A recent economic impact study shows Chattanooga State Community College pumped an average of $169 million per year into the local economy from 2014-2019.
The analysis of this study on the college’s service area (Hamilton, Bledsoe, Grundy, Marion, Rhea and Sequatchie counties) indicated that the value of business volume and individual income generated a return on investment of $844 million and created 30,875 jobs.
Fred Martin, an educational consultant who completed the study, says local business volume (the amount businesses from the college’s direct and indirect expenditures generated locally) was $426 million for the five-year period.
Of that total, more than $341 million came from non-local revenues, such as state appropriations, state and federal contracts and grants, and state and federal student financial aid revenues.
Although Chattanooga State had an average of 692 full-time-equivalent employees per year during the period, the total employment created by the college’s expenditures was estimated at 30,875 jobs for the five years. Of that number, 24,121 jobs were created by external or new funds.
Using the more conservative of two calculations, the study estimated that the impact of the college’s expenditures on individual income amounted to about $418 million during 2014-2019, of which $348 million came from non-local revenues.
Of the college’s $844 million total economic impact, about $689 million, or $138 million per year, is due to the infusion of new external revenues.
The economic impact study notes that each dollar of local revenue coming into Chattanooga State generated a return on investment of about $2.41 in local business volume. The individual income ROI was at least $2.36, for a total ROI of at least $4.77 on the local dollar.
“Our economic and social impact is a critical way we achieve our mission,” says Dr. Rebecca Ashford, president of Chattanooga State. “This data demonstrates that we are improving the lives of our students and the prosperity of our community.”
Source: Chattanooga State