Yearly impact of area colleges and universities tops $1 billion

By ALAN J. ORTBALS

    The colleges and universities of Southwestern Illinois have an annual economic impact on the region of more than $1 billion, according to analyses performed by each. They are also growing quickly.
    According to figures compiled by the Leadership Council Southwestern Illinois, the combined total of the annual budgets of the area’s five colleges and universities has almost doubled over the past 10 years, from $266 million to almost $500 million. During the same time frame, the number of full-time faculty employed by these institutions has also grown by 27 percent, while the number of part-time faculty jumped 23 percent.  A total of almost 2,700 faculty members now serve the almost 40,000 full- and part-time students attending these institutions.
    The Leadership Council honored the five, local institutions of higher education — Southern Illinois University Edwardsville, Lindenwood University-Belleville, McKendree University, Lewis and Clark Community College and Southwest Illinois College — at its annual dinner last month.
    “When we did our investment review and market update,” said Ellen Krohne, executive director of the Leadership Council, “we included a section on the five higher education institutions and we were really struck by the huge growth they’ve each had in capital investment, facilities, the number of programs offered and the students that they educate. When you compare it to just 10 years ago, for all five of them to have had that incredible growth is just remarkable. It’s a very strong statement about our ability to grow in the region and it’s a wonderful blessing for us.”
    SIUE alone has an annual economic impact on the region of more than $514 million, according to a report recently released by the university. That’s an increase of $43 million since 2010 and $158 million since 2005. With nearly 2,100 full-time employees, SIUE is the second largest employer in Southwestern Illinois. But, when graduate assistants, student workers and part-time and temporary workers are included, 5,900 people worked for the university in 2014 with a payroll of more than $145 million.
    SIUE, which was once again ranked among the best Regional Universities Midwest by U.S. News & World Report, also generates more than $362 million annually in household expenditures of students, employees and annuitants; direct expenditures by the university; and expenditures by visitors to the campus.
    Altogether, the economic analysis calculated that SIUE generates approximately $8.60 for every dollar invested in the university.
    Led by Dr. Dan Frazier of its school of business, Lindenwood University-Belleville recently conducted an economic and social impact study to explore the effect that its students, employees, facilities and services have had on the surrounding community. That analysis determined the university’s annual economic impact now stands at $328 million, with a four-year total in excess of $1 billion.
    One of the areas this study examined was variable outlays, which includes expenditures on items such as personnel, utilities, insurance and plant operation. These expenditures are estimated to total more than $540 million over the 2011-2014 four-year study period.
    The university has also invested heavily in capital outlays: expenditures constructing and renovating buildings, infrastructure and furnishings. The total economic impact of Lindenwood University-Belleville’s capital outlays from 2011- 2014 totaled $223,258,402.
    And, with a student body of nearly 2,000 in the 2013-14 academic year alone, Lindenwood-Belleville student spending in the community was calculated at more than $220 million over the same four-year period.
    Lewis and Clark Community College in Godfrey conducted an economic impact analysis two years ago. It determined that, with an annual payroll of $26.6 million, nearly $70 million spent on construction and maintenance during FY 2012-13, and income of more than $32 million created in its service area by the college, LCCC’s annual economic impact was in excess of $120 million per year.
    When the enhanced income of its graduates are factored in, LCCC has an annual economic impact on the area of $338 million.  
    And a recent economic impact analysis found that the direct and indirect expenditures attributable to Southwestern Illinois College activities equated to $79.6 million in fiscal year 2012. According to that report, additional SWIC economic impact is realized through state taxes ($103 million) and federal taxes ($337 million) paid by its 1,573 employees. SWIC is based in Belleville and has two other campuses, in Granite City and Red Bud.
    While McKendree University in Lebanon has not conducted an analysis of its economic impact, it has shown significant growth. Not only has McKendree transitioned from a college to a university but it’s also expanded its academic course offerings to 48 undergraduate majors and graduate degree programs in education, business administration, nursing, criminal justice and clinical mental health counseling.
    And, in 2011, McKendree began to offer a doctoral program in education in curriculum design and instruction.  Since 1994, student enrollment has grown by more than 98 percent, with in excess of 3,100 students enrolled this year coming from 29 states and 25 countries.
    Something that is not calculated in these economic impact analyses, however, is the human impact, said Frazier, of Lindenwood-Belleville.
    “The power of an education is a life changed forever,” said Frazier. “The creation of jobs changes families and directions. But the power of a university in a community is almost incalculable. It changes lives, families and the community for generations.”

    The colleges and universities of Southwestern Illinois have an annual economic impact on the region of more than $1 billion, according to analyses performed by each. They are also growing quickly.
    According to figures compiled by the Leadership Council Southwestern Illinois, the combined total of the annual budgets of the area’s five colleges and universities has almost doubled over the past 10 years, from $266 million to almost $500 million. During the same time frame, the number of full-time faculty employed by these institutions has also grown by 27 percent, while the number of part-time faculty jumped 23 percent.  A total of almost 2,700 faculty members now serve the almost 40,000 full- and part-time students attending these institutions.
    The Leadership Council honored the five, local institutions of higher education — Southern Illinois University Edwardsville, Lindenwood University-Belleville, McKendree University, Lewis and Clark Community College and Southwest Illinois College — at its annual dinner last month.
    “When we did our investment review and market update,” said Ellen Krohne, executive director of the Leadership Council, “we included a section on the five higher education institutions and we were really struck by the huge growth they’ve each had in capital investment, facilities, the number of programs offered and the students that they educate. When you compare it to just 10 years ago, for all five of them to have had that incredible growth is just remarkable. It’s a very strong statement about our ability to grow in the region and it’s a wonderful blessing for us.”
    SIUE alone has an annual economic impact on the region of more than $514 million, according to a report recently released by the university. That’s an increase of $43 million since 2010 and $158 million since 2005. With nearly 2,100 full-time employees, SIUE is the second largest employer in Southwestern Illinois. But, when graduate assistants, student workers and part-time and temporary workers are included, 5,900 people worked for the university in 2014 with a payroll of more than $145 million.
    SIUE, which was once again ranked among the best Regional Universities Midwest by U.S. News & World Report, also generates more than $362 million annually in household expenditures of students, employees and annuitants; direct expenditures by the university; and expenditures by visitors to the campus.
    Altogether, the economic analysis calculated that SIUE generates approximately $8.60 for every dollar invested in the university.
    Led by Dr. Dan Frazier of its school of business, Lindenwood University-Belleville recently conducted an economic and social impact study to explore the effect that its students, employees, facilities and services have had on the surrounding community. That analysis determined the university’s annual economic impact now stands at $328 million, with a four-year total in excess of $1 billion.
    One of the areas this study examined was variable outlays, which includes expenditures on items such as personnel, utilities, insurance and plant operation. These expenditures are estimated to total more than $540 million over the 2011-2014 four-year study period.
    The university has also invested heavily in capital outlays: expenditures constructing and renovating buildings, infrastructure and furnishings. The total economic impact of Lindenwood University-Belleville’s capital outlays from 2011- 2014 totaled $223,258,402.
    And, with a student body of nearly 2,000 in the 2013-14 academic year alone, Lindenwood-Belleville student spending in the community was calculated at more than $220 million over the same four-year period.
    Lewis and Clark Community College in Godfrey conducted an economic impact analysis two years ago. It determined that, with an annual payroll of $26.6 million, nearly $70 million spent on construction and maintenance during FY 2012-13, and income of more than $32 million created in its service area by the college, LCCC’s annual economic impact was in excess of $120 million per year.
    When the enhanced income of its graduates are factored in, LCCC has an annual economic impact on the area of $338 million.  
    And a recent economic impact analysis found that the direct and indirect expenditures attributable to Southwestern Illinois College activities equated to $79.6 million in fiscal year 2012. According to that report, additional SWIC economic impact is realized through state taxes ($103 million) and federal taxes ($337 million) paid by its 1,573 employees. SWIC is based in Belleville and has two other campuses, in Granite City and Red Bud.
    While McKendree University in Lebanon has not conducted an analysis of its economic impact, it has shown significant growth. Not only has McKendree transitioned from a college to a university but it’s also expanded its academic course offerings to 48 undergraduate majors and graduate degree programs in education, business administration, nursing, criminal justice and clinical mental health counseling.
    And, in 2011, McKendree began to offer a doctoral program in education in curriculum design and instruction.  Since 1994, student enrollment has grown by more than 98 percent, with in excess of 3,100 students enrolled this year coming from 29 states and 25 countries.
    Something that is not calculated in these economic impact analyses, however, is the human impact, said Frazier, of Lindenwood-Belleville.
    “The power of an education is a life changed forever,” said Frazier. “The creation of jobs changes families and directions. But the power of a university in a community is almost incalculable. It changes lives, families and the community for generations.”