NEW ALBANY, IN, (Feb. 16, 2012) – Indiana University Southeast contributed millions of dollars and thousands of jobs to the state of Indiana last year, according to an economic impact study released today.
The study, commissioned by Indiana University and conducted by Tripp Umbach, a leading economic impact analysis firm, examined the direct and indirect spending in Indiana as a result of all eight IU campuses and IU Health. The entire IU system generated an economic impact of at least $11.5 billion and sustained 100,000 jobs during the 2010-11 fiscal year.
Combined, the university and healthcare system generated $5.9 billion in direct economic activity and another $5.6 billion in indirect or induced economic activity.
Of that, $124.4 million was attributed to IU Southeast, which serves the Southern Indiana and Greater Louisville Metropolitan Region. IU Southeast generated a $60.5 million direct impact – spending on goods, services and taxes by the institutions, their employees, students and visitors – and $63.9 million indirect and induced activity by those doing business with the university.
According to the study, IU and IU Health combined to represent 4.5 percent of the total Indiana economy and, when taken together, are the state’s largest employer, accounting for 48,147 direct jobs, as well as another 51,844 indirect or induced jobs. Of those, IU Southeast is responsible for 735 direct jobs and 741 indirect/induced jobs for a total of 1,476 jobs.
The study also found that IU Southeast generates about $6.5 million annually in state and local taxes.
Closer to home, IU Southeast also contributes greatly in volunteer time and donations to charitable organizations. The study found that IU Southeast faculty, staff, and students are responsible for more than $7.8 million annually in donations and volunteer service with local organizations and communities.
That includes $1.7 million donated to local charitable organizations and close to $6.1 million in value of volunteer time provided to area communities.
“We have always known what a positive influence our alumni have had on our state and region once they graduate from IU Southeast, but this study adds to that. It shows how our students, faculty, and staff are making a measurable economic impact,” said IU Southeast Chancellor Sandra R. Patterson-Randles. “We’re providing solid employment for our community members, valuable volunteer hours to dozens of local organizations, and a significant fiscal impact that helps not only our local economy, but the entire state.”
About the report
IU commissioned Tripp Umbach in 2011 to produce the economic impact report to provide a comprehensive independent analysis of economic activity associated with the university and IU Health. The cost of the study was $75,000.
Tripp Umbach is the national leader in providing economic impact analysis for universities, health care organizations and academic medical centers. The company has completed more than 150 economic impact studies over the past 20 years including for a number of other Big Ten universities and IU peer universities, including The Pennsylvania State University, The Ohio State University, the University of Iowa and the University of Washington.
Tripp Umbach was asked to measure the economic, employment and government revenues generated by the university and IU Health, including indirect and induced economic activity. Tripp Umbach used data supplied by IU and IU Health, and its affiliates, and calculated the economic impact using IMPLAN modeling software created by the Minnesota IMPLAN Group, Inc.
The full report is available at http://innovate.indiana.edu/impact.
To read more about IU’s impact on the state economy, view the release from IU Bloomington at newsinfo.iu.edu.