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St. Catharine College Economic Impact Study

St. Catharine College Economic Impact Study. September 2011. Direct Expenditure Effects—the Regional Multiplier. The net impact of $1.00 spent in the local economy is not necessarily $1.00.

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St. Catharine College Economic Impact Study

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  1. St. Catharine College Economic Impact Study September 2011

  2. Direct Expenditure Effects—the Regional Multiplier • The net impact of $1.00 spent in the local economy is not necessarily $1.00. • For example, $10.00 spent at a restaurant may go 50% for payroll and 50% for supplies, other expenses and taxes.

  3. Multiplier Concept • If employees spend $3.00 of $5.00 earned, and if the owner spends $3.00 of $5.00 earned, then the impact in the local economy after two rounds of spending is $16.00. • After several rounds of spending, the total amount spent could be $25.00 as recipients of spending turn around and spend the proceeds of what they earn.

  4. Operating Budget Impact • Actual Cumulative Operating Budget, 2005-2011: $69.3 M • Multiplier Impacts of Operating Budgets, 2005-2011: • Marion County $11 M • Nelson County $32.5 M • Washington County $35 M • Tri-County (sum of 3 counties) $78.5 M • MSA $142.6 M

  5. Other Operating Budget Impacts • Portion of Multiplier Impact on Tri-County Household Earnings (outside of SCC employees’ earnings) : $32.5 M • Portion of Multiplier Impact on MSA Household Earnings (outside of SCC employee’s earnings) : $48.4 M

  6. Capital Budget Impacts • Actual Cumulative Capital Budget, 2005-2011: $23.1 M • Multiplier Impacts of Capital Budgets, 2005-2011: • Tri-County $26.2 M • MSA $47.6 M

  7. Other Capital Budget Impacts • Portion of Multiplier Impact on Tri-County • Household Earnings (outside of SCC employees’ earnings) $10.8 M • Portion of Multiplier Impact on MSA Household • Earnings (outside of SCC employee’s earnings) $16.2 M

  8. Job Impacts • Average SCC Employment 2005-2011 125 • Marion County Jobs Supported through SCC Employment 20 • Nelson County Jobs Supported through SCC Employment 58 • Washington Count Jobs Supported through SCC Employment 64

  9. Job Impacts • Tri-County Jobs Supported through SCC Employment 142 • Total Tri-County Employment Impact 267 • MSA Jobs Supported through SCC Employment 263 • Total MSA Employment Impact 388

  10. Payroll Impacts • Actual Cumulative SCC Payroll 2005-2011 (millions) $27.9 M • Multiplier Impacts of SCC Cumulative Payroll 2005-2011 • Marion County $4.4 M • Nelson County $13.1 M • Washington County $14.1 M

  11. Payroll Impacts • Tri-County (sum of 3 counties) 31.6 M • MSA $57.4 M

  12. Banking Impacts • Average of Average Monthly Bank Deposits 2005 -2011: $0.89 M • Average Monthly Increase in Money Supply (and Loans)Due to Deposits 2005-2011: $4.6 M

  13. Residential Student Spending in the Region, 2005-2011 • Estimated Total Cumulative Spending $2.9 M • Multiplier Impacts of Residential Student Spending • Marion County $0.32 M • Nelson County $2.0 M • Washington County $1.0 M • Tri-County (sum of 3 counties) $3.3 M • MSA $5.3 M

  14. Student Spending • Tri-County (sum of 3 counties) $3.3 M • MSA $5.3 M

  15. Estimated Taxes Federal, State, and Local Taxes, 2005-2011 • Cumulative Federal Taxes $2.7 M • Cumulative State Taxes $1.2 M • Cumulative Local Taxes $0.2 M • Sales Taxes Paid by Employees $0.7 M

  16. Federal Financial Aid Impacts • Estimated Pell Grants $7.7 M • Estimated Federal Student Loans $20.3 M • Total $30 M • Multiplier Impacts • Marion County $3.4 M • Nelson County $20.4 M • Washington County $10.2 M

  17. Federal Financial Aid Impacts • Tri-County (sum of 3 counties) $34 M • MSA $61.8 M

  18. Human Capital Impacts—Earnings due to Education • Associate Degree Graduates from 1970 to 2011: $805 M • Associate Degree Graduates, 3 Year Programs, 2004 to 2011: $497 M • Baccalaureate Degree Graduates, 2006 to 2011: $174 M • Grand Total $1.48 B

  19. Human Capital Impacts • Marion County Share of Grand Total$162 M • Nelson County Share of Grand Total$399 M • Washington County Share of Grand Total $177 M • Tri-County Share of Grand Total $738 M • MSA Share of Grand Total $1.1 B

  20. Total Combined Spending and Human Capital Impacts • Marion County $177.2 M • Nelson County $441.1 M • Washington County $224.7 M • Tri-County Impacts $846 M • MSA Impacts $1.296 B

  21. Conclusion • Spending wise, SCC expenditures have a multiplier effect of around 1.13 on the region and slightly over 2 for the Louisville MSA region. • From a human capital point of view, SCC has added over a billion dollars of extra earnings to local economies over the last 40 years.

  22. Conclusion • SCC faculty and staff do more than to help future alumnae/alumni earn money. • Graduates receive a liberal arts education that addresses issues such as diversity, religion, and ethics and which enables them to become leaders in their communities and professions. • SCC will continue to make a large and substantial impact on its local economies, not just in financial terms, but also in terms of the well-being of the Tri-County and Louisville MSA areas.

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