Savannah Technical College’s economic impact on its four-county service area reached nearly $57 million in the 2012 fiscal year through spending directly or indirectly related to the college, according to a study released by the Terry College of Business at the University of Georgia.
Jeffrey M. Humphreys, director of the Selig Center for Economic Growth, conducted his analysis of economic data from the Technical College System of Georgia for 12 months from July 1, 2011, to June 30, 2012.
The study found that Savannah Tech’s spending results in 707 public and private sector jobs. Statewide, Humphreys reported, one in every 264 nonfarm jobs in Georgia occurs because of spending associated with a technical college system campus.
“The fundamental finding is that each of the (technical system) colleges, including Savannah Technical College, creates substantial economic impacts in terms of output, value-added, labor income and employment,” Humphreys said. “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.”
The colleges 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. Savannah Technical College serves Bryan, Chatham, Effingham and Liberty Counties.
The result, put in the context of taxpayer investment, indicated that the $10,743,586 state appropriation for Savannah Technical College in fiscal year 2012 supported the enrollment of 7,401 students, generated $56,935,335 in local spending and helped to sustain almost 707 college-related jobs.
Statewide, the $315 million state appropriation for the colleges in fiscal year 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, Humphreys reported.
“The spending factor alone is a sizable return on the state’s investment … 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 technical college system.
The study did not attempt to measure the value in terms of the increased earnings of technical college 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 Quick Start program, a state economic development incentive that provides customized training for new and expanding businesses.
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The full report is available online here.