ($9.5 billion). On average, therefore, every dollar of initial spending generated an additional 39 cents for the economy of the region hosting the institution. Thus, for all institutions, the output impact was 1.39 times greater than their initial spending.
It is no surprise that estimates for the various institutions show differing outcomes, given the differences in budgets, staffing, enrollment, and regional economies. Institutions located in the largest metropolitan areas (e.g., Atlanta)--where multipliers are the highest, or institutions have the largest budgets, staffs, and enrollments--had the largest economic impacts. Thus, for the most part, institutions with large initial spending will rank highly on the various indicators of economic impact, including value-added, labor income, and employment impact described in the following subsections.
Total Value-Added Impact
Because value-added impacts exclude expenditures related to foreign and domestic trade, they provide a much more accurate measure of the actual economic benefits flowing to businesses and households in a region than the more inclusive output impacts. The value-added impacts for FY 2011 are reported in the third column of Tables 1 and 2.
The 35 institutions collectively generated a value-added impact of $9.4 billion in FY 2011. For all institutions combined, the value-added impact equaled 71 percent of the $13.2 billion output impact (with domestic and foreign trade comprising the remaining 29 percent of the output impact). The $9.4 billion value-added impact reported for FY 2011 equals 2.3 percent of Georgia's gross domestic product.
Labor Income Impact
Collectively, the 35 University System institutions generated a labor income impact of $6.5 billion in FY 2011. The labor income received by residents of the communities that host University System institutions represents 69 percent of the value-added impact. Labor income for each institution is reported in the fourth column of Table 2.
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Employment Impact
The economic impact of hosting an institution of the University System of Georgia probably is most easily understood in terms of its effects on employment. Collectively, the 35 institutions generated an employment impact of 131,990 jobs in FY 2011. Approximately 34 percent of these positions are on-campus jobs at one of the institutions of the University System of Georgia, and 66 percent are off-campus positions in either the private or public sectors. On average, for each job created on campus there are two off-campus jobs that exist because of spending related to the University System of Georgia.
The employment impact associated with the University System accounts for 3.4 percent of all the jobs held by Georgians, or about one job in 29. For all institutions combined, 14 jobs were generated for each million dollars of initial spending in FY 2011.
Employment impacts in FY 2011 for the individual institutions are reported in the fifth column of Table 2. Table 3 shows a break out (by institution) of on- and off-campus jobs that exist due to institution-related spending.
Limitations and Topics for Future Research
Because the goal of this study was to estimate the economic impact of all 35 institutions, certain necessary assumptions were designed to work well for the average institution, but may lead to an over- or under-estimate of the economic contribution that a specific institution makes to its host community. For example, detailed surveys of actual spending by students at various institutions could help to refine estimates of initial spending by students.
Due to both resource limitations and data limitations, several important types of short-term college or universityrelated expenditures were not estimated. For instance, studies could be conducted to measure spending by visitors to the institutions and spending by retirees who still live in the host communities. Also, it would be worthwhile to investigate expenditures supported by the non-institutional income of the each institution's employees. Such income may come from an employee's consulting, investments, and other personal business activities. Moreover, other members of an employee's household often supplement their total household income. Employees' household incomes also can be supplemented via inheritances or gifts. At least a portion of income derived from these sources would not come to the community that hosts the institution if that person's job at the college/university did not exist.
Since this study intentionally focused only on the short-term impacts of several types of college- or universityrelated spending, there was no attempt to evaluate the long-term impacts of the University System's institutions on the economic development of the host communities and the state. After all, colleges and universities not only spend money year by year, but also have long-term impacts on the labor force, local business and industry, and local government.
A college or university improves the skills of its graduates, thereby increasing their productivity and their lifetime earnings. Local businesses benefit from easy access to a large pool of part-time and full-time workers. Moreover, companies and agencies that depend on highly specialized skills often cluster around universities. This may be particularly true of high-tech and information-based companies, which despite the recent recession and sub-par recovery, are still expected to account for a disproportionately high share of future economic growth.
Finally, the outreach and service units of the college or university provide valuable services to local businesses and households. Cultural and educational programs and facilities often are available to the general public and provide intangible benefits to the host community by improving residents' quality of life.
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Summary The fundamental finding of this study is that each of the University System of Georgia's 35 institutions creates substantial economic impacts in terms of output, value added, labor income, and employment. The combined economic impact of the University System's 35 institutions on their host communities in FY 2011 includes: n $13.2 billion in output (sales); n $9.4 billion in valued added (gross regional product); n $6.5 billion in labor income; and n 131,990 full- and part-time jobs. These economic impacts demonstrate that continued emphasis on higher education as an enduring pillar of the regional economy translates into jobs, higher incomes, and greater production of goods and services for local households and businesses.
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Figure 1 Schematic Representation
of Impact Relationships
Direct Expenditures
+
Indirect and Induced Impacts (Multiplier Effects)

=

^



Total Direct Economic Impact

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Figure 2
How Multipliers Capture the Impact of Re-spending Initial Impacts
If the Output Multiplier Equals 2.0

$100

$50 -Leakage

$25 -Leakage $50
$25 $12.50 -Leakage $12.50

$6.25

Initial 1st

2nd

3rd

4th

5th

6th

7th

Impact

Initial Direct or Indirect Impact: $100 First Round of Re-spending: $50 re-spent locally,
Second Round of Re-spending: $25 re-spent locally, Third Round of Re-spending: $12.50 re-spent locally;
Fourth Round of Re-spending: $6.25 re-spent locally; Fifth Round of Re-spending: $3.12 re-spent locally; Sixth Round of Re-spending: $1.56 re-spent locally;
Seventh Round of Re-spending: $.78 re-spent locally; ____

$50 leakage* $25 leakage $12.50 leakage $6.25 leakage $3.12 leakage $1.56 leakage $.78 leakage ____

Total Economic Impact: $200 Total Leakage: $100

*Leakage indicates amounts spent outside area and not re-circulated locally.

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Table 1
Total Economic Impact of all 35 Institutions of the University System of Georgia on their Regional Economies in the 2011 Fiscal Year

Total for All Institutions
in 2011
System Total Personal Services Operating Expenses Student Spending

Initial Spending (current dollars)
9,477,500,665 3,353,077,906 2,348,672,655 3,775,750,104

Output Impact (current dollars)
13,167,541,269 5,660,594,563 2,408,189,088 5,098,757,618

Value Added Impact
(current dollars)
9,398,520,029 4,777,115,412 1,441,497,883 3,179,906,734

Labor Income Impact
(current dollars)
6,477,155,316 4,127,716,419
668,426,348 1,681,012,549

Employment Impact (jobs)
131,990 63,644 15,358 52,988

Notes:
The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN Professional System and production functions provided by MIG, Inc.
Initial spending for personal services and operating expenses were obtained from the Board of Regents of the University System of Georgia. The author estimated initial spending by students.
Output refers to the value of total production, including domestic and foreign trade. Value added includes employee compensation, proprietary income, other property income, and indirect business taxes. Labor income includes both the total payroll costs (including fringe benefits) of workers who are paid by employers and payments received by self-employed individuals. Employment includes both full-time and part-time jobs.
Expenditures and impacts for both the Medical College of Georgia and the University of Georgia are not comparable to previously published estimates. See the text for details.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu) May 2012.

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Table 2
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in the 2011 Fiscal Year

Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value-Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

Research Universities and Regional Universities

Georgia Institute of Technology Personal Services Operating Expenses Student Spending

1,411,754,986 683,683,032 464,020,018 264,051,936

2,289,823,610 1,245,033,632
634,820,483 409,969,495

1,677,980,358 1,032,759,049
386,450,533 258,770,777

1,191,337,144 874,567,619 178,772,345 137,997,180

18,640 10,999
3,900 3,741

Georgia State University Personal Services Operating Expenses Student Spending

975,856,683 330,204,288 259,164,099 386,488,296

1,542,154,286 601,324,680 354,559,465 586,270,141

1,085,855,160 498,800,574 215,840,065 371,214,521

720,206,413 422,397,480
99,847,795 197,961,138

13,201 5,548 2,178 5,476

Georgia Health Sciences University Personal Services Operating Expenses Student Spending

656,092,964 409,001,732 206,361,792
40,729,440

853,240,489 658,903,014 144,122,133
50,215,343

671,186,818 559,306,454
81,238,768 30,641,596

549,209,748 493,687,608
39,264,238 16,257,903

9,602 8,052
985 565

University of Georgia Personal Services Operating Expenses Student Spending

1,484,743,700 644,615,952 395,146,532 444,981,216

2,050,186,968 1,049,309,034
395,004,905 605,873,029

1,520,842,223 898,636,171 240,253,873 381,952,179

1,087,725,604 778,302,419 108,482,533 200,940,653

20,458 12,033
2,545 5,880

Georgia Southern University Personal Services Operating Expenses Student Spending

476,712,869 139,349,037
93,437,480 243,926,352

512,434,420 204,536,223
41,817,070 266,081,127

359,286,675 177,957,937
22,831,260 158,497,478

252,551,336 159,875,790
11,196,333 81,479,213

6,885 2,765
323 3,797

Valdosta State University Personal Services Operating Expenses Student Spending

297,963,198 80,340,427 59,398,691
158,224,080

339,525,413 120,527,084
33,032,223 185,966,107

235,129,956 104,679,721
19,323,750 111,126,485

158,082,455 93,080,005 7,983,113 57,019,337

4,059 1,559
230 2,270

State Universities

Albany State University

131,847,420

148,052,378

103,044,891

Personal Services

36,094,916

56,904,481

48,493,816

Operating Expenses

35,745,904

20,893,135

11,537,203

Student Spending

60,006,600

70,254,762

43,013,872



72,301,044 43,077,946
6,155,145 23,067,953

1,772 741 163 869

(continued)

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Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in the 2011 Fiscal Year

Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value-Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

Armstrong Atlantic State University Personal Services Operating Expenses Student Spending

172,827,701 43,054,865 39,292,932 90,479,904

208,723,005 69,736,126 27,139,163
111,847,717

144,989,761 59,193,218 15,768,500 70,028,043

Augusta State University Personal Services Operating Expenses Student Spending

150,736,491 43,062,407 25,253,572 82,420,512

188,626,720 69,373,668 17,636,978
101,616,075

130,834,955 58,887,483 9,941,613 62,005,860

Clayton State University Personal Services Operating Expenses Student Spending

162,019,052 41,575,144 40,230,316 80,213,592

252,426,600 75,711,186 55,038,643
121,676,771

173,350,060 62,802,650 33,505,083 77,042,327

Columbus State University Personal Services Operating Expenses Student Spending

192,581,625 54,042,813 41,807,028 96,731,784

235,954,567 87,202,179 30,325,183
118,427,206

163,451,835 74,076,169 16,727,705 72,647,961

Fort Valley State University Personal Services Operating Expenses Student Spending

120,731,427 39,655,015 34,101,452 46,974,960

151,387,515 66,616,884 24,975,605 59,795,026

106,859,801 55,939,261 14,570,138 36,350,403

Georgia College & State University Personal Services Operating Expenses Student Spending
Georgia Southwestern State University
Personal Services Operating Expenses Student Spending

170,591,611 58,429,292 28,132,727 84,029,592

183,360,141 81,150,688 12,265,618 89,943,835

134,218,835 72,187,076 6,498,300 55,533,459

77,477,606 19,565,121 19,906,397 38,006,088

73,470,742 27,259,909
7,034,703 39,176,131

52,384,323 24,224,088
3,950,210 24,210,025

Kennesaw State University

540,460,127

853,577,035

593,369,194

Personal Services

156,712,690

285,384,552

236,727,321

Operating Expenses

93,527,917

127,954,480

77,893,008

Student Spending

290,219,520

440,238,003

278,748,866



96,737,961 52,132,224
7,128,023 37,477,714
89,682,912 51,978,696
4,804,970 32,899,246
109,767,530 53,182,942 15,499,480 41,085,108
110,812,408 65,018,808 7,606,133 38,187,467
74,598,147 48,745,747
6,717,758 19,134,643
97,216,766 65,388,189
3,127,690 28,700,887

2,074 756 183
1,136
2,168 904 120
1,144
2,311 836 338
1,137
2,657 1,240
175 1,242
1,760 896 180 684
2,256 1,039
83 1,135

36,459,143

902

21,971,029

335

1,997,825

53

12,490,289

514

385,151,410 200,466,942
36,033,373 148,651,095

8,324 3,427
785 4,112

(continued)

14

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in the 2011 Fiscal Year

Institution
North Georgia College & State University
Personal Services Operating Expenses Student Spending

Initial Spending (current dollars)

Output Impact (current dollars)

Value-Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

136,382,924 42,539,553 20,490,947 73,352,424

171,501,515 65,257,292 15,047,908 91,196,316

122,128,309 56,490,484 8,916,545 56,721,280

84,583,690 50,163,771
4,338,570 30,081,349

1,917 776 110
1,031

Savannah State University Personal Services Operating Expenses Student Spending

116,854,707 32,155,060 33,167,111 51,532,536

138,747,544 52,136,191 22,908,133 63,703,221

97,404,816 44,207,815 13,310,170 39,886,831

66,297,830 38,934,388
6,016,755 21,346,687

1,462 660 155 647

Southern Polytechnic State University Personal Services Operating Expenses Student Spending

125,847,714 36,547,639 23,033,963 66,266,112

198,587,902 66,555,757 31,512,500
100,519,645

138,037,713 55,208,195 19,183,410 63,646,108

89,567,195 46,751,756
8,874,263 33,941,176

1,826 695 193 939

University of West Georgia Personal Services Operating Expenses Student Spending

266,261,470 74,074,212 53,933,578
138,253,680

418,399,052 134,894,209
73,785,920 209,718,923

289,602,072 111,895,142 44,917,593 132,789,338

186,348,527 94,755,761 20,778,918 70,813,849

3,880 1,469
453 1,959

State Colleges
Abraham Baldwin Agricultural College Personal Services Operating Expenses Student Spending
College of Coastal Georgia Personal Services Operating Expenses Student Spending
Dalton State College Personal Services Operating Expenses Student Spending

75,541,433 17,012,422 20,463,139 38,065,872
79,364,502 16,340,290 24,140,444 38,883,768
114,490,167 24,305,736 23,394,255 66,790,176

75,705,218 24,577,715
8,839,135 42,288,368
84,278,435 23,964,114 14,810,170 45,504,151
122,610,490 35,982,033 11,205,928 75,422,530

51,237,431 21,521,087
4,580,005 25,136,339
57,475,783 21,074,735
8,469,880 27,931,168
82,817,341 31,370,637
5,993,900 45,452,804

34,571,234 19,352,528
2,347,310 12,871,396

1,052 380 70 602

36,850,756

942

18,744,947

318

3,697,725

98

14,408,084

527

55,261,827 28,166,417
3,204,913 23,890,498

1,559 534 85 940

(continued)

15

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in the 2011 Fiscal Year

Institution
Gainesville State College Personal Services Operating Expenses Student Spending
Georgia Gwinnett College Personal Services Operating Expenses Student Spending
Gordon College Personal Services Operating Expenses Student Spending
Macon State College Personal Services Operating Expenses Student Spending
Middle Georgia College Personal Services Operating Expenses Student Spending

Initial Spending (current dollars)

Output Impact (current dollars)

Value-Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

153,528,503 31,427,639 22,873,416 99,227,448
134,418,152 38,144,799 29,551,865 66,721,488
100,333,055 17,472,951 23,377,568 59,482,536
125,600,771 28,093,723 26,565,064 70,941,984
79,864,236 18,545,925 19,349,943 41,968,368

206,192,309 50,428,431 22,016,688
133,747,191
211,104,945 69,464,293 40,429,565 101,211,087
154,032,590 31,819,441 31,982,588 90,230,562
157,405,870 47,016,213 19,755,018 90,634,640
82,692,711 27,521,662
8,497,445 46,673,604

140,648,504 43,271,425 13,379,058 83,998,021
146,317,844 57,620,834 24,611,725 64,085,285
102,997,246 26,394,320 19,469,580 57,133,346
106,157,478 39,490,998 11,372,200 55,294,280
56,420,734 23,885,833
4,347,148 28,187,753

88,145,585 37,695,526
6,151,573 44,298,487
94,355,622 48,794,843 11,385,405 34,175,374
61,826,096 22,351,407
9,006,645 30,468,044
69,078,154 34,458,171
5,358,945 29,261,038
38,725,076 21,498,453
2,400,320 14,826,303

2,250 795 145
1,310
2,254 1,061
248 945
1,504 463 198 843
1,714 561 135
1,018
1,089 453 60 576

Two-Year Colleges
Atlanta Metropolitan College Personal Services Operating Expenses Student Spending
Bainbridge College Personal Services Operating Expenses
Student Spending
Darton College Personal Services Operating Expenses Student Spending

69,570,856 13,760,960 19,088,528 36,721,368
83,619,943 12,549,566 24,498,641
46,571,736
110,361,322 24,411,391 22,576,347 63,373,584

106,877,867 25,059,572 26,114,803 55,703,493
76,755,786 17,544,676 10,322,958
48,888,153
119,493,358 35,715,167 11,500,720 72,277,471

71,955,429 20,787,004 15,897,533 35,270,892
50,044,698 15,494,028
5,289,105
29,261,565
82,311,077 31,271,224
6,447,168 44,592,685

43,766,457 17,602,999
7,354,213 18,809,246

1,007 327 160 520

31,754,949 14,027,241
2,800,698
14,927,011

1,014 256 80
676878

54,343,376 27,984,878
3,110,115 23,248,383

1,481 540 85 856

(continued)

16

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in the 2011 Fiscal Year


Institution
East Georgia College Personal Services Operating Expenses Student Spending
Georgia Highlands College Personal Services Operating Expenses Student Spending
Georgia Perimeter College Personal Services Operating Expenses Student Spending
South Georgia College Personal Services Operating Expenses Student Spending
Waycross College Personal Services Operating Expenses Student Spending

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

61,047,667 9,158,922
14,934,601 36,954,144
96,574,636 20,198,459 16,893,641 59,482,536
457,030,790 102,981,301
79,027,825 275,021,664
47,473,558 9,258,389
11,467,553 26,747,616
20,936,799 4,712,238 4,317,369
11,907,192

63,282,323 13,653,996
7,315,710 42,312,617
113,331,575 31,717,266 10,578,110 71,036,199
712,836,576 187,536,016 108,117,068 417,183,492
48,216,325 13,688,484
4,871,085 29,656,756
22,544,987 7,088,698 1,957,858
13,498,431

41,182,869 11,835,669
3,936,113 25,411,087
76,534,720 27,123,642
5,933,180 43,477,898
485,528,450 155,561,672
65,816,873 264,149,905
31,856,241 11,838,565
2,423,950 17,593,726
15,076,431 6,101,115 872,745 8,102,571

25,730,820 10,600,447
1,920,178 13,210,195
49,622,371 24,060,129
2,765,323 22,796,919
303,046,439 131,733,728
30,446,940 140,865,771
21,159,752 10,678,705
1,318,928 9,162,120
10,279,538 5,486,880 531,865 4,260,793

834 232
55 547
1,411 476 75 860
6,762 2,200
665 3,897
662 214
38 410
302 106
15 181

Notes:
The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN Professional System and production functions provided by MIG, Inc.
Initial spending for personal services and operating expenses were obtained from the Board of Regents of the University System of Georgia. The author estimated initial spending by students.
Output refers to the value of total production, including domestic and foreign trade. Value added includes employee compensation, proprietary income, other property income, and indirect business taxes. Labor income includes both the total payroll costs (including fringe benefits) of workers who are paid by employers and payments received by self-employed individuals. Employment includes both full-time and part-time jobs.
Expenditures and impacts for Georgia Health Sciences University do not include impacts associated with MCG Health Inc., but such estimates are reported in Appendix 3.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), May 2012.

17

Table 3
On-Campus and Off-Campus Jobs that Exist Due to Institution-Related Spending in the 2011 Fiscal Year







Total Employment

On-Campus

Institution

Impact

Jobs

Off-Campus Jobs That Exist Due to Institution-Related
Spending

System Total

131,990

44,659

87,3316



Research Universities and

72,845

27,953

44,892

Regional Universities



Georgia Institute of Technology

18,640

6,699

11,941

Georgia State University

13,201

3,471

9,730

Georgia Health Sciences University

9,602

5,761

3,841

University of Georgia

20,458

8,773

11,685

Georgia Southern University

6,885

2,100

4,785

Valdosta State University

4,059

1,149

2,910



State Universities

33,309

9,934

23,375



Albany State University

1,772

537

1,235

Armstrong Atlantic State University

2,074

515

1,559

Augusta State University

2,168

662

1,506

Clayton State University

2,311

575

1,736

Columbus State University

2,657

957

1,700

Fort Valley State University

1,760

646

1,114

Georgia College & State University

2,256

813

1,443

Georgia Southwestern State University

902

260

642

Kennesaw State University

8,324

2,441

5,883

North Georgia College & State University

1,917

580

1,337

Savannah State University

1,462

480

982

Southern Polytechnic State University

1,826

465

1,361

University of West Georgia

3,880

1,003

2,877

State Colleges

12,364

3,539

8,825



Abraham Baldwin Agricultural College

1,052

305

747

College of Coastal Georgia

942

247

695

Dalton State College

1,559

424

1,135

Gainesville State College

2,250

644

1,606

Georgia Gwinnett College

2,254

821

1,433

Gordon College

1,504

353

1,151

Macon State College

1,714

385

1,329

Middle Georgia College

1,089

360

729



Two-Year Colleges

13,471

3,233

10,238



Atlanta Metropolitan College

1,007

240

767

Bainbridge College

1,014

205

809

Darton College

1,481

432

1,049

East Georgia College

834

187

647

Georgia Highlands College

1,411

366

1,045

Georgia Perimeter College

6,762

1,552

5,210

South Georgia College

662

169

493

Waycross College

302

82

220

Notes: Employment includes both full-time and part-time jobs. Estimates for Georgia Health Sciences Univeersity exclude impacts associated with MCG Health Inc., which are reported in Appendix 3.

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), May 2012.

18

Appendix 1
Study Areas for Institutions
Research and Regional Universities
Georgia Institute of Technology Atlanta MSA Georgia State University Atlanta MSA Georgia Health Sciences University Richmond, Columbia, Burke, McDuffie, Jefferson, Lincoln, Warren, and Glascock University of Georgia Clarke, Oconee, Madison, Oglethorpe, Jackson, Barrow, Walton, and Gwinnett Georgia Southern University Bulloch, Screven, Candler, Jenkins, Evans, Tattnall, and Emanuel Valdosta State University Lowndes, Brooks, Lanier, Echols, Cook, and Berrien
State Universities
Albany State University Dougherty, Lee, Worth, Mitchell, Terrell, Colquitt, Baker, Sumter, Calhoun, and Tift Armstrong Atlantic State University Chatham, Effingham, Bryan, Liberty, and Bulloch Augusta State University Richmond, Columbia, Burke, McDuffie, Jefferson, Lincoln Warren, and Glascock Clayton State University Atlanta MSA Columbus State University Muscogee, Harris, Chattahoochee, Marion, Talbot, Stewart, Troup, Meriwether Fort Valley State University Peach, Houston, Bibb, Crawford, Macon, and Taylor Georgia College & State University Baldwin, Hancock, Putnam, Wilkinson, Jones, and Washington Georgia Southwestern State University Sumter, Schley, Macon, Lee, Crisp, Marion, Webster, and Dooly Kennesaw State University Atlanta MSA North Georgia College & State University Lumpkin, Hall, Dawson, White, Forsyth, and Union Savannah State University Chatham, Effingham, Bryan, Liberty, and Bulloch Southern Polytechnic State University Atlanta MSA University of West Georgia Atlanta MSA
State Colleges
Abraham Baldwin Agricultural College Tift, Berrien, Worth, Colquitt, Irwin, Cook, and Turner College of Coastal Georgia -- Glynn, Brantley, McIntosh, Camden, and Wayne Dalton State College Whitfield, Murray, Catoosa, Gordon, Walker, and Gilmer Gainesville State College Hall, Gwinnett, Jackson, White, Habersham, Lumpkin, Banks, and Forsyth Georgia Gwinnett College Atlanta MSA Gordon College Atlanta MSA Macon State College Bibb, Houston, Jones, Monroe, Peach, Crawford, Twiggs, Baldwin, Wilkinson, and Laurens Middle Georgia College Bleckley, Dodge, Pulaski, Twiggs, and Laurens
Two-Year Colleges
Atlanta Metropolitan College Atlanta MSA Bainbridge College Decatur, Seminole, Miller, Grady, Early, Mitchell, and Baker Darton College Dougherty, Lee, Worth, Mitchell, Terrell, Colquitt, Baker, Sumter, Calhoun, and Tift East Georgia College Emanuel, Candler, Bulloch, Johnson, Jefferson, Toombs, Treutlen, and Jenkins Georgia Highlands College Floyd, Polk, Chattooga, Bartow, and Gordon Georgia Perimeter College Atlanta MSA South Georgia College Coffee, Atkinson, Bacon, Jeff Davis, Ware, Telfair, Ben Hill, and Irwin Waycross College Ware, Pierce, Brantley, Bacon, Coffee, Clinch, and Atkinson
Note: Study areas were defined by the author based on commuting data obtained from the Residence County to Workplace County Flows for Georgia, U.S. Census Bureau, Internet release date March 6, 2003.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), May 2012.
19

Appendix 2
Economic Impact of Capital Outlays in Fiscal Year 2011


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

System Total

276,775,000

450,887,116

214,646,777

151,837,573

3,603



Research Universities and

83,320,000

119,034,935

55,054,332

40,030,016

974

Regional Universities



Georgia Institute of Technology

7,300,000

3,216,864

2,114,557

1,291,673

20

Georgia State University

4,700,000

10,448,594

6,361,145

4,752,400

81

Georgia Jealth Sciences University

0

0

0

0

0

University of Georgia

10,750,000

16,147,545

9,986,571

7,513,180

124

Georgia Southern University

57,770,000

84,881,786

34,095,074

24,441,095

709

Valdosta State University

2,800,000

4,340,146

2,496,985

2,031,668

40



State Universities

106,650,000

195,969,079

92,713,387

62,917,183

1,405



Albany State University

1,800,000

2,979,389

1,635,244

1,320,352

30

Armstrong Atlantic State University

5,000,000

7,797,807

3,785,012

2,911,158

70

Augusta State University

2,000,000

3,344,810

1,960,628

1,589,444

29

Clayton State University

28,925,000

56,529,4382

26,496,339

17,502,129

386

Columbus State University

2,000,000

3,013,078

1,396,346

1,060,613

26

Fort Valley State University

1,500,000

442,651

292,256

169,965

3

Georgia College & State University

0

0

0

0

0

Georgia Southwestern State University

6,500,000

8,726,505

3,984,267

3,154,466

85

Kennesaw State University

30,215,000

59,050,545

27,678,027

18,282,691

403

North Georgia College & State Univ.

1,300,000

2,106,320

1,048,685

804,839

18

Savannah State University

0

0

0

0

0

Southern Polytechnic State University

1,000,000

364,276

244,075

141,190

2

University of West Georgia

26,410,000

51,614,260

24,192,508

15,980,336

353



State Colleges

38,885,000

54,932,154

26,796,078

18,990,362

486



Abraham Baldwin Agricultural College

4,750,000

6,841,194

3,227,564

2,421,533

79

College of Coastal Georgia

7,400,000

9,020,223

4,635,333

3,424,273

92

Dalton State College

1,300,000

2,037,049

1,087,206

882,057

22

Gainesville State College

3,560,000

1,135,049

764,622

439,448

7

Georgia Gwinnett College

7,000,000

13,706,766

7,542,611

5,367,765

121

Gordon College

0

0

0

0

0

Macon State College

14,875,000

22,191,873

9,538,742

6,455,286

165

Middle Georgia College

0

0

0

0

0



Two-Year Colleges

47,920,000

80,950,948

40,082,980

29,900,012

738



Atlanta Metropolitan College

22,645,000

44,071,942

23,063,587

16,825,547

362

Bainbridge College

0

0

0

0

0

Darton College

1,600,000

2,370,594

1,199,880

899,727

25

East Georgia College

640,000

956,880

475,015

358,713

10

Georgia Highlands College

19,285,000

28,166,822

12,769,152

9,846,181

281

Georgia Perimeter College

0

0

0

0

0

South Georgia College

3,750,000

5,384,710

2,575,346

1,969,844

60

Waycross College

0

0

0

0

0

Notes: The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN Professional System and production functions provided by MIG, Inc. Initial spending for capital projects were obtained from the Board of Regents of the University System of Georgia. Output refers to the value of total production, including domestic and foreign trade. Value added includes employee compensation, proprietary income, other property income, and indirect business taxes. Labor income includes both the total payroll costs (including fringe benefits) of workers who are paid by employers and payments received by self-employed individuals. Employment includes both full- and part-time jobs. Estimates for Georgia Health Sciences University exclude impacts associated with MCG Health Inc., which are reported in Appendix 3.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), May 2012.
20

Appendix 3 Total Economic Impact of MCG Health, Inc. in Fiscal Year 2011

Institution
MCG Health, Inc. Wages & Salaries and Benefits Other Operating Expenditures Student Spending Capital Spending

Initial Spending (current dollars)
447,718,901 250,647,904 157,858,861
0 39,212,136

Output Impact (current dollars)
562,044,104 403,794,558 114,817,880
0 60,174,891

Value Added Impact
(current dollars)
438,287,092 342,758,938
69,310,406 0
28,973,307

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

353,517,641 302,545,831
36,982,572 0
22,474,462

6,353 4,797 1,008
0 548

Total Economic Impact of Georgia Health Sciences University in Fiscal Year 2011

Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

Georgia Health Sciences University Personal Services Operating Expenses Student Spending Capital Spending

656,092,964 409,001,732 206,361,792
40,729,440 0

853,240,489 658,903,014 144,122,133
50,215,343 0

671,186,818 559,306,454
81,238,768 30,641,596
0

549,209,748 493,687,608
39,264,238 16,257,903
0

9,602 8,052
985 565
0

Grand Total Economic Impact of GHSU and MCG Health, Inc. in Fiscal Year 2011

Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

MCG Health, Inc. Wages & Salaries and Benefits Operating Expenses Student Spending Capital Spending

1,103,811,865 659,649,636 364,220,653 40,729,440 39,212,136

1,432,027,819 1,062,697,572
258,940,013 50,215,343 60,174,891

1,112,229,469 902,065,392 150,549,174 30,641,596 28,973,307

911,212,614 796,233,439
76,246,810 16,257,903 22,474,462

15,955 12,849
1,993 565 548

Note:

Output refers to the value of total production, including domestic and foreign trade. Value added includes employee compensation, proprietary income, other property type income, and indirect business taxes. Labor income includes both the total payroll costs of workers who are paid by employers and payment received by self-employed individuals. Employment includes both full-time and part-time jobs. Initial spending estimates are based on financial data obtained from MCG Health, Inc., Consolidate Financial Statements and Report of Independent Certified Public Accountants (June 30, 2011 and 2010). Other operating expenditures does not include $37.9 million in purchased services (a transfer to GHUS and PPG) and $21.8 million in depreciation and amortization. The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN system, version 3.0, Type SAM multipliers, 2010 data, and consumption functions provided by MIG, Inc.

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), May 2012.

21

Appendix 4
GHSU's Albany, Savannah, and Rome Clinical Campuses: Economic Impact of FY 2011 Expenditures
Georgia Health Sciences University has established clinical campuses in Albany, Savannah, and Rome, which generate economic impacts for their host communities. In fiscal years 2009, 2010, and 2011 these clinical campuses were in their earliest stages of development. Appendix 4 documents the economic impact that the Albany, Savannah, and Rome clinical campuses had on their host communities in FY 2011, providing base levels of impact that can be referenced in future years as the programs expand. Although the economic impacts in FY 2011 are quite small, the impacts should expand rapidly once more students are enrolled at these GHSU branch campuses.
Albany: In FY 2011, total expenditures at the Albany clinical campus were $1,182,830, including $303,265 personnel expense, $663,325 operating expense, and $216,240 in student spending (Assistant Vice Chancellor for Fiscal Affairs/Budget Director, Board of Regents, University System of Georgia provided the estimates for personnel and operating expenses as well as enrollment).
The economic impact accruing to Albany includes: n $1,182,830 in initial expenditures and 5 on-campus jobs, n $1,118,982 in output (sales), n $776,536 in gross regional product (value added), n $559,284 in income, and n 12 jobs.
Savannah: Total expenditures at the Savannah clinical campus were $991,931, including $415,348 personnel expense, $360,343 operating expense, and $216,240 in student spending (Assistant Vice Chancellor for Fiscal Affairs/Budget Director, Board of Regents, University System of Georgia provided the estimates for personnel and operating expenses as well as enrollment).
The economic impact accruing to Savannah includes: n $991,931 in initial expenditures and 4 on-campus jobs, n $1,189,638 in output (sales), n $883,007 in gross regional product (value added), n $657,858 in income, and n 13 jobs.
Rome: Total expenditures at the Rome clinical campus were $183,241, including $154,275 personnel expense and $28,966 operating expense (Assistant Vice Chancellor for Fiscal Affairs/Budget Director, Board of Regents, University System of Georgia provided the estimates for personnel and operating expenses).
The economic impact accruing to Rome includes: n $183,241 in initial expenditures and 3 on-campus jobs, n $260,393 in output (sales), n $217,342 in gross regional product (value added), n $188,512 in income, and n 4 jobs.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), May 2012.
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Appendix 5 GHSU/UGA Medical Partnership's Athens Campus:
Economic Impact of FY 2011 Expenditures The GHSU/UGA Medical Partnership opened a new campus in Athens in FY 2011, which eventually will generate significant economic impacts for Athens' regional economy. Appendix 5 documents the economic impact that the Athens campus had on its host community in FY 2011, providing a base level of impact that can be referenced in future years. In FY 2011, initial expenditures at the Athens campus were $12,899,361, including $7,238,302 personnel expense, $2,152,259 operating expense, $508,800 in student spending, and $3,000,000 in capital outlays (Assistant Vice Chancellor for Fiscal Affairs/ Budget Director, Board of Regents, University System of Georgia provided expense data for personnel, operations, and capital projects as well as enrollment data). The economic impact accruing to Athens includes:
n $12,899,361 in initial expenditures and 54 on-campus jobs, n $19,678,758 in output (sales), n $14,659,225 in gross regional product (value added), n $11,614,771 in income, and n 157 jobs. In FY 2011, the economic impact of the Athens campus was still modest, but its economic impact will expand substantially in future fiscal years. Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), May, 2012.
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