The economic impact of University System of Georgia institutions on their regional economies in fiscal year 2018

The Economic Impact of University System of Georgia Institutions
on their Regional Economies in FY 2018
May 2019
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 2018 includes: n $17.7 billion in output (sales); n $12.2 billion in gross regional product; n $8.5 billion in income; and n 168,284 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 2.3 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 2018 fiscal year--July 1, 2017 through June 30, 2018.
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 $17.7 billion in FY 2018. 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 2018 total, $12 billion (68 percent) is initial spending by the institutions and students; $5.7 billion (32 percent) is the induced or re-spending (multiplier) impact. Dividing the FY 2018 total output impact ($17.7 billion) by initial spending ($12 billion) yields an average multiplier value of 1.47. On average, therefore, every dollar of initial spending generates an additional 47 cents for the economy of the region that hosts the institution.
In FY 2018, value added comprises $12.2 billion (69 percent) of the $17.7 billion output impact, with domestic and foreign trade comprising the remaining $5.5 billion (31 percent). The $12.2 billion value-added impact equals 2.1 percent of Georgia's GDP. Labor income received by residents of the communities that host one or more institutions equals $8.5 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 2018, including multiplier effects, is 168,284 full- and part-time jobs. Approximately 30 percent of these positions are on campus (50,597 University System employees) and 70 percent (117,687 jobs) are off-campus positions in either the private or public sectors. On average, for each job created on campus there are 2.3 off-campus jobs that exist because of spending related to the institution. The 168,284 jobs generated by the University System account for 3.8 percent of all the nonfarm jobs in Georgia, or about one job in twenty-six.
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, personnel 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 2018 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 2018 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 2018. 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 2018 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 Health System, Inc. Expenditures and
5

impacts for the AU Health System, Inc., are reported in Appendix 3, however. Appendix 4 reports the combined impacts of Augusta University and the AU Health System, 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 2018. 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 2018 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 $5,109 for Summer 2017, $7,660 for Fall 2017, and at $7,660 for Spring 2018.
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 2018, 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 2018. 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 2018 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 2018 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 2018, total initial spending for all 26 institutions was $12 billion. Spending originating from personnel services accounted for 38 percent ($4.5 billion) of initial spending, spending due to operating expenses accounted for 24 percent ($2.8 billion) of initial spending, and students' personal expenditures accounted for 39 percent ($4.6 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 2018 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 $17.7 billion in FY 2018 (Table 1). This amount represents the combined impact of all 26 institutions on their host communities. Of the FY 2018 output impact, $12 billion (68 percent) was initial spending by the institutions and students, while $5.7 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 2018 was 1.47, obtained by dividing the total output impact ($17.7 billion) by initial spending ($12 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 1.47 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 2018 are reported in the third column of Tables 1 and 2.
The 26 institutions collectively generated a value-added impact of $12.2 billion in FY 2018. For all institutions combined, the value-added impact equaled 69 percent of the $17.7 billion output impact (with domestic and foreign trade comprising the remaining 31 percent of the output impact). The $12.2 billion value-added impact reported for FY 2018 equals 2.1 percent of Georgia's 2018 gross domestic product.
Labor Income Impact
Collectively, the 26 University System institutions generated a labor income impact of $8.5 billion in FY 2018. 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 168,284 jobs in FY 2018. Approximately 30 percent (50,597) of these positions are on-campus jobs at one of the institutions of the University System of Georgia, and 70 percent (117,687 jobs) are off-campus positions in either the private or public sectors. On average, for each job created on campus there are 2.3 off-campus jobs that exist because of spending related to the University System of Georgia. In general, 14 jobs were generated for each million dollars of initial spending by USG institutions.
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 26. For prospective, the rolled-up employment impact of the USG's 26 institutions exceeded the combined 160,215 jobs provided by Georgia's top six employers--Fort Benning (35,848 jobs), Walmart (33,467 jobs), Delta Air Lines (27,000 jobs), U.S. Army Signal Center and Fort Gordon (22,500 jobs), Robins Air Force Base (21,223 jobs), and AT&T (20,177 jobs).
Employment impacts in FY 2018 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 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 2018 includes: n $17.7 billion in output (sales); n $12.2 billion in value added (gross regional product); n $8.5 billion in labor income; and n 168,284 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 2018

Total for All Institutions
in 2018

Initial Spending (current dollars)

System total Personnel services Operating expenses Student spending

11,996,022,013 4,519,729,354 2,848,662,551 4,627,630,108

Output Impact (current dollars)
17,652,735,508 8,868,453,679 2,163,144,491 6,621,137,338

Value Added Impact
(current dollars)
12,157,031,004 7,084,991,009 1,148,897,086 3,923,142,909

Labor Income Impact
(current dollars)
8,497,117,785 5,872,349,692
721,304,058 1,903,464,036

Employment Impact (jobs)
168,284 82,611 17,242 68,430

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 personnel 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), 2019.

11

Table 2
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2018


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)

983,861,245 580,829,856 268,520,150 134,511,239
2,094,067,111 997,349,005 690,997,091 405,721,015
1,619,874,076 554,560,030 350,827,109 714,486,937
2,015,314,452 856,298,215 567,283,029 591,733,208

1,377,756,136 1,013,914,313
183,658,591 180,183,232
3,352,836,002 2,156,839,115
571,304,737 624,692,150
2,589,435,673 1,199,276,040
290,057,936 1,100,101,697
2,842,020,878 1,589,099,805
418,631,388 834,289,685

1,010,663,129 825,619,356 91,521,214 93,522,559
2,406,879,906 1,699,755,509
321,176,458 385,947,939
1,787,852,880 945,121,979 163,064,955 679,665,946
1,983,658,887 1,280,713,960
212,857,327 490,087,600

822,164,706 713,410,795
58,604,700 50,149,211
1,756,909,024 1,371,383,410
200,632,494 184,893,121
1,190,001,666 762,535,903 101,863,406 325,602,356
1,445,649,991 1,073,268,515
133,967,882 238,413,594

12,497 9,012 1,534 1,951
27,065 16,736
4,211 6,118
22,415 9,502 2,139
10,774
27,452 15,123
3,522 8,807

789,775,232 240,536,163 145,588,460 403,650,609
966,772,954 286,951,949 162,849,597 516,971,408
379,498,517 115,405,295
72,436,920 191,656,302
310,176,657 91,722,006 57,048,279
161,406,372

1,043,491,229 422,909,604 94,032,198 526,549,427
1,551,180,911 620,554,274 134,641,298 795,985,338
604,556,747 249,572,269
59,889,620 295,094,858
394,138,019 150,517,115
36,269,285 207,351,620

691,981,867 344,375,435
47,163,351 300,443,081
1,056,513,821 489,044,611 75,692,730 491,776,479
412,666,784 196,682,189
33,668,785 182,315,810
254,936,427 124,068,292
16,978,797 113,889,338

471,439,283 295,111,393
29,920,951 146,406,939
677,442,455 394,567,138
47,283,729 235,591,588
267,058,436 158,685,581
21,032,217 87,340,638
173,855,414 107,500,101
10,621,716 55,733,597

11,639 5,030 823 5,786
15,040 6,254 991 7,795
5,899 2,567
442 2,890
4,635 1,957
330 2,348

(continued)

12

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2018


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

184,322,661 55,146,446 40,170,615 89,005,600

Clayton State University Personnel Services Operating Expenses Student Spending

178,009,541 51,567,756 32,250,204 94,191,581

Columbus State University Personnel Services Operating Expenses Student Spending

232,917,111 72,159,114 44,496,884
116,261,113

Fort Valley State University Personnel Services Operating Expenses Student Spending

111,882,265 38,439,522 32,917,436 40,525,307

Georgia College & State University Personnel Services Operating Expenses Student Spending

220,043,657 76,788,511 35,282,138
107,973,008

Georgia Southwestern State University Personnel Services Operating Expenses Student Spending

81,359,366 24,330,482 13,683,349 43,345,535

Middle Georgia State University Personnel Services Operating Expenses Student Spending

190,463,704 54,253,380 36,858,669 99,351,655

Savannah State University Personnel Services Operating Expenses Student Spending

142,578,430 42,877,038 34,842,648 64,858,744

University of North Georgia Personnel Services Operating Expenses Student Spending

460,530,586 130,498,366
69,581,312 260,450,908

244,406,917 96,531,134 27,237,336
120,638,447
283,210,501 111,518,989
26,663,924 145,027,588
295,041,159 124,331,977
27,779,786 142,929,396
142,567,025 68,929,908 22,286,572 51,350,545
298,471,484 138,756,199
23,874,407 135,840,878
93,624,915 35,260,219
8,022,246 50,342,450
251,687,438 96,262,857 25,432,058
129,992,523
183,879,935 76,404,472 22,535,862 84,939,601
667,306,742 244,975,197
51,552,206 370,779,340

154,639,114 77,745,175 12,027,282 64,866,657
192,476,596 87,885,562 14,989,940 89,601,094
194,996,423 100,903,539
13,133,064 80,959,820
95,003,410 55,267,892 10,371,491 29,364,026
201,004,867 111,383,654
11,190,637 78,430,576
61,165,859 30,185,450
3,299,806 27,680,603
160,212,318 76,664,939 11,578,246 71,969,132
122,511,053 62,254,151 11,533,306 48,723,595
437,906,492 196,438,277
26,673,590 214,794,626

107,083,762 66,843,024 7,651,241 32,589,498
123,195,565 70,907,139 9,363,917 42,924,509
134,797,597 87,227,564 8,259,468 39,310,565
67,835,464 47,163,136
6,531,739 14,140,589
139,090,895 94,795,211 6,941,833 37,353,851
42,246,282 26,951,367
2,157,165 13,137,750
107,431,166 65,516,735 7,055,457 34,858,974
84,315,920 53,205,830
7,290,366 23,819,724
288,796,574 165,074,928
16,989,375 106,732,271

2,818 1,214
263 1,341
2,854 1,238
196 1,420
3,316 1,452
258 1,607
1,598 816 207 575
3,097 1,352
224 1,521
1,061 380 95 586
2,878 1,186
241 1,452
2,001 873 196 932
7,004 2,681
426 3,898

(continued)

13

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2018


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

124,527,557 31,034,804 25,923,686 67,569,067

Atlanta Metropolitan State College Personnel Services Operating Expenses Student Spending

58,475,362 16,515,746 10,209,644 31,749,972

College of Coastal Georgia Personnel Services Operating Expenses Student Spending

83,348,239 22,459,163 13,004,861 47,884,215

Dalton State College Personnel Services Operating Expenses Student Spending

114,731,449 26,149,636 20,086,629 68,495,184

East Georgia State College Personnel Services Operating Expenses Student Spending

66,740,049 14,242,027 12,766,950 39,731,072

Georgia Gwinnett College Personnel Services Operating Expenses Student Spending

313,290,019 80,417,535 60,139,568
172,732,916

Georgia Highlands College Personnel Services Operating Expenses Student Spending

125,103,053 25,452,676 22,621,371 77,029,006

Gordon State College Personnel Services Operating Expenses Student Spending

87,487,031 20,485,231 15,022,518 51,979,282

148,595,411 49,437,706 15,581,871 83,575,833
93,043,354 35,716,491
8,441,160 48,885,703
104,113,295 36,569,972 8,092,762 59,450,561
135,815,305 40,848,299 12,464,122 82,502,884
80,952,494 22,674,067
7,719,622 50,558,804
489,589,456 173,908,716
49,722,378 265,958,363
177,046,638 48,324,521 17,014,435
111,707,682
136,754,098 44,300,789 12,420,363 80,032,946

91,637,850 41,032,157
6,859,423 43,746,270
63,095,420 28,147,348
4,745,457 30,202,615
67,537,469 30,479,565
3,923,035 33,134,869
83,858,689 34,328,503
5,625,715 43,904,471
49,195,743 18,771,951
3,615,679 26,808,112
329,321,096 137,053,476
27,952,960 164,314,660
113,731,795 38,783,861 8,916,835 66,031,099
91,340,962 34,912,436
6,982,489 49,446,037

63,153,275 36,046,236
4,405,548 22,701,491
40,142,952 22,709,623
2,964,394 14,468,935
45,141,728 26,435,447
2,490,645 16,215,636
56,431,070 30,178,089
3,680,555 22,572,425
32,182,548 16,463,904
2,324,314 13,394,330
206,754,945 110,576,329
17,461,651 78,716,965
69,238,499 32,331,366
5,341,482 31,565,652
56,217,330 28,167,778
4,361,818 23,687,734

1,742 630 151 961
939 398
62 479
1,214 469 73 673
1,559 509 112 938
969 327
78 563
4,429 1,460
364 2,605
1,976 699 134
1,143
1,368 494 90 784

(continued)

14

Table 2 (continued)
Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2018


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 Personnel Services Operating Expenses Student Spending

60,871,689

71,213,746

42,242,148

28,541,239

816

13,259,402

21,019,631

17,371,741

15,293,149

254

13,253,434

7,818,328

3,354,512

2,105,998

78

34,358,853

42,375,787

21,515,895

11,142,093

483

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 personnel 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 Health System, Inc., which are reported in Appendix 3.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2019.

15

Table 3
On-Campus and Off-Campus Jobs that Exist Due to Institution-Related Spending in Fiscal Year 2018







Total Employment

On-Campus

Institution

Impact

Jobs

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

System Total

168,284

50,597

117,687



Research Universities

89,430

28,810

60,620



Augusta University

12,497

5,484

7,013

Georgia Institute of Technology

27,065

8,773

18,292

Georgia State University

22,415

5,074

17,341

University of Georgia

27,452

9,479

17,973





Regional Universities

37,214

10,568

26,646



Georgia Southern University

11,639

3,523

8,116

Kennesaw State University

15,040

3,963

11,077

University of West Georgia

5,899

1,645

4,254

Valdosta State University

4,635

1,437

3,198



State Universities

26,629

7,621

19,008



Albany State University

2,818

860

1,958

Clayton State University

2,854

826

2,028

Columbus State University

3,316

1,018

2,298

Fort Valley State University

1,598

562

1,036

Georgia College & State University

3,097

837

2,260

Georgia Southwestern State University 1,061

285

776

Middle Georgia State University

2,878

828

2,050

Savannah State University

2,001

596

1,405

University of North Georgia

7,004

1,809

5,195



State Colleges

15,011

3,598

11,413



Abraham Baldwin Agricultural College 1,742

470

1,272

Atlanta Metropolitan State College

939

266

673

College of Coastal Georgia

1,214

353

861

Dalton State College

1,559

388

1,171

East Georgia State College

969

255

714

Georgia Gwinnett College

4,429

818

3,611

Georgia Highlands College

1,976

529

1,447

Gordon State College

1,368

331

1,037

South Georgia State College

816

188

628

Notes: On-campus and off-campus jobs reported for Augusta University exclude employment impacts for the AU Health System, Inc., which are reported in Appendix 3.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2019.

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), 2019.
17

Appendix 2
Economic Impact of Capital Outlays in Fiscal Year 2018


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

System Total

281,353,014

477,876,107

239,572,563

151,588,510

2,979



Research Universities

176,940,000

321,875,398

164,636,016

104,032,013

1,941



Augusta University

4,500,000

7,661,425

4,389,287

3,738,752

52

Georgia Institute of Technology

139,240,000

257,582,192

132,702,317

82,135,835

1,526

Georgia State University

5,600,000

9,543,187

4,744,505

2,923,861

54

University of Georgia

27,600,000

47,088,594

22,799,907

15,233,565

309



Comprehensive Universities

46,700,000

72,527,498

34,673,767

22,349,191

474



Georgia Southern University

31,900,000

49,320,875

22,245,405

14,677,663

329

Kennesaw State University

5,000,000

9,176,141

4,562,024

2,811,405

52

University of West Georgia

8,100,000

11,527,438

6,652,962

4,119,995

74

Valdosta State University

1,700,000

2,503,044

1,213,376

740,128

19





State Universities

29,800,000

41,350,374

20,591,792

12,787,398

298



Albany State University

0

0

0

0

0

Clayton State University

6,900,000

12,963,300

7,126,391

4,444,046

83

Columbus State University

2,500,000

1,355,208

717,876

500,498

10

Fort Valley State University

5,000,000

7,891,755

3,684,680

2,315,338

60

Georgia College & State University

11,500,000

17,974,170

8,419,652

5,209,802

137

Georgia Southwestern State University

0

0

0

0

0

Middle Georgia State University

2,800,000

827,535

428,156

202,532

6

Savannah State University

0

0

0

0

0

University of North Georgia

1,100,000

338,406

215,037

115,182

2



State Colleges

27,913,014

42,122,837

19,670,988

12,419,908

266



Abraham Baldwin Agricultural College

1,600,000

2,485,514

944,588

760,037

23

Atlanta Metropolitan State College

800,000

276,816

181,581

98,836

1

College of Coastal Georgia

0

0

0

0

0

Dalton State College

4,100,000

5,931,712

2,689,121

1,806,921

46

East Georgia State College

4,900,000

7,080,931

2,638,186

1,654,094

47

Georgia Gwinnett College

13,913,014

25,533,556

12,694,302

7,823,023

145

Georgia Highlands College

2,600,000

814,308

523,210

276,997

4

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 Health System, Inc., which are reported in Appendix 3.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2019.

18

Appendix 3 Combined Economic Impact of Augusta University and AU Health System, Inc. in Fiscal Year 2018

Institution
Augusta University Personnel Services Operating Expenses Student Spending Capital Spending

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

988,361,245 580,829,856 268,520,150 134,511,239
4,500,000

1,385,417,561 1,013,914,313
183,658,591 180,183,232
7,661,425

1,015,052,416 825,619,356 91,521,214 93,522,559 4,389,287

825,853,058 713,410,795
58,554,300 50,149,211
3,738,752

12,549 9,012 1,534 1,951 52

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

746,065,490 406,980,000 318,355,000
0 20,730,490

965,182,771 710,436,702 222,577,364
0 32,168,705

713,825,125 578,500,850 119,256,297
0 16,067,978

584,144,229 499,877,757
73,991,950 0
10,274,522

8,566 6,384 1,951
0 231

Grand Total Economic Impact of Augusta University and AU Health System, Inc.

Initial Spending (current dollars)

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

1,734,426,735 987,809,856 586,875,150 134,511,239 25,230,490

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

2,350,600,333 1,724,351,015
406,235,955 180,183,232
39,830,130

1,728,877,541 1,404,120,205
210,777,512 93,522,559 20,457,265

1,409,997,287 1,213,288,552
132,546,250 50,149,211 14,013,274

21,115 15,396
3,485 1,951
283

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 Health System, Inc., (a component unit of the State of Georgia) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2018 and 2017). Other operating expenditures do not include $40.6 million in purchased services (a transfer) and $36.2 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), 2019.

19

Appendix 4
Combined Economic Impact of Augusta University and AU Health System, Inc. on the Augusta MSA in Fiscal Year 2018

Initial

Spending

Institution

(current dollars)



Augusta University Personnel Services Operating Expenses Student Spending Capital Spending

988,361,245 580,829,856 268,520,150 134,511,239
4,500,000

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

1,408,458,567 1,027,684,035
189,740,135 183,059,482
7,974,915

1,030,089,466 830,202,723 95,089,327 100,228,473 4,568,943

833,290,627 717,872,408
60,145,854 51,409,404
3,862,961

12,673 9,099 1,557 1,963 54

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

746,065,490 406,980,000 318,355,000
0 20,730,490

987,725,629 720,084,969 235,515,437
0 32,125,223

723,829,683 581,712,356 125,656,560
0 16,460,767

591,765,349 503,003,952
78,476,168 0
10,285,229

8,632 6,446 1,961
0 225

Grand Total Economic Impact of Augusta University and AU Health System, Inc.

Initial Spending (current dollars)

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

1,734,426,735 987,809,856 586,875,150 134,511,239 25,230,490

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

2,396,184,196 1,747,769,004
425,255,572 183,059,482
40,100,138

1,753,919,149 1,411,915,079
220,745,887 100,228,473
21,029,710

1,425,055,076 1,220,876,360
138,622,022 51,409,404 14,148,190

21,305 15,545
3,518 1,963
279

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 Health System, Inc., (a component unit of the State of Georgia) Financial Statements and Report of Independent Certified Public Accountants (June 30, 2018 and 2017). Other operating expenditures do not include $40.6 million in purchased services (a transfer) and $36.2 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), 2019.

20

Appendix 5
Augusta University's Albany, Savannah, and Rome Clinical Campuses: Economic Impact of FY 2018 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 2018.
Albany: In FY 2018, total expenditures at the Albany clinical campus were $1,819,046, including $681,036 personnel expense, $172,850 operating expense, and $965,160 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 $1,819,046 in initial expenditures and 4 on-campus jobs, n $2,617,498 in output (sales), n $1,715,273 in gross regional product (value added), n $1,211,800 in income, and n 24 jobs.
Savannah: Total expenditures at the Savannah clinical campus were $2,428,274, including $849,592 personnel expense, $307,122 operating expense, and $1,271,560 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 $2,428,274 in initial expenditures and 4 on-campus jobs, n $3,377,814 in output (sales), n $2,290,434 in gross regional product (value added), n $1,585,500 in income, and n 29 jobs.
Rome: Total expenditures at the Rome clinical campus were $1,393,414, including $526,224 personnel expense, $239,070 operating expense, and $628,120 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 $1,393,414 in initial expenditures and 5 on-campus jobs, n $2,089,818 in output (sales), n $1,434,517 in gross regional product (value added), n $982,283 in income, and n 19 jobs.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2019.
21

Appendix 6 Augusta University and UGA Medical Partnership's Athens Campus:
Economic Impact of FY 2018 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 2018. In FY 2018, initial expenditures at the Athens campus (including St. Mary's) were $17,449,362, including $10,803,132 personnel expense, $2,420,000 operating expense, and $2,405,240 in student spending, and $1,820,990 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 $17,449,362 in initial expenditures and 89 on-campus and St. Mary's jobs, n $28,298,584 in output (sales), n $20,642,816 in gross regional product (value added), n $16,085,703 in income, and n 233 jobs. Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2019.
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 2018

UGA's Griffin Campus

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Total Personnel Services Operating Expenses Student Spending

25,853,321 17,540,631
5,907,450 2,405,240

46,520,428 37,932,879
4,884,180 3,703,369

34,927,844 29,894,033
2,745,792 2,288,019

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

26,930,214

447

24,118,869

377

1,715,241

34

1,096,104

36

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 personnel 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 447 jobs consists of 237 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 2019.

23

Appendix 8
Total Economic Impact of Information Technology Services in Athens On the Regional Economy in Fiscal Year 2018

ITS in Athens

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Total Personnel Services Operating Expenses

42,709,023 22,913,914 19,795,109

62,644,499 42,523,149 20,121,350

45,373,485 34,270,969 11,102,516

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

35,494,912

531

28,719,881

372

6,775,032

159

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 ($42,096,938) 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 531 jobs consists of 221 USG jobs (expressed on a FTE basis) and 310 off-site jobs that are primarily in the private sector. For each FTE job created at ITS in Athens there are 1.4 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), 2019.

24

Appendix 9
Total Economic Impact of the Shared Services Center in Sandersville On the Regional Economy in Fiscal Year 2018

SSC Sandersville

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Total Personnel Services Operating Expenses

7,084,629 3,650,657 3,433,972

6,739,387 5,429,925 1,309,462

5,175,682 4,603,778
571,904

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

4,435,829

78

4,095,957

63

339,872

15

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 78 jobs consists of 47 USG jobs at the Shared Services Center (expressed on a FTE basis) and 31 off-site jobs that are primarily in the private sector. For each FTE job created at the Shared Services Center, there are 0.7 off-site jobs that exists because of Center-related spending.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2019.

25