The economic impact of University System of Georgia institutions on their regional economies in fiscal year 2012

The Economic Impact of University System of Georgia Institutions
on their Regional Economies in FY 2012
March 2013
A Study Commissioned by The Board of Regents of the University System of Georgia
Dr. Jeffrey M. Humphreys, Director Selig Center for Economic Growth
Terry College of Business The University of Georgia
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Executive Summary The statewide economic impact of the University System of Georgia's 35 institutions in fiscal year 2012 includes: n $14.1 billion in output (sales); n $9.9 billion in gross regional product; n $7 billion in income; and n 139,263 full- and part-time jobs (3.6 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 2012 fiscal year--July 1, 2011 through June 30, 2012.
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 $14.1 billion in FY 2012. 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 2012 total, $9.8 billion (69 percent) is initial spending by the institutions and students; $4.4 billion (31 percent) is the induced or re-spending (multiplier) impact. Dividing the FY 2012 total output impact ($14.1 billion) by initial spending ($9.8 billion) yields an average multiplier value of 1.45. On average, therefore, every dollar of initial spending generates an additional 45 cents for the economy of the region that hosts the institution.
In FY 2012, value added comprises $9.9 billion (70 percent) of the $14.1 billion output impact, with domestic and foreign trade comprising the remaining $4.2 billion (30 percent). The $9.9 billion value-added impact equals 2.4 percent of Georgia's state GDP. Labor income received by residents of the communities that host one or more institutions equals $7 billion, and represents 70 percent of the value-added impact.
The collective or rolled-up employment impact of all 35 institutions on their host communities in FY 2012, including multiplier effects, is 139,263 full- and part-time jobs. Approximately 33 percent of these positions are on campus (University System employees) and 67 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 139,263 jobs generated by the University System account for 3.6 percent of all the jobs in Georgia, or about one job in twenty-eight.
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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 2012 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.
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 2012 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 2012. 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 2012 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.
The expenditures and impact reported in Tables 1-3 for Georgia Health Sciences University do not account for
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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 2012. 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 2012 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 2011, $6,360 for Fall 2011, and at $6,360 for Spring 2012.
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 2012, 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 2012. 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 Version 3.0 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 2012 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 2012 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 2012, total initial spending for all 35 institutions was $9.8 billion. Spending originating from personnel services accounted for 36 percent ($3.5 billion) of initial spending, spending due to operating expenses accounted for 25 percent ($2.4 billion) of initial spending, and students' personal expenditures accounted for 39 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 2012 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 $14.1 billion in FY 2012 (Table 1). This amount represents the combined impact of all 35 institutions on their host communities. Of the FY 2012 output impact, $9.8 billion (69 percent) was initial spending by the institutions and students, while $4.4 billion (31 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 2012 was 1.45, obtained by dividing the total output impact ($14.1 billion) by initial spending ($9.8 billion). On average, therefore, every dollar of initial spending generated an additional 45 cents for the economy of the region hosting the institution. Thus, for all institutions, the output impact was 1.45 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 2012 are reported in the third column of Tables 1 and 2.
The 35 institutions collectively generated a value-added impact of $9.9 billion in FY 2012. For all institutions combined, the value-added impact equaled 70 percent of the $14.1 billion output impact (with domestic and foreign trade comprising the remaining 30 percent of the output impact). The $9.9 billion value-added impact reported for FY 2012 equals 2.4 percent of Georgia's gross domestic product.
Labor Income Impact
Collectively, the 35 University System institutions generated a labor income impact of $7 billion in FY 2012. The labor income received by residents of the communities that host University System institutions represents 70 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 139,263 jobs in FY 2012. Approximately 33 percent of these positions are on-campus jobs at one of the institutions of the University System of Georgia, and 67 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 3.6 percent of all the jobs held by Georgians, or about one job in 28. For all institutions combined, 14 jobs were generated for each million dollars of initial spending in FY 2012.
Employment impacts in FY 2012 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 residents. 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 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 2012 includes: n $14.1 billion in output (sales); n $9.9 billion in valued added (gross regional product); n $7 billion in labor income; and n 139,263 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 Institutions of the University System of Georgia on their Regional Economies in Fiscal Year 2012

Total for All Institutions
in 2012
System Total Personal Services Operating Expenses Student Spending

Initial Spending (current dollars)
9,755,459,776 3,502,363,529 2,417,153,831 3,835,942,416

Output Impact (current dollars)
14,147,923,345 6,593,319,873 2,450,820,485 5,103,782,986

Value Added Impact
(current dollars)
9,937,176,927 5,379,686,722 1,471,375,303 3,086,114,902

Labor Income Impact
(current dollars)
6,980,225,676 4,656,864,008
701,707,980 1,621,653,687

Employment Impact (jobs)
139,263 70,251 16,522 52,491

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.

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu) March 2013.

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Table 2
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2012

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 Health Sciences University Personal Services Operating Expenses Student Spending

655,268,906 419,468,785 194,682,721
41,117,400

957,613,213 759,352,801 147,405,246
50,855,166

735,938,020 620,037,608
86,059,105 29,841,307

568,739,929 519,159,875
35,035,006 14,545,048

10,115 8,458 1,091 567

Georgia Institute of Technology Personal Services Operating Expenses Student Spending

1,528,855,428 698,906,314 562,840,562 267,108,552

2,572,648,001 1,411,710,435
759,339,615 401,597,951

1,849,061,693 1,139,846,013
460,427,123 248,788,557

1,312,715,966 947,121,869 227,983,483 137,610,614

20,869 12,285
4,831 3,572

Georgia State University Personal Services Operating Expenses Student Spending

986,877,137 353,097,643 242,236,270 391,543,224

1,628,707,945 713,216,623 326,805,907 588,685,416

1,138,714,455 575,866,774 198,159,428 364,688,253

778,337,046 478,499,741
98,119,927 201,717,378

13,710 6,131 2,078 5,501

University of Georgia Personal Services Operating Expenses Student Spending

1,510,063,178 669,537,914 393,577,536 446,947,728

2,161,385,390 1,241,341,589
335,416,077 584,627,724

1,575,312,863 1,914,829,286
204,713,306 355,770,271

1,139,530,515 851,370,176 98,681,156 189,479,184

22,196 13,748
2,472 5,976

Georgia Southern University Personal Services Operating Expenses Student Spending

484,725,266 143,313,786
89,042,864 252,368,616

523,904,534 206,921,353
44,972,863 272,010,317

361,342,219 180,728,815
25,362,936 155,250,467

236,151,069 159,098,211
8,851,233 68,201,625

6,548 2,765
342 3,441

Valdosta State University Personal Services Operating Expenses Student Spending

297,854,558 80,999,444 57,215,298
159,639,816

366,800,613 142,266,166
33,639,244 190,895,203

246,682,139 116,614,816
19,152,688 110,914,635

310,429,954 248,141,178
8,077,445 54,211,330

4,018 1,581
263 2,174

State Universities

Albany State University

130,747,427

156,068,831

105,866,317

70,114,596

1,816

Personal Services

37,601,156

66,513,523

54,460,343

45,795,245

842

Operating Expenses

32,474,415

19,267,304

10,602,716

4,639,496

145

Student Spending

60,671,856

70,306,004

40,803,258

19,679,855

829



(continued)

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Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2012

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

175,330,206 45,854,510 40,681,192 88,794,504

214,585,229 82,097,339 25,985,783
106,502,115

148,279,109 67,782,711 15,680,323 64,816,075

97,858,021 57,134,958
6,840,062 33,883,001

2,276 978 195
1,103

Augusta State University Personal Services Operating Expenses Student Spending

149,061,677 45,176,879 24,397,518 79,487,280

198,567,315 81,782,462 18,472,736 98,312,117

135,251,636 66,778,185 10,784,875 57,688,576

88,422,374 55,913,631
4,390,567 28,118,176

2,189 955 137
1,097

Clayton State University Personal Services Operating Expenses Student Spending

159,314,998 43,455,932 33,633,170 82,225,896

256,778,588 87,775,986 45,375,190
123,627,412

174,973,874 70,872,259 27,513,340 76,588,275

114,875,353 58,889,242 13,623,408 42,362,704

2,377 933 289
1,155

Columbus State University Personal Services Operating Expenses Student Spending

197,589,532 57,887,268 42,516,376 97,185,888

247,387,901 103,495,318
27,083,159 116,809,424

168,926,340 84,816,811 15,638,527 68,471,002

113,213,316 71,524,944 6,989,278 34,699,094

2,620 1,132
195 1,293

Fort Valley State University Personal Services Operating Expenses Student Spending

123,578,694 41,215,796 32,921,530 49,441,368

157,209,967 74,186,558 23,023,441 59,999,968

109,559,245 60,671,065 13,766,101 35,122,078

73,672,263 50,851,510
5,577,488 17,243,265

1,877 1,026
176 675

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

173,611,210 59,905,728 30,208,858 83,496,624

203,622,838 99,610,243 12,846,138 91,166,457

141,424,668 82,817,985 6,815,861 51,790.823

76,425,782 20,994,889 17,540,557 37,890,336

74,847,297 28,966,415
6,932,685 38,948,197

51,952,992 25,726,189
3,788,142 22,438,661

97,694,439 70,518,242
2,902,576 24,273,621
34,826,339 23,051,897
1,507,324 10,267,118

2,398 1,194
95 1,110
858 307
55 496

Kennesaw State University

566,585,141

926,139,993

637,783,074

426,622,984

8,788

Personal Services

173,324,219

350,094,975

282,674,378

234,880,051

3,802

Operating Expenses

98,605,938

133,031,265

80,663,781

39,941,195

847

Student Spending

294,654,984

443,013,753

274,444,916

151,801,738

4,139



(continued)

14

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2012

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)

146,495,810 47,258,720 23,315,226 75,921,864

194,507,936 85,360,151 16,535,244 92,612,541

135,225,770 70,093,395 9,743,808 55,388,567

91,403,855 59,020,505
4,263,475 28,119,876

2,065 941 121
1,003

Savannah State University Personal Services Operating Expenses Student Spending

124,198,366 31,894,207 36,151,719 56,152,440

147,546,203 57,102,983 23,092,507 67,350,713

102,070,647 47,146,417 13,934,466 40,989,764

67,246,482 39,740,348
6,078,485 21,427,649

1,564 694 174 697

Southern Polytechnic State University Personal Services Operating Expenses Student Spending

136,769,971 41,110,352 26,726,123 68,933,496

222,737,194 83,038,187 36,056,748
103,642,259

153,117,449 67,046,856 21,863,082 64,207,510

102,050,903 55,710,634 10,825,648 35,514,621

2,070 874 229 968

University of West Georgia Personal Services Operating Expenses Student Spending

274,081,078 75,892,426 55,116,636
143,072,016

442,762,618 153,293,970
74,358,974 215,109,675

302,122,009 123,772,920
45,087,715 133,261,374

198,880,865 102,845,506
22,325,476 73,709,883

4,263 1,779
473 2,010

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

73,922,381 16,222,109 20,468,832 37,231,440
62,330,276 14,161,024 14,736,004 33,433,248
70,849,946 17,511,220 15,350,446 37,988,280

74,880,010 23,588,810 10,721,808 40,599,392
98,751,531 28,603,637 19,880,636 50,267,259
83,931,461 30,302,987
9,217,895 44,410,579

49,917,436 20,529,986
5,863,448 23,524,002
66,291,004 23,095,206 12,054,663 31,141,135
56,338,840 25,064,037
5,344,594 25,930,209

30,827,583

972

18,052,486

393

2,151,174

82

10,623,923

497

42,384,099

976

19,190,290

380

5,968,945

126

17,224,864

470

35,503,308

943

21,065,738

368

2,094,995

68

12,342,575

507

(continued)

15

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2012

Institution
Dalton State College Personal Services Operating Expenses Student Spending
Darton College Personal Services Operating Expenses Student Spending
East Georgia College Personal Services Operating Expenses Student Spending
Gainesville State College Personal Services Operating Expenses Student Spending
Georgia Gwinnett 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
Gordon 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)

102,325,096 23,554,423 19,256,337 59,514,338
115,508,190 24,663,643 23,433,635 67,410,912
67,420,495 10,367,951 16,253,144 40,799,400
155,421,642 33,370,116 27,304,062 94,747,464
183,081,445 50,194,007 36,612,302 96,275,136

112,753,350 40,493,038
8,171,836 64,088,476
135,646,058 43,628,064 13,903,345 78,114,649
69,690,604 15,193,469
8,018,957 46,478,178
206,586,107 61,799,354 22,313,954
122,472,800
295,533,185 101,388,319
49,394,396 144,750,471

75,085,799 33,374,730
4,486,998 37,224,070
88,706,185 35,722,050
7,650,951 45,333,183
43,916,183 13,196,507
4,445,621 26,274,056
138,755,785 50,603,229 13,507,625 74,644,931
201,485,752 81,861,387 29,950,393 89,673,973

48,575,607 28,329,096
2,133,535 18,112,976
55,250,954 30,038,372
3,347,874 21,864,707
25,347,896 11,626,005 1,762,082 11,959,810
89,443,912 42,545,409
6,682,570 40,215,933
132,451,166 68,020,335 14,830,131 49,600,700

1,392 543 66 783
1,627 601 105 921
858 237
60 561
2,278 872 160
1,246
3,029 1,360
316 1,353

103,003,683 21,844,008 19,287,051 61,872,624
486,605,520 109,920,344
90,221,872 286,463,304

123,669,913 38,643,426 12,345,054 72,681,433
774,444,129 222,026,424 121,720,156 430,697,549

80,697,179 31,624,039
7,051,753 42,021,387
519,889,332 179,269,018
73,805,264 266,815,050

48,937,986 26,515,492
2,653,302 19,769,202
333,085,020 148,958,380
36,545,157 147,581,483

1,455 517 95 843
7,221 2,424
773 4,024

89,782,138 18,096,813 18,522,085 53,163,240

141,473,031 36,553,479 24,988,511 79,931,041

94,183,054 29,514,082 15,151,835 49,517,137

59,415,452 24,523,868
7,502,530 27,389,054

1,418 513 158 747

(continued) 16

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2012


Institution
Macon State College Personal Services Operating Expenses Student Spending
Middle Georgia College Personal Services Operating Expenses Student Spending
South 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)

116,864,328 29,666,596 20,637,788 66,559,944

149,676,491 53,473,466 14,619,313 81,583,712

99,961,904 43,656,588
8,566,323 47,738,993

63,776,470 36,577,419
3,608,789 23,590,262

1,635 609 110 916

75,537,099

76,133,198

51,810,212

33,769,511

944

18,318,904

26,455,477

23,187,397

20,553,300

362

17,881,595

7,866,777

4,323,431

1,803,628

60

39,336,600

41,810,944

24,299,384

11,412,584

522

53,435,542

49,955,819

31,888,210

19,424,001

624

9,148,655

13,137,027

11,449,764

10,183,332

204

16,534,391

6,715,826

3,482,704

1,489,256

50

27,752,496

30,102,966

16,955,742

7,751,413

370

Two-Year Colleges
Bainbridge College Personal Services Operating Expenses Student Spending
Waycross College Personal Services Operating Expenses Student Spending

83,432,133 13,747,338 23,212,275 46,472,520
18,505,497 4,680,410 3,557,503
10,267,584

81,010,381 23,053,189
9,665,213 48,291,979
19,948,472 6,882,640 1,636,686 11,429,146

51,322,893 19,001,422
5,054,529 27,266,942
13,322,639 5,954,451 877,849 6,490,339

30,649,082 16,154,660
2,124,109 12,370,313
8,597,349 5,262,063
357,178 2,978,108

1,024 345 71 608
250 100
13 137

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), March 2013.

17

Table 3
On-Campus and Off-Campus Jobs that Exist Due to Institution-Related Spending in Fiscal Year 2012







Total Employment

On-Campus

Institution

Impact

Jobs

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

System Total

138,263

45,432

93,831



Research Universities and

77,457

28,094

49,363

Regional Universities



Georgia Health Sciences University

10,116

5,469

4,647

Georgia Institute of Technology

20,869

6,941

13,928

Georgia State University

13,710

3,431

10,279

University of Georgia

22,196

9,042

13,154

Georgia Southern University

6,548

2,188

4,360

Valdosta State University

4,018

1,023

2,995



State Universities

35,161

10,340

24,281



Albany State University

1,816

585

1,231

Armstrong Atlantic State University

2,276

666

1,610

Augusta State University

2,189

633

1,556

Clayton State University

2,377

601

1,776

Columbus State University

2,620

740

1,880

Fort Valley State University

1,877

735

1,142

Georgia College & State University

2,398

814

1,584

Georgia Southwestern State University

858

236

622

Kennesaw State University

8,788

2,476

6,312

North Georgia College & State University

2,065

620

1,445

Savannah State University

1,564

476

1,088

Southern Polytechnic State University

2,070

559

1,511

University of West Georgia

4,263

1,199

3,064

State Colleges

25,371

6,658

18,713



Abraham Baldwin Agricultural College

972

329

643

Atlanta Metropolitan College

976

272

704

College of Coastal Georgia

943

256

687

Dalton State College

1,392

388

1,004

Darton College

1,627

432

1,195

East Georgia College

858

193

665

Gainesville State College

2,278

641

1,637

Georgia Gwinnett College

3,029

976

2,053

Georgia Highlands College

1,455

363

1,092

Georgia Perimeter College

7,221

1,583

5,638

Gordon College

1,418

374

1,044

Macon State College

1,635

397

1,238

Middle Georgia College

944

285

659

South Georgia College

624

169

455



Two-Year Colleges

1,274

340

934



Bainbridge College

1,024

259

765

Waycross College

250

81

169

Notes: Employment includes both full-time 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), March 2013.

18

Appendix 1
Study Areas for Institutions
Research and Regional Universities
Georgia Health Sciences University Richmond, Columbia, Burke, McDuffie, Jefferson, Lincoln, Warren, and Glascock Georgia Institute of Technology Atlanta MSA Georgia State University Atlanta MSA 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 Atlanta Metropolitan College Atlanta MSA College of Coastal Georgia -- Glynn, Brantley, McIntosh, Camden, and Wayne Dalton State College Whitfield, Murray, Catoosa, Gordon, Walker, and Gilmer 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 Gainesville State College Hall, Gwinnett, Jackson, White, Habersham, Lumpkin, Banks, and Forsyth Georgia Gwinnett College Atlanta MSA Georgia Highlands College Floyd, Polk, Chattooga, Bartow, and Gordon Georgia Perimeter 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 South Georgia College Coffee, Atkinson, Bacon, Jeff Davis, Ware, Telfair, Ben Hill, and Irwin
Two-Year Colleges
Bainbridge College Decatur, Seminole, Miller, Grady, Early, Mitchell, and Baker 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), March 2013.
19

Appendix 2
Economic Impact of Capital Outlays in Fiscal Year 2012


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

System Total

232,490,000

386,629,159

202,194,236



Research Universities and

74,390,000

112,751,924

52,884,025

Regional Universities

151,926,656 38,365,387

3,535 1,151

Georgia Health Sciences University

0

0

0

0

0

Georgia Institute of Technology

4,200,000

8,185,485

4,880,672

3,785,940

69

Georgia State University

0

0

0

0

0

University of Georgia

21,910,000

36,733,425

19,197,205

12,986,077

291

Georgia Southern University

48,280,000

67,833,014

28,806,148

21,593,370

791

Valdosta State University

0

0

0

0

0



State Universities

98,440,000

173,542,482

96,140,298

72,388,279

1,431



Albany State University

0

0

0

0

0

Armstrong Atlantic State University

2,750,000

4,140,774

2,302,608

1,844,116

43

Augusta State University

0

0

0

0

0

Clayton State University

0

0

0

0

0

Columbus State University

6,700,000

9,571,821

4,751,561

3,783,421

99

Fort Valley State University

0

0

0

0

0

Georgia College & State University

0

0

0

0

0

Georgia Southwestern State University

7,800,000

10,134,877

4,327,905

3,369,298

119

Kennesaw State University

18,000,000

34,387,763

19,750,815

15,419,900

284

North Georgia College & State Univ.

3,000,000

0

0

0

0

Savannah State University

0

0

0

0

0

Southern Polytechnic State University

0

0

0

0

0

University of West Georgia

60,190,000

115,307,247

65,007,409

47,971,544

886



State Colleges

59,660,000

100,334,753

53,169,913

41,172,990

953



Abraham Baldwin Agricultural College

3,250,000

4,629,124

1,976,547

1,459,882

61

Atlanta Metropolitan College

1,000,000

327,278

230,983

138,878

2

College of Coastal Georgia

7,600,000

10,906,833

5,400,013

4,226,098

115

Dalton State College

0

0

0

0

0

Darton College

0

0

0

0

0

East Georgia College

0

0

0

0

0

Gainesville State College

0

0

0

0

0

Georgia Gwinnett College

23,825,000

46,637,829

26,910,068

20,802,842

381

Georgia Highlands College

0

0

0

0

0

Georgia Perimeter College

0

0

0

0

0

Gordon College

0

0

0

0

0

Macon State College

22,785,000

36,155,588

17,906,487

13,972,862

373

Middle Georgia College

0

0

0

0

0

South Georgia College

1,200,000

1,678,101

745,815

572,428

21



Two-Year Colleges

0

0

0

0

0



Bainbridge College

0

0

0

0

0

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), March 2013.

20

Appendix 3 Combined Economic Impact of Georgia Health Sciences University and MCG Health, Inc. in Fiscal Year 2012

Institution

Initial Spending (current dollars)

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

655,268,906 419,468,785 194,682,721
41,117,400 0

Output Impact (current dollars)
957,613,213 759,352,801 147,405,246
50,855,166 0

Value Added Impact
(current dollars)
735,938,020 620,037,608
86,059,105 29,841,307
0

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

568,739,929 519,159,875
35,035,006 14,545,048
0

10,116 8,458 1,091 567 0

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

Initial Spending (current dollars)
456,857,000 252,356,000 166,785,000
0 37,716,000

Output Impact (current dollars)
638,943,845 456,833,119 125,115,565
0 56,995,160

Value Added Impact
(current dollars)
478,602,312 373,019,913
77,092,816 0
28,489,582

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

371,079,066 312,331,009
36,576,191 0
22,171,866

6,887 5,095 1,209
0 583

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

Grand Total Economic Impact of GHSU and MCG Health, Inc.

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

1,112,125,906 671,824,785 361,467,721 41,117,400 37,716,000

1,596,557,057 1,216,185,920
272,520,811 50,855,166 56,995,160

1,214,540,332 993,057,522 163,151,921 29,841,307 28,489,582

939,818,995 831,490,884
71,611,197 14,545,048 22,171,866

17,003 13,553
2,300 567 583

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., d/b/a Georgia Health Sciences Medical Center (a component unit of MCG Health Systems, Inc.) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2012 and 2011). Other operating expenditures does not include $38.5 million in purchased services (a transfer to GHSU and PPG) and $25.6 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, 2011 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), March 2013.

21

Appendix 4
GHSU's Albany, Savannah, and Rome Clinical Campuses: Economic Impact of FY 2012 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 2012. Although the economic impacts in FY 2012 are quite small, the impacts should expand rapidly once more students are enrolled at these GHSU branch campuses.
Albany: In FY 2012, total expenditures at the Albany clinical campus were $951,114, including $266,482 personnel expense, $277,592 operating expense, and $407,040 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 $951,114 in initial expenditures and 5 on-campus jobs, n $1,107,754 in output (sales), n $750,331 in gross regional product (value added), n $496,237 in income, and n 16 jobs.
Savannah: Total expenditures at the Savannah clinical campus were $589,281, including $403,786 personnel expense, $96,455 operating expense, and $89,040 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 $589,281 in initial expenditures and 5 on-campus jobs, n $891,343 in output (sales), n $699,056 in gross regional product (value added), n $553,313 in income, and n 9 jobs.
Rome: Total expenditures at the Rome clinical campus were $335,866, including $317,787 personnel expense and $18,089 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 $335,866 in initial expenditures and 3 on-campus jobs, n $573,757 in output (sales), n $466,679 in gross regional product (value added), n $388,236 in income, and n 5 jobs.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), March 2013.
22

Appendix 5 GHSU/UGA Medical Partnership's Athens Campus:
Economic Impact of FY 2012 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 2012. In FY 2012, initial expenditures at the Athens campus were $15,644,940, including $8,479,441 personnel expense, $6,147,899 operating expense, and $1,017,600 in student spending (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 $15,644,940 in initial expenditures and 58 on-campus jobs, n $22,291,568 in output (sales), n $16,860,166 in gross regional product (value added), n $12,755,132 in income, and n 171 jobs. In FY 2012, 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), March 2013.
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Appendix 6
Combined Economic Impact of UGA's Griffin Campus (Budget Unit "A" and Budget Unit "B") On Its Regional Economy in Fiscal Year 2012

UGA's Griffin Campus
Total Personal Services Operating Expenses Student Spending

Initial Spending (current dollars)
19,011,839 12,734,642
4,725,357 1,551,840

Output Impact (current dollars)
34,430,781 25,722,511
6,375,075 2,333,194

Value Added Impact
(current dollars)
26,079,871 20,768,921
3,865,540 1,445,410

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

19,970,865

382

17,257,331

320

1,914,046

39

799,489

22

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 foregin 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 selfemployed individuals. Employment includes both full-time and part-time jobs. The total employment impact of 382 jobs consists of 223 on-campus jobs (expressed on a FTE basis) and 159 off-campus jobs. For each FTE job created on the Griffin campus, there are 0.7 off-campus jobs that exist because of spending related to UGA at Griffin.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), March 2013.

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Appendix 7 Total Economic Impact of Merged Institutions on Their Regional Economies in Fiscal Year 2012

Institution
Georgia Regents University Personal Services Operating Expenses Student Spending
Middle Georgia State College Personal Services Operating Expenses Student Spending
South Georgia State College Wages, Salaries, and Benefits Operating Expenses Student Spending
University of North Georgia Wages, Salaries, and Benefits Operating Expenses Student Spending

Initial Spending (current dollars)
804,330,583 464,645,664 219,080,239 120,604,680
192,401,427 47,985,500 38,519,383
105,896,544
71,941,039 13,829,065 20,091,894 38,020,080
301,917,452 80,628,836 50,619,288
170,669,328

Output Impact (current dollars)
1,156,180,527 841,135,262 165,877,982 149,167,283
225,809,689 79,928,943 22,486,090
123,394,656
69,904,290 20,029,666
8,352,512 41,532,112
401,094,043 147,159,504
38,849,198 215,085,341

Value Added Impact
(current dollars)
871,189,656 686,815,793
96,843,980 87,529,883
151,772,116 66,843,986 12,889,754 72,038,377
45,210,849 17,404,214
4,360,553 23,446,081
273,981,555 120,696,624
23,251,433 130,033,498

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

657,162,303 575,073,506
39,425,573 42,663,224

12,305 9,413 1,228 1,664

97,545,981 57,130,719
5,412,416 35,002,846

2,579 970 171
1,438

28,021,350

874

15,445,395

304

1,864,434

63

10,729,521

507

180,847,767 101,565,914
10,946,044 68,335,809

4,343 1,813
281 2,249

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 Regents 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), March 2013.

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Appendix 8
On-Campus and Off-Campus Jobs that Exist Due to Merged Institution-Related Spending in Fiscal Year 2012







Total Employment

On-Campus

Institution

Impact

Jobs

Georgia Regents University Middle Georgia State College South Georgia State College University of North Georgia

12,305 2,579 874 4,343

6,102 682 250
1,261

Off-Campus Jobs That Exist Due to Institution-Related
Spending
6,203 1,897
624 3,082

Notes: Employment includes both full-time and part-time jobs. Estimates for Georgia Regents 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), March 2013.

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Appendix 9 Combined Economic Impact of Georgia Regents University and MCG Health, Inc. in Fiscal Year 2012

Institution
Georgia Regents University Personal Services Operating Expenses Student Spending Capital Spending
MCG Health, Inc. Wages, Salaries, and Benefits Other Operating Expenses Student Spending Capital Spending

Initial Spending (current dollars)
804,330,583 464,645,664 219,080,239 120,604,680
0
456,857,000 252,356,000 166,785,000
0 37,716,000

Output Impact (current dollars)
1,156,180,527 841,135,262 165,877,982 149,167,283 0
638,943,845 456,833,119 125,115,565
0 56,995,160

Value Added Impact
(current dollars)
871,189,656 686,815,793
96,843,980 87,529,883
0
478,602,312 373,019,913
77,092,816 0
28,489,582

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

657,162,303 575,073,506
39,425,573 42,663,224
0

12,305 9,413 1,228 1,664 0

371,079,066 312,331,009
36,576,191 0
22,171,866

6,887 5,095 1,209
0 583

Total Economic Impact of Georgia Regents University and MCG Health, Inc.

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

1,261,187,583 717,001,664 385,865,239 120,604,680 37,716,000

1,795,124,372 1,297,968,381
290,993,547 149,167,283
56,995,160

1,349,791,968 1,059,835,706
173,936,796 87,529,883 28,489,582

1,028,241,369 887,404,515 76,001,764 42,663,224 22,171,866

19,192 14,508
2,437 1,664
583

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 parttime jobs. Initial spending estimates are based on financial data obtained from MCG Health , Inc., d/b/a Georgia Health Sciences Medical Center (a component unit of MCG Health Systems, Inc.) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2012 and 2011). Other operating expenditures do not include $38.5 million in purchased services and $25.6 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, 2011 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), March 2013.

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