Economic report shows increased financial impact to community

A study released by the University System of Georgia last month said Georgia College & State University’s economic contributions totaled $154.8 million-a significant increase from previous years.

The Board of Regents’ Economic Impact Report included all salaries and benefits, operating supplies and expenses, and spending by students in the six-county region around GC&SU-Baldwin, Hancock, Putnam, Wilkinson, Jones and Washington counties.

The school’s first economic impact study approximated GC&SU’s spending at nearly half the current total, but GC&SU President Dorothy Leland warns the current study is different from those in the past.

“In 2000, the GC&SU economic impact study estimated the university’s economic impact to be approximately $71.3 million annually. The new economic impact study indicates that we brought an estimated $154 million to the surrounding community last year. That’s a significant increase,” she said. “However, the most recent study was not conducted internally at GC&SU and uses some different methodologies. While we must be careful not to compare apples with oranges, it is clear that the university is a major economic player in Baldwin and surrounding counties.”

Tara Peters, the president and CEO of the Baldwin County Chamber of Commerce, said GC&SU’s economic report reflects a change in the student body.

“The student population is no longer a majority of local students,” Peters said. “This fact alone has brought more revenue into our community from students moving here from the Atlanta area. They seem to have more spending capacity than ever before. Also, more students are on the HOPE Scholarship, allowing parents to give more living expense money to their kids.”

Stefani Pileggi, originally from Athens, moved to Milledgeville when she started college. Now, she’s working at the new Blackbird Coffeehouse downtown, where she sees her share of GC&SU’s impact.

“Some days I think college students are what keep us in business,” Pileggi said. “It seems with new businesses especially, if you can gain the support and interest of the students, you’re getting off to a good start.”

Pileggi said if businesses downtown gear their events toward students, they might be surprised about student spending power.

“Students definitely have to be taken into consideration because they are a large part of the population in this town. You think, stereotypically, college students don’t have money to spend, but they do spend their money,” she said. “If it’s something they want to do and they feel passionate about it, they will spend their money.”

According to the study, students at GC&SU spent over $60 million during the last fiscal year, but the study accounts for more than just student spending. Peters said student buying power is not the only factor adding to GC&SU’s impact.

“The university has had a major impact on business growth, especially in the downtown area. Not only do students spend a good deal of money in our businesses, but with the growth of the university in the area of teachers, we have seen more homes purchased as a result,” Peters said.

The University System of Georgia’s total impact on the state of Georgia reached $9.7 billion, an increase of $1.7 billion since 2002.

The study was commissioned by Georgia’s Intellectual Capital Partnership Program and was conducted by the Selig Center for Economic Growth in the Terry College of Business at the University of Georgia.

“[The report] conclusively demonstrates that beyond the almost incalculable benefits colleges and universities offer communities through a more educated society, cultural opportunities and other activities, our campuses have an ongoing and powerful economic impact on communities large and small,” said executive director of the University System’s Office of Economic Development, Joy Hymel.

Peters said there are a number of ways GC&SU impacts the Milledgeville community that cannot be counted.

“[GC&SU] graduate students who are prepared for the work force and understand the responsibility of ‘giving’ to the community.”

Posted by Colonnade Archives on Feb 11 2005. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry