Pellissippi State Community College pumped an average of $184.5 million each year into the local economy during the past five years, a recent study shows.
The 23rd annual analysis of the economic impact of Pellissippi State on the Knox and Blount county area revealed that the value of business volume, jobs and individual income amounted to about $923 million in the 2005-2010 period, or an average of $184.5 million annually.
Fred 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 $449 million for the five-year period. Of that total, more than $356 million came from non-local revenues, such as state appropriations, state and federal contracts and grants, and federal and state student financial aid revenues.
Although Pellissippi State had an average of only 450 “full-time-equivalent” employees per year during the period, the total employment created by the college’s expenditures was estimated at 31,128 jobs for the five years. Of that number, 24,373 jobs were created by external or new funds.
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 $473 million during 2005-2010, of which $382 million came from external or new funds. Of the college’s $923 million total economic impact, about $737 million ($147 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 $3.62 in local business volume. The individual income generated ranged from $3.81 to $4.10, for a total return on investment of at least $7.43.
The study also estimated that those students who graduated with a two-year associate’s degree could expect to earn about $350,000 more during their work lifetime than students with only a high school diploma. For the most recent class of Pellissippi State graduates, the difference could mean an additional $278 million in lifetime earnings, plus about $1.5 million in additional annual tax payments.
“Economic impact is expressed in this study in terms of jobs created, business volume generated and personal income earned,” said Martin. “The results of this study clearly demonstrate that Pellissippi State continues to be a major contributor to the economic base of Knox and Blount counties.”
For more information about Pellissippi State, visit www.pstcc.edu or call (865) 694-6400.