Spending Associated with Gwinnett Technical College has $71.3 Million Impact
UGA Economist: Technical Colleges Are 'An Enduring Pillar' of State's Regional Economy
Lawrenceville – March 7, 2014
How much does the area served by Gwinnett Technical College benefit economically from spending that is either directly or indirectly related to the college?
According to Dr. Jeffrey M. Humphreys, director of the Selig Center for Economic Growth at the University of Georgia's Terry College of Business, it adds up to $71,377,444 for the year studied.
The economic impact is in a new report from Dr. Humphreys that details his analysis of economic data from the Technical College System of Georgia for the 2012 fiscal year.
The study also found that the college's spending results in 768 public and private sector jobs. Humphreys reported that statewide, for each job created on a TCSG college campus, one off-campus job exists because of college-related expenditures. One in every 264 nonfarm jobs in Georgia, he said, occurs because of spending associated with a TCSG college.
"The fundamental finding is that each of the TCSG colleges, including Gwinnett Tech, creates substantial economic impacts in terms of output, value added, labor income and employment. These economic impacts demonstrate that continued emphasis on technical colleges as an enduring pillar of the regional economy translates into jobs, higher incomes, and greater production of goods and services for local households and businesses," said Humphreys.
The TCSG commissioned Humphreys to calculate the importance that spending connected to the state's technical colleges has for their service delivery areas, which range in size from two to eleven counties. Gwinnett Tech serves Gwinnett and North Fulton counties. Several categories of college expenditures were reviewed for the study, including personnel salaries and fringe benefits, college operations, capital construction projects, and student spending, to name a few.
The result, put in the context of the taxpayer investment, indicated that the $12,789,925 state appropriation for Gwinnett Tech in 2012 supported the enrollment of 9,920 students, generated $71,377,374 in local spending, and helped to sustain 768 college-related jobs.
"Gwinnett Tech has been a significant contributor to our region for 30 years now, and it's gratifying to see the bottom-line value of this one aspect of our economic impact. That impact is magnified greatly by the factors not measured here – including the improved earnings capacity of our graduates and the tremendous positive impact that earning a college credential has on the life of the graduate, his or her family, and our community," said Gwinnett Tech President Sharon Bartels.
Statewide, the $315 million state appropriation for the TCSG in 2012 helped to train almost 153,000 technical college students, contributed to $1.2 billion in direct and indirect spending in communities throughout Georgia, and was a factor in almost 15,000 public and private sector jobs.
"The spending factor alone is a sizable return on the state's investment in the TCSG, and it would be significantly higher if we were to add the economic value that our graduates create once they leave college and meet employers' needs for a skilled workforce," said Ron Jackson, commissioner of the TCSG.
The study did not attempt to measure the value in terms of the increased earnings of TCSG graduates or the colleges' role in helping the state to attract and retain companies with high-skill, good-paying jobs. Nor did it calculate the impact of the TCSG's Quick Start program, a state economic development incentive that provides customized training free of charge to new and expanding businesses.
The full report, The Economic Impact of Technical College System of Georgia Institutions on their Service Delivery Area Economies in FY 2012, is available online at https://tcsg.edu/download/TCSG_Impact_2012_Economic_Activity_1.2014.pdf
The following is a list of the 24 TCSG colleges and their economic and employment impact on their service delivery areas in 2012. For a map of the colleges' service delivery areas go to https://tcsg.edu/tech_map.php
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About Gwinnett Tech
A unit of the Technical College System of Georgia.
Gwinnett Technical College does not discriminate on the basis of race, color, creed, national or ethnic origin, gender, religion, disability, age, political affiliation or belief, disabled veteran, veteran of the Vietnam Era’ or citizenship status (except in those special circumstances permitted or mandated by law). For more information on compliance activities, contact Lisa Richardson, Title IX and Section 504 Coordinator, 5150 Sugarloaf Parkway, Building 100, Room 323B, Lawrenceville, GA 30043, 678-226-6691.