Pellissippi State generates $274 million annual economic impact
Pellissippi State Community College pumped an average of $274 million each year into the local economy over the past five years, a recent study shows.
The 27th annual analysis of the economic impact of the college on the Knox and Blount county area reveals that the value of business volume, jobs, and individual income created amounted to about $1.4 billion in the 2009-2014 period, or an average of $274 million each year.
Fred H. Martin, an educational consultant who completed the study, says local business volumethe total amount generated locally by businesses from the colleges direct and indirect expenditureswas $659 million for the five-year period. Of that total, $537 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 Pellissippi State had atotal of2,573 full-time-equivalent employees during the period, the total employment created and sustained by the colleges expenditures was estimated at 44,967 jobs for the five years. Of that number, 36,202 jobs were created by external or new funds.
Using the more conservative of two different calculations, Martin has estimated that the impact of Pellissippi States expenditures on personal income in the area amounted to about $708 million during 2009-2014, of which $589 million came from external or new funds.
Of the colleges $1.4 billion total economic impact, about $1.1 billion ($225 million per 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, Martin said.
The economic impact study notes that each dollar of local revenue coming into Pellissippi State generated a return on investment of about $3.54 in local business volume. The individual income generated ranged from $3.81 to $4.04, for a total return on investment of at least $7.35.
The study also projects that graduates who complete a two-year associates degree can expect to earn about $470,800 more over their work lifetime than students who have only a high school diploma. For the most recent class of Pellissippi State graduates, that difference could mean an additional $605 million in lifetime earnings, plus about $2.4 million in additional annual tax payments.
Finally, the study describes a number of benefits to society that are proven to accompany higher levels of education.
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. Economic impact is expressed in this study in terms of jobs created, business volume generated and personal income earned.
The complete study is available at http://www.pstcc.edu/ieap/_files/pdf/factbook_datarpts/2009-14%20Economic%20Impact%20Study.pdf.
For more information Pellissippi State, visit www.pstcc.edu or call (865) 694-6400.