Pellissippi State hosts event planning seminar

Pellissippi State generates $103 million annual economic impact

The Knoxville area's community college pumped an average of $103 million each year into the local economy over the past five years, a new study shows.

The 17th annual analysis of the economic impact of Pellissippi State on the Knox and Blount county area shows that the value of business volume, jobs and individual income amounted to about $518 million in the 1999-2004 period, or about $103.6 million each year.

Dr. 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 $258 million for the five-year period. Of that total, more than $197 million came from external, nonlocal revenues, such as state appropriations, state and federal contracts and grants, and federal and state student financial aid revenues.

Although Pellissippi State had only 415-450 full-time employees per year during the period, the total annual employment created by the College's expenditures was estimated at more than 18,700 for the five years, including more than 14,100 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 $260 million during 1999-2004, of which $203 million came from external or new funds.

Of the College's $518 million total economic impact, about $400 million ($80 million each year) could be attributed to the infusion of "new" external, nonlocal revenues, Martin said, and "this impact would likely not have occurred without the presence of Pellissippi State in the area."

Martin's study notes that each dollar of local revenue coming into Pellissippi State generated a "return on investment" of about $3.47 in local business volume. The individual income generated ranged from $3.49 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 College in the area, or wages paid to or taxes paid by Pellissippi State graduates. The College boosts the local economy through such things 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).

For past issues, visit the Inside Pellissippi Archive.