The economic impact of University System of Georgia institutions on their regional economies in fiscal year 2016

The Economic Impact of University System of Georgia Institutions
on their Regional Economies in FY 2016
April 2017
Commissioned by The Board of Regents of the University System of Georgia
Dr. Jeffrey M. Humphreys, Director n Selig Center for Economic Growth
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Executive Summary The statewide economic impact of the University System of Georgia's institutions in fiscal year 2016 includes: n $16.8 billion in output (sales); n $11.3 billion in gross regional product; n $8.2 billion in income; and n 157,967 full- and part-time jobs (3.6 percent of all jobs in Georgia). These benefits permeate both the private and public sectors of the host communities. For example, for each job created on campus there are 2.2 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 2016 fiscal year--July 1, 2015 through June 30, 2016.
The study does not account for all of the short-term impacts of the 28 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 28 institutions on their host communities was $16.8 billion in FY 2016. 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 2016 total, $11.1 billion (66 percent) is initial spending by the institutions and students; $5.8 billion (34 percent) is the induced or re-spending (multiplier) impact. Dividing the FY 2016 total output impact ($16.8 billion) by initial spending ($11.1 billion) yields an average multiplier value of 1.52. On average, therefore, every dollar of initial spending generates an additional 52 cents for the economy of the region that hosts the institution.
In FY 2016, value added comprises $11.3 billion (67 percent) of the $16.8 billion output impact, with domestic and foreign trade comprising the remaining $5.5 billion (33 percent). The $11.3 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 $8.2 billion, and represents 72 percent of the value-added impact.
The collective or rolled-up employment impact of all institutions on their host communities in FY 2016, including multiplier effects, is 157,967 full- and part-time jobs. Approximately 32 percent of these positions are on campus (50,146 University System employees) and 68 percent (107,821 jobs) are off-campus positions in either the private or public sectors. On average, for each job created on campus there are 2.2 off-campus jobs that exist because of spending related to the institution. The 157,967 jobs generated by the University System account for 3.6 percent of all the nonfarm 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 2016 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 Pro 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 2016 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 Pro 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 2016. 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 2016 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 Augusta University (formerly Georgia Regents University) do not account for spending by the hospital and clinics operating by MCG Health, Inc., which became a not-for-profit
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corporation in July 2000. Expenditures and impacts for MCG Health, Inc., are reported in Appendix 3, however. Appendix 4 reports the combined impacts of Augusta 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 2016. 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 2016 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) The College Board Annual Survey of Colleges, various 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 the College Board and individual institutions were not detailed enough to be used in the IMPLAN Pro 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 $4,886 for Summer 2015, $7,326 for Fall 2015, and at $7,326 for Spring 2016.
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 2016, 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 28 institutions conveyed to their host communities in FY 2016. 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 Pro 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 2016 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 2016 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 2016, total initial spending for all 28 institutions was $11.1 billion. Spending originating from personnel services accounted for 37 percent ($4.1 billion) of initial spending, spending due to operating expenses accounted for 24 percent ($2.6 billion) of initial spending, and students' personal expenditures accounted for 39 percent ($4.4 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 2016 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 28 institutions of the University System of Georgia was $16.8 billion in FY 2016 (Table 1). This amount represents the combined impact of all 28 institutions on their host communities. Of the FY 2016 output impact, $11.1 billion (66 percent) was initial spending by the institutions and students, while $5.8 billion (34 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 2016 was 1.52, obtained by dividing the total output impact ($16.8 billion) by initial spending ($11.1 billion). On average, therefore, every dollar of initial spending generated an additional 52 cents for the economy of the region hosting the institution. Thus, for all institutions, the output impact was 1.52 times greater than their initial spending, but the multiplier varies among the individual USG institutions.
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 2016 are reported in the third column of Tables 1 and 2.
The 28 institutions collectively generated a value-added impact of $11.3 billion in FY 2016. For all institutions combined, the value-added impact equaled 67 percent of the $16.8 billion output impact (with domestic and foreign trade comprising the remaining 33 percent of the output impact). The $11.3 billion value-added impact reported for FY 2016 equals 2.2 percent of Georgia's 2016 gross domestic product.
Labor Income Impact
Collectively, the 28 University System institutions generated a labor income impact of $8.2 billion in FY 2016. The labor income received by residents of the communities that host University System institutions represents 72 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 28 institutions generated an employment impact of 157,967 jobs in FY 2016. Approximately 32 percent (50,146) of these positions are on-campus jobs at one of the institutions of the University System of Georgia, and 68 percent (107,821 jobs) are off-campus positions in either the private or public sectors. On average, for each job created on campus there are 2.2 off-campus jobs that exist because of spending related to the University System of Georgia.
The employment impact associated with the University System accounts for 3.6 percent of all the nonfarm jobs held by Georgians, or about one job in 28. For all institutions combined, 14 jobs were generated for each million dollars of initial spending in FY 2016.
Employment impacts in FY 2016 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 28 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 28 institutions on their host communities in FY 2016 includes: n $16.8 billion in output (sales); n $11.3 billion in valued added (gross regional product); n $8.2 billion in labor income; and n 157,967 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 2016

Total for All Institutions
in 2016
System total Personnel services Operating expenses Student spending

Initial Spending (current dollars)
11,086,063,517 4,117,318,911 2,608,237,625 4,360,506,981

Output Impact (current dollars)
16,836,998,979 7,785,806,613 3,054,407,126 5,996,785,240

Value Added Impact
(current dollars)
11,339,988,151 6,228,978,859 1,646,994,715 3,464,014,577

Labor Income Impact
(current dollars)
8,173,657,021 5,318,987,805
986,448,423 1,868,220,794

Employment Impact (jobs)
157,967 78,917 21,048 58,003

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) April 2017.

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Table 2
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2016


Institution
Research Universities
Augusta University Personnel Services Operating Expenses Student Spending
Georgia Institute of Technology Personnel Services Operating Expenses Student Spending
Georgia State University Personnel Services Operating Expenses Student Spending
University of Georgia Personnel Services Operating Expenses Student Spending
Comprehensive Universities
Georgia Southern University Personnel Services Operating Expenses Student Spending
Kennesaw State University Personnel Services Operating Expenses Student Spending
University of West Georgia Personnel Services Operating Expenses Student Spending
Valdosta State University Personnel Services Operating Expenses Student Spending

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

930,068,992 531,969,954 275,070,665 123,028,373
1,800,743,086 877,850,329 572,188,840 350,703,917
1,548,309,416 510,010,657 336,896,785 701,401,974
1,807,145,036 792,254,034 476,563,895 538,327,107

1,403,878,791 954,657,309 291,440,357 157,781,125
3,051,550,474 1,763,658,843
751,533,111 536,358,521
2,539,854,071 1,024,644,869
442,492,143 1,072,717,058
2,709,578,898 1,455,966,486
539,895,221 713,717,191

1,009,320,787 768,645,110 152,809,813 87,865,864

786,617,324 658,071,175
85,076,485 43,469,665

2,140,514,675 1,398,722,837
421,011,351 320,780,487

1,635,715,819 1,188,303,694
262,390,136 185,021,989

1,702,072,066 812,625,509 247,885,574 641,560,984

1,214,912,472 690,376,866 154,491,623 370,043,983

1,881,545,933 1,174,744,259
288,351,992 418,449,683

1,404,218,485 1,007,707,336
168,584,448 227,926,701

12,794 9,006 2,138 1,650
24,213 14,733
4,814 4,666
21,277 9,108 2,838 9,332
25,215 14,614
3,753 6,849

569,400,195 176,273,641
98,729,536 294,397,018
862,415,345 252,743,628 146,578,243 463,093,474
348,159,955 98,822,908 72,255,384
177,081,663
298,787,437 90,227,766 52,065,183
156,494,488

719,699,581 298,573,948
77,526,927 343,598,706
1,408,554,010 507,778,500 192,520,988 708,254,522
564,267,764 198,541,707
94,902,759 270,823,298
398,463,399 155,251,909
51,512,011 191,699,479

452,222,785 241,150,803
33,700,871 177,371,111
934,146,462 402,709,057 107,850,897 423,586,508
372,595,890 157,459,486
53,164,838 161,971,566
255,333,885 126,147,909
25,815,914 103,370,061

305,088,961 207,568,404
18,845,998 78,674,559
653,662,765 342,126,867
67,216,744 244,319,154
260,329,227 133,771,812
33,134,334 93,423,081
170,594,577 108,287,247
13,941,555 48,365,775

8,641 3,797
707 4,137
12,933 5,541 1,230 6,162
5,336 2,373
608 2,356
4,672 2,065
415 2,192

(continued)

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Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2016


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

State Universities

Albany State University Personnel Services Operating Expenses Student Spending

217,815,302 61,313,341 41,319,719
115,182,242

Armstrong State University Personnel Services Operating Expenses Student Spending

186,536,405 52,065,701 38,050,773 96,419,931

Clayton State University Personnel Services Operating Expenses Student Spending

169,079,880 49,913,190 30,544,014 88,622,676

Columbus State University Personnel Services Operating Expenses Student Spending

225,110,517 64,992,202 47,278,708
112,839,607

Fort Valley State University Personnel Services Operating Expenses Student Spending

112,330,482 36,301,066 37,976,930 38,052,486

Georgia College & State University Personnel Services Operating Expenses Student Spending

207,333,366 70,945,613 34,216,895
102,170,858

Georgia Southwestern State University Personnel Services Operating Expenses Student Spending

72,757,064 21,985,804 13,367,535 37,403,725

Middle Georgia State University Personnel Services Operating Expenses Student Spending

184,650,279 49,659,895 34,905,447
100,084,937

Savannah State University Personnel Services Operating Expenses Student Spending

142,832,200 41,183,739 35,041,103 66,607,358

University of North Georgia Personnel Services Operating Expenses Student Spending

402,891,554 106,589,984
64,165,962 232,135,608

289,969,693 107,395,878
41,880,486 140,693,329
252,124,574 93,564,810 38,593,265
119,966,500
275,936,943 100,278,872
40,117,577 135,540,494
295,029,169 114,479,414
47,419,324 133,130,431
150,530,804 65,092,630 39,385,058 46,053,116
266,350,202 118,371,019
30,702,025 117,277,158
88,734,278 36,653,598 10,775,043 41,305,637
250,194,190 89,454,157 36,752,033
123,988,001
192,429,182 74,009,351 35,540,681 82,879,150
577,091,710 196,877,278
72,898,170 307,316,262

181,761,716 86,490,653 20,523,641 74,747,422
164,574,815 75,410,229 19,780,687 69,383,899
183,066,026 79,529,183 22,474,002 81,062,841
189,919,857 92,439,235 23,947,075 73,533,546
97,895,242 52,181,742 19,767,406 25,946,093
171,064,290 96,512,277 14,629,894 59,922,118
55,714,861 29,807,734
4,873,614 21,033,513
159,301,273 71,484,490 18,442,396 69,374,387
125,799,306 59,649,158 18,216,110 47,934,037
378,214,682 158,563,536
39,253,928 180,397,218

121,028,050 74,384,522 11,850,713 34,792,815

3,256 1,282
331 1,643

111,661,464 64,677,729 11,287,559 35,696,176

2,673 1,213
292 1,168

128,327,710 67,565,081 14,006,643 46,755,986

2,607 1,174
254 1,179

128,848,682 79,775,009 13,471,304 35,602,370

3,220 1,368
361 1,491

68,563,361 44,802,912 10,772,613 12,987,836

1,549 768 300 481

115,373,640 83,072,683 7,459,154 24,841,804

3,086 1,330
269 1,487

37,700,299 25,799,006
2,830,174 9,071,120

1,056 416 108 532

105,329,608 61,150,475 9,904,489 34,274,644

2,741 1,148
285 1,308

86,215,347 51,159,798 10,394,758 24,660,792

1,998 922 269 807

257,724,831 136,008,523
23,266,987 98,449,321

5,629 2,211
492 2,925

(continued)

14

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2016


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

State Colleges

Abraham Baldwin Agricultural College Personnel Services Operating Expenses Student Spending
Atlanta Metropolitan State College Personnel Services Operating Expenses Student Spending
Bainbridge State College Personnel Services Operating Expenses Student Spending
College of Coastal Georgia Personnel Services Operating Expenses Student Spending
Dalton State College Personnel Services Operating Expenses Student Spending
East Georgia State College Personnel Services Operating Expenses Student Spending
Georgia Gwinnett College Personnel Services Operating Expenses Student Spending
Georgia Highlands College Personnel Services Operating Expenses Student Spending

81,199,395 19,182,709 17,547,275 44,469,411
70,666,362 16,517,768 16,649,902 37,498,692
51,756,514 11,694,183 12,006,508 28,055,823
72,740,618 19,567,167 12,774,520 40,398,931
112,147,544 25,458,143 22,354,948 64,334,453
64,773,992 12,849,058 12,244,136 39,680,798
280,136,153 71,958,447 52,098,559
156,079,147
113,551,024 23,054,887 20,237,354 70,258,783

98,100,111 32,462,679 14,632,271 51,005,161
112,404,800 33,185,281 21,868,568 57,350,950
59,967,125 19,325,134 10,335,714 30,306,278
95,730,920 33,558,238 12,767,492 49,405,191
136,550,655 43,845,334 18,538,621 74,166,700
80,140,200 21,970,591 11,153,261 47,016,349
451,700,058 144,569,238
68,428,081 238,702,739
149,423,968 41,274,341 20,832,379 87,317,248

59,444,050 26,320,572
6,505,678 26,617,799
72,869,367 26,318,587 12,250,839 34,299,941
36,589,126 15,731,307
4,991,802 15,866,017
60,606,130 27,291,846
6,463,084 26,851,200
84,987,356 35,557,143
9,191,173 40,239,041
47,078,850 17,677,097
5,242,950 24,158,803
295,749,827 114,654,994
38,333,643 142,761,190
91,583,633 33,064,519 10,557,293 47,961,821

38,249,544 22,657,501
3,731,380 11,860,663
49,778,250 22,359,308
7,635,186 19,783,757
23,739,472 13,687,044
2,819,985 7,232,443
38,710,405 23,303,811
3,332,385 12,074,210
54,928,064 30,598,623
5,696,860 18,632,582
28,608,005 15,208,629
2,711,186 10,688,190
203,640,440 97,406,684 23,890,969 82,342,787
55,287,875 28,109,693
5,467,890 21,710,292

1,116 350 131 636
1,017 380 138 499
711 259
92 359
1,068 444 92 532
1,526 548 154 824
991 333
92 566
4,597 2,081
438 2,077
1,814 707 154 953

(continued)

15

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2016


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

Gordon State College Personnel Services Operating Expenses Student Spending
South Georgia State College Personnel Services Operating Expenses Student Spending

90,639,114 19,391,442 19,867,956 51,379,716
62,086,290 12,541,655 15,240,850 34,303,785

143,635,618 38,958,676 26,095,277 78,581,665
75,107,790 21,406,525 13,868,284 39,832,981

92,513,429 30,897,353 14,618,659 46,997,417
43,501,832 17,192,232
6,339,590 19,970,010

62,467,659 26,249,260
9,110,904 27,107,495
26,334,682 14,798,116
3,125,962 8,410,604

1,317 464 169 684
914 283 123 508

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 Augusta 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), April 2017.

16

Table 3
On-Campus and Off-Campus Jobs that Exist Due to Institution-Related Spending in Fiscal Year 2016







Total Employment

On-Campus

Institution

Impact

Jobs

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

System Total

157,967

50,146

107,821



Research Universities

83,500

28,301

55,199



Augusta University

12,794

5,446

7,348

Georgia Institute of Technology

24,213

8,215

15,998

Georgia State University

21,277

5,321

15,956

University of Georgia

25,215

9,319

15,896





Regional Universities

31,583

9,478

22,105



Georgia Southern University

8,641

2,669

5,972

Kennesaw State University

12,933

3,664

9,269

University of West Georgia

5,336

1,639

3,697

Valdosta State University

4,672

1,506

3,166



State Universities

27,813

8,108

19,705



Albany State University

3,256

878

2,378

Armstrong State University

2,673

863

1,810

Clayton State University

2,607

803

1,804

Columbus State University

3,220

942

2,278

Fort Valley State University

1,549

518

1,031

Georgia College & State University

3,086

885

2,201

Georgia Southwestern State University

1,056

277

779

Middle Georgia State University

2,741

798

1,943

Savannah State University

1,998

645

1,353

University of North Georgia

5,629

1,499

4,130



State Colleges

15,071

4,259

10,812



Abraham Baldwin Agricultural College

1,116

230

886

Atlanta Metropolitan State College

1,017

257

760

Bainbridge State College

711

190

521

College of Coastal Georgia

1,068

325

743

Dalton State College

1,526

393

1,133

East Georgia State College

991

249

742

Georgia Gwinnett College

4,597

1,547

3,050

Georgia Highlands College

1,814

549

1,265

Gordon State College

1,317

320

997

South Georgia State College

914

199

715

Notes: Employment includes both full-time and part-time jobs. Estimates for Augusta 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), April 2017.

17

Appendix 1
Study Areas for Institutions
Research Universities
Augusta University Richmond, Columbia, Burke, McDuffie, Jefferson, Lincoln, Warren, and Glascock Georgia Institute of Technology Atlanta MSA Georgia State University Atlanta MSA University of Georgia Clarke, Oconee, Madison, Oglethorpe, Jackson, Barrow, Walton, and Gwinnett
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 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 & State University Baldwin, Hancock, Putnam, Wilkinson, Jones, and Washington Georgia Southwestern State University Sumter, Schley, Macon, Lee, Crisp, Marion, Webster, and Dooly Middle Georgia State University Bibb, Houston, Jones, Monroe, Peach, Crawford, Twiggs, Baldwin, Wilkinson, Bleckley, Dodge,
Pulaski, and Laurens Savannah State University Chatham, Effingham, Bryan, Liberty, and Bulloch 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 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, Gordon, Paulding, and Douglas Gordon State College Atlanta MSA 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.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), April 2017.
18

Appendix 2
Economic Impact of Capital Outlays in Fiscal Year 2016


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs

System Total

225,135,000

353,042,419

132,185,526

102,638,352

2,173



Research Universities

76,835,000

121,825,330

48,878,042

37,531,239

713



Augusta University

1,500,000

2,484,105

1,034,196

770,715

18

Georgia Institute of Technology

5,000,000

10,101,284

4,827,590

3,632,643

65

Georgia State University

5,400,000

10,526,824

4,697,161

3,678,384

61

University of Georgia

64,935,000

98,713,117

38,319,095

29,449,497

569



Comprehensive Universities

43,900,000

67,409,311

22,748,865

17,550,309

417



Georgia Southern University

33,600,000

48,146,220

13,873,917

10,469,565

293

Kennesaw State University

4,900,000

9,372,625

4,030,321

3,092,097

52

University of West Georgia

1,900,000

4,385,956

2,533,990

2,227,891

33

Valdosta State University

3,500,000

5,504,510

2,310,637

1,760,756

39



State Universities

81,200,000

124,438,747

45,430,772

35,951,989

807



Albany State University

21,500,000

32,432,682

10,160,162

7,723,219

201

Armstrong State University

1,800,000

3,130,587

1,607,325

1,521,929

29

Clayton State University

1,400,000

3,231,757

1,867,751

1,641,603

25

Columbus State University

17,400,000

24,466,257

8,301,092

6,594,057

142

Fort Valley State University

4,000,000

6,610,725

2,617,102

1,952,140

49

Georgia College & State University

9,100,000

13,210,700

4,779,345

3,579,445

98

Georgia Southwestern State University

0

0

0

0

0

Middle Georgia State University

6,500,000

10,283,949

3,557,536

2,694,140

67

Savannah State University

16,000,000

24,211,873

8,523,402

6,614,213

143

University of North Georgia

3,500,000

6,860,217

4,017,057

3,631,243

53



State Colleges

23,200,000

39,369,031

15,127,847

11,604,815

236



Abraham Baldwin Agricultural College

2,500,000

3,800,783

1,304,183

931,282

30

Atlanta Metropolitan State College

700,000

1,615,879

933,575

820,802

12

Bainbridge State College

0

0

0

0

0

College of Coastal Georgia

0

0

0

0

0

Dalton State College

4,000,000

5,511,124

1,582,676

1,201,929

33

East Georgia State College

4,500,000

6,444,267

1,848,496

1,393,839

39

Georgia Gwinnett College

11,500,000

21,996,978

9,458,917

7,256,963

122

Georgia Highlands College

0

0

0

0

0

Gordon State College

0

0

0

0

0

South Georgia State College

0

0

0

0

0

Notes: The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN Professional System and production functions provided by 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 Augusta 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), April 2017.

19

Appendix 3 Combined Economic Impact of Augusta University and MCG Health, Inc. in Fiscal Year 2016

Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

Augusta University

931,068,992

1,403,878,791 1,009,320,787

786,617,324

12,794

Personnel Services

531,969,954

954,657,309

768,645,110

658,071,175

9,006

Operating Expenses

275,070,665

291,440,357

152,809,813

85,076,485

2,138

Student Spending

123,028,373

157,781,125

87,865,864

43,469,665

1,650

Capital Spending

1,500,000

2,484,105

1,034,196

770,715

18



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

539,467,961 274,641,000 243,630,000
0 21,196,961

715,640,560 492,862,477 191,053,258
0 31,724,825

509,740,398 396,829,661 100,971,639
0 11,939,099

412,092,093 339,743,480
62,954,401 0
9,394,212

7,557 5,504 1,856
0 197

Grand Total Economic Impact of Augusta University and MCG Health Inc.

Initial

Spending

(current dollars)



Grand Total

1,471,036,953

Wages & Salaries and Benefits

806,610,954

Operating Expenses

518,700,665

Student Spending

123,028,373

Capital Spending

22,696,961

Output Impact (current dollars)
2,122,003,456 1,447,519,786
482,493,615 157,781,125
34,208,930

Value Added Impact
(current dollars)
1,520,095,381 1,165,474,771
253,781,452 87,865,864 12,973,295

Labor Income Impact
(current dollars)

Employment Impact (jobs)

1,199,480,133 997,814,655 148,030,886 43,469,665
10,164,927

20,369 14,510
3,994 1,650
215

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 Augusta University Medical Center (a component unit of MCG Health Systems, Inc.) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2016 and 2015). Other operating expenditures do not include $71.8 million in purchased services (a transfer) and $32.3 million in depreciation and amortization. The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN system, version 3.1, 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), April 2017.

20

Appendix 4
Combined Economic Impact of Augusta University and MCG Health, Inc. on the Augusta MSA in Fiscal Year 2016

Initial

Output

Value Added

Labor Income Employment

Spending

Impact

Impact

Impact

Impact

Institution

(current dollars) (current dollars) (current dollars) (current dollars)

(jobs)



Augusta University

931,568,992

1,428,782,140

1,028,661,142

787,723,096

12,799

Personnel Services

531,969,954

958,944,625

776,898,399

654,868,359

8,940

Operating Expenses

275,070,665

306,692,365

160,126,486

88,831,466

2,184

Student Spending

123,028,373

160,664,952

90,546,508

43,216,308

1,658

Capital Spending

1,500,000

2,480,198

1,089,749

806,963

17



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

539,467,961 274,641,000 243,630,000
0 21,196,961

722,188,131 495,075,887 194,807,810
0 32,304,434

522,852,829 401,090,593 108,745,850
0 13,016,386

411,172,724 338,089,954
63,008,544 0
10,074,226

7,463 5,470 1,798
0 195

Grand Total Economic Impact of Augusta University & MCG Health Inc.

Initial

Spending

(current dollars)



Grand Total

1,471,036,953

Wages & Salaries and Benefits

806,610,954

Operating Expenses

518,700,665

Student Spending

123,028,373

Capital Spending

22,696,961

Output Impact (current dollars)
2,150,970,271 1,454,020,513
501,500,175 160,664,952
34,784,632

Value Added Impact
(current dollars)
1,551,513,971 1,177,988,992
268,872,336 90,546,508 14,106,135

Labor Income Impact
(current dollars)

Employment Impact (jobs)

1,198,895,820 992,958,313 151,840,010 43,216,308 10,881,189

20,261 14,410
3,982 1,658
212

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 Augusta University Medical Center (a component unit of MCG Health Systems, Inc.) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2016 and 2015). Other operating expenditures do not include $71.8 million in purchased services (a transfer) and $32.3 million in depreciation and amortization. The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN system, version 3.1, 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), April 2017.

21

Appendix 5
Augusta University's Albany, Savannah, and Rome Clinical Campuses: Economic Impact of FY 2016 Expenditures
Augusta 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 2016.
Albany: In FY 2016, total expenditures at the Albany clinical campus were $1,475,901, including $696,612 personnel expense, $442,295 operating expense, and $336,996 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 $1,475,901 in initial expenditures and 5 on-campus jobs, n $2,080,094 in output (sales), n $1,421,037 in gross regional product (value added), n $1,066,353 in income, and n 18 jobs.
Savannah: Total expenditures at the Savannah clinical campus were $1,477,672, including $632,195 personnel expense, $230,093 operating expense, and $615,384 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 $1,477,672 in initial expenditures and 5 on-campus jobs, n $2,135,091 in output (sales), n $1,478,070 in gross regional product (value added), n $1,081,403 in income, and n 19 jobs.
Rome: Total expenditures at the Rome clinical campus were $1,126,370, including $548,945 personnel expense, $342,993 operating expense, and $234,432 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 $1,126,370 in initial expenditures and 3 on-campus jobs, n $1,609,521 in output (sales), n $1,127,791 in gross regional product (value added), n $842,623 in income, and n 15 jobs.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), April 2017.
22

Appendix 6 Augusta University and UGA Medical Partnership's Athens Campus:
Economic Impact of FY 2016 Expenditures In partnership, Augusta 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 2016. In FY 2016, initial expenditures at the Athens campus were $15,121,451, including $8,760,727 personnel expense, $3,298,492 operating expense, and $2,432,232 in student spending (Assistant Vice Chancellor for Fiscal Affairs/Budget Director, Board of Regents, University System of Georgia provided expense data for personnel and operations as well as enrollment data). The economic impact accruing to Athens includes:
n $15,122,451 in initial expenditures and 70 on-campus jobs, n $23,775,043 in output (sales), n $17,257,764 in gross regional product (value added), n $13,562,640 in income, and n 183 jobs. Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), April 2017.
23

Appendix 7
Combined Economic Impact of UGA's Griffin Campus (Budget Unit "A" and Budget Unit "B") On Its Regional Economy in Fiscal Year 2016

UGA's Griffin Campus

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Total Personnel Services Operating Expenses Student Spending

23,365,498 15,454,130
5,413,202 2,498,166

41,978,659 31,048,360
7,109,889 3,820,409

30,891,696 24,623,838
3,982,982 2,264,876

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

24,719,745

419

20,919,512

340

2,482,347

48

1,317,886

33

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 419 jobs consists of 225 on-campus jobs (expressed on a FTE basis) and 194 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), April 2017.

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Appendix 8
Total Economic Impact of Information Technology Services in Athens On the Regional Economy in Fiscal Year 2016

ITS in Athens

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Total Personnel Services Operating Expenses

33,263,727 19,821,406 13,442,322

51,146,339 34,530,750 16,615,589

37,260,526 28,482,825
8,777,700

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

29,896,162

436

24,256,587

318

5,639,575

118

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. ITS operating expenditures expensed by USG institutions ($30,606,452) are not included because this amount represents various contracts and software licenses with suppliers that are unlikely to be located in the Athens area. In addition, about $10 million of this amount represents USG institutions' purchasing software directly through ITS due to its ability to obtain better pricing. 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.The total employment impact of 436 jobs consists of 212 USG jobs (expressed on a FTE basis) and 224 off-site jobs that are primarily in the private sector. For each FTE job created at ITS in Athens there are 1.1 off-site jobs that exist because of spending related to ITS in Athens.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), April 2017.

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Appendix 9
Total Economic Impact of the Shared Services Center in Sandersville On the Regional Economy in Fiscal Year 2016

SSC Sandersville

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Total Personnel Services Operating Expenses

9,480,721 3,120,193 6,360,528

7,241,758 4,619,505 2,622,253

5,060,359 3,927,438 1,132,921

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

4,207,877

88

3,504,833

58

703,044

30

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. 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. The total employment impact of 88 jobs consists of 44 USG jobs at the Shared Services Center (expressed on a FTE basis) and 44 off-site jobs that are primarily in the private sector. For each FTE job created at the Shared Services Center in Sandersville there is 1.0 off-site job that exists because of spending related to the Shared Services Center in Sandersville.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), April 2017.

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