- $8.9 million on general operating expenditures
- $122,718 on additional capital expenditures
- $11,194, 057.47 on salaries, wages and benefits for employees residing in Peach County.
Additionally, FVSU’s students are estimated to have spent $25.1 million on various non-university activities, including transportation, entertainment, and in the case of off-campus students, room and board.
February 1, 2015 – Administrators at FVSU needed to document the institution’s economic impact for the purpose of better promoting FVSU’s value to the University System of Georgia, Peach County, community members, university stakeholders, and state legislators.
While the University System of Georgia (USG) already conducts annual economic impact reports on its 31 constituent institutions, FVSU desired a more detailed analysis focused on its specific economic and social impacts.
To quantify FVSU’s influence on local, regional, and statewide economic development efforts, the university commissioned Hanover Research to perform both quantitative and qualitative economic impact analyses.
Hanover’s evaluation provided the following insights to supplement the USG report:
- Expense-based analysis in addition to budget-based evaluation;
- Long-term economic benefits (e.g., contributions to workforce development, increased lifetime earning power associated with the degrees achieved by its graduates); and
- Long-term social benefits (e.g., FVSU-hosted student community service and volunteer work, cultural programs, athletic events).
The validated that in fiscal year (FY) 2013, FVSU’s operating, capital, payroll, and student spending supported over 1,300 jobs and contributed nearly $139 million to the Georgia economy.
Further, based on the estimated earning potential in the state of Georgia, FVSU’s graduating class of 2012 will earn nearly $9.5 million more per year than state residents lacking comparable education credentials.
An invested member of the Fort Valley community, FVSU operates programs now proven to support a diverse cross-section of local residents. FVSU’s impact on the local economy totaled nearly $90 million in FY 2013, and supported 1,000 jobs within a six-county region surrounding the institution. The output amount was fueled by $43 million in local spending within the region by FVSU and $25 million in spending by university students.
FVSU provides $157.2 million economic impact to local communities
July 29, 2013 – Fort Valley State University is one of the economic engines bolstering the Middle Georgia communities, according to an economic impact study commissioned by the University System of Georgia.
The report entitled “The Economic Impact of University System of Georgia Institutions on their Regional Economies in FY 2012” analyzed the financial impact of the USG’s 31 member institutions on their host communities. Economists discovered that FVSU had a combined economic impact of $157.2 million and generated more than 1,877 jobs. Areas involved in the study were Peach, Houston, Bibb, Crawford, Macon and Taylor counties. The total economic impact for the USG was $14.1 billion.
Researchers from the University of Georgia’s Selig Center for Economic Growth completed the study. The organization used several categories to complete their analysis: institutional spending (for salaries and benefits); operating supplies, expenses and budgeted expenditures; student spending; and institutional spending on capital projects (construction).
The study learned that FVSU has $123,578,694 in total initial spending for personnel services, operating expenses and the institution’s students.
One powerful way that student spending directly affects the economy is by boosting the bottom lines of small town businesses. Fort Valley business owner, Wade Yoder, who runs Valley Athletic Club, says that FVSU students keep his company thriving. The entrepreneur, who has been in business since 1992, notices a drop in gym membership sales when students leave for the summer, and an increase once they return. Additionally, the trainer and fitness nutrition specialist says that he tailored his business model to meet students’ needs.
“I love seeing the faces of returning students,” Yoder says. “I’ve seen quite a few business cycles and the students definitely have a positive effect on my business. Students make up 15 to 20 percent of my business. Other companies will lock people into contracts, and they’ll have cancellation fees and red tape. I allow students to cancel at any time, and have set up monthly memberships and semester-long memberships for students.”
Yoder believes that FVSU students are crucial, not only for his business, but for Fort Valley’s economy.
“There’s hardly a place in town where you don’t see FVSU students,” he says. “You can’t go into any restaurants within this area without seeing university students.”
Tavan Harvey, a 22-year-old from Cordele, Ga., agrees. “I believe that reason that McDonald’s is now open 24 hours, a day is due to FVSU student business,” the FVSU student says. “Fort Valley is better off because of its students.”
Harvey is a part-time employee for Harvey’s Supermarket. He says there is a noticeable decline in traffic and sales when FVSU students leave the area.
“The only time it slows is in June and July, when students are away,” said Harvey. “But when August rolls around, sales increase when the freshmen arrive to buy new supplies with their families. During Homecoming in October, traffic also increases when students and alums shop here to buy supplies to cook during tailgating.”
The commissioned study also discovered that the campus had a $73,672,263 labor impact.
According to Dr. Dwayne Crew, associate vice president of business and finance and chief facilities officer, FVSU hired Middle Georgia contractors to complete capital projects on campus. Last year, construction workers helped renovate academic buildings through a $1 million Major Repairs and Renovations Grant the university received last year.
“We often use local construction workers and local contractors to complete these jobs,” says Crew.
The study also found that the university’s total value-added or the actual economics benefit flowing to local businesses and households, was $109,559,245.
For more information about the University System of Georgia’s economic impact study, visit http://www.usg.edu/economic_development/documents/usg_Impact_fy2012.pdf, or contact the Office of Marketing and Communications, (478) 825-6319.