Pellissippi State Community College pumped an average of $215.6 million each year into the local economy during the past five years, a recent study shows.
The 24th 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 nearly $1.1 billion in the 2006-2011 period, or an average of $215.6 million annually.
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 $522 million for the five-year period. Of that total, $421 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 464 “full-time-equivalent” employees per year during the period, the total employment created and sustained by the college’s expenditures was estimated at 35,884 jobs for the five years. Of that number, 28,617 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 $556 million during 2006-2011, of which $456 million came from external or new funds. Of the college’s nearly $1.1 billion total economic impact, about $877 million ($175 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 $3.70 in local business volume. The individual income generated ranged from $3.94 to $4.21, for a total return on investment of at least $7.64.
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 $264 million in lifetime earnings, plus about $1.4 million in additional 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.”
The complete study is available at the college’s website at www.pstcc.edu/departments/institutional_research/economic/eis_2006-2011.pdf.
For more information about Pellissippi State, visit www.pstcc.edu or call (865) 694-6400.