Kansas Independent College Association (KICA) on Wednesday released the results of studies estimating the impact of both Friends and Newman University on the statewide economy.
The study estimated the economic impact of Friends University to be $76.9 million and 682 jobs, while Newman University showed its statewide impact to be $68 million and over 500 jobs.
The study was commissioned by KICA and conducted by Parker Philips, a consulting firm that specializes in economic impact analysis.
In the analysis, the study considered the direct spending on operations, pay, benefits, and capital projects by both colleges and the estimated increase in demand for goods and services in industry sectors that supply or support the universities. The study also measured the effect of student spending and the induced effect of increased household income.
According to the study, a key result of this activity is that Friends University supports and sustains 682 to Newman Universities 524. This includes direct employment as well as indirect and induced jobs created by supply and equipment vendors, contractors, and laborers for the construction and renovation of facilities, and jobs created in the community at hotels, restaurants, and retail stores in support of the university’s faculty, staff, students, and visitors.
The study also calculated tax revenues generated by this level of economic activity, including sales, property, personal income, and corporate income taxes. The study concluded that Friends University generates about $5.5 million in tax revenues for state and local government.
The study further estimated the value of the increase in productivity based on a degree awarded by Friends University will yield throughout the careers of the graduates. Assuming a 40-year work life, the education received by these graduates will yield additional state income of $284.9 million (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration).
Meanwhile, with more than 11-thousand alumni living and working in Kansas, Newman University graduates generate $184.4 million annually in economic output for the Kansas community, support and sustain 1,157 jobs and contribute $11.5 million in state and local taxes.
Statewide, all private, nonprofit colleges and universities, including all 20 members, plus the spending of its faculty, staff, and students, had a total statewide economic impact of $1.1 billion. This activity generated an estimated 8,270 jobs in the state.
