Arkansas State University has $2.5 billion annual economic impact to state
by May 5, 2025 8:36 am 576 views
Arkansas State University.
Arkansas State University had a $2.5 billion impact on the state during the fiscal 2022-23 year, according to a study by the Parker Strategy Group.
The study is titled “A-State Powers Growth: Transforming the Economy and Inspiring Hearts and Minds.” It concluded that $480 million was generated by the A-State Jonesboro campus, student spending, and visitor spending, and $2 billion generated by A-State alumni living and working throughout Arkansas.
Arkansas State’s impact supports and sustains an estimated 16,332 jobs throughout Arkansas, including 4,752 via direct employment on campus, student spending, and visitor spending impacts and 11,580 via alumni impact in the state of Arkansas.
“Our commitment to excellence is not just measured in diplomas awarded, but in the far-reaching impact of our institution,” Chancellor Todd Shields said in his preface to the report. “Each year, A-State generates significant economic activity, creating jobs, supporting local businesses, and attracting investments that energize our region.”
For every dollar invested by the state of Arkansas in A-State, $7.10 is returned to the state as a result of A-State’s combined economic impact. Also, for each dollar invested by the state of Arkansas, $2.52 is returned to the state through taxes generated by university operations, student and visitor spending, the report noted.
Through its local spending and the jobs supported or sustained, A-State generated $152.5 million in local and state taxes, it said.
“As one of the largest employers in the area, we contribute directly to the financial wellbeing of families and indirectly to the growth of industries that depend on an educated, skilled workforce,” Shields added.
Subsequent to its opening in fall 2016, the New York Institute of Technology College of Osteopathic Medicine on the A-State campus has become an economic partner. NYITCOM generates an additional $44.6 million in economic impact, supporting 263 jobs and conducting operations that result in $2.2 million in additional state and local taxes.
The study also calculated volunteer hours and charitable giving. Students, faculty and staff provided more than 176,000 volunteer hours, valued at $5.3 million, and charitable giving from alumni and others totaled $1.6 million that fiscal year.
Some types of economic impact are direct, such as spending by resident students and by visitors, especially those attending sports contest and other campus events. Some impacts are considered indirect, such as the increased demand for supplies and services from industry sectors that serve the students, faculty, staff and alumni, along with the institution itself. A third category – induced impact – estimates the effect of increased household income and resulting spending among students, employees, alumni, suppliers and supplier employees.