Press Release

Impact Study Released.  Oglethorpe Boosts Area Economy

Atlanta – The economic impact of Oglethorpe University in 1999 was more than $43 million, according to the results of a study released Thursday. The total economic impact of Georgia's 25 private colleges and universities in that year was about $4.42 billion, or more than 1.6 percent of the state's output.

Adjusted to 2001 dollars, the economic impact of these institutions on the Georgia economy would be approximately $4.72 billion.

The study was conducted by the Econometric Center of Kennesaw State University on behalf of the Georgia Foundation for Independent Colleges (GFIC), representing the private, non-profit, liberal arts colleges and universities located across the state.

"The effects of these private institutions on their local economies flow through two channels: the spending by the institution on instruction, research, public service and capital projects and the spending of students, faculty and staff in the local community," said Dr. Roger Tutterow, who conducted the survey.

Of the total economic impact, $2.6 billion represents initial spending by the instution and its students, while $1.8 billion is the indirect or induced spending in the regional economy. On average, student expenditures produced 18 percent of an institution's impact.

The 25 academic institutions accounted for more than 76,000 jobs in their regional economies. By comparison, two of the state's largest private sector employers, Delta Airlines and Wal-Mart Stores, had employment impacts of approximately 54,000 and 40,500, respectively in 2000.

The mission of the GFIC is to preserve, support, and enhance the private liberal arts colleges and universities for Georgia's students by raising awareness of the institutions; influencing public policy in support of private higher education; securing funding for the schools and their students; and promoting the institutions as distinct alternatives in higher education.

###