A REPORT ON THE
ECONOMIC IMPACT OF MISSOURI SOUTHERN STATE UNIVERSITY IN SOUTHWEST MISSOURI DURING FISCAL YEAR 2014
WHY AN ECONOMIC IMPACT REPORT? Missouri Southern State University commissioned an economic impact study to better understand MSSU’s financial impact on Joplin and Southwest Missouri. The goal of the study was to quantify the economic impact of Missouri Southern on the city and region during the 2013-2014 academic year. Impact DataSource of Austin, Texas, was commissioned to conduct this study on Missouri Southern’s behalf.
WHY IMPACT DATASOURCE? Impact DataSource is a nationally recognized consulting, research, and analysis firm. IDS has conducted over 2,500 economic impact studies for a variety of private and governmental clients, including universities such as North Dakota State, Texas A&M, Texas Christian, Ohio State, Mississippi, and Minnesota State.
WHO CONTRIBUTED TO THE REPORT? IDS’s data collection was guided by a university-wide collaboration of various internal and external stakeholder groups. Key leadership, faculty, staff, alumni, and regional leaders contributed time through interviews and supplied data to help ensure accuracy of this project.
TOTAL ECONOMIC IMPACT
The total economic impact of MSSU consists of the direct, indirect and induced economic impacts attributable to operations as well as the secondary economic impacts supported by student and visitor spending.
Employment Workers’ Earnings
1,397.0 $65,594,990 Economic Output/Sales $198,607,706
TOTAL FISCAL IMPACT
Sales taxes are collected on taxable spending by workers, students, visitors and sales. Hotel taxes are supported by out-oftown visitors to Joplin. Property taxes are collected on residential property owned by workers supported by the University’s economic activity. Income taxes are collected on taxable workers earnings.
State of Missouri City of Joplin Jasper County Joplin Schools Joplin Road Dist.
$3,684,716 $935,759 $343,167 $353,661 $21,413
Total
$5,338,715
ECONOMIC IMPACT OF OPERATIONS Missouri Southern State University had an annual operating budget of $29.8 million, 697 faculty and staff and an annual payroll of $39.3 million.
Employment Workers’ Earnings Economic Output Employment Workers’ Earnings Economic Output Employment Workers’ Earnings Economic Output
SPECTATOR VISITOR SPENDING ESTIMATE
The Athletics department estimated attracting 132,380 spectators during fiscal year 2013-14. 44% of these spectators are assumed to be students or local residents and did not have a spending impact.
From Jasper County Area From Outside of the Area Spectator Visitor Spending, Excl. Hotel Percent of Outside of Area Requiring a Hotel Avg Hotel Room Occupancy Estimated Hotel Nights Avg Hotel Rate in the Area Spectator Visitor Spending on Lodging
$3,574,260 $3,309,500 $6,883,760 47% 2.0 6,222 $89.00 $533,758 $7,437,518
Total
NON-SPECTATOR VISITOR SPENDING ESTIMATE
The University supports additional economic impacts in the community as a result of visitor spending. While in town, visitors likely spend money in the community at retail establishments and restaurants.
Annual Visitors Avg Length of Visit in Days Avg Spending Per Day, Excl. Hotel Non-Spectator Visitor Spending, Excl. Hotel
23,411 1.0 $50.00 $1,170,572
Percent of Visitors Requiring a Hotel Stay Avg Hotel Room Occupancy Estimated Hotel Nights AvgHotel Rate in the Area Non-Spectator Visitor Spending on Lodging
47.0% 2.0 5,502 $89.00 $489,678 $1,660,250
Total
Direct
697.0 $39,320,644 $69,115,923 Indirect & Induced
205.3 $11,583,862 $36,354,975 Total
902.3 $50,904,506 $105,470,898
STUDENT SPENDING University Operations and Employment impacts result in part by student spending on tuition and books. Additional student spending also contributes to secondary effects resulting from student expenditures for housing, food, transportation and other expenses.
Room and Board Transportation Other Expenses Total Regional Spending
Per Student
$9,804 $1,146 $2,906
Students
5,997 6,518 6,518
Total
$58,790,274 $7,469,628 $13,661,728 $79,921,630
WHAT’S NOT IN THE REPORT? Some universities utilize large multipliers, or “ripple effects,” to subjectively increase the value of their economic impact by assuming dollars turn over many multiple times after having been directly or indirectly generated by the institution. For this study, Impact DataSource used the Regional Input-Output Modeling System (RIMS II) developed by the U.S. Department of Commerce, Bureau of Economic Analysis. The multipliers used in this study, as developed by RIMS II, were intentionally conservative and realistic for MSSU’s economic impact based on the university’s geographic location and the region’s mix of industry. Also, it is an increasingly common, but controversial practice, to attempt to estimate the wages and economic impact of university alumni living across the state and nation. The purpose of this report is to detail the impact of Missouri Southern’s current operations on Southwest Missouri. No attempt, therefore, has been made to arbitrarily increase the university’s financial impact by assigning a value to the activities of graduates or former students living either in Southwest Missouri or beyond.
HOW DO I FIND OUT MORE? To view the full report, please visit www.mssu.edu/impact. For additional information, contact Dr. Brad Hodson, Executive Vice President, at 417-625-9615 or by e-mail at hodson-b@mssu.edu.
(866) 818-6778 / WWW.MSSU.EDU