Pellissippi State generates $142 million annual economic impact
Pellissippi State pumped an average of $142 million each year into the local economy over the past five years, a recent study shows.
The 21st annual analysis of the economic impact of the College on the Knox and Blount county area revealed that the value of business volume, jobs and individual income amounted to about $711 million in the 2003-2008 period, or $142 million each year.
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 $350 million for the five-year period. Of that total, more than $271 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 433 full-time-equivalent employees per year during the period, the total employment created by the College’s expenditures was estimated at 24,641 jobs for the five years. Of that number, 18,881 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 $362 million during 2003-2008, of which $286 million came from external or new funds.
Of the College’s $711 million total economic impact, about $557 million ($111 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 $3.39 in local business volume. The individual income generated ranged from $3.51 to $3.81, for a total return on investment of at least $6.90.
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 and taxes paid by Pellissippi State graduates. The College directly 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. “The economic impact is expressed in this study in terms of jobs created, business volume generated and personal income earned.”
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