Pellissippi State Technical Community College pumped an average of $127 million each year into the local economy over the past five years, a new study shows.
The 20th annual analysis of the economic impact of the college on the Knox and Blount county area revealed that the value of business volume, jobs and individual income amounted to about $636 million in the 2002-2007 period, or $127 million each year.
Fred H. Martin, an educational consultant who completed the study, says local business volume, the total amount generated locally by businesses from the college’s direct and indirect expenditures, was $314 million for the five-year period. Of that total, more than $240 million came from non-local revenues, such as state appropriations, state and federal contracts and grants, and federal and state student financial aid revenues.
Using the more conservative of two different calculations, Martin has estimated that the impact of the college’s expenditures on personal income in the area amounted to about $322 million during 2002-2007, of which $252 million came from external or new funds.
Of the college’s $636 million total economic impact, about $493 million ($99 million each year) could be attributed to the infusion of new non-local revenues.
“This impact would likely not have occurred without the presence of Pellissippi State in the area,” said Martin.
The economic impact study notes that each dollar of local revenue coming into Pellissippi State generated a return on investment of about $3.37 in local business volume. The individual income generated ranged from $3.46 to $3.78, for a total return on investment of at least $6.83.
The study did not measure such intangible economic effects as corporate relocation and expansion decisions based on the presence of the college in the area, or wages paid to and taxes paid by Pellissippi State graduates. The college directly boosts the local economy through such things as employee salaries and benefits, construction and maintenance work, and local purchases of equipment and supplies.
“The results of this economic impact study clearly demonstrate that Pellissippi State continues to be a major contributor to the economic base of Knox and Blount counties,” Martin said. “This economic impact is expressed in terms of jobs created, business volume generated and personal income earned.”
For information about the college, visit the Web site at www.pstcc.edu.