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The significant economic and cultural
impact of institutions like James Madison University is generally
accepted. Understanding the magnitude of the impact is helpful to
both institution and community for fiscal and program planning. The
Office of Institutional Research (OIR) at JMU, with technical
support from the Virginia Employment Commission, periodically
estimates the economic impact of the institution on the City of
Harrisonburg and Rockingham County.
During spring and summer of 2002, OIR
compiled estimates of University related spending within the
community. University staff from Accounting Services, Payroll
Services and Facilities Planning and Construction contributed
valuable data and consulting services to the analysis. The Virginia
Employment Commission “fed” these estimates into the IMPLAN (Impact
Analysis for Planning) model. IMPLAN generated an estimate of the
multiplier effect of the spending, i.e., the proportion of
University related expenditures that are respent within the
community by businesses and their employees. IMPLAN also estimated
the total number of jobs created by the spending.
OIR found that James Madison
University continues its significant economic and cultural presence
within the City of Harrisonburg and Rockingham County. In the
2000-01 academic year, JMU enrolled around 15,000 students, employed
over 2,000 people in full-time positions, and had a total operating
budget of $211 million. Highlights of the study are that:
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Over $278 million
dollars in the local economy were related to spending by students,
employees, and University operations. Over $195 million in direct
expenditures generated an additional $83 million that was respent
in the community by businesses and their employees. These
conservative estimates do not include dollars generated by almost
$28 million in construction expenditures per year. The analysis
also could not include spending by parents and visitors that fill
local hotels and restaurants for events like Homecoming, Parents
Day, and December and May Commencements.
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Total employment
related to the University, including its employees, was between
4,422 and 5,382 full-time equivalent jobs. This represents between
roughly seven and nine percent of all employment in the area.
Between 1,763 and 2,723 jobs outside the institution were
attributed to this spending. For every $1 million spent by
students, employees and the institution, between 12.5 and 17.4
jobs were created in the community.
The full text of this OIR study may
be found on-line at:
http://www.jmu.edu/instresrch/resrchstud/economic/ECOIMP02.pdf |
