Pellissippi State generates $111 million annual economic impact

Pellissippi State pumped an average of $111 million each year into the local economy over the past five years, a new study shows.

The 18th annual analysis of the College’s economic impact on Knox and Blount counties shows that the value of business volume, jobs and individual income amounted to about $557 million in the 2000-05 period, or about $111.4 million each year.

Fred H. Martin, an educational consultant who completed the study, says local business volume—the total amount of business volume generated locally from the College’s direct and indirect expenditures—was more than $276 million for the five-year period.

Of that total, more than $212 million came from external, 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 only 416-455 full-time employees per year during the period, the total annual employment created by the College’s expenditures is estimated to be at least 19,953 for the five years, including nearly 15,100 jobs 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 amounted to about $280 million during 2000-05, of which $220 million came from external or new funds.

Of the College’s $557 million total economic impact, about $432 million ($86 million each year) could be attributed to the infusion of “new” external, non-local revenues, Martin says.

“This impact would likely not have occurred without the presence of Pellissippi State in the area,” he said.

The study notes that each dollar of local revenue coming into Pellissippi State generated a “return on investment” of about $3.46 in local business volume. The individual income generated ranged from $3.50 to $3.87, for a total return on investment of at least $6.96.

The study did not measure such intangible economic effects as corporate relocation and expansion decisions based on the presence of the community college in the area, and it did not include wages paid to or taxes paid by Pellissippi State graduates.

The College also boosts the local economy through such factors 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.”

"Inside Pellissippi" is a bi-monthly electronic publication produced by the Community Relations Office for the faculty and staff of Pellissippi State Technical Community College, 10915 Hardin Valley Road, P.O. Box 22990, Knoxville, Tennessee 37933-0990. All suggestions and comments should be sent to Julia Wood (jwood@pstcc.edu).

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