Pellissippi State generates $272 million annual economic impact

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Over the past five years, Pellissippi State Community College has pumped an average of $272 million per year into the local economy.

For the period 2010-2015, that amounts to about $1.4 billion in economic impact, or the value of business volume, jobs, and individual income in Knox and Blount counties that is tied to Pellissippi State.

“Pellissippi State’s overall economic impact in our community is quite significant, but also important to note is the role the college plays in changing the lives of everyone who comes through our doors,” said L. Anthony Wise Jr., Pellissippi State president. “I believe our greatest impact comes from graduates who pursue their dreams and, in turn, give back to our community.”

Of the college’s $1.4 billion in total impact, the majority — $1.1 billion — can 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 Fred H. Martin, the educational consultant who conducted the study.

Every single dollar of local revenue that comes into Pellissippi State generates an estimated annual return on investment of at least $6.84. That figure includes $3.31 in local business volume, plus at least $3.53 in individual income.

The report also studied what a degree from Pellissippi State might mean for a student. According to the American Association of Community Colleges, students who graduate with an associate’s degree can expect to earn about $470,800 more over their work lifetime than if they only had a high school diploma. For Pellissippi State’s 1,367 2014-2015 graduates, this means an additional $644 million collectively in lifetime earnings and $2.6 million in additional annual tax payments, which benefit the economy.

Pellissippi State’s business volume impact in the community amounted to about $657 million in 2010-2015. Of that total, $527 million came from non-local revenues such as state appropriations, grants, contracts and federal student financial aid revenues.

Over the five-year period, Pellissippi State’s expenditures created and sustained an estimated 44,885 jobs. More than 35,000 of those were generated by external or new funds. The college itself employed 2,659 full-time employees in the 2010-2015 period.

The total impact of Pellissippi State’s expenditures on personal income in the area amounts to about $702 million over the past five years, including $576 million from new or external funds.

The complete 28th annual analysis of Pellissippi State’s economic impact in Knox and Blount counties can be accessed at www.pstcc.edu/ieap/FB_DR under “Economic and Social Impact: 2010-2015.” Download the full report here.

Download this press release: PSCC Economic Impact 2015