KSU's economic impact grows by $100 million
Student spending fuels university’s growing impact on metro Atlanta’s economy KENNESAW…
Georgia (Jun 9, 2011) — Student spending fuels university’s growing impact on metro Atlanta’s economy
KENNESAW, Ga. (June 9, 2011) — Spending by Kennesaw State University students was the driving force behind a 14 percent jump in the university’s local economic impact in fiscal year 2010 over FY 2009, according to a report released this week by the Board of Regents of the University System of Georgia.
The institution’s FY 2010 economic impact on the 28-county Atlanta metropolitan region was more than $800 million, up from $701 million in FY 2009. The overall economic impact of the 35-unit university system on the state’s economy in FY 2010 was $12.6 billion.
“Kennesaw State’s impact on the local economy is substantial and expanding,” said KSU President Daniel S. Papp. “With a growing student body of more than 23,400, we are proud to call Cobb County home and to contribute in such a significant manner to the region’s success.”
The USG study was conducted by the Selig Center for Economic Growth at the University of Georgia’s Terry College of Business, which analyzed data collected between July 1, 2009, and June 30, 2010, to calculate the university’s economic impact.
The study measures initial spending on personal services, operating expenses and student spending, as well as the impact of this spending on output, value-added, labor income and employment.
“Colleges and universities are key drivers in economic development,” said study author Jeffrey M. Humphreys, director of economic forecasting for the Selig Center. “Higher education institutions educate the work force, innovate through basic and applied research, and collaborate with employers to help them become more competitive.”
Initial spending by KSU totaled $508 million. This spending includes salaries and fringe benefits, operating expenses and other budgeted expenditures. When combined with nearly $278 million in student spending in FY 2010, total initial spending accounted for the lion’s share of
KSU’s $800 million in overall economic impact. The remaining $14 million in economic impact was created by re-spending — the multiplier effect of those dollars as they are spent again in the region.
“Seventy-five percent of the increase can be attributed to your students, rather than spending by KSU itself,” Humphreys said, noting that the university’s operating expenses were up from FY 2009. “Student spending totaled $278 million, the economic impact of which was $422 million on the local economy.”
Humphreys offered one cautionary note on student spending, however.
“With the changes in the HOPE scholarship program, student spending may not rise as much going forward,” he said.
Additionally, as part of its economic impact, Kennesaw State generated 8,870 full- and part-time jobs during the study period. Most of the jobs –– 5,705 –– were off-campus jobs in the public or private sectors that exist because of the presence of KSU in the community. The remainder of the jobs –– 3,165 –– were on campus.
Several new campus amenities helped keep students –– and their money –– in the region during FY 2010, including the state-of-the-art student dining hall, The Commons; the 16,000-square-foot Owls Nest, an indoor training facility for student-athletes in club and intramural sports programs; and the 8,300-seat KSU Soccer Stadium.
To download the full report, go to: http://www.icapp.org/pubs/usg_impact_fy2010.pdf
A leader in innovative teaching and learning, Kennesaw State University offers undergraduate, graduate and doctoral degrees to its nearly 43,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the country and the world. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status. For more information, visit kennesaw.edu.