DRAFT REPORT 060713
Regional Economic Impact of the College of Liberal Arts
Wright State University (WSU) is located in Southwest Ohio in the Miami Valley. WSU
was founded in 1964 as a branch of Miami University and The Ohio State University,
and became an independent institution in 1967. The University is composed of two
campuses (Dayton, OH and Celina, OH) and serves nearly 17,000 students annually.1
WSU offers degrees through six academic colleges: Raj Soin College of Business;
College of Education and Human Services; College of Engineering and Computer
Science; College of Liberal Arts; College of Math and Science; and the College of
Nursing and Health. WSU also has the Boonshoft School of Medicine, but its enrollment
and other Institutional Research data are not included in this report.
This study will assess the economic impact of the University’s largest academic college
– the College of Liberal Arts (CoLA). The College of Liberal Arts has consistently
housed the most students of any of the academic colleges over the last five years. The
total headcounts provided in Figure 1 account for all of the students accepted into the
respective colleges, as well as the students who are intending to study within that
specific college.2
Figure 1: WSU Enrollment by College
5,000
College of Business
4,000
Education & Human Services
3,000
Engineering & Computer Science
2,000
College of Liberal Arts
1,000
Science and Math
2007
2008
2009
2010
2011
2012
Nursing & Health
Developed by the Center for Urban and Public Affairs (CUPA), this report quantifies the
economic impact of CoLA within the local community. The College of Liberal Arts
contributes to the economy of the region through spending on its operations, spending
by faculty and staff, spending by students, and the spending by visitors.
CUPA used IMPLAN, a tool for economic impact assessment to estimate the direct,
indirect, and induced impacts of the CoLA operations on the sixteen-county Raider
1
Office of Institutional Research. Wright State University Fact Sheet, Fall 2012,
http://webapp2.wright.edu/web1/newsroom/for-the-media/factsheets/
2
The Office of Budget and Planning & Resource Analysis. Wright State University Academic Data Series 2011-2012
Edition.
1
DRAFT REPORT 060713
Country3 regional economy. CoLA operations, faculty and staff employment, student
spending4, and hospitality impacts on the regional economy are estimated to generate a
total of $56.7 million in sales, 622.1 permanent jobs, and $32.6 million in labor income.
Refer to Table 1. For more specifics, see Appendix A.
Table 1: COLA Operational Impact – Total Estimated Economic Impacts on the 16County Raider Country Regional Economy, 2013
Direct Effect
Impact Type
Employment
Labor Income
Value Added
Output (Sales)
Indirect Effect
(COLA operations &
employment, visitor &
student spending)
(Changes to other industries
due to COLA operations &
employment, and visitor &
student spending)
415.3
$24,905,322.03
$26,933,454.78
$31,898,922.72
24.6
$ 1,053,438.70
$ 1,939,688.65
$ 3,692,564.96
CoLA Operations Effect
The College of Liberal Arts contains
the most majors of any of Wright
State’s academic colleges. Enrollment
in CoLA has been relatively stable,
averaging 3,420 students per year (see
Figure 2). Over the last five years,
CoLA has experienced a 5 percent
increase in enrollment overall going
from 3,126 students in 2007 to 3,283
students in 2012, and including a 12
percent increase from 2007 to 2010
and an 11 percent decrease from 2010
to 2012.
Induced Effect
(Household
spending)
Total Effect
182.3
$ 6,592,134.26
$ 11,857,014.67
$ 21,074,606.61
622.1
$ 32,550,895.99
$ 40,730,159.10
$ 56,666,095.29
Figure 2: CoLA Enrollment
5,000
4,000
3,510
3,126
3,184
2007
2008
3,728
3,690
3,283
3,000
2,000
1,000
0
2009
2010
2011
2012
A breakdown of enrollment data is provided in Table 2 along with data on degrees
awarded. On average, CoLA awards 732 degrees annually. From 2007 to 2012 there is
a 36 percent increase in degrees awarded. This jump in 2012 can be explained by
Wright State’s conversion to semesters beginning after Spring Quarter of 2012.
Excluding the year 2012, there was a 3 percent increase in degrees awarded from 2007
to 2011. These numbers reflect both Main and Lake Campus figures.
3
Allen, Auglaize, Butler, Champaign, Clark, Clinton, Darke, Greene, Logan, Mercer, Miami, Montgomery, Preble,
Shelby, Van Wert, and Warren Counties in Ohio.
4
Margins applied.
2
DRAFT REPORT 060713
Table 2: Enrollment & Degrees Awarded
Year
CoLA
Enrollment
Total Degrees
Awarded
2007
2008
2009
2010
2011
2012
3,126
3,184
3,510
3,728
3,690
3,283
689
682
713
657
709
940
The educational services are funded through several revenue sources. Each of CoLA’s
sixteen different academic departments brings in fee, subsidy, and miscellaneous
revenue. The bulk of CoLA’s revenues come from student payments for tuition. In
addition to the revenue brought in by the individual departments, CoLA administrative
offices bring in revenue from the Dean’s Office, research, public service, academic
support, scholarships, and student services - these revenues fall mostly under the
subsidy and miscellaneous designations.5 (See Figure 3 and Table 3.)
Figure 3: CoLA Revenue
Fee Revenue
Subsidy Revenue
Misc Revenue
4%
Table 3: CoLA Revenue
Fee
$44,913,476
Subsidy
$13,825,923
Misc.
$2,325,949
TOTAL
$61,065,348
23%
73%
Table 4 summarizes CoLA’s operating expenditures for fiscal year 2011-12. It should be
noted that Research and Student Services are included in the operating expenditures,
but relative to the other expenditure categories, these do not register as being
significant when depicted in Figure 4.
5
The Office of Budget and Planning & Resource Analysis. Wright State University Academic Data Series 2011-2012
Edition.
3
DRAFT REPORT 060713
Table 4: Operating Expenditures 2011-12
Wages/Benefits
$22,946,413
Dean’s Office Instruction
$140,733
Research
$9,886
Public Service
$1,140,088
Academic Support
$1,627,659
Scholarships/Fellowships
$636,164
Student Services
$33,370
TOTAL
$26,534,313
Dean's Office
Instruction
1%
Figure 4: CoLA Expenditures
Research
0%
Public Service
4%
Wages/Benefits
87%
Other
13%
Academic Support
6%
Scholarships/
Fellowships
2%
Student Services
0%
Almost 90 percent of the CoLA’s operating expenses for fiscal year 2011-12 were
devoted to employee compensation and benefits. The remaining expenditures,
including: academic support, public service, scholarships/fellowships, Dean’s Office
instruction, student services, and research, made up $3,587,900.
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Faculty and Staff Spending
WSU employed 2,388 faculty and staff in 2011-12. Of the 2,388 faculty and staff, 331
worked in CoLA, approximately 14 percent. When analyzing faculty alone, CoLA
employs 283 of the University’s 891 full-time faculty positions, roughly 32 percent (see
Figure 5).6
Based on the wages/benefits listed above for
CoLA Expenditures, it can be estimated that the
average salary of a full time CoLA faculty or staff
member is approximately $69,325.
Figure 5: Faculty
CoLA TOTAL
Faculty and staff spend a large part of their
salaries in the local community, providing an
indirect stimulus to the local economy. This of
course is dependent on the propensity of faculty
and staff to consume local goods and services.
WSU TOTAL
32%
Faculty and staff also pay state and local taxes
(income, sales, and property) which support
government services and contribute to the state
and local economies. Locally, faculty and staff
salaries contribute an estimated $344,199 annually to the City of Fairborn.
Figure 6: Student Population
CoLA TOTAL
WSU TOTAL
20%
Student Spending Effect
The primary function of the University is to provide
educational services to students, so the spending
of WSU students is an important factor in
analyzing CoLA’s economic impact.
Wright State University enrolls nearly 17,000
students annually. On average, 3,420 students are
enrolled or intend to enroll in CoLA majors. CoLA
students make up approximately 20 percent of
WSU’s population (see Figure 6).
Within CoLA, there are degree programs for both
undergraduate and graduate students. Graduate students make up approximately 11
percent of the CoLA student body.7 Tuition fees are the primary incoming revenue
6
The Office of Budget and Planning & Resource Analysis. Wright State University Academic Data Series 2011-2012
Edition.
7
Office of Institutional Research. Student Fact Book: Fall 2012 – Semesters. Ed 36.
5
DRAFT REPORT 060713
source for CoLA. The tuition rates for undergraduate and graduate students are
replicated below from the WSU Office of the Bursar (see Table 5). It should be noted
that not all of the tuition paid by students goes to their respective colleges; tuition is also
dispersed to fund administrative costs and programs in various WSU departments.
Table 5: Student Expenses
Tuition & Fees
Room & Board
(On-Campus Housing)
Personal Expenses
TOTAL
UNDERGRADUATE
In-State
Out-State
$8,354.00
$16,182.00
GRADUATE
In-State
Out-State
$12,240.00 $20,792.00
$8,614.50
$8,614.50
$8,614.50
$8,614.50
$1,350.00
$18,318.50
$1,350.00
$26,146.50
$1,350.00
$22,204.50
$1,350.00
$37,56.50
The expenses listed are estimates that include the cost of books and supplies at the
rate of $675 per semester.8 Rates for room and board reflect the average cost of oncampus housing. It is important to note that of WSU’s total student population, less than
3,000 live in on-campus housing, around 14 percent (see Figure 7).
While a small percentage of students live
on-campus, it is common for WSU students
to live within walking-distance of campus in
apartment-style housing located on Zink
Road. The Office of Residence Services
estimates that there are nearly 4,000 beds
within walking-distance of campus. The
number of private apartment beds expands
to an estimated 9,000 when the radius
increases to a fifteen minute drive from
campus. Even though Wright State has a
reputation of being a “commuter school,”
66 percent of the students live within a
fifteen-minute
drive,
within
walking
distance, or on campus.
8
Office of the Bursar, http://www.wright.edu/bursar/tuition-fees
6
Figure 7: Student Residence
Estimates
On Campus
Walking Distance
Within 15 Minute Drive
Other
29%
23%
34%
14%
DRAFT REPORT 060713
Nearly 75 percent of all WSU students live within what is referred to as “Raider Country”
as shown in Figure 8.9 Raider Country is a sixteen-county region, anchored by the Lake
Campus in the North and the Dayton Campus in the South.10 While the Raider Country
region is within relatively close proximity to the University, students from the northern
counties coming to the main Dayton Campus may face up to a two-hour drive. These
students are more likely to live-on campus or in nearby housing complexes rather than
commute.
Figure 8: Student Origin
Raider Country
Figure 9: "Raider Country" Enrollment
by County
Other Ohio Counties
4,885
Non-Ohio
17%
2,679
9%
Figure 9 provides data on the enrollment of all WSU students from Raider Country and
contains a breakdown by county. Montgomery County is the primary supplier of WSU
students, at 39 percent, followed by Greene County, at 22 percent.
Visitor Spending Effect
The majority of prospective students to WSU visit campus for a tour or to meet with
advisors in the Admissions Office. It is estimated that 125,000 visitors come to campus
each year to attend open-houses and campus tours.11 Based on data from the Office of
Institutional Research, an average of 502 incoming freshman are directly admitted or
plan on being admitted into CoLA majors. This translates into approximately 18 percent
of the total incoming freshman class. Since 18 percent of incoming freshman students
9
Office of Institutional Research. Wright State University Fact Sheet, Fall 2012
Wright State University. This is Raider Country, http://www.wright.edu/raidercountry/ (2013)
11
Estimate given by the Office of Enrollment Management.
10
7
Warren
Van Wert
Montgomery
Miami
Mercer
Logan
Shelby
124 229 93
81
Greene
Darke
Clinton
734
595 694
132 258
Preble
868
Clark
Champaign
Butler
Auglaize
418
152
118 324
Allen
74%
DRAFT REPORT 060713
are attracted to CoLA programs, it can be estimated that CoLA brings 22,500 visitors to
the campus every year for open-houses and tours.
Additionally, CoLA brings in over a thousand visitors each year through events such as
the Arts Gala, musical theater performances and concerts, and special programming
sponsored by the Women’s Center, Bolinga Center, and Asian/Hispanic/Native
American Center. It is difficult to assess the economic impact of these events, as many
of the attendees are already WSU students, faculty or staff, or local residents. However,
it is important to note the social impact of such programming, as it adds to the quality of
life in the Greater Dayton region.
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Appendix A: Regional IMPLAN Tables
Regional Output Tables
COLA Operations
Operations, 2013
Impact Type
Employment Labor Income
Direct Effect
331.0 $22,946,268
Indirect Effect
17.2
$730,587
Induced Effect
167.2
$6,007,435
Total Effect
515.5 $29,684,290
Output
$26,534,312
$2,692,482
$19,343,136
$48,569,930
On-Campus Residential Student Spending
On-Campus Residential Student Spending, 2013
Impact Type
Employment Labor Income Output
Direct Effect
11.6
$310,302 $566,948
Indirect Effect
0.5
$24,297 $70,964
Induced Effect
2.2
$85,556 $253,309
Total Effect
14.3
$420,156 $891,222
Off-Campus Residential Student Spending
Off-Campus (Out-of-Region) Residential Student Spending, 2013
Impact Type
Employment Labor Income
Output
Direct Effect
40.4
$923,708.03 $3,006,052.72
Indirect Effect
3.7
$157,004.16
$505,527.97
Induced Effect
7.1
$277,156.07
$820,807.66
Total Effect
51.3 $1,357,868.26 $4,332,388.34
Visitor Spending
Visitor Spending, 2013
Impact Type
Employment Labor Income
Output
Direct Effect
32.3
$725,044 $1,791,610
Indirect Effect
3.1
$141,551
$423,591
Induced Effect
5.7
$221,987
$657,354
Total Effect
41.1
$1,088,582 $2,872,555
9
DRAFT REPORT 060713
Appendix B: Methodology
The economic contribution of the College of Liberal Arts was calculated using an inputoutput model. Input-output models follow the flow of dollars throughout a local economy
and can estimate the indirect and induced impacts on economic activity. This study
utilizes the Impact Analysis for Planning (IMPLAN) economic modeling software and
2009 IMPLAN (Social Accounting Matrices (SAMs)) data sets for Allen, Auglaize, Butler,
Champaign, Clark, Clinton, Darke, Greene, Logan, Mercer, Miami, Montgomery, Preble,
Shelby, Van Wert, and Warren Counties in Ohio by the Minnesota IMPLAN Group Inc.
(MIG), of Stillwater, Minnesota. The IMPLAN software is customizable for impact
analyses; it can measure output and employment impacts on a county-by-county basis.
The Social Accounts Matrices describe the structure and function of a specific economy,
so that IMPLAN can create a highly localized model to investigate the consequences of
projected economic transactions of a specific geographic region. Wright State
University provided information on 2011-2012 expenditures, student enrollment, and the
estimated number of visitors necessary to generate the model, which examines
employment and output data, discussed in this report.
IMPLAN makes certain assumptions about organizations within a region. These
assumptions include:
•



•
•
An organization will purchase its goods locally based on BEA averages, if the
goods are available in a sector
 The amount of locally purchased goods can be edited if the amount is
known
If a region has goods available, there will be enough goods to meet increased
demand
When a region is used, instead of a single area, results may differ due to:
 Average pay within the area
 Average output per employee
 Trade flow differences between areas
The model is a snapshot of organizational activities, it cannot predict trends
 Events can take place in different years
• Deflators are used to put the events occurring in future or past years in
current dollars
IMPLAN uses its own industry sector codes
 Some sector codes have been added and combined for the 2008 data
All employees will come from the region being analyzed
The IMPLAN software generates the model or multipliers that analysts use to report the
total impact an industry, project, or one-time event may have on the local economy. All
10
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businesses and events have “direct,” “indirect,” and “induced” impacts on the local
economy. IMPLAN modeling software uses Bureau of Economic Analysis (BEA)
statistics to build multipliers by economic sector and to identify the direct, indirect, and
induced impact economic actions have on the study area.
•
•
•
Direct effects refer to the actual jobs and income created in the local economy
from businesses that can come about by investments and any purchase of goods
and services needed for the initial investment (in this case, the construction of
the facility). The direct effect is measured by output, the value of production by
industry; employment, the number of employees; labor income, the sum of
employee compensation and proprietor income; and total value added, the
payments made by a company to workers, interest, profits and indirect business
taxes .
Indirect effects are measured by output, which are the goods and services used
in the operation of the company in the direct effect; employment, the number of
employees needed to produce the goods or services being purchased by the
company making the initial investment; labor income, the sum of employee
compensation and proprietor income; and total value added, the payments made
by a company to workers, interest, profits and indirect business taxes.
Induced effects are changes or impacts generated in the local economy by the
increased sales of goods and services in the local economy from spending by
employees (households) due to the changes in direct and indirect production.
The total impact on the local economy by each industrial sector can be calculated
through an economic model known as a “multiplier.” The multiplier expresses the
number of additional jobs or amount of additional income created by each new job or
each dollar earned. For example, every dollar spent on COLA operations will generate
additional dollars in other sectors of the local economy. Another way of expressing
these impacts is that every dollar the construction manager uses to purchase building
materials for the job site from a local supplier generates income for the local proprietor.
The local proprietor saves or invests some of the revenue and purchases additional
goods or services from another local vendor with the remainder of the funds, which
becomes income for a third establishment and this activity continues to ripple through
the local economy.
Another way to look at multipliers is the impact economic activities have on the
workforce. For example, if the CoLA operations maintain laborers in the local economy,
which creates an additional 30 local jobs to support operational activities, the multiplier
would be 1.3. For each new job generated in the local economy, an additional 0.3 jobs
(1 + 0.3 = 1.3) would be created in existing industries in the local economy.
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IMPLAN only provides modeling capability to estimate the impacts of employment and
payroll for state & local government, education. It was assumed that the operations of a
public university more closely resembles the daily operations of private university than a
governmental entity or local school district (Sector 438), CUPA customized Sector 392
(Private junior colleges, colleges, and universities) and replaced the private sector value
added, employment, and output with the CoLA data provided by the University for this
study.
Estimating the economic impact of the College of Liberal Arts requires the following
information12: (1) CoLA operational expenditures and employment, (2) the profile of the
College and its student body since 1982, and (3) data on visitor spending in the Dayton
region. It is important to note that student wages were not included in the analysis and
student and visitor spending is based on estimates of COLA’s share of the University’s
reported number of total visitors and on-13 and off-14 campus residential students.
12
Data on the CoLA profile and student body was obtained from the WSU Office of Institutional Research.
Information on visitors was also obtained from the WSU Office of Admissions.
13
On-campus residential student expenses:
Estimated student class related-expenses provided by Dan Bertsos, Wright State University Residential
Services - $1,350/semester
Personal discretionary spending estimates – $361/month (entertainment, personal care products,
technology, etc.). Source: Harris Interactive, Alloy Media + Marketing College Explorer Survey, July 2010.
14
Off-campus residential student expenses:
Estimated student class related-expenses provided by Dan Bertsos, Wright State University Residential
Services - $1,350/semester
Personal discretionary spending estimates – $361/month (entertainment, personal care products,
technology, etc.). Source: Harris Interactive, Alloy Media + Marketing College Explorer Survey, July 2010.
Grocery spending estimates – USDA, U.S. Average at Four Cost Levels, January 2013 – Thrifty Plan
($163.40/month).
Median contract rent estimates – United States Census, 2011 American Community Survey, median
contract rent (zip code 45324) - $661.
12