Newswise — Indiana State University contributed more than $334 million and created or supported 4 percent of all jobs in the Wabash Valley, according to a recent economic impact analysis.
The study, initiated by Indiana State’s Division of University Engagement and the Business Engagement Center, examined Indiana State’s impact on job creation and economic growth throughout the state of Indiana and in the university’s seven-county service area, which includes Indiana counties Sullivan, Vigo, Clay, Parke and Vermillion, and Illinois counties Edgar and Clark, during fiscal year 2016.
Statewide, Indiana State’s total 2016 impact resulted in 4,537 jobs with earnings of $171.94 million and output of $410.79 million dollars. The results, presented at Indiana State’s board of trustees’ May meeting, are preliminary, and Indiana State expects to release the final findings later this month.
“Indiana State University is very grateful for the financial investment it receives from the state of Indiana and, each year, that investment helps the university carry out its vital educational mission while also providing a significant value-add benefit that spurs the economy of the region and state,” said Greg Goode, executive director of the university’s government relations department. “This study once more affirms the importance of public higher education as a 21st century economic driver, and the people of Indiana State work hard every day to better position west-central Indiana as a thriving, competitive region. We could not do this without the support of the state of Indiana.”
For the seven-county Indiana State service area, the university’s total 2016 impact produced 4,314 jobs on earnings of $143.95 million and economic output of $334.52 million.
Earnings refers to the gross income of wages earned at jobs directly created by or supported by Indiana State, while output calculates revenue generated by those wages, which are, in turn, used for further consumption or further spending within the specified region.
“Once a dollar is spent within a regional economy, that dollar could be spent numerous more times before it exits that region — such is the case with ISU, each dollar paid out to residents and local businesses are used by those parties to buy other goods and services within the ISU service area,” said Brian Points, director of research at Thomas P. Miller and Associates (TPMA), an Indianapolis-based consulting and management firm that conducted the analysis. “This demonstrates the economic phenomenon of ‘ripple effects.’”
Fiscal year 2016 spending additions to the state economy included $182.71 million from Indiana State, $37.87 million from Indiana State students, $51.40 million from Indiana State employees and $1.44 million from visitors. The university employed 2,400 individuals in fiscal year 2016, including full- and part-time staff, but excluding students employed in work-study and assistantships. Indiana State’s fiscal year 2016 ran from July 1, 2015 to June 30, 2016.
Of the $182.71 million Indiana State contributed to the state economy, the university spent $5 million on purchase card transactions; $87 million paid on invoices from organizations; $92 million compensated in initial payroll payments to faculty and staff. Much of the remaining expenses were lost to state and local impact due to the money being spend outside of these regions.
Points noted the estimates are conservative and that only purchases that occur within the examined seven-county region count towards that area’s economic impact analysis. The study analyzed nearly 40,000 procurement categories, which addressed potential duplications and “leakage” (or money that is spent by Indiana State or its employees outside of the service area).
In its final report, Points said TMPA will make recommendations on how the university can increase economic development in the region, including encouraging renovation of Indiana State’s Hulman Center. The center, a 10,200-seat multi-purpose arena opened in 1973, generated roughly $17 million in annual State impact, according to the university’s 2014 Hulman Center Report.
“Indiana State will continue to do whatever it can to implement Hulman Center renovations. At this time, the project is in the early phases of design and development,” said Daniel Pigg, director of Indiana State’s Business Engagement Center. “Our analysis shows that the renovation will result in a major economic boost to the downtown area and an increase in the number of conferences and hosted events at the facility.”
The report should also encourage Indiana residents and businesses to buy locally, which spurs economic development and increases revenue.
“If Indiana State hires an architectural firm from Tippecanoe County, it doesn’t benefit the Indiana State region, but it does benefit the state,” Points said. “If it hires a firm from Chicago, it neither benefits the state or the region.”
Indiana State commissioned a similar study, the 2012 Economic Impact Report, although those results are not directly comparable to the 2016 preliminary findings because of changes in methodology.
About Thomas P. Miller and Associates
Thomas P. Miller & Associates, LLC (TPMA), based in Indianapolis, Ind., envisions a world that thinks strategically, works collaboratively, and acts sustainably. TPMA has more than 27 years of experience in preparing workforce development strategies and couples experience with expertise in research and evaluation, economic development, education, and philanthropic services. TPMA’s clients include government, education and non-profit organizations across the United States, such as the Kentucky Commission on Military Affairs, Goodwill of Central and Southern Indiana and the St. Louis Economic Development Partnership.
Media contact: Libby Roerig, director of communications and media relations, Office of Communications and Marketing, Indiana State University, 812-237-3790 or email@example.com