The influence of VSU on the economy of the region increases by 9.6 percent compared to the previous year

August 12, 2022
22-109

Jessica Pope
Communication and Media Coordinator

Valdosta State University’s total economic impact on its host region — defined as Lowndes, Brooks, Lanier, Berrien, Cook, and Echols counties — was just over $404.3 million between July 1, 2020 and June 30, 2021 US dollars, which corresponds to a 9.6 percent increase over the previous year. This includes the creation of 4,084 off-campus jobs in the public and private sectors.

The aggregate economic impact exceeds $404 million

VALDOSTA – How much will Lowndes County and the surrounding areas benefit economically from being home to Valdosta State University?

That’s the question the Selig Center for Economic Growth at the University of Georgia’s Terry College of Business sought to answer in a study recently commissioned by the Board of Regents of the University System of Georgia – The Economic Impact of University System of Georgia Institutions their regional economies in fiscal year 2021.

dr Jeffrey M. Humphreys, director of the Selig Center for Economic Growth, noted that the aggregate economic impact of the VSU on its host region — defined as Lowndes, Brooks, Lanier, Berrien, Cook, and Echols counties — was between July 1, 2020 and As of June 30, 2021, in simplified and broad terms, it was just over $404.3 million, up 9.6 percent year-on-year. This includes the creation of 4,084 off-campus jobs in the public and private sectors.

“At Valdosta State University, we take our mission to advance this region we call home very seriously,” said Dr. Richard A. Carvajal, President of VSU. “Knowing that VSU’s economic impact has grown nearly 10 percent during a pandemic — and that we’ve created more than 4,000 off-campus jobs in the public and private sectors — shows we’ve found a way to work together to not not only to help our university and our region survive but also to thrive in this global health crisis.

“As the flagship of higher education in South Georgia, it is inspiring to see how our efforts on campus and through our public-private partnerships are contributing to the region’s progress and prosperity. With an economic impact of over $400 million, we are committed to doing our part to propel the post-pandemic economic recovery and support our region’s continued economic growth.”

Humphreys’ report provided additional information on the economic impact of VSU’s college spending, VSU staff and VSU students.

Initial expenses – $340,507,052

According to the report, the total initial expenditure accruing to the VSU regional economy is the combination of three types of expenditure – university expenditure on staff services, university expenditure on operating expenses, and university student expenditure.

Personnel services expenses accounted for approximately 27.5 percent ($93,632,875) of initial expenses in fiscal 2021. Expenses related to operating expenses accounted for approximately 20.1 percent ($68,595,472) of initial expenses. Students’ personal expenses accounted for about 52.4 percent ($178,278,705) of initial expenses.

Total Performance Impact – $404,317,423

According to the report, the output effect was calculated for each category of initial spending based on the impact of the first round of spending and the impact generated by re-issuing those amounts – the multiplier effect. The overall performance impact is the broadest and largest measure of economic impact.

84.2 percent ($340,507,052) of the total output impact of VSU was initial spend, while 15.8 percent ($63,810,371) was the induced/respending or multiplier effects or the difference between output impact and initial spend . The multiplier captures the regional economic impact of re-spending flows, which take place across the region until the original spend has flowed entirely to other regions

On average, every dollar of initial spending generated an additional 18.7 cents to the VSU host region economy in fiscal 2021.

Total Value Added – $258,338,377

According to the report, value-added effects that exclude expenditures related to foreign and domestic trade provide a much more accurate measure of the actual economic benefits accruing to firms and households in the VSU’s host region than the broader output effects.

VSU’s value added impact represented approximately 63.9 percent of its $404.3 million output impact, with foreign and domestic trade accounting for the remaining 36.1 percent of its output impact in fiscal 2021.

Impact on Labor Income – $164,120,506

According to the report, VSU generated $164,120,506 in workload in its host region in fiscal 2021. The labor income that Lowndes County and neighboring communities receive accounts for 63.5 percent of the value added impact.

Impact on employment – ​​4,084

According to the report, the easiest way to understand the economic impact of hosting VSU is in terms of the university’s impact on employment. VSU generated an employment impact of 4,084 jobs in Lowndes County and surrounding communities in fiscal 2021.

Approximately 34.4 percent (1,406) of these positions are on-campus positions, while 65.6 percent (2,678) are off-campus positions in the public or private sector that exist because of VSU-related expenses.

In his report, Humphreys stated, “These economic impacts show that the continued emphasis on colleges and universities as the pillar of the government’s economy is leading to jobs, higher incomes, and greater production of goods and services.”

Visit https://www.usg.edu/news/release/university_system_of_georgias_economic_impact_grows_to_19.3_billion to learn more about the collective economic impact of Georgia’s university system on Georgia and to view the full 27-page report.

On the Internet:
www.valdosta.edu