Capital University recently announced the release of the Economic Impacts of Capital University on the Central Ohio Economy, a report that analyzes the University’s ties to local economies through output, earnings and employment in the eight-county Columbus Metropolitan Statistical Area (MSA) and the city of Bexley, based on 2011-2012 data.
The study was conducted by economist Bill LaFayette, Ph.D., of Regionomics, LLC., and breaks out the economic impact of the University’s business activities that have direct, indirect and induced impact within the MSA and the city of Bexley.
Capital University, the oldest institution of higher education in Columbus, is also an economic catalyst, adding $161.8 million in direct and indirect economic activity to the gross domestic product (GDP) of the MSA in 2011-2012. That activity increased household income and business earnings by $56 million and created or sustained nearly 1,500 jobs across industry sectors. Of that total, $157.7 million was generated by ongoing operation and if that remains unchanged its cumulative economic impact has the potential to reach $1 billion within six years.
“This report underscores the critical importance of Capital’s mission — transforming lives through higher educations — and its impact on our community, our economy and society.” Capital University President Denvy A. Bowman said. “In fulfilling our promise to create a more educated and engaged citizenry, we help our economy thrive and improve the quality of life in Columbus and far beyond.”
LaFayette included the following highlights in the report:
- The University contributes to economic vitality by employing more than 700 people and spending $76.7 million per year in operational costs. Of those payments, 71 percent or $56.4 million were made to Columbus MSA businesses and residents.
- Of its $56.4 million operational spending within the MSA, $7.4 million was paid to entities within Capital University’s main campus postal code (43209), including $6.15 million in wages and salaries and $1.25 million to other suppliers.
- Last year Capital paid a total of $739,686 in payroll and property taxes to Bexley. Employees, including student-employees, contributed most of that tax revenue through payroll taxes totaling $574,116. Capital paid an additional $165,570 in property taxes to Bexley.
- Capital spent an additional $2.7 million in 2011-2012 on long-term construction projects; 70 percent of those payments were made to local suppliers.
- The report does not include impacts made by the students from outside the MSA who relocate to the area to enroll at Capital University or the tourists spending of family and friends living outside Central Ohio who visit students. It also does not include the positive impacts on the area’s economy by those students who choose to stay in the area and strengthen the local workforce and their communities upon graduation.
Contact: Nichole Johnson