ST. CATHARINE COLLEGE ECONOMIC IMPACT STUDY

September 2011

Direct Expenditure Effects—the Regional Multiplier

The net impact of $1.00 spent in the local economy is not necessarily $1.00.

For example, $10.00 spent at a restaurant may go 50% for payroll and 50% for supplies, other expenses and taxes.

Multiplier Concept

If employees spend $3.00 of $5.00 earned, and if the owner spends $3.00 of $5.00 earned, then the impact in the local economy after two rounds of spending is $16.00.

After several rounds of spending, the total amount spent could be $25.00 as recipients of spending turn around and spend the proceeds of what they earn.

Operating Budget Impact

Actual Cumulative Operating Budget, 2005-2011:$69.3 M

Multiplier Impacts of Operating Budgets, 2005-2011:

Marion County $11 M Nelson County $32.5

M Washington County $35 M Tri-County (sum of 3 counties)

$78.5 M MSA $142.6 M  

Other Operating Budget Impacts

Portion of Multiplier Impact on Tri-County Household Earnings (outside of SCC employees’ earnings) : $32.5 M

  Portion of Multiplier Impact on MSA

Household Earnings (outside of SCC employee’s earnings) : $48.4 M

Capital Budget Impacts

Actual Cumulative Capital Budget, 2005-2011: $23.1 M

Multiplier Impacts of Capital Budgets, 2005-2011:

Tri-County $26.2 M

MSA $47.6 M

Other Capital Budget Impacts

Portion of Multiplier Impact on Tri-County

Household Earnings (outside of SCC employees’ earnings) $10.8 M

  Portion of Multiplier Impact on MSA

Household Earnings (outside of SCC employee’s

earnings) $16.2 M

Job Impacts

Average SCC Employment 2005-2011 125

  Marion County Jobs Supported through SCC

Employment 20 Nelson County Jobs Supported through SCC

Employment 58 Washington Count Jobs Supported through

SCC Employment 64

Job Impacts Tri-County Jobs Supported through

SCC Employment 142

Total Tri-County Employment Impact 267

MSA Jobs Supported through SCC Employment 263

Total MSA Employment Impact 388

Payroll Impacts

Actual Cumulative SCC Payroll 2005-2011 (millions) $27.9 M

  Multiplier Impacts of SCC Cumulative Payroll 2005-

2011

Marion County

$4.4 M Nelson County

$13.1 M Washington County

$14.1 M  

Payroll Impacts

Tri-County (sum of 3 counties) 31.6 M

MSA $57.4 M

Banking Impacts

Average of Average Monthly Bank Deposits 2005 -2011: $0.89 M

Average Monthly Increase in Money Supply (and Loans)Due to Deposits 2005-2011:

$4.6 M

Residential Student Spending in the Region, 2005-2011

Estimated Total Cumulative Spending $2.9 M

Multiplier Impacts of Residential Student Spending Marion County

$0.32 M Nelson County

$2.0 M Washington County

$1.0 M   Tri-County (sum of 3 counties) $3.3

M MSA

$5.3 M

Student Spending

Tri-County (sum of 3 counties) $3.3 M

MSA $5.3 M

Estimated Taxes Federal, State, and Local Taxes, 2005-2011

Cumulative Federal Taxes $2.7 M

Cumulative State Taxes $1.2 M

Cumulative Local Taxes $0.2 M

Sales Taxes Paid by Employees $0.7 M

Federal Financial Aid Impacts

Estimated Pell Grants $7.7 M

Estimated Federal Student Loans $20.3 M Total

$30 M  

Multiplier Impacts

Marion County $3.4 M

Nelson County $20.4 M

Washington County $10.2 M

 

Federal Financial Aid Impacts

Tri-County (sum of 3 counties) $34 M

MSA $61.8 M

Human Capital Impacts—Earnings due to Education

Associate Degree Graduates from 1970 to 2011: $805 M Associate Degree Graduates, 3 Year Programs, 2004 to 2011: $497 M Baccalaureate Degree Graduates, 2006 to 2011: $174 M

Grand Total $1.48 B

Human Capital Impacts

Marion County Share of Grand Total

$162 M Nelson County Share of Grand

Total $399 M Washington County Share of Grand

Total $177 M Tri-County Share of Grand

Total $738 M

MSA Share of Grand Total $1.1 B

Total Combined Spending and Human Capital Impacts

Marion County$177.2 M

Nelson County $441.1 M

Washington County$224.7 M

Tri-County Impacts $846 M

MSA Impacts $1.296 B

Conclusion

Spending wise, SCC expenditures have a multiplier effect of around 1.13 on the region and slightly over 2 for the Louisville MSA region.

From a human capital point of view, SCC has added over a billion dollars of extra earnings to local economies over the last 40 years.

Conclusion

SCC faculty and staff do more than to help future alumnae/alumni earn money.

Graduates receive a liberal arts education that addresses issues such as diversity, religion, and ethics and which enables them to become leaders in their communities and professions.

SCC will continue to make a large and substantial impact on its local economies, not just in financial terms, but also in terms of the well-being of the Tri-County and Louisville MSA areas.