Study: ASU provides

$509 million

boost to region
By Scott Nicholson
nicholson@wataugademocrat.com

An economic impact study based on existing regional models showed Appalachian State University has an annual economic impact of $509 million on a five-county region.

The Center for Economic Research and Policy Analysis in ASU’s Walker College of Business authored the report, using faculty and staff salaries, student-spending patterns, commuter patterns, grants, construction and purchases.

“In the model, we compare it to other universities of a similar size,” said economics professor Michael McKee, one of the report’s authors.

He said ASU was in similar position to other universities, but it had a unique relationship to the local economy due to the relatively small population of the town of Boone.

“We’re in the same ballpark as other schools, roughly,” he said, though he noted that if Boone lost ASU, the town would more likely resemble West Jefferson or other rural county seats and see a decrease in year-round visitors and activities.

“The unique thing is ASU has the anchor of Appalachian Summer Festival, though the football stadium is small compared to other universities,” McKee said.

“That might downplay comparisons to other schools but the arts factor creates a year-round draw. It’s also largely an undergraduate university, so there are different spending patterns.”

Models were used to analyze the impact of student spending and the difference between on-campus and off-campus residency.

Other data came from ASU football attendance, Appalachian Summer visitor numbers, salary spending, grants and gifts, and tuition and fees.

University expenditures, including salaries and wages, totaled $258 million in 2006-07, the model year for the report.

Students spent almost $97 million for off-campus housing, food, entertainment, recreation and transportation.

Visitors attending campus athletic and cultural events spent almost $7.8 million.

Appalachian employs 2,632 people, with an estimated 2,489 other jobs supported by the university’s staff, students and visitors.

In the 2006 fiscal year, the university spent about $32.4 million on capital improvements, while athletic events generated $4 million in visitor spending and cultural events generated $3.25 million in visitor spending.

The study also projected the potential impact of additional growth at ASU.

A 10-percent growth in enrollment, up to 1,500 students, would generate an additional $56 million a year in economic impact and create 572 additional jobs.

The study didn’t factor in loss of local-government revenue due to tax-exempt property.

McKee said money was only one of the benefits of a university to its region, saying there was value in cultural, intellectual and athletic offerings.

“The thing to keep in mind is all universities are about teaching, research and scholarship, and the economic impact is a pleasant surprise,” McKee said.