The latest data on the economic impact of the 26 University System of Georgia (USG) institutions in Georgia was just published and the news is excellent.
Economic impact refers to a business or an entity’s overall effect on a region. Initial changes in spending typically lead to more significant changes in general economic activity. This ripple effect magnifies the impact of an initial expenditure of money on an area’s economy. For example, spending by Dalton State College increases production and income for other businesses. This spending, in turn, motivates those businesses to spend additional monies on labor and raw materials, and the cycle continues in a chain reaction. Economists use multipliers to capture the impact of the initial dollars and successive rounds of re-spending.
The total economic impact of all 26 USG institutions on their host communities collectively was $20.1 billion in output or sales in fiscal year 2022 (July 1, 2021, to June 30, 2022), according to a study conducted on behalf of USG by Jeffrey M. Humphreys, director of the Selig Center for Economic Growth in the University of Georgia’s Terry College of Business. In addition, the economic impact of USG was $13.9 billion in gross regional product and $9.7 billion in income, resulting in the creation of 159,034 full- and part-time jobs.
Dalton State’s overall impact on our region increased 1.4% from 2021 to 2022. When we consider the data for Dalton State, output or spending in 2022 was $124.7 million in key categories, including personnel services, operating expenses and student spending, resulting in more than $132 million in output impact.
We had a value-added impact of $85.1 million resulting from employee compensation and indirect business taxes. Our economic impact includes a substantial labor impact with a $55.2 million labor income and an employment impact of 1,155 full-time and part-time jobs for the 277 on-campus jobs at Dalton State, and 878 off-campus jobs due to institution-related spending. Dalton State’s more than 4,500 students (fall 2022) also spend in the local area for books and fees, gasoline, clothing, entertainment, meals and sometimes housing. While our numbers are not yet final, we expect our fall 2023 enrollment to show an even greater number of students as compared to last fall.
Dalton State certainly impacts Dalton and Whitfield County. However, our reach extends to significantly impact Bartow, Catoosa, Gilmer, Gordon, Murray and Walker counties.
The college is a steadfast presence in our community educating the workforce of tomorrow. These students are future employees who will pay taxes and contribute to the quality of life in our area.
In addition, Dalton State attracts revenue from outside our immediate area through tuition, state tax allocations and students and employees from outside the area who contribute to our economic growth.
Like the other 25 institutions in the University System of Georgia, Dalton State has a significant economic impact on its communities beyond just the education realm. Our faculty, staff, administrators and maintenance personnel create jobs by stimulating the local economy’s demand for goods and services, including housing, restaurants and transportation. Students, too, buy similar goods and services, boosting businesses and creating jobs. Dalton State collaborates with local companies and industry, leading to new business and economic growth opportunities.
Often the presence of a college increases the demand for housing and rental properties for students and faculty alike, driving real estate development in an area. Dalton State hosts cultural events, guest lecturers, sports activities, plays and other events that attract students and the community. Visitors contribute to local tourism and spending.
Finally, having a college in the area increases the overall quality of life. The community benefits from educational, cultural and recreational opportunities. Dalton State is proud to be a part of this growing community.