Spending Associated with OFTC has $30M Impact in Region | Schools
How much does the area served by Oconee Fall Line Technical College (OFTC) benefit economically from spending that is either directly or indirectly related to the college?
According to Dr. Jeffrey M. Humphreys, director of the Selig Center for Economic Growth at the University of Georgia’s Terry College of Business, it adds up to over $30 million.
The economic impact is in a new report from Dr. Humphreys that details his analysis of economic data from the Technical College System of Georgia (TCSG) for the 2012 fiscal year.
The study also found that the college’s spending results in 442 public and private sector jobs. Humphreys reported that statewide, for each job created on a TCSG college campus, one off-campus job exists because of college-related expenditures. One in every 264 nonfarm jobs in Georgia, he said, occurs because of spending associated with a TCSG college.
"The fundamental finding is that each of the TCSG colleges, including OFTC, creates substantial economic impacts in terms of output, value added, labor income, and employment. These economic impacts demonstrate that continued emphasis on technical colleges as an enduring pillar of the regional economy translates into jobs, higher incomes, and greater production of goods and services for local households and businesses,” said Humphreys.
The TCSG commissioned Humphreys to calculate the importance that spending connected to the state’s technical colleges has for their service delivery areas, which range in size from two to eleven counties. OFTC serves 11 counties - Bleckley, Dodge, Glascock, Hancock, Jefferson, Laurens, Telfair, Warren, Washington, Wheeler, and Wilkinson Counties of Georgia. Several categories of college expenditures were reviewed for the study, including personnel salaries and fringe benefits, college operations, capital construction projects, and student spending, to name a few.
The result, put in the context of the taxpayer investment, indicated that the $8.6 million state appropriation for OFTC in 2012 supported the enrollment of 2,758 students, generated $30,382,428 in local spending, and helped to sustain almost 442 college-related jobs.
“Our College is proud to offer its services in support of the economic growth and job creation among our 11 counties,” said OFTC President Dr. Lloyd Horadan. “We are thankful to our Governor and state legislature for their continued funding and support in helping our citizens find academic and career success.”
Statewide, the $315 million state appropriation for the TCSG in 2012 helped to train almost 153,000 technical college students, contributed to $1.2 billion in direct and indirect spending in communities throughout Georgia, and was a factor in almost 15,000 public and private sector jobs.
“The spending factor alone is a sizable return on the state’s investment in the TCSG, and it would be significantly higher if we were to add the economic value that our graduates create once they leave college and meet employers’ needs for a skilled workforce,” said Ron Jackson, commissioner of the TCSG.
The study did not attempt to measure the value in terms of the increased earnings of TCSG graduates or the colleges’ role in helping the state to attract and retain companies with high-skill, good-paying jobs. Nor did it calculate the impact of the TCSG’s Quick Start program, a state economic development incentive that provides customized training free of charge to new and expanding businesses.
The full report, The Economic Impact of Technical College System of Georgia Institutions on their Service Delivery Area Economies in FY 2012, is available online at https://tcsg.edu/download/TCSG_Impact_2012_Economic_Activity_1.2014.pdf