The economic impact of Tusculum College in Greene County was more than $65.2 million in 2009, according to a recent study conducted by East Tennessee State University.
In a report released in December, Dr. F. Steb Hipple, professor of economics at ETSU, stated that economic impact analysis measures the level of economic activity in a region related to the production activities of an enterprise, such as a business firm or an institution of higher education.
With these standards, Hipple’s report to the College stated that “During 2009, Tusculum College added $65.2 million to the economy of Greene County, generated $25.4 million in household earnings and created the equivalent of 748 full time jobs. The average pay for each job is nearly $34,000.”
The report was commissioned by the College’s Office of Institutional Advancement.
“Tusculum College is a significant part of the Greene County economy,” said Susan D. Vance, interim vice president of institutional advancement and a 1991 graduate of the College. “We not only employ more than 700 people, but the College’s indirect impact is more than $27 million.”
To generate the report, the economic activity was measured in several ways, including output, earnings and employment.
According to the report, there are three categories of economic impacts — direct, indirect and total. The direct impact is the economic activity directly linked to the activities of the enterprise or industry, such as sales and employment. In technical terms, it is the delivery of goods and services to final users. The indirect impact is the economic activity in the community due to the spending by the enterprise or industry on inputs, especially wages and salaries. The indirect impact is estimated by using impact “multipliers.” The total impact is the sum of the direct and indirect impacts.
In 2009 the direct impact of Tusculum College was $37,773,256. The indirect impact was $21,451,711, making a total economic impact of $65,224,967 for the year. Tusculum College also recorded the equivalent employment of 748 people, with an average salary of $33,955.
“While we are aware of the impact Tusculum College makes on our county and our region,” said Vance, “It is important for us to quantify it and share this information with the community and other people, organizations and constituents with which the College has relationships.”
She added, “In addition to raising the economy through providing graduates who are better prepared to be successful financially, the College as a business is also a viable, return-producing entity for our community.”
According to Hipple the study conducted for Tusculum College utilized the RIMS II Economic Impact Model developed by the U.S. Bureau of Economic Analysis, a part of the U.S. Department of Commerce.
For more information please contact Vance at 423-636-7303.