Study Shows Southeastern Oklahoma State University Makes Strong Impact on Economy

by SOUTHEASTERN PUBLIC INFORMATION
October 23, 2008

DURANT, Okla. -- An analysis recently conducted by Regional Economic Models Inc. indicates that for every $1 of state-appropriated funds spent on higher education in Oklahoma, an additional $5.15 is pumped into the state's economy.

The study also revealed that the creation of jobs, direct expenditure, increased productivity and the impact of athletics and tourism related to higher education directly and indirectly accounts for approximately 23 percent of the state's economy.

Using a model of the state and data provided by the Oklahoma State Regents for Higher Education, REMI evaluated contributions of higher education, such as direct institutional employment and spending, students and visitor spending, and graduate earnings and productivity.

Southeastern Oklahoma State University employed 536 people and awarded 786 degrees, which were weighted as 1.78 percent and 2.89 percent, respectively.

Variable	2008	2018	2028	2038	2048
Personal Income	$0.088	$0.346	$0.728	$1.331	$2.326
Total Consumption	$0.121	$0.377	$0.795	$1.510	$2.760
GRP	$0.126	$0.711	$1.587	$2.917	$5.008
Employment	2.459	4.615	6.390	7.946	9.354

* Personal Income, Total Consumption, and GRP are in billions of nominal dollars; employment is in thousands

For the year 2008, Disposable Personal Income for the State of Oklahoma will increase by $88 million as a result of the Southeastern Oklahoma State University. This increase in personal income creates an increase in total consumption. The contribution to total consumption across the state is $121 million. The increase in consumption requires greater output, which will lead to greater employment. Southeastern Oklahoma State University creates 2,459 jobs across the state for 2008. As employment increases, more opportunities are created which have a positive effect on the wage rate. An increase in employment positively effects disposable income, which again raises total consumption and output. Gross Regional Product, defined as total output less intermediate inputs, will increase by $126 million for the State of Oklahoma. The data table above shows the economic impact of Southeastern Oklahoma State University in each of these areas for the year 2008 and subsequent years, to the year 2048.

"This study shows that Southeastern Oklahoma State University is a vital economic engine, and that the resources invested have a high rate of return and contribute to improved economic prosperity for the Durant community," said Southeastern president Michael Turner.

"Oklahoma higher education is an invaluable resource which produces graduates who stay in Oklahoma, have jobs in Oklahoma, significantly contribute to the quality of life in Oklahoma and have an extra incentive to keep improving it," said Chancellor Glen D. Johnson. "Taxpayers continue to receive a great return on their investment as higher education drives Oklahoma toward a future of long-term, sustained economic growth."

A college graduate earns more money over the course of a lifetime than a person without a degree. The disposable income of college graduates in Oklahoma creates a buying power of $778 million annually, which benefits retailers and merchants across the state.

Every public college and university in Oklahoma spends money on capital improvements, including construction of new buildings; furniture for faculty, students and staff; equipment for labs and offices; and library materials. In 2008, capital expenditures and construction spending are projected to add 23,750 jobs in Oklahoma.