The economic impact of University System of Georgia institutions on their regional economies in fiscal year 2014 [Apr. 2015]

The Economic Impact of University System of Georgia Institutions
on their Regional Economies in FY 2014
April 2015
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 2014 includes: n $14.2 billion in output (sales); n $9.9 billion in gross regional product; n $7.1 billion in income; and n 142,982 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 2014 fiscal year--July 1, 2013 through June 30, 2014.
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 $14.2 billion in FY 2014. 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 2014 total, $10.1 billion (71 percent) is initial spending by the institutions and students; $4.1 billion (29 percent) is the induced or re-spending (multiplier) impact. Dividing the FY 2014 total output impact ($14.2 billion) by initial spending ($10.1 billion) yields an average multiplier value of 1.40. On average, therefore, every dollar of initial spending generates an additional 40 cents for the economy of the region that hosts the institution.
In FY 2014, value added comprises $9.9 billion (70 percent) of the $14.2 billion output impact, with domestic and foreign trade comprising the remaining $4.3 billion (30 percent). The $9.9 billion value-added impact equals 2.2 percent of Georgia's GDP. Labor income received by residents of the communities that host one or more institutions equals $7.1 billion, and represents 71 percent of the value-added impact.
The collective or rolled-up employment impact of all institutions on their host communities in FY 2014, including multiplier effects, is 142,982 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 142,982 jobs generated by the University System account for 3.5 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--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 2014 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 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 2014 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 2014. 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 2014 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 2014 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 $4,113 for Summer 2013, $6,855 for Fall 2013, and at $6,855 for Spring 2014.
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 2014, 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 2014. 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 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 2014 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 2014, total initial spending for all 31 institutions was $10.1 billion. Spending originating from personnel services accounted for 37 percent ($3.7 billion) of initial spending, spending due to operating expenses accounted for 24 percent ($2.4 billion) of initial spending, and students' personal expenditures accounted for 39 percent ($4 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 2014 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 $14.2 billion in FY 2014 (Table 1). This amount represents the combined impact of all 31 institutions on their host communities. Of the FY 2014 output impact, $10.1 billion (71 percent) was initial spending by the institutions and students, while $4.1 billion (29 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 2014 was 1.40, obtained by dividing the total output impact ($14.2 billion) by initial spending ($10.1 billion). On average, therefore, every dollar of initial spending generated an additional 40 cents for the economy of the region hosting the institution. Thus, for all institutions, the output impact was 1.4 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 2014 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 2014. For all institutions combined, the value-added impact equaled 70 percent of the $14.2 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 2014 equals 2.2 percent of Georgia's gross domestic product.
Labor Income Impact
Collectively, the 31 University System institutions generated a labor income impact of $7.1 billion in FY 2014. The labor income received by residents of the communities that host University System institutions represents 71 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 142,982 jobs in FY 2014. 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 2014.
Employment impacts in FY 2014 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 2014 includes: n $14.2 billion in output (sales); n $9.9 billion in valued added (gross regional product); n $7.1 billion in labor income; and n 142,982 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 2014

Total for All Institutions
in 2014
System total Personal services Operating expenses Student spending

Initial Spending (current dollars)
10,127,752,379 3,740,549,277 2,414,153,411 3,973,049,691

Output Impact (current dollars)
14,196,227,262 6,930,657,835 2,266,307,593 4,999,261,834

Value Added Impact
(current dollars)
9,881,225,430 5,581,338,171 1,358,643,786 2,941,243,473

Labor Income Impact
(current dollars)
7,061,746,013 4,786,655,745
641,340,264 1,633,750,004

Employment Impact (jobs)
142,982 73,277 16,956 52,749

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 IMPLAN Group, LLC.
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 2015.

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Table 2
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2014

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)

1,605,382,072 785,936,695 525,478,299 293,967,078
870,194,915 504,633,688 244,921,453 120,639,774
1,053,151,409 369,219,404 260,508,252 423,423,753
1,587,489,209 704,364,643 403,855,870 479,268,696

2,618,499,475 1,547,069,306
657,094,640 414,335,528
1,193,633,891 889,568,335 162,717,554 141,348,003
1,649,342,111 726,786,256 325,757,708 596,798,147
2,162,213,868 1,270,694,367
306,737,867 584,781,634

1,882,103,896 1,234,938,759
397,611,430 249,553,707

1,397,325,096 1,053,553,431
197,535,389 146,236,276

898,306,625 720,801,781
95,569,363 81,935,481

700,183,233 619,808,687
37,816,811 42,557,735

1,136,721,146 580,152,757 197,117,705 359,450,685

803,505,112 494,941,088
97,929,085 210,634,939

1,564,986,318 1,031,783,173
186,494,493 346,708,652

1,171,588,251 888,796,558 89,135,371 193,656,322

22,496 13,914
4,587 3,995
12,223 9,299 1,354 1,570
14,368 6,335 2,279 5,754
22,485 13,796
2,449 6,240

530,419,236 163,609,233
95,116,191 271,693,812
599,039,957 178,787,771 102,917,784 317,334,402
301,018,827 86,565,038 59,804,989
154,648,800
297,529,381 89,191,804 53,244,573
155,093,004

599,003,140 272,634,271
43,574,695 282,794,174
927,891,475 351,933,052 128,695,579 447,262,843
463,152,034 170,398,093
74,784,323 217,969,618
353,357,302 150,912,858
31,084,916 171,359,528

399,140,149 221,587,081
23,592,517 153,960,551
628,188,590 280,928,432
77,874,373 269,385,784
312,554,435 136,019,252
45,252,388 131,282,795
239,489,440 123,379,720
17,980,540 98,129,180

275,257,182 191,575,977
8,546,391 75,134,814
436,212,305 239,666,223
38,688,385 157,857,697
215,453,195 116,041,017
22,481,616 76,930,562
162,724,171 106,380,377
6,834,065 49,509,728

7,277 3,281
403 3,593
8,759 3,547
900 4,312
4,550 1,927
522 2,101
4,001 1,727
268 2,006

(continued)

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Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2014

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
Armstrong Atlantic State University Personal Services Operating Expenses Student Spending
Clayton State University Personal Services Operating Expenses Student Spending
Columbus State University Personal Services Operating Expenses Student Spending
Fort Valley State University Personal Services Operating Expenses Student Spending
Georgia College and State University Personal Services Operating Expenses Student Spending
Georgia Southwestern State University Personal Services Operating Expenses Student Spending
Savannah State University Personal Services Operating Expenses Student Spending
Southern Polytechnic State University Personal Services Operating Expenses Student Spending
University of North Georgia Personal Services Operating Expenses Student Spending

115,967,445 37,248,166 24,261,788 54,457,491
177,394,783 47,883,341 38,889,713 90,621,729
167,742,718 47,471,259 31,781,635 88,489,824
206,136,093 61,967,774 42,483,991
101,684,328
113,276,201 37,003,979 35,446,584 40,825,638
183,115,990 62,985,302 30,509,789 89,620,899
72,403,853 20,847,434 15,349,680 36,206,739
135,946,548 37,036,139 35,142,457 63,767,952
154,268,435 44,592,833 27,746,013 81,929,589
335,738,595 86,917,307 56,874,433
191,946,855

138,092,738 64,132,565 13,386,143 60,574,030
214,554,989 84,505,728 27,229,014
102,820,248
257,910,145 93,444,330 39,741,974
124,723,841
244,290,887 107,214,455
24,808,504 112,267,928
134,484,071 65,145,638 22,653,897 46,684,536
211,370,086 103,404,673
13,853,051 94,112,363
76,536,402 34,200,555
6,458,413 35,877,434
162,315,151 65,362,313 24,605,339 72,347,499
237,951,383 87,778,320 34,695,540
115,477,523
434,210,854 157,578,902
42,939,972 233,691,980

93,407,104 51,974,990
7,345,721 34,086,393
145,523,622 68,554,633 16,306,466 60,662,522
173,760,445 74,591,374 24,048,077 75,120,994
165,261,714 87,164,837 14,370,910 63,725,967
92,171,011 52,590,454 13,092,075 26,488,482
144,117,364 84,839,633 7,876,729 51,401,002
51,007,838 27,988,679
3,538,157 19,481,002
110,443,949 53,024,682 14,735,245 42,684,022
160,614,920 70,068,515 20,994,455 69,551,950
292,875,521 127,723,111
26,111,640 139,040,771

65,032,076 44,893,818
2,980,741 17,157,517
97,766,858 59,051,137
6,418,322 32,297,399
119,602,992 63,635,542 11,947,209 44,020,241
114,263,503 75,538,759 5,810,215 32,914,529
64,633,307 45,348,322
5,517,169 13,767,816
99,340,358 73,351,495
2,435,527 23,553,335
35,043,668 24,328,801
1,309,925 9,404,942
74,199,375 45,674,050
5,799,878 22,725,446
110,963,976 59,776,993 10,430,153 40,756,831
200,618,854 110,014,577
12,456,165 78,148,112

1,676 834 119 723
2,429 1,077
230 1,122
2,546 1,066
278 1,202
2,871 1,335
214 1,323
1,579 831 200 548
2,598 1,264
127 1,207
947 405
65 477
1,833 836 208 789
2,179 822 243
1,113
4,541 1,740
338 2,463

(continued)

14

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2014

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

76,367,520 17,270,176 18,467,759 40,629,585
67,989,390 15,519,643 15,185,402 37,284,345
60,277,751 13,486,474 14,633,101 32,158,176
69,439,949 18,433,991 15,498,429 35,507,529
101,549,317 22,962,883 20,210,625 58,375,809
120,575,726 25,954,800 24,667,022 69,953,904
60,856,225 11,769,568 12,807,255 36,279,402
232,454,013 58,063,413 47,903,511
126,487,089
104,524,796 22,061,893 18,716,887 63,746,016

79,940,054 28,753,516
9,256,745 41,929,793
102,088,755 30,549,485 18,988,880 52,550,390
58,149,851 21,944,613
5,140,684 31,064,554
80,155,405 31,092,874
9,412,654 39,649,877
108,222,360 38,885,564 9,552,232 59,784,564
136,112,221 44,688,049 13,609,724 77,814,448
65,085,761 19,794,235
6,370,506 38,921,020
352,475,013 114,294,345
59,901,613 178,279,055
122,552,348 38,793,907 12,144,584 71,613,857

52,160,268 23,457,530
5,096,355 23,606,383
67,527,241 24,385,943 11,490,272 31,651,026
37,676,208 17,969,284
2,741,699 16,965,225
53,732,801 25,440,821
5,549,948 22,742,032
71,125,769 31,733,454
5,452,427 33,939,888
87,472,943 36,216,560
7,468,411 43,787,972
40,782,842 16,027,609
3,462,494 21,292,739
234,858,946 91,234,774 36,246,946
107,377,226
79,230,653 31,284,369
7,031,108 40,915,175

33,970,385 20,282,249
1,806,777 11,881,358
45,059,833 20,804,185
5,708,425 18,547,223
25,172,790 15,699,341
1,035,984 8,437,465
34,642,799 21,823,391
1,835,983 10,983,425
46,637,827 27,427,180
1,992,803 17,217,844
56,353,719 31,282,347
3,030,528 22,040,844
25,454,640 13,850,568
1,282,263 10,321,809
158,764,170 77,834,394 18,007,667 62,922,109
48,689,654 26,719,190
2,283,838 19,686,626

990 389
84 517
1,038 398 132 507
771 331
46 394
939 413
78 448
1,309 520 81 707
1,621 571 122 929
829 293
57 480
3,687 1,549
419 1,719
1,450 518 103 829

(continued)

15

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2014


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)

399,114,721 90,111,377 72,874,643
236,128,701
84,248,796 18,568,262 15,725,407 49,955,127
184,657,923 47,961,917 38,319,901 98,376,105
59,480,585 12,123,070 14,809,975 32,547,540

601,315,832 177,378,844
91,127,518 332,809,471
126,620,004 36,550,509 19,664,147 70,405,348
223,703,052 84,817,509 23,874,323
115,011,219
60,996,602 20,350,366
6,444,855 34,201,381

397,184,013 141,591,595
55,141,741 200,450,678
83,480,145 29,176,224 11,898,879 42,405,042
146,969,827 68,256,807 13,708,943 65,004,077
38,349,687 16,451,339
3,442,279 18,456,070

265,651,938 120,794,906
27,394,700 117,462,332
55,651,284 24,890,880
5,911,423 24,848,981
97,795,615 58,647,112
5,743,602 33,404,901
24,187,848 14,223,147
1,233,855 8,730,846

6,312 2,465
638 3,209
1,292 475 138 679
2,583 1,018
214 1,351
805 301
62 442

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 IMPLAN Group, LLC.
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., which are reported in Appendix 3.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), March 2015.

16

Table 3
On-Campus and Off-Campus Jobs that Exist Due to Institution-Related Spending in Fiscal Year 2014







Total Employment

On-Campus

Institution

Impact

Jobs

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

System Total

142,982

47,162

95,820



Research Universities

71,572

26,683

44,889



Georgia Institute of Technology

22,496

8,078

14,418

Georgia Regents University

12,223

5,922

6,301

Georgia State University

14,368

3,594

10,774

University of Georgia

22,485

9,089

13,396





Regional Universities

24,586

6,911

17,675



Georgia Southern University

7,277

2,234

5,043

Kennesaw State University

8,759

2,219

6,540

University of West Georgia

4,550

1,284

3,266

Valdosta State University

4,001

1,174

2,827





State Universities

23,199

6,940

16,259



Albany State University

1,676

588

1,088

Armstrong Atlantic State University

2,429

755

1,674

Clayton State University

2,546

713

1,833

Columbus State University

2,871

929

1,942

Fort Valley State University

1,579

576

1,003

Georgia College and State University

2,598

869

1,729

Georgia Southwestern State University

947

273

674

Savannah State University

1,833

587

1,246

Southern Polytechnic State University

2,179

491

1,688

University of North Georgia

4,541

1,159

3,382





State Colleges

23,626

6,628

16,998



Abraham Baldwin Agricultural College

990

281

709

Atlanta Metropolitan State College

1,038

283

755

Bainbridge State College

771

251

520

College of Coastal Georgia

939

301

638

Dalton State College

1,309

381

928

Darton State College

1,621

399

1,222

East Georgia State College

829

216

613

Georgia Gwinnett College

3,687

1,118

2,569

Georgia Highlands College

1,450

366

1,084

Georgia Perimeter College

6,312

1,796

4,516

Gordon State College

1,292

337

955

Middle Georgia State College

2,583

680

1,903

South Georgia State College

805

219

586

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 2015.

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 2015.
18

Appendix 2
Economic Impact of Capital Outlays in Fiscal Year 2014


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

System Total

246,800,000

392,341,671

160,919,583

121,606,226



Research Universities

146,100,000

235,583,227

97,924,147

74,484,042



Georgia Institute of Technology

20,000,000

30,666,743

13,783,378

10,358,044

Georgia Regents University

50,000,000

70,202,868

25,157,663

19,220,125

Georgia State University

58,800,000

113,072,348

48,876,330

37,498,346

University of Georgia

17,300,000

21,641,268

10,106,776

7,407,527



Comprehensive Universities

24,200,000

35,338,306

14,124,250

10,469,205



Georgia Southern University

10,000,000

14,387,214

4,172,896

3,148,960

Kennesaw State University

4,400,000

8,951,267

4,306,634

3,241,903

University of West Georgia

3,500,000

7,120,326

3,425,732

2,578,786

Valdosta State University

6,300,000

4,879,499

2,218,988

1,499,556



State Universities

34,900,000

61,309,829

25,881,180

19,744,028



Albany State University

0

0

0

0

Armstrong Atlantic State University

4,750,000

7,217,011

2,557,198

1,984,401

Clayton State University

19,800,000

38,075,384

16,458,357

12,626,994

Columbus State University

3,900,000

6,101,840

2,504,967

1,912,237

Fort Valley State University

0

0

0

0

Georgia College and State University

1,000,000

224,386

132,686

51,592

Georgia Southwestern State University

1,950,000

2,842,726

989,922

728,931

Savannah State University

0

0

0

0

Southern Polytechnic State University

2,500,000

5,085,947

2,446,951

1,841,990

University of North Georgia

1,000,000

1,762,535

791,099

597,883



State Colleges

41,600,000

60,110,309

22,990,006

16,908,951



Abraham Baldwin Agricultural College

4,300,000

6,058,779

1,712,207

1,267,706

Atlanta Metropolitan State College

3,800,000

7,730,639

3,719,366

2,799,825

Bainbridge State College

3,000,000

4,087,000

1,060,739

815,275

College of Coastal Georgia

3,000,000

3,353,736

1,430,690

1,014,034

Dalton State College

6,700,000

7,461,700

2,703,980

1,850,399

Darton State College

0

0

0

0

East Georgia State College

0

0

0

0

Georgia Gwinnett College

7,000,000

9,105,266

4,538,085

3,311,015

Georgia Highlands College

0

0

0

0

Georgia Perimeter College

0

0

0

0

Gordon State College

0

0

0

0

Middle Georgia State College

13,800,000

22,313,189

7,824,939

5,850,697

South Georgia State College

0

0

0

0

2,455
1,420
181 431 655 153
236
92 61 48 35
384
0 45 221 46
0 1 23 0 35 13
415
39 52 25 25 59
0 0 61 0 0 0 154 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 IMPLAN Group, LLC. 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 2015.

19

Appendix 3 Combined Economic Impact of Georgia Regents University and MCG Health, Inc. in Fiscal Year 2014

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

Initial Spending (current dollars)
920,194,915 504,633,688 244,921,453 120,639,774
50,000,000

Output Impact (current dollars)
1,263,836,760 889,568,335 162,717,554 141,348,003 70,202,868

Value Added Impact
(current dollars)
923,464,288 720,801,781
95,569,781 81,935,481 25,157,663

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

719,403,358 619,808,687
37,816,811 42,557,735 19,220,125

12,654 9,299 1,354 1,570 431

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

Initial Spending (current dollars)
488,982,578 248,610,000 194,504,000
0 45,868,578

Output Impact (current dollars)
653,420,899 438,249,743 146,268,789
0 68,902,367

Value Added Impact
(current dollars)
458,767,937 355,106,160
77,552,734 0
26,109,043

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

374,287,229 305,351,468
48,392,009 0
20,543,751

6,902 4,973 1,483
0 446

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

1,409,177,493 753,243,688 439,425,453 120,639,774 95,868,578

1,917,257,659 1,327,818,078
308,986,343 141,348,003 139,105,235

1,382,232,225 1,075,907,941
173,122,097 81,935,481 51,266,706

1,093,690,587 925,160,155 86,208,820 42,557,735 39,763,876

19,556 14,272
2,837 1,570
877

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, 2014 and 2013). Other operating expenditures does not include $68.5 million in purchased services (a transfer) and $30.6 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, and consumption functions provided by IMPLAN Group, LLC.

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), March 2015.

20

Appendix 4
Combined Economic Impact of Georgia Regents University and MCG Health, Inc. on the Augusta MSA in Fiscal Year 2014

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

Output Spending (current dollars)
920,194,915 504,633,688 244,921,453 120,639,774
50,000,000

Value Added Impact
(current dollars)
1,293,235,579 893,429,971 183,662,974 144,878,790 71,263,844

Labor Income Impact
(current dollars)
949,217,607 728,339,942 108,709,457
84,874,802 27,293,405

Employment Impact
(current dollars)
722,943,098 616,883,378
42,386,651 43,120,159 20,552,910

Initial Impact (jobs)
12,709 9,236 1,460 1,585 428

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

Initial Spending (current dollars)
488,982,578 248,610,000 194,504,000
0 45,868,578

Output Impact (current dollars)
659,384,802 440,152,199 149,082,881
0 70,149,722

Value Added Impact
(current dollars)
470,875,924 358,819,871
83,591,142 0
28,464,911

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

374,374,776 303,910,304
48,433,629 0
22,030,843

6,819 4,942 1,435
0 442

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

1,409,177,493 753,243,688 439,425,453 120,639,774 95,868,578

1,952,620,381 1,333,582,170
332,745,855 144,878,790 141,413,566

1,420,093,530 1,087,159,813
192,300,598 84,874,802 55,758,317

1,097,317,875 920,793,682 90,820,280 43,120,159 42,583,753

19,528 14,178
2,895 1,585
870

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, 2014 and 2013). Other operating expenditures does not include $68.5 million in purchased services (a transfer) and $30.6 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, and consumption functions provided by IMPLAN Group, LLC.

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), March 2015.

21

Appendix 5
Georgia Regents University's Albany, Savannah, and Rome Clinical Campuses: Economic Impact of FY 2014 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 2014, providing base levels of impact that can be referenced in future years as the programs expand. Although the economic impacts in FY 2014 are not large, the impacts should expand rapidly once more students are enrolled at these branch campuses.
Albany: In FY 2014, total expenditures at the Albany clinical campus were $1,269,562, including $649,288 personnel expense, $359,784 operating expense, and $260,490 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 $1,269,562 in initial expenditures and 5 on-campus jobs, n $1,606,182 in output (sales), n $1,117,980 in gross regional product (value added), n $908,838 in income, and n 16 jobs.
Savannah: Total expenditures at the Savannah clinical campus were $1,168,442, including $534,981 personnel expense, $153,611 operating expense, and $479,850 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 $1,168,442 in initial expenditures and 5 on-campus jobs, n $1,596,135 in output (sales), n $1,151,550 in gross regional product (value added), n $856,120 in income, and n 15 jobs.
Rome: Total expenditures at the Rome clinical campus were $887,668, including $516,247 personnel expense, $165,771 operating expense, and $205,650 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).
The economic impact accruing to Rome includes: n $877,688 in initial expenditures and 3 on-campus jobs, n $1,222,750 in output (sales), n $919,145 in gross regional product (value added), n $712,797 in income, and n 10 jobs.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), March 2015.
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Appendix 6 GRU/UGA Medical Partnership's Athens Campus:
Economic Impact of FY 2014 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 2014. In FY 2014, initial expenditures at the Athens campus were $16,719,643, including $7,287,559 personnel expense, $5,790,781 operating expense, $2,193,600 in student spending, and $1,447,702 in capital 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 $16,719,643 in initial expenditures and 70 on-campus jobs, n $22,779,159 in output (sales), n $16,093,747 in gross regional product (value added), n $12,234,263 in income, and n 201 jobs. Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), March 2015.
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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 2014

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

Initial Spending (current dollars)
19,947,799 12,738,075
5,080,561 2,129,163
0

Output Impact (current dollars)
34,428,174 25,074,142
6,353,085 3,000,947
0

Value Added Impact
(current dollars)
25,667,033 20,015,282
3,844,285 1,807,466
0

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

20,044,498

377

17,075,477

305

1,909,861

43

1,059,159

29

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 IMPLAN Group, LLC. 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 self-employed individuals. Employment includes both full-time and part-time jobs. The total employment impact of 377 jobs consists of 210 on-campus jobs (expressed on a FTE basis) and 167 off-campus jobs. For each FTE job created on the Griffin campus, there are 0.8 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 2015.

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