The economic impact of University System of Georgia institutions on their regional economies in fiscal year 2019

The Economic Impact of University System of Georgia Institutions
on their Regional Economies in FY 2019
May 2020
Commissioned by The Board of Regents of the University System of Georgia
Dr. Jeffrey M. Humphreys, Director n Selig Center for Economic Growth
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Executive Summary The statewide economic impact of the University System of Georgia's institutions in fiscal year 2019 includes: n $18.5 billion in output (sales); n $12.6 billion in gross regional product; n $8.6 billion in income; and n 157,770 full- and part-time jobs (3.5 percent of all non-farm jobs in Georgia). These benefits permeate both the private and public sectors of the host communities. For example, for each job created on campus there are two off-campus jobs that exist because of spending related to the college or university. These economic impacts demonstrate that continued emphasis on colleges and universities as a pillar of the state's economy translates into jobs, higher incomes, and greater production of goods and services. In addition to the system-wide impact summarized here, the following chapters quantify the economic benefits that each institution conveys to the community in which it is located. Each institution's benefits are estimated for several categories of college/university-related expenditures: spending by the institutions themselves for salaries and fringe benefits, operating supplies and expenses, and other budgeted expenditures; spending by the students who attend the institutions; and spending by the institutions for capital projects.
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Introduction
How much does a region benefit economically from hosting an institution of higher education? Traditionally, the benefits are discussed in broad, qualitative terms that often fail to satisfy those who demand tangible evidence of the economic linkages between the academic community and the community as a whole; however, this report quantifies the economic benefits that the University System of Georgia's institutions convey to the communities in which they are located.
The benefits are estimated for several important categories of college/university-related expenditures: spending by the institutions themselves for salaries and fringe benefits, operating supplies and expenses, and other budgeted expenditures; spending by the students who attend the institutions; and spending by the institutions for capital projects (construction). The economic impact estimates are based on regional input-output models of each institution's regional economy, certain necessary assumptions, and available data on annual spending in the specified categories. Moreover, the emphasis is on funds received by residents in the region that hosts each college or university. The study reports expenditures and impacts for the 2019 fiscal year--July 1, 2018 through June 30, 2019.
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 $18.5 billion in FY 2019. 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 2019 total, $12.6 billion (68 percent) is initial spending by the institutions and students; $5.9 billion (32 percent) is the induced or re-spending (multiplier) impact. Dividing the FY 2019 total output impact ($18.5 billion) by initial spending ($12.6 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 2019, value added comprises $12.6 billion (68 percent) of the $18.5 billion output impact, with domestic and foreign trade comprising the remaining $5.9 billion (32 percent). The $12.6 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 $8.6 billion, and represents 68 percent of the value-added impact.
The collective or rolled-up employment impact of all institutions on their host communities in FY 2019, including multiplier effects, is 157,770 full- and part-time jobs. Approximately 33 percent of these positions are on campus (51,768 FTE University System employees) and 67 percent (106,002 jobs) are off-campus positions in either the private or public sectors. On average, for each job created on campus there are two off-campus jobs that exist because of spending related to the institution. The 157,770 jobs generated by the University System account for 3.5 percent of all the nonfarm jobs in Georgia, or about one job in 29. To provide perspective, the rolled-up employment impact of the USG's 26 institutions exceeded the combined number of jobs at Georgia's top five employers--Fort Benning (40,000 jobs), Walmart (34,872 jobs), Delta Air Lines (30,813 jobs), U.S Army Signal Center and Fort Gordon (25,264 jobs), and Emory University (24,535 jobs).
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Methodology
n Understanding the Concept of the Short-Term Economic Impact of a College or University n
The total annual economic impact of college- or university-related spending consists 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--referred to as 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. 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 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.
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n Analytic Approach n
Estimating the economic impact of the University System of Georgia institutions on their regional economies in FY 2019 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 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 expressed in 2018 dollars.
Type SAM (social accounting matrices) multipliers from IMPLAN 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 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 from 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
Initial spending is the combination of several types of spending, including spending by USG institutions for personnel services (wages, salaries, and benefits), spending by USG institutions for operating expenses, and spending by students.
The Board of Regents provided institution-specific data on expenditures for personnel services and the number of positions. The expenditure amounts are industry changes and are reported in the first column of Tables 1 and 2, respectively. These amounts are allocated to various economic sectors recognized by IMPLAN on the typical expenditure pattern for households of moderate income.
Institution-specific data on expenditures for operating expenses (non-personnel services) for FY 2019 were obtained from the Board of Regents. These amounts are industry changes 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 do not account for spending by the hospital and clinics operating by the AU Health System, Inc. Expenditures and impacts for the AU Health System,
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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 2019. 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 some previous editions of this study did not include the impacts of public/private ventures. The FY 2019 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; (2) various annual Consumer Expenditure Surveys conducted by the U.S. Bureau of Labor Statistics (BLS); (3) 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 (4) 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 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. 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 $5,383 for Summer 2018, $8,075 for Fall 2018, and at $8,075 for Spring 2019.
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 2019, 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.
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Results
This section describes the economic benefits that the University System of Georgia's 26 institutions conveyed to their host communities in FY 2019. 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 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.
n Total Initial Spending n
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 2019 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 2019, total initial spending for all 26 institutions was $12.6 billion. Spending originating from personnel services accounted for 37 percent ($4.7 billion) of initial spending, spending due to operating expenses accounted for 23 percent ($2.9 billion) of initial spending, and students' personal expenditures accounted for 39 percent ($4.9 billion) of initial spending.
n Total Output Impact n
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 2019 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 $18.5 billion in FY 2019 (Table 1). This amount represents the combined impact of all 26 institutions on their host communities. Of the FY 2019 output impact, $12.6 billion (68 percent) was initial spending by the institutions and students, while $5.9 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 2019 was 1.47, obtained by dividing the total output impact ($18.5 billion) by initial spending ($12.6 billion). On average, therefore, every dollar of initial spending generated an additional 47 cents for the economy of the region hosting the institution. Thus, for all institutions combined, 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., Georgia Tech in Atlanta)--where multipliers are the highest, or institutions that 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.
n Total Value-Added Impact n
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 2019 are reported in the third column of Tables 1 and 2.
The 26 institutions collectively generated a value-added impact of $12.6 billion on their host communities in FY 2019. For all institutions combined, the value-added impact equaled 68 percent of the $18.5 billion output impact
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(with domestic and foreign trade comprising the remaining 32 percent of the output impact). The $12.6 billion valueadded impact reported for FY 2019 equals about 2.1 percent of Georgia's 2018 GDP.
n Labor Income Impact n
Collectively, the 26 University System institutions generated a labor income impact on their host communities of $8.6 billion in FY 2019. The labor income received by residents of the communities that host University System institutions represents 68 percent of the value-added impact. Labor income for each institution is reported in the fourth column of Table 2.
n Employment Impact n
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 157,770 jobs on their host communities in FY 2019. Approximately 33 percent (51,768 jobs) of these positions are on-campus jobs at one of the institutions of the University System of Georgia, and 67 percent (106,002 jobs) are off-campus positions in either the private or public sectors. On average, for each job created on campus there are two off-campus jobs that exist because of spending related to the University System of Georgia. On average, 13 jobs were generated for each million dollars of initial spending by USG institutions and students in FY 2019--on average $79,908 in initial spending supports one job.
The employment impact associated with the University System equals 3.5 percent of all the nonfarm jobs held by Georgians, or about one job in 29. To provide perspective, the rolled-up employment impact of the USG's 26 institutions (157,700 jobs) exceeded the combined number of jobs (155,484 jobs) with Georgia's top five employers Fort Benning (40,000 jobs), Walmart (34,872 jobs), Delta Air Lines (30,813 jobs), U.S Army Signal Center and Fort Gordon (25,264 jobs), and Emory University (24,535 jobs).
Employment impacts in FY 2019 for the individual institutions are reported in the fifth column of Table 2. For each institution, a break out of on-campus and off-campus jobs that exist due to institution-related spending is reported in Table 3.
Comparisons to FY 2018 Estimates
Table 4 reports the total economic impact of all USG institutions on their regional economies in FY 2019 and FY 2018. Initial spending was 5 percent higher in FY 2019 than in FY 2018. The output (sales), value added (state GDP), and labor income impacts were 4.6 percent, 3.5 percent, and 1.1 percent higher in FY 2019 than reported for FY 2018. In contrast, the employment impact was 6.2 percent lower in FY 2019 than reported for FY 2018. It should be noted that there were an unusually large number of changes in methodology which limits comparability of the estimates for FY 2019 to estimates for earlier years. This explains why the output impact increased less than initial spending. In general, the methodological changes reduced multiplier values. Indeed, methodological changes rather than changes in initial spending wholly account for the decreased employment impact between FY 2018 and FY 2019.
Although the methods used in FY 2019 are similar to those used in the FY 2018, the methodological changes were greater than in most years. The most important change is that the IMPLAN Group substantially revised their regional economic modeling system. In this major revision (the culmination of three years of work by IMPLAN modelers), many of the multiplier values used to estimate both the direct and induced economic impacts declined. Although the new version is a substantial improvement over the previous ones, it limits comparability of estimates to those produced before. For example, the new platform dramatically improved the social accounting matrices (SAMs), offering more complete pictures of the flow of both market and non-market funds throughout the local economies. Moreover, the new platform is based on the 2017 NAICS codes rather than the 2012 NAICS codes, which resulted in a completely new industry aggregation scheme with 546 sectors. These and other improvements provide greater accuracy, but reduced many of the multiplier values. Another method change is that the author revised estimates of student spending per semester. The revisions were designed to improve accuracy, but limit the comparability of the FY 2019 economic impact estimates to those produced for prior years. More specifically, new information obtained from the College Board's "Trends in College Pricing 2019" and the U.S. Bureau of Labor Statistics 2018 Consumer
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Expenditure Survey (released in September 2019) was used to re-estimate spending per student per semester. Student spending also was reallocated among expenditure categories and industry sectors. Hence, the comparison reported in Tables 4 and 5 should be used with caution.
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 and data limitations, several important types of short-term college or university-related 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. In addition, 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 transfers, 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 the focus here is only on the short-term impacts of several types of college- or university-related 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, nonprofits, and local government.
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 innovation-based companies, which are 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 households. 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.
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 institutions on their host communities in FY 2019 includes:
n $18.5 billion in output (sales); n $12.6 billion in valued added (gross regional product); n $8.6 billion in labor income; and n 157,770 full- and part-time jobs.
These economic impacts demonstrate that continued emphasis on higher education as an enduring pillar of the regional economy translates into jobs, higher incomes, and greater production of goods and services for local households and businesses.
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Figure 1 Schematic Representation of Impact 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.

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Table 1 Total Economic Impact of All Institutions of the University System of Georgia
on their Regional Economies in Fiscal Year 2019

Total for All Institutions
in 2019
System total Personnel services Operating expenses Student spending

Initial Spending (current dollars)
12,591,482,010 4,705,817,853 2,942,322,535 4,943,341,622

Output Impact (current dollars)
18,471,540,386 8,159,659,559 3,584,358,517 6,727,522,310

Value Added Impact
(current dollars)
12,584,029,470 6,723,175,930 1,747,258,202 4,113,595,338

Labor Income Impact
(current dollars)
8,590,406,952 5,786,395,458
923,976,143 1,880,035,351

Employment Impact (jobs)
157,770 76,348 22,543 58,879

Notes:
The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN 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), 2020.

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Table 2 Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2019


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)

1,064,911,667 610,738,436 307,957,002 146,216,229
2,281,779,708 1,054,166,122
764,901,454 462,712,132
1,720,831,255 567,792,928 374,314,970 778,723,357
2,077,616,297 915,968,594 518,733,023 642,914,680

1,375,595,910 957,225,443 228,969,480 189,400,987
3,852,743,729 1,977,037,398 1,188,369,396
687,336,935
2,803,161,755 1,064,868,079
581,544,789 1,156,748,887
2,912,189,412 1,538,437,762
539,700,785 834,050,865

1,013,260,413 805,903,192 98,679,080 108,678,141
2,652,431,797 1,605,807,348
612,838,658 433,785,791
1,894,854,591 864,916,864 299,900,965 730,036,762
2,018,109,301 1,270,239,378
242,776,515 505,093,408

822,852,490 714,481,171
55,771,642 52,599,677
1,880,772,645 1,356,706,140
320,244,188 203,822,317
1,230,483,659 730,746,451 156,715,866 343,021,342
1,456,280,820 1,100,087,528
130,756,728 225,436,564

11,592 8,248 1,592 1,752
27,746 15,228
6,961 5,557
21,406 8,649 3,406 9,351
26,060 14,870
3,758 7,432

777,956,485 240,756,907 123,448,416 413,751,162
1,006,495,856 289,917,898 172,789,031 543,788,927
392,020,209 116,042,117 69,594,997 206,383,095
319,798,790 93,592,636 56,843,268
169,362,886

984,130,600 380,925,489 104,425,848 498,779,263
1,619,942,802 543,726,947 268,449,217 807,766,638
632,323,791 217,631,358 108,124,470 306,567,963
383,486,865 137,833,579
41,828,207 203,825,079

671,352,632 321,787,972
45,394,632 304,170,028
1,089,859,627 441,630,861 138,438,484 509,790,282
426,004,368 176,766,527
55,759,476 193,478,365
247,672,830 118,438,507
16,026,211 113,208,112

442,664,823 282,525,299
24,642,983 135,496,541
684,999,456 373,122,778
72,342,238 239,534,440
269,392,588 149,345,581
29,137,601 90,909,406
157,952,316 105,274,566
7,986,807 44,690,943

9,860 4,533
756 4,571
13,760 5,658 1,572 6,530
5,405 2,294
633 2,478
4,241 1,818
311 2,112

(continued)

12

Table 2 (continued) Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2019


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

185,202,363 53,374,684 38,431,034 93,396,645

Clayton State University Personnel Services Operating Expenses Student Spending

188,119,959 53,171,788 33,712,057 101,236,114

Columbus State University Personnel Services Operating Expenses Student Spending

240,258,603 73,089,333 47,559,697 119,609,573

Fort Valley State University Personnel Services Operating Expenses Student Spending

123,121,873 40,389,439 39,071,870 43,660,564

Georgia College & State University Personnel Services Operating Expenses Student Spending

231,375,196 79,273,107 37,816,259 114,285,830

Georgia Southwestern State University Personnel Services Operating Expenses Student Spending

85,002,097 25,898,970 14,779,194 44,323,933

Middle Georgia State University Personnel Services Operating Expenses Student Spending

202,317,578 56,118,522 34,891,181 111,307,875

Savannah State University Personnel Services Operating Expenses Student Spending

136,604,465 41,649,021 32,086,676 62,868,768

University of North Georgia Personnel Services Operating Expenses Student Spending

501,530,447 141,908,239
74,346,872 285,275,336

222,070,453 82,871,476 25,130,485 114,068,492
302,478,169 99,721,108 52,375,867
150,381,194
290,480,614 114,094,913 33,777,688 142,608,013
143,749,305 63,804,855 27,348,705 52,595,745
290,331,157 127,138,090
27,191,676 136,001,391
90,984,938 35,545,698
7,068,489 48,370,751
249,508,413 88,583,075 24,392,899
136,532,439
172,199,505 66,041,472 28,143,523 78,014,510
699,431,977 240,969,143
82,106,689 376,356,145

143,065,779 69,819,243 9,740,997 63,505,539
202,913,673 80,996,388 27,010,083 94,907,202
192,218,584 95,705,317 13,562,549 82,950,718
96,618,511 53,641,361 11,828,965 31,148,185
199,185,555 106,228,680
11,899,934 81,056,941
57,217,630 31,157,749
2,291,859 23,768,022
163,507,535 74,111,156 10,188,619 79,207,760
116,037,917 55,877,966 12,325,476 47,834,475
462,153,781 198,030,144
35,969,843 228,153,794

93,237,582 61,589,007
5,335,417 26,313,158
127,140,074 68,431,806 14,114,355 44,593,913
127,121,493 84,763,373 6,577,732 35,780,388
67,170,162 47,200,954
6,563,430 13,405,778
134,266,972 93,242,238 6,473,038 34,551,696
37,002,793 28,214,089
1,227,784 7,560,920
104,769,516 65,236,154 5,565,073 33,968,289
77,203,347 49,047,666
6,681,489 21,474,192
295,329,202 171,516,320
19,925,270 103,887,612

2,431 1,012
198 1,221
2,676 1,153
307 1,216
3,056 1,344
247 1,465
1,564 826 207 531
2,794 1,229
201 1,364
1,040 381 61 598
2,670 1,086
186 1,398
1,681 767 202 712
6,563 2,713
571 3,279

(continued)

13

Table 2 (continued) Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2019


Institution

Initial Spending (current dollars)

Output Impact (current dollars)

Value Added Impact
(current dollars)

Labor Income Employment

Impact

Impact

(current dollars) (jobs)

State Colleges

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

112,850,878 28,819,972 23,428,176 60,602,730
56,417,153 15,153,002 12,084,929 29,179,222
87,754,421 22,816,692 15,872,261 49,065,468
119,610,588 26,974,727 20,695,928 71,939,933
72,304,141 14,318,181 17,290,357 40,695,603
325,457,995 82,099,589 59,691,853
183,666,553
132,629,823 27,260,934 22,559,296 82,809,593
86,583,278 20,370,455 16,246,168 49,966,655

128,754,568 41,065,582 14,499,768 73,189,218
90,544,053 28,418,720 18,775,438 43,349,895
104,946,126 35,106,518 12,362,846 57,476,762
137,758,116 39,011,790 12,850,280 85,896,046
77,977,155 20,985,287
8,379,251 48,612,617
519,538,555 153,973,794
92,738,706 272,826,055
181,400,770 45,820,548 24,723,566 110,856,656
137,669,238 38,203,799 25,240,439 74,225,000

81,075,861 35,553,694
5,464,188 40,057,979
60,123,540 23,082,512
9,682,439 27,358,589
67,834,942 29,818,159
4,713,394 33,303,389
86,073,722 33,777,605
4,994,625 47,301,492
47,160,300 17,992,811 3,277,059 25,890,430
345,070,563 125,062,000
47,825,082 172,183,481
116,871,996 38,151,305 11,353,433 67,367,258
90,890,863 31,030,239 13,016,422 46,844,202

54,484,312 32,055,713
3,070,914 19,357,685
37,416,417 19,501,833
5,059,643 12,854,941
42,772,053 26,257,394
2,450,512 14,064,147
56,417,850 30,328,429
2,835,494 23,253,927
28,256,893 16,042,162
1,719,386 10,495,345
211,556,754 105,661,731
24,991,414 80,903,609
68,761,428 32,963,457
5,660,199 30,137,772
55,029,130 26,216,666
6,801,845 22,010,619

1,416 560 108 748
723 263 110 350
1,116 447 99 570
1,399 422 94 883
883 291
64 528
3,950 1,201
543 2,206
1,814 674 164 976
1,182 434 148 600

(continued)

14

Table 2 (continued) Total Economic Impact of University System of Georgia Institutions on their Regional Economies in Fiscal Year 2019


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

62,930,885

68,142,410

42,463,159

27,072,178

742

14,155,560

20,617,636

17,648,952

15,836,953

247

13,176,566

5,840,010

2,299,214

1,325,095

44

35,598,759

41,684,764

22,514,993

9,910,130

451

Notes:
The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN 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), 2020.

15

Table 3 On-Campus and Off-Campus Jobs that Exist Due to Institution-Related Spending in Fiscal Year 2019







Total Employment

On-Campus

Institution

Impact

Jobs

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

System Total

157,770

51,768

106,002



Research Universities

86,804

30,177

56,627

Augusta University

11,592

5,547

6,045

Georgia Institute of Technology

27,746

9,117

18,629

Georgia State University

21,406

5,358

16,048

University of Georgia

26,060

10,155

15,905





Regional Universities

33,267

10,489

22,778



Georgia Southern University

9,860

3,437

6,423

Kennesaw State University

13,760

3,977

9,783

University of West Georgia

5,405

1,622

3,783

Valdosta State University

4,241

1,453

2,788



State Universities

24,475

7,780

16,695



Albany State University

2,431

765

1,666

Clayton State University

2,676

845

1,831

Columbus State University

3,056

1,018

2,038

Fort Valley State University

1,564

637

927

Georgia College & State University

2,794

844

1,950

Georgia Southwestern State University 1,040

298

742

Middle Georgia State University

2,670

819

1,851

Savannah State University

1,681

577

1,104

University of North Georgia

6,563

1,977

4,586



State Colleges

13,225

3,322

9,903



Abraham Baldwin Agricultural College 1,416

462

954

Atlanta Metropolitan State College

723

175

548

College of Coastal Georgia

1,116

349

767

Dalton State College

1,399

328

1,071

East Georgia State College

883

234

649

Georgia Gwinnett College

3,950

725

3,225

Georgia Highlands College

1,814

540

1,274

Gordon State College

1,182

316

866

South Georgia State College

742

193

549

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), 2020.

16

Table 4

Output Impact of All USG Institutions in FY 2019 Compared to FY 2018, With Percent Change







Fiscal Year 2019

Impact Category

(2018 dollars/jobs)



Initial Spending

12,591,482,010

Output Impact

18,471,540,386

Value Added Impact

12,584,029,470

Labor Income Impact

8,590,406,952

Employment Impact

157,770

Fiscal Year 2018 (2018 dollars/jobs)
11,996,022,013 17,652,735,508 12,157,031,004
8,497,117,785 168,284

Percent Change
5.0 4.6 3.5 1.1 -6.2

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2020.

17

Table 5 Output Impact For All USG Institutions in FY 2019 Compared to FY 2018, With Percent Change





Output Impact

Output Impact



in FY 2019

in FY 2018

Institution

(2018 dollars

(2018 dollars

Percent Change

System Total

18,471,540,386



Research Universities

10,943,690,806



Augusta University

1,375,595,910

Georgia Institute of Technology

3,852,743,729

Georgia State University

2,803,161,755

University of Georgia

2,912,189,412



Comprehensive Universities

3,619,884,057



Georgia Southern University

984,130,600

Kennesaw State University

1,619,942,802

University of West Georgia

632,323,791

Valdosta State University

383,486,865



State Universities

2,461,234,531



Albany State University

222,070,453

Clayton State University

302,478,169

Columbus State University

290,480,614

Fort Valley State University

143,749,305

Georgia College & State University

290,331,157

Georgia Southwestern State University

90,984,938

Middle Georgia State University

249,508,413

Savannah State University

172,199,505

University of North Georgia

699,431,977



State Colleges

1,446,730,993



Abraham Baldwin Agricultural College

128,754,568

Atlanta Metropolitan State College

90,544,053

College of Coastal Georgia

104,946,126

Dalton State College

137,758,116

East Georgia State College

77,977,155

Georgia Gwinnett College

519,538,555

Georgia Highlands College

181,400,770

Gordon State College

137,669,238

South Georgia State College

68,142,410

17,652,735,506

4.6

10,162,048,689

7.7

1,377,756,136

-0.2

3,352,836,002

14.9

2,589,435,673

8.3

2,842,020,878

2.5



3,593,366,906

0.7

1,043,491,229

-5.7

1,551,180,911

4.4

604,556,747

4.6

394,138,019

-2.7



2,460,196,114

0.0

244,406,917

-9.1

283,210,501

6.8

295,041,159

-1.5

142,567,025

0.8

298,471,484

-2.7

93,624,915

-2.8

251,687,436

-0.9

183,879,935

-6.4

667,306,742

4.8



1,437,123,797

0.7

148,595,411 93,043,354 104,113,295 135,815,305 80,952,494 489,589,456 177,046,638 136,754,098 71,213,746

-13.4 -2.7 0.8 1.4 -3.7 6.1 2.5 0.7 -4.3

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2020.

18

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), 2020.
19

Appendix 2 Economic Impact of Capital Outlays
in Fiscal Year 2019


Institution

Initial Spending
(current dollars)

Output Impact
(current dollars)

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact
(jobs)

System Total

406,120,000

755,184,324

422,140,708

263,321,046

5,093



Research Universities

241,885,000

498,590,711

293,105,134

183,419,132

3,245



Augusta University

59,400,000

87,415,717

51,568,009

32,909,600

587

Georgia Institute of Technology

132,255,000

339,025,594

199,788,131

122,476,655

2,154

Georgia State University

10,000,000

10,717,945

6,344,994

4,639,025

63

University of Georgia

40,230,000

61,431,455

35,404,000

23,393,852

441



Comprehensive Universities

63,700,000

95,184,126

55,203,218

35,043,594

687



Georgia Southern University

52,600,000

75,893,207

44,434,052

28,076,219

568

Kennesaw State University

5,000,000

8,991,172

5,489,498

3,568,299

59

University of West Georgia

1,700,000

3,644,101

2,157,298

1,577,268

22

Valdosta State University

4,400,000

6,655,646

3,122,370

1,821,808

38



State Universities

52,235,000

85,122,042

45,910,636

28,961,133

651



Albany State University

0

0

0

0

0

Clayton State University

5,300,000

10,234,390

5,220,303

3,197,820

54

Columbus State University

4,800,000

6,836,994

2,906,434

1,684,995

40

Fort Valley State University

0

0

0

0

0

Georgia College & State University

2,600,000

3,202,206

1,655,309

1,210,562

22

Georgia Southwestern State University

3,400,000

4,688,923

1,752,901

1,042,252

30

Middle Georgia State University

19,235,000

30,351,527

19,643,015

12,559,622

306

Savannah State University

3,700,000

5,808,937

2,707,254

1,599,491

33

University of North Georgia

13,200,000

23,999,065

12,025,420

7,666,391

166



State Colleges

48,300,000

76,287,445

27,921,720

15,897,187

510



Abraham Baldwin Agricultural College

37,400,000

59,782,441

20,136,913

11,206,778

417

Atlanta Metropolitan State College

0

0

0

0

0

College of Coastal Georgia

0

0

0

0

0

Dalton State College

0

0

0

0

0

East Georgia State College

0

0

0

0

0

Georgia Gwinnett College

1,400,000

779,375

479,718

257,520

4

Georgia Highlands College

4,100,000

6,737,096

3,352,505

2,041,779

37

Gordon State College

2,300,000

4,441,339

2,265,415

1,387,733

23

South Georgia State College

3,100,000

4,547,194

1,687,169

1,003,377

29

Notes: The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN 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), 2020.

20

Appendix 3 Combined Economic Impact of Augusta University and AU Health System, Inc. in Fiscal Year 2019

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)

1,124,311,667 610,738,436 307,957,002 146,216,229
59,400,000

1,463,011,627 957,225,443 228,969,480 189,400,987
87,415,717

1,064,828,422 805,903,192 98,679,080 108,678,141
51,568,009

855,762,090 714,481,171
55,771,642 52,599,677
32,909,600

12,179 8,248 1,592 1,752
587

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

872,726,102 473,087,832 363,795,350
0
35,842,920

1,075,702,147 741,482,249 282,869,781 0
51,350,117

797,738,338 624,265,596 142,799,369
0
30,673,373

662,189,616 553,448,626
90,538,672 0
18,202,318

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

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

1,997,037,769 1,083,826,268
671,752,352 146,216,229
95,242,920

2,538,713,774 1,698,707,692
511,839,261 189,400,987
138,765,834

1,862,566,760 1,430,168,788
241,478,449 108,678,141
82,241,382

1,517,951,705 1,267,929,796
146,310,314 52,599,677
51,111,918

8,987 6,390 2,272
0 325
21,166 14,638
3,864 1,752
912

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, 2019 and 2018). Other operating expenditures do not include $45.2 million in purchased services (a transfer) and $37.1 million in depreciation and amortization. The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN, 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), 2020.

21

Appendix 4 Combined Economic Impact of Augusta University and AU Health System, Inc.
on the Augusta MSA in Fiscal Year 2019

Initial

Spending

Institution

(current dollars)



Augusta University Personnel Services Operating Expenses Student Spending
Capital Spending

1,124,311,667 610,738,436 307,957,002 146,216,229
59,400,000

Output Impact (current dollars)
1,499,462,145 970,911,077 243,994,100 194,698,961 89,858,007

Value Added Impact
(current dollars)

Labor Income Impact
(current dollars)

Employment Impact (jobs)

1,078,833,229 811,499,046 104,733,236 110,541,952
52,058,995

866,356,812 719,865,353
59,490,916 53,642,176
33,358,367

12,486 8,374 1,687 1,808
619

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

872,726,102 473,087,832 363,795,350
0 35,842,920

1,106,313,014 752,083,363 301,469,112 0 52,760,539

811,853,643 628,600,235 152,349,735
0 30,903,673

674,230,582 557,619,300
98,158,386 0
18,452,896

9,190 6,486 2,360
0 344

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

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

1,997,037,769 1,083,826,268
671,752,352 146,216,229
95,242,920

2,605,775,159 1,722,994,440
545,463,212 194,698,961
142,618,546

1,890,686,872 1,440,099,281
257,082,971 110,541,952
82,962,668

1,540,587,394 1,277,484,653
157,649,302 53,642,176
51,811,263

21,676 14,858
4,047 1,808
963

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, 2019 and 2018). Other operating expenditures do not include $45.2 million in purchased services (a transfer) and $37.1 million in depreciation and amortization. The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using the IMPLAN, 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), 2020.

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Appendix 5 Augusta University's Albany, Savannah, and Rome Clinical Campuses:
Economic Impact of FY 2019 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 2019.
Albany: In FY 2019, total expenditures at the Albany clinical campus were $1,275,769, including $667,270 personnel expense, $172,449 operating expense, and $436,050 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 $1,275,769 in initial expenditures and 4 on-campus jobs, n $1,681,362 in output (sales), n $1,213,062 in gross regional product (value added), n $916,756 in income, and n 14 jobs.
Savannah: Total expenditures at the Savannah clinical campus were $1,711,409, including $829,788 personnel expense, $187,171 operating expense, and $694,450 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 $1,711,409 in initial expenditures and 4 on-campus jobs, n $2,341,644 in output (sales), n $1,713,708 in gross regional product (value added), n $1,253,361 in income, and n 17 jobs.
Rome: Total expenditures at the Rome clinical campus were $1,339,949, including $829,778 personnel expense, $187,171 operating expense, and $323,000 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 $1,339,949 in initial expenditures and 5 on-campus jobs, n $2,032,229 in output (sales), n $1,518,229 in gross regional product (value added), n $1,167,868 in income, and n 14 jobs.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2020.
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Appendix 6 Augusta University and UGA Medical Partnership's Athens Campus:
Economic Impact of FY 2019 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 2019. In FY 2019, initial expenditures at the Athens campus (including St. Mary's) were $17,291,536, including $10,371,187 personnel expense, $2,434,609 operating expense, and $2,664,750 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 $17,291,536 in initial expenditures and 85 on-campus and St. Mary's jobs, n $26,299,521 in output (sales), n $19,308,230 in gross regional product (value added), n $15,132,112 in income, and n 208 jobs. Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia, (www.selig.uga.edu), 2020.
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Appendix 7 Combined Economic Impact of UGA's Griffin Campus (Budget Unit "A" and Budget Unit "B")
On Its Regional Economy in Fiscal Year 2019

UGA's Griffin Campus
Total Personnel Services Operating Expenses Student Spending

Initial Spending (current dollars)
23,851,311 13,027,109
8,159,452 2,664,750

Output Impact (current dollars)
41,066,780 24,431,711 12,676,711 3,958,347

Value Added Impact
(current dollars)
28,879,652 19,844,147
6,537,349 2,498,156

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

21,355,773

360

16,765,819

254

3,416,149

74

1,173,805

32

Notes: The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN 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 360 jobs consists of 179 on-campus jobs (expressed on a FTE basis) and 181 off-campus jobs. For each FTE job created on the Griffin campus, there are 1.0 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), 2020.

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Appendix 8 Total Economic Impact of Information Technology Services in Athens
On the Regional Economy in Fiscal Year 2019

ITS in Athens

Initial Spending (current dollars)

Total Personnel Services Operating Expenses

39,090,227 21,553,802 17,536,425

Output Impact (current dollars)
54,446,490 36,201,223 18,245,267

Value Added Impact
(current dollars)
38,097,571 29,890,204
8,207,367

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

30,306,730

448

25,886,334

321

4,420,396

127

Notes: The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN 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 448 jobs consists of 210 USG jobs (expressed on a FTE basis) and 238 off-site jobs that are primarily in the private sector. For each FTE job created at ITS in Athens there are 1.1 off-site jobs that exist because of ITS-related spending.
Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia (www.selig.uga.edu), 2020.

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Appendix 9 Total Economic Impact of the Shared Services Center in Sandersville
On the Regional Economy in Fiscal Year 2019

SSC Sandersville

Initial Spending (current dollars)

Total Personnel Services Operating Expenses

5,249,660 4,274,214
975,446

Output Impact (current dollars)
6,550,576 6,069,444
481,132

Value Added Impact
(current dollars)
5,424,074 5,254,390
169,684

Labor Income Employment

Impact

Impact

(current dollars)

(jobs)

4,800,122

74

4,711,490

70

88,632

4

Notes: The impacts of spending on Output, Value Added, Labor Income, and Employment were estimated using IMPLAN 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 74 jobs consists of 54 USG jobs at the Shared Services Center (expressed on a FTE basis) and 20 off-site jobs that are primarily in the private sector. For each FTE job created at the Shared Services Center, there are 0.4 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), 2020.

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