Tennessee would be poorer without private, non-profit colleges and universities – more than $8.1 billion poorer, according to a recent economic impact study.
The study, covering the fiscal year 2009-2010 and commissioned by the Tennessee Independent Colleges and Universities Association (TICUA), reveals that the State’s private non-profit colleges and universities contributed more than $8.1 billion to the Tennessee economy as a result of their presence. The study determined that TICUA member institutions made approximately 72 percent of their expenditures within the State’s borders.
The study focused on three major areas of the institutions’ economic impact: business volume in the State generated by institutional expenditures ($4.2 billion); full-time-equivalent jobs created and sustained in Tennessee by the colleges and universities’ presence (301,092 jobs, including the institutions’ own 28,764 jobs), and individual income generated in the State by institutional expenditures ($3.9-$4.6 billion).
This study clearly documents the significant positive force that the State’s private, non-profit colleges and universities have become in the economic vitality of Tennessee. TICUA President Claude O. Pressnell, Jr. said, “Private colleges across the state are proud to play such an important role in developing a strong Tennessee economy. The institutions educate individuals for the workforce, create jobs in their communities and the money they and their employees spend boosts local economic growth.”
The economic impact of Tusculum College in Greene County was more than $65.2 million in 2009, according to a study conducted by East Tennessee State University.
In his report, 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 Dr. Nancy B. Moody, president of Tusculum College. “We not only employ more than 700 people, but the college’s indirect impact is more than $27 million.”
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 Dr. Moody, “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 is proud to be a viable business that is providing an economic return for our community.”