Western Carolina University was responsible for injecting an estimated $511.3 million into the Western North Carolina economy during the 2012-13 fiscal year through the combined impact of payroll, operational, construction and research expenditures by the university and the spending habits of its students, visitors and alumni.
That is among the findings of a comprehensive study conducted by Economic Modeling Specialists International to examine the impact of higher education on North Carolina. The EMSI study examined the combined impact of the University of North Carolina system, North Carolina Community College system and private institutions, and also assessed the impact of individual UNC campuses, private colleges and community colleges on their local economies.
Western Carolina’s estimated impact of $511.3 million represents approximately 2.7 percent of the total gross regional product for the 10 counties examined in the WCU regional study – Buncombe, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Swain and Transylvania. The added regional income created by WCU is equivalent to creating 10,475 new jobs, the study indicates.
In addition, the study calculates the return on investment in WCU for students, society and taxpayers, finding that for every dollar students invest in their educations, they will receive $2.90 in higher future income. From a statewide societal perspective, for each dollar that society spent on education at WCU in the year analyzed, North Carolina will receive a cumulative value of $10.60 in benefits such as savings related to reduced crime, lower unemployment and increased health and well-being across the state.
For every dollar invested by state and local taxpayers to support the operations of WCU in the 2012-13 fiscal year, those taxpayers gained $5.40 in added tax revenues collected and public sector savings, the EMSI researchers said. Specifically, taxpayers contributed $85 million toward WCU that year, while the added tax revenue stemming from students’ higher lifetime incomes and increased output of businesses totaled $358.6 million, with another $103.6 million in benefits because of reduced demand for government-funded services, the study revealed.
“It has been no secret that Western Carolina University and our UNC system, community college and private institution partners in higher education are engines of economic and community development for the communities and regions we serve,” WCU Chancellor David O. Belcher said.
“It is heartening to read the results of this study, which clearly demonstrates the incredible value that WCU and other institutions bring to the state and to the region. I trust that elected officials, taxpayers, students, parents, alumni, donors, and the business community will appreciate the exceptional return on investment our state and region receive when they invest in higher education, whether through appropriations, tax dollars, tuition and fees, or charitable contributions,” Belcher said.
Other findings from the EMSI report about the impact of WCU on the regional economy in the year of the study:
* Research at WCU generated $849,700 in added regional income, which is equivalent to creating 15 new jobs.
* Construction spending by WCU was $2.3 million, equivalent to 79 new jobs.
* About 67 percent of the undergraduate and graduate students at WCU originated from outside the 10-county region. Spending by those students who relocated to the region added approximately $39.9 million to the regional economy, equivalent to 895 new jobs.
* Out-of-region visitors attracted to WNC because of activities at WCU spent about $34.8 million at hotels, restaurants, gas stations and other regional businesses, equivalent to creating 897 new jobs.
* The accumulated contribution of WCU alumni who are employed in the 10-county region amounted to $266.7 million in added regional income, equivalent to creating 5,643 new jobs.
Leaders from WCU, UNC Asheville and Asheville Buncombe Technical Community College gathered Friday, Feb. 20, at the Asheville Area Chamber of Commerce to discuss the impacts of their respective institutions – and of Blue Ridge, Haywood, Southwestern and Tri-County community colleges – on the communities that that they serve.
Belcher, UNC Asheville Chancellor Mary K. Grant and A-B Tech President Dennis F. King announced that public higher education institutions in WNC were responsible for injecting at least $2 billion into the state and regional economy during the 2012-13 fiscal year through their institutional expenditures and the spending habits of their students, visitors and alumni. Of that $2 billion, roughly 75 percent ($1.52 billion) stays in the 11 counties of WNC (Buncombe, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Madison, Swain and Transylvania), they said.
“I am a proud product of North Carolina’s public higher education system, as are my wife and my children, so I know first-hand of the value that the UNC system and the North Carolina Community College system bring to the people of North Carolina,” said N.C. Sen. Tom Apodaca, a 1980 graduate of WCU.
“From laid-off factory workers seeking retraining at their local community colleges so they can re-enter the workforce of the 21st century to first-generation college students finding a welcoming environment at our regional universities, the people of our communities benefit tremendously from public higher education,” Apodaca said. “The results of this economic impact study also show the impact that these institutions are having on our state and regional businesses and on society as a whole.”
The meeting of regional leaders of public higher education followed on the heels of a Feb. 18 announcement of the statewide impact of the UNC and community college systems and private institutions. That statewide study reported the UNC system alone, including campuses and affiliated medical institutions, created $27.9 billion in added state income, which is equal to approximately 6.4 percent of the total Gross State Product of North Carolina and is equivalent to creating 426,052 new jobs.
Looking at the statewide picture, WCU created $901.8 million in additional income in North Carolina during the 2012-13 fiscal year, an economic impact equivalent to creating 15,381 new jobs.
The EMSI researchers say that initial spending by colleges and universities on payroll, operations or goods and services creates a multiplier effect across other businesses throughout the state and regional economy. Data and methods used in the study are based on several sources, including the 2012-13 academic and financial reports from the campuses, industry and employment data from the U.S. Bureau of Labor and Statistics and U.S. Census Bureau, and a variety of studies and surveys relating education to social behavior.
Researchers say the study applies a conservative methodology and follows standard practice using only the most recognized indicators of investment effect and economic impact.
For a copy of the full report, including a description of the data and methods used, visit the University of North Carolina website at www.northcarolina.edu/economic-impact-2015.
For more information about WCU’s regional economic impact, a printable PDF is available at www.wcu.edu/WebFiles/PDFs/15-123-Economic-Impact-Report-Western-Version.pdf.