The economic impact of University System of Georgia institutions on their regional economies in fiscal year 2013 [May 2014]

The Economic Impact of University System of Georgia Institutions
on their Regional Economies in FY 2013
May 2014
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 institutions in fiscal year 2013 includes: n $14.1 billion in output (sales); n $9.9 billion in gross regional product; n $6.9 billion in income; and n 136,834 full- and part-time jobs (3.5 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 several 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 2013 fiscal year--July 1, 2012 through June 30, 2013.
The study does not account for all of the short-term impacts of the 31 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 31 institutions on their host communities was $14.1 billion in FY 2013. 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 2013 total, $9.8 billion (70 percent) is initial spending by the institutions and students; $4.3 billion (30 percent) is the induced or re-spending (multiplier) impact. Dividing the FY 2013 total output impact ($14.1 billion) by initial spending ($9.8 billion) yields an average multiplier value of 1.44. On average, therefore, every dollar of initial spending generates an additional 44 cents for the economy of the region that hosts the institution.
In FY 2013, value added comprises $9.9 billion (71 percent) of the $14.1 billion output impact, with domestic and foreign trade comprising the remaining $4.1 billion (30 percent). The $9.9 billion value-added impact equals 2.4 percent of Georgia's 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 institutions on their host communities in FY 2013, including multiplier effects, is 136,834 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 136,834 jobs generated by the University System account for 3.5 percent of all the jobs in Georgia, 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--or 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 2013 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 2013 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 2013. 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 2013 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 Regents 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.
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Expenditures and impacts for MCG Health, Inc., are reported in Appendix 3, however. Appendix 4 reports the combined impacts of Georgia Regents University and MCG Health, Inc. on the Augusta MSA (including the two out-of-state counties) rather than that portion of the local economy that lies within Georgia (defined in Appendix 1).
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 2013. 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 2013 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 2012, $6,360 for Fall 2012, and at $6,360 for Spring 2013.
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 2013, 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 31 institutions conveyed to their host communities in FY 2013. 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 2013 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 2013 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 2013, total initial spending for all 31 institutions was $9.8 billion. Spending originating from personnel services accounted for 37 percent ($3.6 billion) of initial spending, spending due to operating expenses accounted for 25 percent ($2.5 billion) of initial spending, and students' personal expenditures accounted for 38 percent ($3.7 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 2013 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 31 institutions of the University System of Georgia was $14.1 billion in FY 2013 (Table 1). This amount represents the combined impact of all 31 institutions on their host communities. Of the FY 2013 output impact, $9.8 billion (70 percent) was initial spending by the institutions and students, while $4.3 billion (30 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 2013 was 1.44, 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 44 cents for the economy of the region hosting the institution. Thus, for all institutions, the output impact was 1.44 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 2013 are reported in the third column of Tables 1 and 2.
The 31 institutions collectively generated a value-added impact of $9.9 billion in FY 2013. For all institutions combined, the value-added impact equaled 71 percent of the $14.1 billion output impact (with domestic and foreign trade comprising the remaining 29 percent of the output impact). The $9.9 billion value-added impact reported for FY 2013 equals 2.3 percent of Georgia's gross domestic product.
Labor Income Impact
Collectively, the 31 University System institutions generated a labor income impact of $6.9 billion in FY 2013. 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 31 institutions generated an employment impact of 136,834 jobs in FY 2013. 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 3.5 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 2013.
Employment impacts in FY 2013 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 31 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 31 institutions on their host communities in FY 2013 includes: n $14.1 billion in output (sales); n $9.9 billion in valued added (gross regional product); n $6.9 billion in labor income; and n 136,834 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 2013

Total for All Institutions
in 2013
System Total Personal Services Operating Expenses Student Spending

Initial Spending (current dollars)
9,804,936,452 3,617,490,003 2,454,060,305 3,733,386,144

Output Impact (current dollars)
14,073,564,756 6,752,643,502 2,447,796,354 4,873,124,900

Value Added Impact
(current dollars)
9,937,494,295 5,521,290,647 1,469,217,532 2,946,986,116

Labor Income Impact
(current dollars)
6,889,129,850 4,636,180,835
700,273,231 1,522,675,784

Employment Impact (jobs)
136,834 70,426 16,485 49,923

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 2014.

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Table 2
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2013

Institution
Research Universities
Georgia Institute of Technology Personal Services Operating Expenses Student Spending
Georgia Regents University Personal Services Operating Expenses Student Spending
Georgia State University Personal Services Operating Expenses Student Spending
University of Georgia Personal Services Operating Expenses Student Spending
Comprehensive Universities
Georgia Southern University Personal Services Operating Expenses Student Spending
Kennesaw State University Personal Services Operating Expenses Student Spending
University of West Georgia Personal Services Operating Expenses Student Spending
Valdosta 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)

1,621,299,973 747,529,998 599,966,887 273,803,088

2,687,142,018 1,493,551,831
791,556,418 402,033,769

862,206,138 481,933,280 262,948,666 117,324,192

1,200,323,047 863,989,339 194,629,173 141,704,535

992,307,570 356,395,365 244,728,957 391,183,248

1,609,337,678 712,071,728 322,879,151 574,386,799

1,509,388,374 691,637,573 375,529,825 442,220,976

2,147,266,890 1,269,643,583
312,726,257 564,897,050

1,937,697,195 1,208,962,702
479,709,086 249,025,407
904,082,740 707,365,350 113,580,850
83,136,540
1,127,848,513 576,389,872 195,675,327 355,783,314
1,575,118,384 1,040,619,049
190,796,916 343,702,419

1,382,755,017 1,007,300,832
237,686,592 137,767,593
680,775,686 593,978,615
46,263,978 40,533,094
774,027,054 480,244,749
96,953,348 196,828,956
1,150,506,493 875,420,433 92,000,296 183,085,765

21,799 13,012
5,031 3,756
12,179 9,157 1,441 1,580
13,623 6,206 2,051 5,366
21,879 13,802
2,304 5,773

504,145,905 155,429,116
98,560,181 250,156,608
567,033,788 175,898,884
97,945,264 293,189,640
286,446,631 83,299,976 61,239,791
141,906,864
292,349,163 82,925,278 57,597,965
151,825,920

534,818,670 222,880,887
48,676,463 263,261,320
911,165,023 351,442,908 129,222,465 430,499,650
455,593,962 166,431,899
80,795,704 208,366,359
354,702,799 144,304,147
33,106,364 177,292,288

372,782,193 195,103,409
27,441,223 150,237,562
629,447,766 284,477,145
78,313,042 266,657,579
312,749,013 134,719,098
48,964,840 129,065,074
240,425,629 118,602,820
18,838,559 102,984,251

247,773,060 172,162,867
9,584,133 66,026,061
423,349,520 237,024,732
38,802,599 147,522,188
207,910,607 112,247,184
24,261,132 71,402,291
157,954,730 99,664,665 7,948,525 50,341,540

6,485 2,784
371 3,330
8,335 3,492
821 4,022
4,338 1,878
513 1,947
3,851 1,572
260 2,019

(continued)

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Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2013

Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value-Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

State Universities

Albany State University Personal Services Operating Expenses Student Spending

117,189,415 38,215,234 27,984,789 50,989,392

Armstrong Atlantic State University Personal Services Operating Expenses Student Spending

175,313,512 46,020,176 42,082,472 87,210,864

Clayton State University Personal Services Operating Expenses Student Spending

160,568,811 46,109,124 32,489,463 81,970,224

Columbus State University Personal Services Operating Expenses Student Spending

195,461,445 59,468,522 41,415,907 94,577,016

Fort Valley State University Personal Services Operating Expenses Student Spending

117,038,926 38,628,356 35,140,946 43,269,624

Georgia College and State University Personal Services Operating Expenses Student Spending

169,530,394 61,963,184 26,004,026 81,563,184

Georgia Southwestern State University Personal Services Operating Expenses Student Spending

72,629,661 20,545,490 15,631,195 36,452,976

Savannah State University Personal Services Operating Expenses Student Spending

125,610,392 34,685,313 34,832,423 56,092,656

Southern Polytechnic State University Personal Services Operating Expenses Student Spending

142,365,483 41,730,843 27,642,192 72,992,448

University of North Georgia Personal Services Operating Expenses Student Spending

309,761,590 83,412,103 51,462,207
174,887,280

140,908,113 66,967,579 16,245,171 57,695,363
210,026,697 81,605,811 26,272,656
102,148,230
255,349,132 92,125,219 42,864,429
120,359,484
242,123,455 105,316,105
25,786,966 111,020,384
144,150,239 68,862,305 24,006,787 51,281,147
199,936,511 102,153,141
10,819,620 86,963,750
70,803,599 28,175,584
6,042,183 36,585,832
148,952,604 61,506,123 21,746,350 65,700,131
227,023,880 83,377,491 36,469,263
107,177,126
415,297,763 153,041,140
41,230,597 221,026,027

97,392,269 54,978,734
8,935,801 33,477,734
144,549,533 67,549,927 15,846,770 61,152,835
175,100,817 74,571,201 25,977,246 74,552,369
166,480,642 86,534,303 14,883,249 65,063,090
100,827,082 56,466,094 14,348,060 30,012,929
140,283,095 85,152,441 5,739,041 49,391,612
49,448,730 25,074,544
3,300,366 21,073,820
104,004,623 50,912,241 13,116,657 39,975,725
155,978,909 67,490,311 22,101,568 66,387,030
284,803,461 125,482,924
24,897,040 134,423,498

66,423,438 46,361,176
3,910,902 16,151,360
96,509,534 57,095,307
6,917,984 32,496,243
116,247,913 62,132,301 12,871,225 41,244,387
112,800,579 73,172,100 6,651,420 32,977,059
68,017,302 47,461,445
5,816,016 14,739,841
98,300,954 72,704,719
2,443,167 23,153,068
33,475,395 22,514,683
1,314,282 9,646,430
69,659,826 43,032,616
5,726,139 20,901,072
103,910,544 56,232,543 10,950,899 36,727,102
190,114,441 105,736,807
12,244,778 72,132,857

1,662 862 121 680
2,268 1,013
197 1,058
2,324 926 274
1,124
2,643 1,231
184 1,228
1,659 899 184 576
2,314 1,176
79 1,059
821 308
47 466
1,640 797 163 680
2,065 832 231
1,001
4,306 1,753
295 2,258

(continued)

14

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2013

Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value-Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

State Colleges
Abraham Baldwin Agricultural College Personal Services Operating Expenses Student Spending
Atlanta Metropolitan State College Personal Services Operating Expenses Student Spending
Bainbridge State 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
Darton State College Personal Services Operating Expenses Student Spending
East Georgia 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

75,065,943 16,504,700 22,645,051 35,916,192
64,221,115 14,964,677 15,264,782 33,991,656
64,237,067 13,840,897 16,136,122 34,260,048
67,050,709 18,099,328 14,397,501 34,553,880
96,638,016 22,848,779 19,042,357 54,746,880
119,649,697 25,261,531 25,478,838 68,909,328
58,679,138 10,788,663 13,316,243 34,574,232
211,257,901 56,446,618 42,271,083
112,540,200
100,526,754 22,184,777 18,816,193 59,525,784

73,656,009 23,810,212 11,603,607 38,242,190
99,949,527 29,899,166 20,139,333 49,911,028
64,344,894 23,008,926
6,573,974 34,761,994
78,935,814 31,038,338
8,449,025 39,448,451
104,397,085 38,927,076 7,905,533 57,564,476
137,030,321 44,267,780 14,790,468 77,972,073
60,588,598 15,699,191
6,427,055 38,462,353
333,795,358 112,779,358
55,769,650 165,246,350
118,931,985 38,877,664 11,770,486 68,283,835

49,289,930 20,794,059
6,341,787 22,154,084
67,322,716 24,202,023 12,205,096 30,915,597
42,078,350 19,016,947
3,437,542 19,623,862
53,664,437 25,738,381
4,896,813 23,029,243
69,936,264 32,168,243
4,338,932 33,429,089
89,720,895 36,342,758
8,134,840 45,243,297
38,967,643 13,666,897
3,561,730 21,739,016
227,444,025 91,289,865 33,798,233
102,355,928
78,095,653 31,901,636
6,721,872 39,472,144

30,664,370 18,327,238
2,328,886 10,008,246
43,315,725 20,164,987
6,047,393 17,103,345
26,562,717 16,212,416
1,444,549 8,905,753
34,580,193 21,694,444
1,920,534 10,965,215
45,712,678 27,379,075
2,062,612 16,270,991
56,034,624 30,646,267
3,560,691 21,827,666
23,379,102 12,068,349
1,412,089 9,898,664
149,434,575 76,062,133 16,746,372 56,626,069
47,930,539 26,825,339
2,530,231 18,574,969

897 343
87 468
984 389 129 466
789 304
47 438
886 373
63 450
1,272 506 63 703
1,625 596 110 919
760 249
47 464
3,290 1,391
355 1,544
1,426 542 92 792

(continued)

15

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2013


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

400,440,479 92,276,105 65,831,838
242,332,536
80,991,275 18,315,771 15,882,440 46,793,064
182,582,345 47,250,919 36,393,994 98,937,432
62,948,842 12,879,423 15,380,707 34,688,712

627,044,756 184,366,035
86,854,148 355,824,573
126,256,564 36,594,588 20,954,233 68,707,742
227,527,408 84,289,284 24,843,485
118,394,639
66,184,358 21,639,065
6,639,340 37,905,952

422,275,202 149,235,973
52,636,454 220,402,775
84,879,167 29,621,666 12,698,952 42,558,549
152,569,236 68,975,117 14,483,378 69,110,741
42,230,182 17,884,918
3,496,262 20,849,003

272,355,690 124,342,563
26,080,348 121,932,779
54,517,229 24,680,603
6,292,086 23,544,540
98,025,869 57,919,032
6,107,181 33,999,656
26,104,447 15,370,617
1,392,845 9,340,984

6,092 2,216
552 3,324
1,264 488 134 642
2,537 1,016
187 1,334
821 315
50 456

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 2014.

16

Table 3
On-Campus and Off-Campus Jobs that Exist Due to Institution-Related Spending in Fiscal Year 2013







Total Employment

On-Campus

Institution

Impact

Jobs

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

System Total

136,834

45,259



Research Universities

69,480

25,800



Georgia Institute of Technology

21,799

7,418

Georgia Regents University

12,179

5,798

Georgia State University

13,623

3,539

University of Georgia

21,879

9,045





Comprehensive Universities

23,009

6,616



Georgia Southern University

6,485

2,173

Kennesaw State University

8,335

2,176

University of West Georgia

4,338

1,255

Valdosta State University

3,851

1,012





State Universities

21,703

6,666



Albany State University

1,662

606

Armstrong Atlantic State University

2,268

706

Clayton State University

2,324

581

Columbus State University

2,643

837

Fort Valley State University

1,659

632

Georgia College & State University

2,314

792

Georgia Southwestern State University

821

240

Savannah State University

1,640

566

Southern Polytechnic State University

2,065

520

University of North Georgia

4,306

1,186





State Colleges

22,643

6,177



Abraham Baldwin Agricultural College

897

279

Atlanta Metropolitan State College

984

277

Bainbridge State College

789

219

College of Coastal Georgia

886

260

Dalton State College

1,272

359

Darton State College

1,625

427

East Georgia State College

760

204

Georgia Gwinnett College

3,290

968

Georgia Highlands College

1,426

389

Georgia Perimeter College

6,092

1,525

Gordon State College

1,264

351

Middle Georgia State College

2,537

686

South Georgia State College

821

233

91,575
43,680
14,381 6,381
10,084 12,834
16,393
4,312 6,159 3,083 2,839
15,037
1,056 1,562 1,743 1,806 1,027 1,522
581 1,074 1,545 3,120
16,466
618 707 570 626 913 1,198 556 2,322 1,037 4,567 913 1,851 588

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 2014.

17

Appendix 1
Study Areas for Institutions
Research Universities
Georgia Institute of Technology Atlanta MSA Georgia Regents University Richmond, Columbia, Burke, McDuffie, Jefferson, Lincoln, Warren, and Glascock Georgia State University Atlanta MSA University of Georgia Clarke, Oconee, Madison, Oglethorpe, Jackson, Barrow, Walton, and Gwinnett
Comprehensive Universities
Georgia Southern University Bulloch, Screven, Candler, Jenkins, Evans, Tattnall, and Emanuel Kennesaw State University Atlanta MSA University of West Georgia Atlanta MSA 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 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 and State University Baldwin, Hancock, Putnam, Wilkinson, Jones, and Washington Georgia Southwestern State University Sumter, Schley, Macon, Lee, Crisp, Marion, Webster, and Dooly Savannah State University Chatham, Effingham, Bryan, Liberty, and Bulloch Southern Polytechnic State University Atlanta MSA University of North Georgia Lumpkin, Hall, Dawson, White, Forsyth, Gwinnett, Jackson, Habersham, Banks, and Union
State Colleges
Abraham Baldwin Agricultural College Tift, Berrien, Worth, Colquitt, Irwin, Cook, and Turner Atlanta Metropolitan State College Atlanta MSA Bainbridge State College Decatur, Seminole, Miller, Grady, Early, Mitchell, and Baker College of Coastal Georgia Glynn, Brantley, McIntosh, Camden, and Wayne Dalton State College Whitfield, Murray, Catoosa, Gordon, Walker, and Gilmer Darton State College Dougherty, Lee, Worth, Mitchell, Terrell, Colquitt, Baker, Sumter, Calhoun, and Tift East Georgia State College Emanuel, Candler, Bulloch, Johnson, Jefferson, Toombs, Treutlen, and Jenkins Georgia Gwinnett College Atlanta MSA Georgia Highlands College Floyd, Polk, Chattooga, Bartow, and Gordon Georgia Perimeter College Atlanta MSA Gordon State College Atlanta MSA Middle Georgia State College Bibb, Houston, Jones, Monroe, Peach, Crawford, Twiggs, Baldwin, Wilkinson, Bleckley, Dodge, Pulaski,
and Laurens South Georgia State College Coffee, Atkinson, Bacon, Jeff Davis, Ware, Telfair, Ben Hill, Irwin, Pierce, Brantley, and Clinch
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 2014.
18

Appendix 2
Economic Impact of Capital Outlays in Fiscal Year 2013


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

System Total

372,968,000

607,226,286

325,449,878

253,108,748



Research Universities

167,700,000

284,507,446

156,636,397

122,819,796



Georgia Institute of Technology

59,000,000

111,275,889

63,911,963

49,897,491

Georgia Regents University

28,000,000

41,772,265

20,880,269

16,249,959

Georgia State University

0

0

0

0

University of Georgia

80,700,000

131,459,292

71,844,165

56,672,346



Comprehensive Universities

112,250,000

175,450,947

92,743,630

71,617,186



Georgia Southern University

26,160,000

33,366,105

14,226,581

10,493,467

Kennesaw State University

52,090,000

94,978,058

54,580,413

42,454,211

University of West Georgia

2,000,000

649,545

458,429

275,629

Valdosta State University

32,000,000

46,457,239

23,478,207

18,393,879



State Universities

12,403,000

15,508,156

7,332,757

5,549,057



Albany State University

0

0

0

0

Armstrong Atlantic State University

0

0

0

0

Clayton State University

0

0

0

0

Columbus State University

1,403,000

2,045,331

992,124

651,447

Fort Valley State University

0

0

0

0

Georgia College & State University

9,600,000

13,134,260

6,114,423

4,787,591

Georgia Southwestern State University

1,400,000

328,565

226,210

110,019

Savannah State University

0

0

0

0

Southern Polytechnic State University

0

0

0

0

University of North Georgia

0

0

0

0



State Colleges

80,615,000

131,759,737

68,737,094

53,122,709



Abraham Baldwin Agricultural College

1,500,000

365,273

243,696

106,465

Atlanta Metropolitan State College

0

0

0

0

Bainbridge State College

0

0

0

0

College of Coastal Georgia

1,100,000

271,095

184,377

87,038

Dalton State College

15,000,000

20,101,386

8,028,651

6,019,931

Darton State College

0

0

0

0

East Georgia State College

0

0

0

0

Georgia Gwinnett College

25,200,000

47,528,009

27,297,993

21,312,156

Georgia Highlands College

2,200,000

3,470,607

1,534,259

1,128,693

Georgia Perimeter College

0

0

0

0

Gordon State College

12,830,000

24,197,791

13,898,144

10,850,590

Middle Georgia State College

22,785,000

35,825,576

17,549,974

13,617,836

South Georgia State College

0

0

0

0

5,641
2,564
918 427
0 1,219
1,635
378 778
4 475
180
0 0 0 17 0 161 2 0 0 0
1,262
3 0 0 2 246 0 0 392 46 0 200 373 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 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 2014.

19

Appendix 3 Combined Economic Impact of Georgia Regents University and MCG Health, Inc. in Fiscal Year 2013

Institution
Georgia Regents University Personal Services Operating Expenses Student Spending Capital Spending

Initial Spending (current dollars)
890,206,138 481,933,280 262,948,666 117,324,192
28,000,000

Output Impact (current dollars)
1,242,095,262 863,989,339 194,629,123 141,704,535 41,772,265

Value Added Impact
(current dollars)
924,963,009 707,365,350 113,580,850
83,135,540 20,880,269

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

697,025,646 593,978,615
46,263,978 40,533,094 18,249,959

12,605 9,157 1,441 1,580 427

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

Initial Spending (current dollars)
457,963,911 246,721,000 178,695,000
0 32,547,911

Output Impact (current dollars)
621,759,362 442,310,817 130,891,394
0 48,557,141

Value Added Impact
(current dollars)
467,029,552 362,128,717
80,629,079 0
24,271,756

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

361,248,296 304,081,500
38,277,431 0
18,889,365

6,751 4,989 1,265
0 497

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

Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

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

1,348,170,049 728,654,280 441,643,666 117,324,192 60,547,911

1,863,854,614 1,306,300,156
325,520,517 141,704,535
90,329,406

1,391,992,561 1,069,494,067
194,209,929 83,136,540 45,152,025

1,058,273,942 898,060,115 84,541,115 40,533,094 35,139,324

19,356 14,146
2,706 1,580
924

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 Regents Medical Center (a component unit of MCG Health Systems, Inc.) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2013 and 2012). Other operating expenditures does not include $45.9 million in purchased services (a transfer) and $26.9 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, 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 2014.

20

Appendix 4
Combined Economic Impact of Georgia Regents University and MCG Health, Inc. on the Augusta MSA in Fiscal Year 2013

Institution
Georgia Regents University Personal Services Operating Expenses Student Spending Capital Spending

Output Spending (current dollars)
890,206,138 481,933,280 262,948,666 117,324,192
28,000,000

Value Added Impact
(current dollars)
1,256,802,990 867,580,904 200,913,606 144,138,647 44,169,833

Labor Income Impact
(current dollars)
935,388,543 710,576,216 117,272,613
84,609,402 22,930,313

Employment Impact
(current dollars)
707,812,826 597,852,842
49,694,245 42,197,207 18,068,533

Initial Impact (jobs)
12,786 9,235 1,502 1,609 440

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

Initial Spending (current dollars)
457,963,911 246,721,000 178,695,000
0 32,547,911

Output Impact (current dollars)
630,515,496 444,149,485 135,021,877
0 51,344,134

Value Added Impact
(current dollars)
473,580,723 363,772,488
83,153,456 0
26,654,779

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

367,956,492 306,064,872
40,888,299 0
21,003,321

6,800 5,028 1,261
0 511

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

Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

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

1,348,170,049 728,654,280 441,643,666 117,324,192 60,547,911

1,887,318,486 1,311,730,390
335,935,483 144,138,647
95,513,967

1,408,969,267 1,074,348,704
200,426,069 84,609,402 49,585,092

1,075,769,318 903,917,714 90,582,543 42,197,207 39,071,854

19,586 14,263
2,763 1,609
951

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 Regents Medical Center (a component unit of MCG Health Systems, Inc.) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2013 and 2012). Other operating expenditures does not include $45.9 million in purchased services (a transfer) and $26.9 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, 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 2014.

21

Appendix 5
Georgia Regents University's Albany, Savannah, and Rome Clinical Campuses: Economic Impact of FY 2013 Expenditures
Georgia Regents University has established clinical campuses in Albany, Savannah, and Rome, which generate economic impacts for their host communities. Appendix 5 documents the economic impact that the Albany, Savannah, and Rome clinical campuses had on their host communities in FY 2013, providing base levels of impact that can be referenced in future years as the programs expand. Although the economic impacts in FY 2013 are not large, the impacts should expand rapidly once more students are enrolled at these branch campuses.
Albany: In FY 2013, total expenditures at the Albany clinical campus were $1,964,0914, including $524,097 personnel expense, $307,914 operating expense, and $1,132,080 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 $1,964,091 in initial expenditures and 5 on-campus jobs, n $2,378,127 in output (sales), n $1,595,599 in gross regional product (value added), n $1,037,442 in income, and n 26 jobs.
Savannah: Total expenditures at the Savannah clinical campus were $1,859,720, including $668,768 personnel expense, $542,232 operating expense, and $648,720 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 $1,859,720 in initial expenditures and 5 on-campus jobs, n $2,284,256 in output (sales), n $1,648,150 in gross regional product (value added), n $1,160,575 in income, and n 20 jobs.
Rome: Total expenditures at the Rome clinical campus were $370,446, including $348,666 personnel expense, and $21,780 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 $370,446 in initial expenditures and 3 on-campus jobs, n $624,650 in output (sales), n $509,160 in gross regional product (value added), n $424,529 in income, and n 5 jobs.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), March 2014.
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Appendix 6 GRU/UGA Medical Partnership's Athens Campus:
Economic Impact of FY 2013 Expenditures In partnership, Georgia Regents University and the University of Georgia opened a new campus in Athens in FY 2011, which generates significant economic impacts for Athens' regional economy. Appendix 6 documents the economic impact that the Athens campus had on its host community in FY 2013. In FY 2013, initial expenditures at the Athens campus were $12,739,390, including $8,299,997 personnel expense, $2,404,193 operating expense, and $2,035,200 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 $12,739,390 in initial expenditures and 58 on-campus jobs, n $19,838,257 in output (sales), n $15,291,258 in gross regional product (value added), n $11,937,084 in income, and n 158 jobs. Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), March 2014.
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Appendix 7
Combined Economic Impact of UGA's Griffin Campus (Budget Unit "A" and Budget Unit "B") On Its Regional Economy in Fiscal Year 2013

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

Initial Spending (current dollars)
21,331,116 12,433,314
4,661,698 1,726,104 2,500,000

Output Impact (current dollars)
38,261,427 24,861,520
6,150,334 2,534,493 4,715,080

Value Added Impact
(current dollars)
28,129,616 20,124,277
3,727,304 1,569,901 2,708,134

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

21,597,053

413

16,767,434

310

1,846,807

39

868,512

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2,114,300

39

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 217 on-campus jobs (expressed on a FTE basis) and 196 off-campus jobs. For each FTE job created on the Griffin campus, there are 0.9 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 2014.

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