Regional Economic Impacts Of Idaho State Essays -

Regional Economic Impacts Of Idaho State The Regional Economic Impacts of Idaho State University, 1996 Dr. Richard Bowen, President of Idaho State University, requested the Center for Business Research to conduct a study of the impact of the University on Idaho, with particular emphasis on its regional impacts upon the Pocatello area. This publication reports the findings and results of that effort, which was begun in the fall of 1997. This report is a follow-up to, and a complete revision of, a previous study conducted in 1988 (A Report to the President of Idaho State University: The Impact of University-related Expenditures on Idaho's Economy, 1986-87). For several reasons, the direct comparison of the findings of the two reports is not advised. Specifically, the present report utilizes multipliers refined and updated by the Regional Science Research Institute, while the previous report relied upon Input-Output estimates generated by the US Bureau of Economic Analysis, Regional Input-output Measurement System (RIMS). Secondly, the focus and emphasis of the present report is on the Pocatello area economy, while the 1988 study emphasized state level impacts. Third, the present report attempts to discount those impacts generated by permanent area residents, attempts to estimate a return on investment for the State of Idaho, and makes other refinements or improvements to the 1988 approach. Paul R. Zelus, Ph.D., directed the study, and was ably assisted first by Nancy L. Kelly and then Walter Bulawa, Ph.D., Research Associates of the Center for Business Research at Idaho State University. Acknowledgement is also extended to the many campus officials who provided the often tedious and detailed information needed to conduct the study. The many faculty, staff, and students who responded to expenditure surveys are acknowledged for the critical information they provided. This project was aided immeasurably by the shared experiences of researchers from Boise State University, Northern Arizona University and the University of Virginia. In that order, I acknowledge the helpful comments and advice of Dr. Charles Skoro, Dr. Jerry Conover and Dr. John Knapp. Paul R. Zelus, Ph.D. Project Director Table of Contents Executive Summari Institutional Expenses Faculty and Staff Spending Student Expenditures Visitor Expenditures Impact Assessment Executive Summary This study provides estimates of the economic impact of Idaho State University on the regional economy of the Pocatello area. During the 1996 academic year Idaho State University employed 657 full and part time faculty and 1,156 full and part time staff employees, with wages and benefits totaling $47 million. It served 12,245 students enrolled in a variety of courses and programs of study. The University operated on an annual budget of $149 million, of which $72 million was provided by the State of Idaho in the form of appropriations. Nearly $45 million of its revenue represents federal scholarship and student assistance, while another $22 million is received through student tuition and fees. The remainder of revenue comes from private and miscellaneous sources. Direct local expenditures on the part of the university and its faculty/staff, students and out-of-area visitors exceeded $215 million. Institutional expenditures within the Pocatello economy exceeded $23 million for purchases of professional services ($5.4 million), communication and utility services ($1.9 million), materials, supplies and equipment ($5.3 million), land and buildings ($6.6 million), and miscellaneous purchases ($4.2 million), representing 59% of all institutional purchases. Faculty and staff households paid $11 million in taxes and purchased an estimated $21 million in goods and services based on wages totaling $36 million. The households of students residing in dormitories, in private residences within the Pocatello area, and in private residences outside of the Pocatello area made local purchases totaling $156 million Out of area visitors spent an estimated $7 million on local purchases of goods and services. The indirect and inducted effects of $215 million in local spending stimulates an additional $76 million in regional economic activity, for a total estimated economic impact of $291 million. Permanent residents account for approximately $101 million o f that total, with the remaining $191 million in area expenditures attributed to the university's presence. Considering the State of Idaho's annual budgeted investment of $72 million and its currently valued investment of $149 million in lands, buildings, and equipment, the aforementioned regional expenditures of $191 million represent a return on investment of approximately 87%. Based on lifetime earnings differentials, ISU graduates maintaining a permanent residence within Idaho are estimated to