The economic impact of University System of Georgia institutions on their regional economies in fiscal year 2017

The Economic Impact of University System of Georgia Institutions
on their Regional Economies in FY 2017
November 2018
Commissioned by The Board of Regents of the University System of Georgia
Dr. Jeffrey M. Humphreys, Director n Selig Center for Economic Growth
1

Executive Summary The statewide economic impact of the University System of Georgia's institutions in fiscal year 2017 includes: n $16.8 billion in output (sales); n $11.6 billion in gross regional product; n $8.1 billion in income; and n 163,754 full- and part-time jobs. 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.
2

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 2017 fiscal year--July 1, 2016 through June 30, 2017.
The study does not account for all of the short-term impacts of the 26 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 26 institutions on their host communities was $16.8 billion in FY 2017. 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 2017 total, $11.5 billion (68 percent) is initial spending by the institutions and students; $5.3 billion (32 percent) is the induced or re-spending (multiplier) impact. Dividing the FY 2017 total output impact ($16.8 billion) by initial spending ($11.5 billion) yields an average multiplier value of 1.46. On average, therefore, every dollar of initial spending generates an additional 46 cents for the economy of the region that hosts the institution.
In FY 2017, value added comprises $11.6 billion (69 percent) of the $16.8 billion output impact, with domestic and foreign trade comprising the remaining $5.2 billion (31 percent). The $11.6 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 $8.1 billion, and represents 70 percent of the value-added impact.
The collective or rolled-up employment impact of all institutions on their host communities in FY 2017, including multiplier effects, is 163,754 full- and part-time jobs. Approximately 31 percent of these positions are on campus (50,541 University System employees) and 69 percent (113,213 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 163,754 jobs generated by the University System account for 3.7 percent of all the nonfarm jobs in Georgia, or about one job in twenty-seven.
3

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

4

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 2017 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 Online 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 2017 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, IMPLAN Online 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 2017. 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 2017 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 the AU Medical Center, Inc., which became a
5

not-for-profit corporation in July 2000. Expenditures and impacts for the AU Medical Center, Inc., are reported in Appendix 3, however. Appendix 4 reports the combined impacts of Augusta University and the AU Medical Center, 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 2017. 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 2017 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 by the IMPLAN Online 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 $4,989 for Summer 2016, $7,480 for Fall 2016, and at $7,480 for Spring 2017.
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 2017, 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 26 institutions conveyed to their host communities in FY 2017. 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 Online 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 2017 dollars.
6

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 2017 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 2017, total initial spending for all 28 institutions was $11.5 billion. Spending originating from personnel services accounted for 37 percent ($4.3 billion) of initial spending, spending due to operating expenses accounted for 24 percent ($2.7 billion) of initial spending, and students' personal expenditures accounted for 39 percent ($4.5 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 2017 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 26 institutions of the University System of Georgia was $16.8 billion in FY 2017 (Table 1). This amount represents the combined impact of all 26 institutions on their host communities. Of the FY 2017 output impact, $11.5 billion (68 percent) was initial spending by the institutions and students, while $5.3 billion (32 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 2017 was 1.46, obtained by dividing the total output impact ($16.8 billion) by initial spending ($11.5 billion). On average, therefore, every dollar of initial spending generated an additional 46 cents for the economy of the region hosting the institution. Thus, for all institutions, the output impact was 1.462 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 2017 are reported in the third column of Tables 1 and 2.
The 26 institutions collectively generated a value-added impact of $11.6 billion in FY 2017. For all institutions combined, the value-added impact equaled 69 percent of the $16.8 billion output impact (with domestic and foreign trade comprising the remaining 31 percent of the output impact). The $11.6 billion value-added impact reported for FY 2017 equals 2.2 percent of Georgia's 2017 gross domestic product.
Labor Income Impact
Collectively, the 26 University System institutions generated a labor income impact of $8.1 billion in FY 2017. The labor income received by residents of the communities that host University System institutions represents 70 percent of the value-added impact. Labor income for each institution is reported in the fourth column of Table 2.
7

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 26 institutions generated an employment impact of 163,754 jobs in FY 2017. Approximately 31 percent (50,541) of these positions are on-campus jobs at one of the institutions of the University System of Georgia, and 69 percent (113,213 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 3.7 percent of all the nonfarm jobs held by Georgians, or about one job in 27. For all institutions combined, 14 jobs were generated for each million dollars of initial spending in FY 2017.
Employment impacts in FY 2017 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 26 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.
8

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 26 institutions on their host communities in FY 2017 includes: n $16.8 billion in output (sales); n $11.6 billion in valued added (gross regional product); n $8.1 billion in labor income; and n 163,754 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.
9

Figure 1 Schematic Representation of Impact Relationship

+ = Direct Direct and Induced Impacts

Total

Expenditures

(Multiplier Effects)Economic Impact

Figure 2 How Multipliers Capture the Impact of Re-spending

Initial Direct or Indirect Impact First Round of Re-spending
Second Round of Re-spending Third Round of Re-spending
Fourth Round of Re-spending Fifth Round of Re-spending Sixth Round of Re-spending
Seventh Round of Re-spending

$100 $50 re-spent locally $25 re-spent locally $12.50 re-spent locally $6.25 re-apent locally $3.12 re-spent locally $1.56 re-spent locally $.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.

10

Table 1
Total Economic Impact of All Institutions of the University System of Georgia on their Regional Economies in Fiscal Year 2017

Total for All Institutions
in 2017

Initial Spending (current dollars)

System total Personnel services Operating expenses Student spending

11,515,528,541 4,316,169,350 2,716,573,201 4,482,785,990

Output Impact (current dollars)
16,842,753,824 8,437,240,487 2,044,285,589 6,361,227,748

Value Added Impact
(current dollars)
11,598,058,758 6,744,536,557 1,085,232,019 3,768,290,182

Labor Income Impact
(current dollars)
8,106,313,778 5,596,192,652
681,433,984 1,828,687,149

Employment Impact (jobs)
163,754 81,079 16,436 66,239

Notes:
The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN Online and production functions provided by IMPLAN.
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), 2018.

11

Table 2
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2017


Institution
Research Universities
Augusta University Personal Services Operating Expenses Student Spending
Georgia Institute of Technology 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 Employment

Impact

Impact

(current dollars) (jobs)

965,640,040 546,202,861 291,517,675 127,919,504
1,922,555,891 934,486,167 614,096,458 373,973,266
1,583,111,606 524,682,169 363,460,535 694,968,902
1,902,003,020 844,721,693 496,196,646 561,084,681

1,319,572,115 951,344,213 198,012,931 170,214,970
3,091,052,248 2,014,822,564
504,260,445 571,969,239
2,492,619,422 1,131,254,277
298,452,739 1,062,912,406
2,712,993,180 1,563,630,779
363,636,907 785,725,494

962,094,261 774,966,701
98,741,412 88,386,148
2,225,716,633 1,588,525,395
283,657,086 353,534,152
1,716,774,929 891,902,930 167,885,934 656,986,066
1,907,601,921 1,260,794,805
185,025,758 461,781,358

780,727,127 670,104,110
63,228,082 47,394,935
1,629,324,584 1,282,764,796
177,194,892 169,364,896
1,139,841,015 720,228,762 104,874,974 314,737,278
1,398,521,763 1,057,427,062
116,451,283 224,643,417

12,252 8,734 1,663 1,855
25,436 16,050
3,746 5,639
21,915 9,218 2,218
10,479
26,619 15,189
3,080 8,350

770,234,740 237,251,789 131,083,060 401,899,891
917,734,645 270,267,895 154,659,726 492,807,024
369,672,112 105,329,665
76,661,191 187,681,256
303,435,291 89,030,656 54,556,900
159,847,735

1,020,969,709 416,160,029 84,069,362 520,740,319
1,463,433,722 582,717,938 126,997,606 753,718,177
577,095,431 227,098,691
62,949,729 287,047,011
384,182,604 145,785,322
34,441,456 203,955,826

678,514,985 339,035,974
42,200,133 297,278,878
996,738,134 459,426,185
71,438,819 465,873,129
391,883,331 179,049,036
35,410,542 177,423,753
248,456,560 120,232,482
16,136,288 112,087,790

462,384,159 290,746,919
26,772,228 144,865,012
638,804,145 370,995,476
44,626,400 223,182,269
251,702,834 144,585,539
22,120,258 84,997,037
169,197,133 104,250,498
10,094,655 54,851,980

11,535 5,030 745 5,761
14,441 6,069 941 7,431
5,788 2,493
465 2,830
4,594 1,955
314 2,325

(continued)

12

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2017


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 Personal Services Operating Expenses Student Spending

188,224,897 56,757,256 37,842,628 93,625,013

Clayton State University Personal Services Operating Expenses Student Spending

171,983,499 51,292,659 29,096,467 91,594,373

Columbus State University Personal Services Operating Expenses Student Spending

225,316,833 68,799,446 42,405,192
114,112,195

Fort Valley State University Personal Services Operating Expenses Student Spending

107,822,771 36,349,171 32,825,592 38,648,008

Georgia College & State University Personal Services Operating Expenses Student Spending

211,272,480 73,002,370 34,340,626
103,929,484

Georgia Southwestern State University Personal Services Operating Expenses Student Spending

77,104,889 22,896,731 12,816,306 41,391,852

Middle Georgia State University Personal Services Operating Expenses Student Spending

198,489,239 52,068,108 46,616,456 99,804,675

Savannah State University Personal Services Operating Expenses Student Spending

147,511,979 42,367,922 38,106,861 67,037,196

University of North Georgia Personal Services Operating Expenses Student Spending

431,972,648 117,511,809
65,897,709 248,563,130

250,673,440 99,131,761 25,481,002
126,060,676
274,571,153 110,590,836
23,892,333 140,087,984
283,901,086 118,283,206
26,285,067 139,332,813
133,211,767 65,022,951 22,068,049 46,120,768
284,528,898 131,593,351
23,074,262 129,861,284
88,776,666 33,567,341
7,461,395 47,747,930
253,802,715 92,164,379 31,939,555
129,698,781
186,994,615 75,318,872 24,473,803 87,201,940
620,008,370 220,032,881
48,485,270 351,490,219

158,939,890 79,871,379 11,259,780 67,808,731
187,220,281 87,191,972 13,439,938 86,588,371
187,441,908 96,035,045 12,437,846 78,969,017
88,830,992 52,163,405 10,278,206 26,389,381
191,535,104 105,687,138
10,824,246 75,023,721
57,947,093 28,607,095
3,071,482 26,268,515
159,842,934 73,443,132 14,552,311 71,847,490
123,977,940 61,395,829 12,535,320 50,046,791
405,339,972 176,520,278
25,104,335 203,715,358

109,951,196 68,720,590 7,162,988 34,067,618
120,286,081 70,409,194 8,395,660 41,481,227
129,243,097 83,076,937 7,822,242 38,343,918
63,728,173 44,547,069
6,472,990 12,708,114
132,460,554 90,014,723 6,714,551 35,731,280
39,928,335 25,452,887
2,007,902 12,467,546
106,478,357 62,810,534 8,867,768 34,800,055
84,900,528 52,510,573
7,923,754 24,466,201
265,670,573 148,453,768
15,989,865 101,226,940

2,844 1,187
246 1,411
2,749 1,189
179 1,381
3,257 1,433
246 1,577
1,535 808 207 520
3,095 1,413
218 1,464
1,017 367 90 560
2,924 1,157
308 1,459
2,056 879 213 964
6,769 2,645
403 3,721

(continued)

13

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2017


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 Personal Services Operating Expenses Student Spending

133,540,795 31,390,387 27,811,198 74,339,210

Atlanta Metropolitan State College Personal Services Operating Expenses Student Spending

65,995,521 17,611,804 14,218,331 34,165,386

College of Coastal Georgia Personal Services Operating Expenses Student Spending

79,725,094 20,458,912 13,878,642 45,387,540

Dalton State College Personal Services Operating Expenses Student Spending

112,931,895 26,043,139 19,698,811 67,189,945

East Georgia State College Personal Services Operating Expenses Student Spending

70,562,350 13,776,196 16,328,188 40,457,966

Georgia Gwinnett College Personal Services Operating Expenses Student Spending

296,843,219 77,620,856 54,485,401
164,736,962

Georgia Highlands College Personal Services Operating Expenses Student Spending

119,796,149 23,485,796 20,989,072 75,321,281

Gordon State College Personal Services Operating Expenses Student Spending

83,093,880 19,920,585 13,958,822 49,214,473

157,838,305 49,906,139 16,599,419 91,332,747
101,901,521 37,972,376 11,675,272 52,253,873
97,793,589 33,245,656
8,576,322 55,971,612
133,126,399 40,604,181 12,137,955 80,384,263
82,831,552 21,888,995
9,803,819 51,138,738
464,051,774 167,356,412
44,740,254 251,955,108
168,656,120 44,474,867 15,679,014
108,502,239
129,682,977 42,950,282 11,462,175 75,270,520

96,582,469 41,439,373
7,313,074 47,830,022
68,803,861 29,938,161
6,567,585 32,298,115
63,091,934 27,719,548
4,160,570 31,211,816
82,420,674 34,138,018
5,482,770 42,799,886
49,854,909 18,130,693
4,595,478 27,128,739
312,847,839 131,947,058
25,167,330 155,733,451
108,097,699 35,710,269 8,221,948 64,165,482
86,835,258 33,862,839
6,447,717 46,524,702

65,945,306 36,427,701
4,696,910 24,820,694
43,751,089 24,175,641
4,102,638 15,472,810
41,974,499 24,058,526
2,641,447 15,274,526
55,621,794 30,030,224
3,587,041 22,004,529
32,420,724 15,912,028
2,954,168 13,554,528
196,877,346 106,549,786
15,721,530 74,606,030
65,392,469 29,793,439
4,925,222 30,673,808
53,660,881 27,344,894
4,027,755 22,288,232

1,826 606 162
1,058
1,151 552 84 515
1,143 428 78 637
1,548 516 112 920
987 314 101 573
4,240 1,426
330 2,484
1,916 675 123
1,118
1,310 484 84 742

(continued)

14

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2017


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

South Georgia State College Personal Services Operating Expenses Student Spending

58,953,058

68,484,448

40,667,247

27,520,019

806

12,843,308

20,322,191

16,801,815

14,800,978

263

13,024,708

7,629,446

3,276,112

2,056,779

78

33,085,042

40,532,811

20,589,320

10,662,262

465

Notes:
The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN Online and production functions provided by IMPLAN.
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 the AU Medical Center, Inc., which are reported in Appendix 3.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2018.

15

Table 3
On-Campus and Off-Campus Jobs that Exist Due to Institution-Related Spending in Fiscal Year 2017







Total Employment

On-Campus

Institution

Impact

Jobs

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

System Total

163,754

50,541

113,213



Research Universities

86,221

28,655

57,566



Augusta University

12,252

5,416

6,836

Georgia Institute of Technology

25,436

8,589

16,847

Georgia State University

21,915

5,029

16,886

University of Georgia

26,619

9,621

16,998



Regional Universities

36,359

10,557

25,802



Georgia Southern University

11,535

3,543

7,992

Kennesaw State University

14,441

3,911

10,530

University of West Georgia

5,788

1,652

4,136

Valdosta State University

4,594

1,451

3,143



State Universities

26,246

7,665

18,581



Albany State University

2,844

822

2,022

Clayton State University

2,749

780

1,969

Columbus State University

3,257

1,020

2,237

Fort Valley State University

1,535

568

967

Georgia College & State University

3,095

923

2,172

Georgia Southwestern State University 1,017

274

743

Middle Georgia State University

2,924

814

2,110

Savannah State University

2,056

605

1,451

University of North Georgia

6,769

1,859

4,910



State Colleges

14,928

3,664

11,264



Abraham Baldwin Agricultural College 1,826

444

1,382

Atlanta Metropolitan State College

1,151

412

739

College of Coastal Georgia

1,143

322

821

Dalton State College

1,548

396

1,152

East Georgia State College

987

243

744

Georgia Gwinnett College

4,240

806

3,434

Georgia Highlands College

1,916

518

1,398

Gordon State College

1,310

325

985

South Georgia State College

806

198

608

Notes: On-campus and off-campus jobs reported for Augusta University exclude employment impacts for the AU Medical Center, Inc., which are reported in Appendix 3.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2018.

16

Appendix 1
Study Areas for Institutions
Research Universities
Augusta University Richmond, Columbia, Burke, McDuffie, Lincoln, Jefferson, Jenkins, and Warren Georgia Institute of Technology Atlanta MSA Georgia State University Atlanta MSA University of Georgia Clarke, Oconee, Madison, Jackson, Oglethorpe, Barrow, Gwinnett, Walton, and Elbert
Comprehensive Universities
Georgia Southern University Bulloch, Screven, Candler, Emanuel, Evans, Tattnall, Jenkins, Chatham, Effingham, Bryan, and Liberty Kennesaw State University Atlanta MSA University of West Georgia Atlanta MSA Valdosta State University Lowndes, Brooks, Lanier, Berrien, Cook, and Echols
State Universities
Albany State University Dougherty, Lee, Worth, Mitchell, Terrell, Sumter, Tift, and Crisp Clayton State University Atlanta MSA Columbus State University Muscogee, Harris, Chattahoochee, Marion, Talbot, Troup, and Stewart Fort Valley State University Peach, Houston, Crawford, Bibb, Taylor, and Macon Georgia College & State University Baldwin, Putnam, Hancock, Wilkinson, Washington, Jones, and Bibb Georgia Southwestern State University Sumter, Schley, Lee, Macon, Crisp, Webster and Marion Middle Georgia State University Bibb, Houston, Jones, Monroe, Peach, Crawford, Twiggs, Baldwin, Wilkinson, Henry, Laurens,
Lamar, Bleckley and Pulaski Savannah State University Chatham, Effingham, Bryan, Liberty, and Bulloch University of North Georgia Lumpkin, Hall, Dawson, Forsyth, White, Oconee, Clarke, Barrow, Madison, Jackson, Gwinnett, Fannin,
Gilmer, and Union
State Colleges
Abraham Baldwin Agricultural College Tift, Worth, Cook, Colquitt, Irwin, Turner, Decatur, Seminole, Miller, Grady, Early, Thomas, Mitchell, and Baker
Atlanta Metropolitan State College Atlanta MSA College of Coastal Georgia Glynn, Brantley, McIntosh, Camden, and Wayne Dalton State College Whitfield, Murray, Catoosa, Gordon, Walker, Bartow, and Gilmer East Georgia State College Emanuel, Bulloch, Candler, Jefferson, Johnson, Burke, and Toombs Georgia Gwinnett College Atlanta MSA Georgia Highlands College Floyd, Polk, Bartow, Chattooga, Gordon, Cobb, Paulding, Douglas, and Carroll Gordon State College Atlanta MSA South Georgia State College Coffee, Atkinson, Bacon, Jeff Davis, Ware, 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, 5-Year ACS, 2009-2013, U.S. Census Bureau (data extracted on March 8, 2018).
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2018.
17

Appendix 2
Economic Impact of Capital Outlays in Fiscal Year 2017


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs

System Total

165,030,189

249,012,274

130,894,918

71,671,562

1,537



Research Universities

47,115,189

67,188,180

41,604,048

15,142,887

396



Augusta University

3,825,000

5,887,391

2,946,271

1,883,271

43

Georgia Institute of Technology

27,190,189

41,664,634

28,476,246

7,006,819

230

Georgia State University

5,200,000

9,467,072

4,714,987

2,905,670

54

University of Georgia

10,900,000

10,169,083

5,466,544

3,347,127

69



Comprehensive Universities

33,195,000

59,098,982

29,626,985

18,900,436

366



Georgia Southern University

8,620,000

13,608,057

6,442,174

4,077,799

95

Kennesaw State University

4,000,000

8,608,819

4,844,746

3,527,478

55

University of West Georgia

18,975,000

34,545,709

17,205,169

10,602,902

198

Valdosta State University

1,600,000

2,336,397

1,134,896

692,257

18



State Universities

47,720,000

63,921,654

30,838,050

19,490,450

410



Albany State University

2,100,000

590,544

317,811

155,136

4

Clayton State University

1,350,000

2,516,367

1,385,619

864,078

16

Columbus State University

0

0

0

0

0

Fort Valley State University

0

0

0

0

0

Georgia College & State University

1,900,000

513,343

201,932

106,715

2

Georgia Southwestern State University

0

0

0

0

0

Middle Georgia State University

4,200,000

1,235,108

638,239

301,908

9

Savannah State University

2,000,000

550,407

337,934

172,813

3

University of North Georgia

36,170,000

58,515,885

27,956,515

17,889,800

376



State Colleges

37,000,000

58,803,458

28,825,835

18,137,789

365



Abraham Baldwin Agricultural College

0

0

0

0

0

Atlanta Metropolitan State College

6,500,000

11,833,840

5,893,734

3,632,088

68

College of Coastal Georgia

2,000,000

2,860,971

1,210,155

751,693

24

Dalton State College

5,000,000

7,173,733

3,259,013

2,189,852

56

East Georgia State College

0

0

0

0

0

Georgia Gwinnett College

2,500,000

3,007,692

1,788,091

1,310,981

19

Georgia Highlands College

17,700,000

27,919,273

13,682,639

8,409,192

164

Gordon State College

3,300,000

6,007,949

2,992,203

1,843,983

34

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 IMPLAN Online and production functions provided by IMPLAN. 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 the AU Medical Center, Inc., which are reported in Appendix 3.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2018.

18

Appendix 3 Combined Economic Impact of Augusta University and AU Medical Center, Inc. in Fiscal Year 2017

Institution
Augusta University Personal Services Operating Expenses Student Spending Capital Spending
AU Medical Center, Inc. Wages & Salaries and Benefits Other Operating Expenditures Student Spending Capital Spending

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

969,465,040 546,202,861 291,517,675 127,919,504
3,825,000

1,325,459,506 951,344,213 198,012,931 170,214,970 5,887,391

965,040,532 774,966,701
98,741,412 88,386,148
2,946,271

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

782,610,398 670,104,110
63,228,082 47,394,935
1,883,271

12,295 8,734 1,663 1,855 43

591,353,565 291,856,000 267,247,000
0 32,250,565

741,383,694 508,337,720 185,682,508
0 47,363,466

536,628,103 414,092,818
99,488,306 0
23,046,979

434,838,193 358,060,931
61,727,003 0
15,050,259

7,605 5,637 1,638
0 330

Grand Total Economic Impact of Augusta University and AU Medical Center, Inc.

Initial Spending (current dollars)

Grand Total Wages & Salaries and Benefits Operating Expenses Student Spending Capital Spending

1,560,818,605 838,058,861 558,764,675 127,919,504 36,075,565

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

2,066,843,199 1,459,681,933
383,695,439 170,214,970
53,250,857

1,501,668,635 1,189,059,519
198,229,718 88,386,148 25,993,250

1,217,448,592 1,028,165,041
124,955,086 47,394,935 16,933,530

19,900 14,371
3,301 1,855
373

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 AU Medical Center, Inc., (a component unit of AU Health Systems, Inc.) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2017 and 2016). Other operating expenditures do not include $70.4 million in purchased services (a transfer) and $33.6 million in depreciation and amortization. The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN Online, Type SAM multipliers, and consumption functions provided by IMPLAN.

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2018.

19

Appendix 4
Combined Economic Impact of Augusta University and AU Medical Center, Inc. on the Augusta MSA in Fiscal Year 2017

Initial

Spending

Institution

(current dollars)



Augusta University Personal Services Operating Expenses Student Spending Capital Spending

969,465,040 546,202,861 291,517,675 127,919,504
3,825,000

Output Impact (current dollars)
1,347,590,537 964,206,183 204,578,265 172,926,823 5,879,266

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

979,583,080 779,250,008 102,591,014
94,723,763 3,018,294

789,636,303 674,273,634
64,890,823 48,585,916
1,885,929

12,411 8,817 1,686 1,867 42

AU Medical Center, Inc. Wages & Salaries and Benefits Other Operating Expenditures Student Spending Capital Spending



591,353,565

759,335,985

545,107,203

441,067,018

7,651

291,856,000

515,210,336

416,381,544

360,288,860

5,681

267,247,000

196,450,657

104,827,657

65,470,014

1,646

0

0

0

0

0

32,250,565

47,674,991

23,898,002

15,308,145

323

Grand Total Economic Impact of Augusta University and AU Medical Center, Inc.

Initial Spending (current dollars)

Grand Total Wages & Salaries and Benefits Operating Expenses Student Spending Capital Spending

1,560,818,605 838,058,861 558,764,675 127,919,504 36,075,565

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

2,106,926,522 1,479,416,520
401,028,922 172,926,823
53,554,257

1,524,690,282 1,195,631,552
207,418,672 94,723,763 26,916,296

1,230,703,321 1,034,562,494
130,360,837 48,585,916 17,194,074

20,062 14,498
3,332 1,867
365

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 AU Medical Center, Inc., (a component unit of AU Health Systems, Inc.) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2017 and 2016). Other operating expenditures do not include $70.4 million in purchased services (a transfer) and $33.6 million in depreciation and amortization. The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN Online, Type SAM multipliers, and consumption functions provided by IMPLAN.

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2018.

20

Appendix 5
Augusta University's Albany, Savannah, and Rome Clinical Campuses: Economic Impact of FY 2017 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 2017.
Albany: In FY 2017, total expenditures at the Albany clinical campus were $1,274,033, including $770,570 personnel expense, $181,823 operating expense, and $321,640 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 $1,274,033 in initial expenditures and 5 on-campus jobs, n $1,901,369 in output (sales), n $1,371,432 in gross regional product (value added), n $1,084,446 in income, and n 17 jobs.
Savannah: Total expenditures at the Savannah clinical campus were $1,706,316, including $769,598 personnel expense, $323,358 operating expense, and $613,360 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 $1,706,316 in initial expenditures and 5 on-campus jobs, n $2,373,668 in output (sales), n $1,679,504 in gross regional product (value added), n $1,244,933 in income, and n 20 jobs.
Rome: Total expenditures at the Rome clinical campus were $989,038, including $505,780 personnel expense, $243,898 operating expense, and $239,360 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 $989,038 in initial expenditures and 3 on-campus jobs, n $1,484,791 in output (sales), n $1,068,491 in gross regional product (value added), n $796,328 in income, and n 14 jobs.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2018.
21

Appendix 6 Augusta University and UGA Medical Partnership's Athens Campus:
Economic Impact of FY 2017 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 2017. In FY 2017, initial expenditures at the Athens campus (including St. Mary's) were $16,289,037, including $10,051,656 personnel expense, $1,966,875 operating expense, and $2,460,920 in student spending, and 1,809,586 in capital outlays (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 $16,289,037 in initial expenditures and 70 on-campus jobs, n $26,523,769 in output (sales), n $19,326,971 in gross regional product (value added), n $15,021,831 in income, and n 229 jobs. Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2018.
22

Appendix 7
Combined Economic Impact of UGA's Griffin Campus (Budget Unit "A" and Budget Unit "B") On Its Regional Economy in Fiscal Year 2017

UGA's Griffin Campus

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Total Personnel Services Operating Expenses Student Spending

24,730,713 16,981,479
5,038,482 2,710,752

44,896,581 36,613,347
4,137,308 4,145,926

33,756,596 28,866,677
2,327,321 2,562,597

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

25,991,872

454

23,310,396

379

1,453,833

34

1,227,643

41

Notes: The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN Online and production functions provided by IMPLAN. 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 454 jobs consists of 244 on-campus jobs (expressed on a FTE basis) and 210 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),l 2018.

23

Appendix 8
Total Economic Impact of Information Technology Services in Athens On the Regional Economy in Fiscal Year 2017

ITS in Athens

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Total Personnel Services Operating Expenses

36,862,593 21,466,822 15,395,771

55,280,281 39,736,382 15,543,899

40,624,071 32,040,443
8,583,628

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

32,108,822

478

26,872,281

354

5,236,541

124

Notes: The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN Online and production functions provided by IMPLAN. 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 ($40,653,145) 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, a substantial 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 478 jobs consists of 212 USG jobs (expressed on a FTE basis) and 266 off-site jobs that are primarily in the private sector. For each FTE job created at ITS in Athens there are 1.25 off-site jobs that exist because of ITS-related spending.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2018.

24

Appendix 9
Total Economic Impact of the Shared Services Center in Sandersville On the Regional Economy in Fiscal Year 2017

SSC Sandersville

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Total Personnel Services Operating Expenses

9,244,289 3,188,457 6,055,832

7,027,523 4,734,409 2,293,114

5,016,006 4,015,726 1,002,280

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

4,170,597

83

3,574,959

57

595,638

26

Notes: The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN Online and production functions provided by IMPLAN. 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 83 jobs consists of 42 USG jobs at the Shared Services Center (expressed on a FTE basis) and 41 off-site jobs that are primarily in the private sector. For each FTE job created at the Shared Services Center, there is 1 off-site job that exists because of Center-related spending.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2018.

25