Recordpub.com - A $2 billion effect on the region's economy: KSU unveils results of impact study

KSU President Dr. Lester Lefton answered questions about the timeline for the Kent/KSU Hotel and convention center.

By Matt Fredmonsky

Record-Courier staff writer

Kent State University accounts for 1.5 percent of Northeastern Ohio’s economy by pumping $1.9 billion into the region annually, President Lester Lefton announced Thursday.

“That’s a lot of money,” Lefton told the crowd gathered for the invitation-only “Summit to Engage Regional Leaders” on campus Thursday.

KSU invited area politicians, business owners and community members to the summit, where Lefton unveiled the results of an economic impact study titled “Prosperity by Degrees: The Economic Impact of Kent State University on Northeast Ohio.”

The $1.9 billion figure represents the impact of KSU’s eight campuses in 12 counties, approximately 5,000 employees, nearly 40,000 total enrolled students and 196,000 alumni. KSU is Northeastern Ohio’s 15th largest employer as the state’s third-largest public university, according to the study.

The study also showed the region receives roughly $292 million in added income annually due to the payroll of KSU faculty and staff and other university spending.

Lefton said Northeastern Ohio can continue to count on KSU as a steady employer.

“We are a leading business enterprise in Northeast Ohio,” he said. “The data shows we are not just a major player, we are the leading research institute in Northeast Ohio.”

Of the $1.9 billion, the study attributes $64 million to visitors drawn by KSU who may visit a local restuarant or venues such as the Rock and Roll Hall of Fame.

The study also quantified the value of a KSU degree and attributed $1.6 billion to “raising the educational attainment and productivity of the workforce.”

Citing the study, Lefton said a KSU graduate is likely to make $1.1 million more in their lifetime compared to a non-KSU graduate. The multiplier effect, he said, occurs when those graduates buy a car, remodel their home or make other purchases that generate revenue for businesses and local governments.

“Because of your educational attainment ... You’re doing stuff that is spending money in Northeast Ohio,” he said.

Separate reports from the Milken Institute, a California-based economic think tank, ranked KSU fifth in the U.S. and Canada for the number of start-up companies formed and patents issued per $1 million in research expenditures. KSU set a record in 2009 by obtaining $46.1 million in external research funding.

The university has helped produce 16 start-up companies, including Alpha Micron, which recently expanded into the 41,000 square foot KSU Centennial Research Park facility.

It’s not just visitors, alumni, students and KSU employees helping to drive the regional economy. The university itself spent $38 million on construction projects in 2008 that generated or retained 380 jobs, according to the study.

And this year, the university is planning to begin a renovation of the Kent campus with an estimated cost of $200 million, which local officials anticipate will generate $2 million in city income tax revenue during construction.

Rebecca Zurava, a Silver Lake resident who received a master’s degree from KSU, said she was happy to hear how much growth the university initiates, particularly near its regional campuses.

“I thought the results were astounding,” she said.

Newly appointed Ravenna Mayor Joe Bica, who attended the summit Thursday, said he is hopeful to see more cooperation between KSU and Ravenna during his tenure.

“Kent State is the (third) largest university in Ohio,” he said. “How could they not have a huge economic impact? I don’t think people realize how big they are.”

The economic impact study, commissioned in 2009, was compiled by Idaho-based Economic Modeling Specialists, Inc. Lefton said the university commissioned the study to commemorate KSU’s 2010 Centennial.

“This is just the first 100 years,” he said. “Our best days are still ahead of us.”

Previous Articles:

Impact of KSU studied

Jan. 20, 2009

http://www.recordpub.com/news/article/4751638

KSU 'poised for transition': As the university celebrates its Centennial, several multi-million dollar construction projects are planned both on and off campus

Jan. 16, 2009

http://www.recordpub.com/news/article/4749330

KSU work may bring $2 million in taxes: Kent officials call boost temporary

Dec. 24, 2009

http://www.recordpub.com/news/article/4735552

$200 million in renovations eyed for KSU

Nov. 18, 2009

http://www.recordpub.com/news/article/4713174