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Spending Associated with TCSG Colleges has $1.2 Billion Impact in Georgia

UGA economist: technical colleges are 'an enduring pillar' of state's regional economy;
Albany Technical College's impact in Southwest Georgia is a $47+ million share

March 7, 2014- Atlanta, GA- How much do communities throughout the state benefit economically from spending that is either directly or indirectly related to the 24 colleges of the Technical College System of Georgia (TCSG)?

According to Dr. Jeffrey M. Humphreys, director of the Selig Center for Economic Growth at the University of Georgia's Terry College of Business, it adds up to almost 1.2 billion dollars.

The economic impact is in a new report from Dr. Humphreys that details his analysis of the system's economic data for the 2012 fiscal year.

His study also found that the technical colleges' spending results in 15,000 public and private sector jobs. Humphreys reported that for each job created on a TCSG college campus, one off-campus job exists because of college-related expenditures. One in every 264 non-farm jobs in Georgia, he said, occurs because of spending associated with a TCSG college.

"The fundamental finding is that each of the TCSG colleges creates substantial economic impacts in terms of output, value added, labor income, and employment. These economic impacts demonstrate that continued emphasis on technical colleges as an enduring pillar of the regional economy translates into jobs, higher incomes, and greater production of goods and services for local households and businesses," said Humphreys.

The TCSG commissioned Humphreys to calculate the importance that spending connected to the state's technical colleges has for their service delivery areas, which range in size from two to eleven counties. Several categories of college expenditures were reviewed for the study, including personnel salaries and fringe benefits, college operations, capital construction projects, and student spending, to name a few.

The result, put in the context of the taxpayer investment, indicated that the $315 million state appropriation for the TCSG in 2012 supported the enrollment of almost 153,000 technical college students, generated $1.2 billion in local spending, and helped to sustain almost 15,000 public and private sector jobs.

"The spending factor alone is a sizable return on the state's investment in the TCSG, and it would be significantly higher if we were to add the economic value that our graduates create once they leave college and meet employers' needs for a skilled workforce," said Ron Jackson, commissioner of the TCSG.

In Southwest Georgia, Albany Technical College's share is a little over $47 million of the economic impact. Add to that Albany Tech's unduplicated graduates in the ninetieth percentile in the system and their high graduation and placement rates, and the overall impact is significant both region and statewide.

Albany Tech President, Dr. Anthony O. Parker, attributes the college's success to its methodologies. "We start with the end in mind," said Parker. "With our on-campus Career Development Center, we have our students begin building portfolios from the very beginning to demonstrate to potential employers the hands-on experience they receive at Albany Tech that makes them more prepared for the workforce."

The study did not attempt to measure the value in terms of the increased earnings of TCSG graduates or the colleges' role in helping the state to attract and retain companies with high-skill, good-paying jobs. Nor did it calculate the impact of the TCSG's Quick Start program, a state economic development incentive that provides customized training free of charge to new and expanding businesses.

The full report, The Economic Impact of Technical College System of Georgia Institutions on their Service Delivery Area Economies in FY 2012, is available online HERE 

The following is a list of the 24 TCSG colleges and their economic and employment impact on their service delivery areas in 2012. For a map of the colleges' service delivery areas go HERE

TCSG College

 
Economic Impact of FY2012 Spending
 
Employment Impact of FY2012 Spending
(College-Related Jobs)
Albany Technical College   $47,378,544   552
Altamaha Technical College   $20,410,617   274
Athens Technical College   $46,716,956   608
Atlanta Technical College   $63,965,060   692
Augusta Technical College   $54,380,987   699
Central Georgia Technical College*   $64,673,414   873
Chattahoochee Technical College   $104,722,504   1,288
Columbus Technical College   $38,156,614    479 
Georgia Northwestern Technical College    $68,963,126    886 
Georgia Piedmont Technical College    $59,595,578    773 
Gwinnett Technical College    $71,377,444   768 
Lanier Technical College    $40,741,923    515 
Middle Georgia Technical College*    $30,906,755   412 
Moultrie Technical College   $26,095,668   371
North Georgia Technical College   $35,266,872   452
Oconee Fall Line Technical College   $30,382,428   442
Ogeechee Technical College   $29,515,195   393
Okefenokee Technical College   $17,807,595   233
Savannah Technical College   $56,935,335   707
South Georgia Technical College   $27,530,288   366
Southeastern Technical College   $30,469,358   402
Southern Crescent Technical College   $71,997,872   881
Southwest Georgia Technical College   $21,371,303   265
West Georgia Technical College    $65,357,646   911
Wiregrass Georgia Technical College   $55,199,383   757
         
TCSG System Total   $1,179,918,464   14,997
*colleges merged as the new Central Georgia Technical College in July 2013        

 

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