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Atlanta — April 1, 2009

A newly released report confirms that in the midst of a severe economic downturn, Georgia�г��ٸ���Ƶ�s public university system continues to be one of the state�г��ٸ���Ƶ�s major economic engines. Together, the 35 institutions of the �г��ٸ���Ƶ System of Georgia (�г��ٸ���Ƶ) made a $12.1 billion economic impact on the state�г��ٸ���Ƶ�s economy during Fiscal Year 2008.

The Selig Center for Economic Growth in the �г��ٸ���Ƶ of Georgia�г��ٸ���Ƶ�s Terry College of Business analyzed data collected between July 1, 2007, and June 30, 2008, to calculate the �г��ٸ���Ƶ System�г��ٸ���Ƶ�s FY2008 economic impact. This work updates similar studies conducted on behalf of The Intellectual Capital Partnership Program (ICAPP), an initiative of the Board of Regents�г��ٸ���Ƶ� Office of Economic Development. The previous report, based on FY2007 data, placed the �г��ٸ���Ƶ�г��ٸ���Ƶ�s economic impact at $11 billion. The first study in the series calculated the �г��ٸ���Ƶ�г��ٸ���Ƶ�s impact at $7.7 billion in FY1999. The latest $12.1 billion thus is a $4.4 billion increase since FY 1999 �г��ٸ���Ƶ� or a growth of 57 percent in the system�г��ٸ���Ƶ�s economic impact on Georgia�г��ٸ���Ƶ�s communities.

�г��ٸ���Ƶ�While our research has consistently shown the important economic contributions public colleges and universities make to communities and the state, this latest study supports the argument that the �г��ٸ���Ƶ System can play an important role in helping Georgia�г��ٸ���Ƶ�s economy recover,�г��ٸ���Ƶ� said study author Dr. Jeffrey M. Humphreys, director of economic forecasting for the Selig Center. �г��ٸ���Ƶ�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. These economic impacts demonstrate that continued emphasis on colleges and universities as a pillar of the state�г��ٸ���Ƶ�s economy translates into jobs, higher incomes and greater production of goods and services for local households and businesses.�г��ٸ���Ƶ�

In addition to the $12.1 billion in total impact generated by the �г��ٸ���Ƶ System in FY2008, the study determined that Georgia�г��ٸ���Ƶ�s public higher education system is responsible for 108,405 full- and part-time jobs �г��ٸ���Ƶ� 2.6 percent of all the jobs in the state �г��ٸ���Ƶ� while approximately 39 percent of these positions are on-campus jobs, a majority �г��ٸ���Ƶ� 61 percent �г��ٸ���Ƶ� are positions in the private or public sectors that exist because of the presence in the community of �г��ٸ���Ƶ institutions.

Humphreys�г��ٸ���Ƶ� report quantifies the economic benefits that the �г��ٸ���Ƶ System of Georgia�г��ٸ���Ƶ�s institutions convey to the communities in which they are located. He determined that $8 billion (66 percent) of the $12.1 billion in total economic impact was due to initial spending by �г��ٸ���Ƶ 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 FY2008. Re-spending �г��ٸ���Ƶ� the multiplier effect of those dollars as they are spent again in the region �г��ٸ���Ƶ� accounted for another $4.1 billion (34 percent). Researchers found that, on average, for every dollar of initial spending in a community by a �г��ٸ���Ƶ System institution, an additional 51 cents was generated for the local economy hosting a college or university.

The �г��ٸ���Ƶ System�г��ٸ���Ƶ�s largest institution �г��ٸ���Ƶ� the �г��ٸ���Ƶ of Georgia (UGA) with 34,180 students �г��ٸ���Ƶ� has the single greatest economic impact: $2.2 billion on the Athens-area economy, or 18 percent of the System’s total statewide economic impact.

Eight institutions in the metro Atlanta area �г��ٸ���Ƶ� Georgia Institute of Technology, Georgia State �г��ٸ���Ƶ, Clayton State �г��ٸ���Ƶ, Kennesaw State �г��ٸ���Ƶ, Southern Polytechnic State �г��ٸ���Ƶ, Georgia Gwinnett College, Atlanta Metropolitan College and Georgia Perimeter College �г��ٸ���Ƶ� accounted for $5 billion of the �г��ٸ���Ƶ System�г��ٸ���Ƶ�s $12.1 billion total, and 41,282 jobs.

The study shows that the System�г��ٸ���Ƶ�s two regional universities are significant economic players in their host communities. Georgia Southern �г��ٸ���Ƶ had an impact of $506 million on the local economy and an employment impact of 5,470 jobs, while Valdosta State �г��ٸ���Ƶ�г��ٸ���Ƶ�s economic impact was $326 million with 3,317 jobs.

In north Georgia, the combined economic impact of North Georgia College & State �г��ٸ���Ƶ and Gainesville State College was $344 million with an employment impact of 3,129 jobs.

The Augusta area receives a substantial economic benefit from the presence of the Medical College of Georgia (MCG) and Augusta State �г��ٸ���Ƶ. Together, these two institutions have a $1.2 billion economic impact on the Augusta economy and produce 10,667 jobs.

The economic impact of two �г��ٸ���Ƶ institutions in the Savannah area is significant. Together, Armstrong Atlantic State �г��ٸ���Ƶ and Savannah State �г��ٸ���Ƶ pumped $332 million into the Savannah economy and the two institutions produce more than 3,180 jobs.

The �г��ٸ���Ƶ of West Georgia and Columbus State �г��ٸ���Ƶ have a combined economic impact of $570 million and contribute 5,515 jobs to the west Georgia region.

�г��ٸ���Ƶ�This report underscores the important role the �г��ٸ���Ƶ plays not only in higher education but also in the ongoing economic vitality of Georgia,�г��ٸ���Ƶ� said Terry Durden, interim assistant vice chancellor of the �г��ٸ���Ƶ System�г��ٸ���Ƶ�s Office of Economic Development.

The Selig Center�г��ٸ���Ƶ�s research has its limitations �г��ٸ���Ƶ� it neither quantifies the many long-term benefits that a higher-education institution imparts to its host community�г��ٸ���Ƶ�s economic development nor does it measure intangible benefits, such as cultural opportunities, intellectual stimulation and volunteer work, to local residents. Spending by �г��ٸ���Ƶ retirees who still live in the host communities and by visitors to �г��ٸ���Ƶ institutions (such as those attending conferences or athletic events) is not measured, nor are additional sources of income for �г��ٸ���Ƶ employees, such as consulting work, personal business activities and inheritances.

To download the Selig Center�г��ٸ���Ƶ�s FY2008 report, go to /assets/usg/docs/usg_impact_fy2008.pdf.

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