College costs, appropriations and expenditures, university investments, university budget cuts


This study examines the financial contributions of a regional university’s expenditures on the local and state economy using regional impact multipliers from an input-output model. The empirical application uses income and expenditure data from Emporia State University (ESU) in Kansas and estimates income, output, and employment multipliers. In FY 2000, ESU, its ancillary units, students, and visitors directly injected $125 million into the state economy generating $343 million output, $94 million earnings, and 4,195 jobs in Kansas. For every dollar of University expenditure there is an additional $1.74 output generated and for every job that the University creates there is an additional 1.25 jobs created in the state economy. This study extends the analysis to estimate the statewide cumulative impact from $2.9 million university budget reductions in FY 2002-3.

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