UWG News Archive

UWG impacts region with $300 million

January 19, 2005

CARROLLTON, GA - A newly released study by the University System of Georgia (USG) provides more evidence of the powerful economic impact the University of West Georgia has on the region it serves.

The study found that UWG pumped more than $300 million in “output value” into the west Georgia region during Fiscal Year 2004 (July 1, 2003 - June 30, 2004) — an increase of $82 million since the last study was conducted in 2002. The study was conducted for the USG by the Selig Center for Economic Growth in the University of Georgia’s Terry College of Business.

The study also found that UWG accounts for more than 3,000 jobs — both public and private — in the area. UWG employs 922 people and 2,103 hold off campus jobs that exist due to UWG related-spending.

Dr. Beheruz N. Sethna, president of UWG, said the report confirms independently what community leaders have known for a long while.

“The economic impact of UWG to its community increased 38 percent since 2002 when the University System office initially ran the study,” Sethna pointed out. “Although these two studies may not be directly comparable, the growth (from $218,228,905 to $300,779,242) clearly indicates that UWG is a vital economic engine to the West Georgia area.”

Overall the study indicated a statewide economic impact of $9.7 billion in “output value” generated by the University System. The study found that public higher education is responsible for 2.8 percent of Georgia’s workforce, or 106,831 full- and part-time jobs.

This is the first year the study did not include the economic impact of construction projects on the University System’s campuses. Because of this change, some University System institutions may show a decline in overall economic impact, despite the fact there may have been a significant increase in enrollment over the time period between the two studies.

The Intellectual Capital Partnership Program (ICAPP), an initiative of the Board of Regents’ Office of Economic Development, commissioned the study by Dr. Jeffrey M. Humphreys, director of economic forecasting for the Selig Center.

“The single biggest factor driving the increase in the System’s economic impact is the significant growth in the number of students enrolled in Georgia’s public colleges and universities,” Humphreys said. “Not only are there more students, but they are spending more. And of course, with more students, institutions are spending more to serve them.”

The $300 million “output value” is a measure of sales in a community. The study calculated UWG spending on salaries and benefits, operating supplies and expenses, which amounted to $92,715,221, as well as student spending, which accounted for $34,315,360.

Indirect spending increases by what economists call “the multiplier effect.” Basically, the multiplier effect sums up the ripples of economic activity created when households spend more because of increases in their earnings that were generated directly or indirectly by UWG.

Daniel Jackson, executive director of the Carroll County Chamber of Commerce, said that he’s not surprised at the economic benefits to the region that are provided by higher education.

“Wow! That’s an awesome amount of money,” Jackson said. “We’ve always known that West Georgia is extremely valuable to this community. I think that the whole west Georgia region realizes and understands the importance of the University.”

Statewide, USG institutions spent $3.8 billion on salaries and benefits, operating supplies and expenses, and students accounted for $2.6 billion. Of the $9.7 billion total, 66 percent is initial spending by the institutions and students; 34 percent is the multiplier effect of those dollars as they are spent again in the region. Humphreys found that on average, for every dollar of initial spending in a community by University System institutions, an additional 52 cents was generated for the local economy hosting a college or University.

The impact on jobs is also significant, accounting for $4.4 billion in salaries and wages for 106,831 full- and part-time employees. Approximately 62 percent of these jobs are off-campus positions in either the private or public sectors and 38 percent are on-campus employees of the University System. The study found that on average, for each job created on campus, there are 1.7 off-campus jobs that exist due to spending related to the institution. Jobs related to the University System account for about one in every 36 Georgia jobs.

Humphreys notes that the figures do not include spending by people who visit USG campuses to attend meetings, athletic events and reunions, spending by USG retirees living in a community, and income earned by USG employees through consulting and other activities.

Sethna noted that this economic impact information should be of special interest to the University’s many supporters.

“Donors give to the University of West Georgia because they believe in us and our mission of ‘Educational Excellence in a Personal Environment,’ and want to help us – and we thank them most sincerely,” he said. “The return on their investment is phenomenal!”

Sethna explained that the 2004 A DAY fund raising total was $1,545,800 and the total for the entire year was $1,733,464.

“Today’s information shows that, in addition to being a wonderful act of generosity, these gifts are also a very good investment,” he noted. “The official Selig Center estimate of economic impact of UWG to the region is $300,779,242. That is a return on investment of more than 17,000 percent!”

A complete copy of the report can be accessed on the web at: htt p://www.icapp.org/pubs/impact

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