Clayton State’s Impact -- $200 million and 1700 Jobs
A newly released report states that Georgia’s public university system made a $12.7 billion economic impact on the state’s economy during Fiscal Year 2009, continuing its record of growing contributions to the state’s economic prosperity. The 35 institutions of the University System of Georgia (USG) generated nearly three percent of the state’s total jobs during that time.
The Selig Center for Economic Growth in the University of Georgia’s Terry College of Business analyzed data collected between July 1, 2008, and June 30, 2009, to calculate the University System’s FY2009 economic impact. This work updates similar studies conducted on behalf of The Intellectual Capital Partnership Program (ICAPP), an initiative of the Board of Regents’ Office of Economic Development. The previous report, based on FY2008 data, placed the USG’s economic impact at $12.1 billion. The first study in the series calculated the USG’s impact at $7.7 billion in FY1999. The latest $12.7 billion thus is a $5 billion increase since FY1999 – or a growth of 65 percent in the system’s economic impact on Georgia’s communities.
Most of the $12.7 billion in total economic impact was due to initial spending by USG institutions for salaries and fringe benefits, operating supplies and expenses, and other budgeted expenditures, as well as spending by the students who attended the institutions in FY2009. (Initial spending by USG institutions equaled $8.4 billion, or 66 percent of the total.) The remaining $4.3 billion (34 percent) in economic impact was created by re-spending – the multiplier effect of those dollars as they are spent again in the region. For every dollar of initial spending in a community by a University System institution, researchers found that, on average, an additional 51 cents was generated for the local economy hosting a college or university.
Eight institutions in the metro Atlanta area – Georgia Institute of Technology, Georgia State University, Clayton State University, Kennesaw State University, Southern Polytechnic State University, Georgia Gwinnett College, Atlanta Metropolitan College and Georgia Perimeter College – accounted for $5.3 billion of the University System’s $12.7 billion total, and 42,434 jobs. Including the multiplier effect, Clayton State accounted for an economic impact of $205,609,909 in FY09. The University also generated 1,697 jobs.
“A college or university improves the skills of its graduates, which increases their lifetime earnings. Local businesses benefit from easy access to a large pool of part-time and full-time workers,” said study author Dr. Jeffrey M. Humphreys, director of economic forecasting for the Selig Center. “In addition, for each job created on a campus, there are 1.6 jobs that exist off-campus because of spending related to the college or university. In these ways, and many more, the University System plays a critical role in Georgia’s economic recovery.”
The Selig Center’s research has its limitations – it neither quantifies the many long-term benefits that a higher-education institution and its outreach and service units impart to its host community’s economic development nor does it measure intangible benefits, such as cultural opportunities, intellectual stimulation and volunteer work, to local residents. Spending by USG retirees who still live in the host communities and by visitors to USG institutions (such as those attending conferences or athletic events) is not measured, nor are additional sources of income for USG employees, such as consulting work, personal business activities and inheritances.
The entire USG Economic Impact Report can be found on line at: www.icapp.org/pubs/usg_impact_fy2009.pdf.