Ohio State's Economic Impact Reported

REPORT OUTLINES THE MANY ECONOMIC BENEFITS OF OHIO STATE

COLUMBUS -- The Ohio State University plays a tremendous 
role in the health and well-being of Ohio's economy, according to 
a newly released report by the Inter-University Council of Ohio.  
The report shows that the university pays economic dividends to 
Ohio far beyond the state's investment.

In fact, during fiscal year 1996, Ohio State and its 
employees, students and visitors spent an estimated $1.74 billion 
in Ohio.  Assuming conservatively that these dollars are spent at 
least one more time on average before leaving Ohio, the total 
annual economic impact of this spending was $3.48 billion -- more 
than nine times greater than the state's $376 million investment 
in the university.

State subsidies and appropriations accounted for less than 
25 percent of the $1.54 billion in university resources during 
fiscal year 1996, so that for each $1 the state invested, Ohio 
State generated an additional $3.09 of its operating expenses 
from other sources, the report shows.

Ohio State captured more than $311 million in public- and 
private-sector research grants and contracts during 1996, much of 
which came from out of state.  With these dollars, the university 
generated new economic opportunities for Ohio by creating new 
ideas, innovative technologies and products.

"This report provides a quantitative look at how Ohio State 
helps drive the engines of economic development and job creation 
in the state," said Ohio State Interim President Richard Sisson.  
"It clearly shows how resources invested in Ohio State are 
returned many times in the form of economic growth and increased 
opportunity for financial security.

"Many of Ohio State's great contributions to the state -- 
notably the value of its educational, research and service 
programs and the ways that it improves the quality of life for 
individuals and families -- are not easy to measure," Sisson 
said.  "Ohio State gives more than 50,000 people each year the 
educational opportunities that will enable them to work 
productively and compete effectively in a knowledge-based 
economy."

The report shows that Ohio is home to 185,800 Ohio State 
alumni.  Nationwide, a college graduate earns, on average, 
$12,000 more a year than a high school graduate.  Given this 
increased earning power, Ohio State graduates living in Ohio each 
year add more than $2.1 billion to Ohio's economy and tax base, 
the report shows.  "Furthermore, these educated and skilled 
Ohioans are attracting both business and industry, which are 
essential to the state's continued economic development," the 
report says.

Also noted in the report are the contributions the 
university makes to medical care, research, technology, 
agriculture and cultural vitality.

Ohio State's most immediate and identifiable economic 
effects -- "the economic dividends of public investment," 
according to the report -- can be seen in spending, taxes and 
jobs.  Some highlights from fiscal year 1996 include:

-- Of its $1.52 billion budget for current operations -- 
including payroll and scholarships -- more than $1.3 billion was 
spent in Ohio.

-- Salaries, wages and benefits accounted for 58 percent, or 
$878.5 million, of the university's spending.

-- Ohio State employees pumped $546.5 million in spendable 
income -- 145 percent of the university's state assistance -- 
back into the state and local economy.

-- University students spent an estimated $289.5 million for 
housing, food, transportation, books, clothing and other living 
expenses.

-- More than 3 million visitors to the Ohio State campus 
spent at least $72.3 million locally.

-- Ohio State employees paid $20.1 million in state income 
taxes and $14.2 million in state sales taxes.  Students paid 
$11.6 million in state sales taxes and visitors paid $3.6 
million.  Employees also paid $14 million in local taxes and 
$92.3 million in federal income taxes and Medicare contributions.

-- Ohio State provided jobs for 18,604 Ohioans in all 88 
counties and 10,600 students.  Indirectly, another 18,834 jobs 
for Ohioans were created by university spending and 2,954 jobs 
were created by $73.8 million in construction spending.

The Ohio State economic impact report is part of a series of 
"Education Portfolio" documents released by the Inter-University 
Council of Ohio, which represents the state's 15 public 
universities and medical colleges.

#

Contact:Lee Walker, School of Public Policy and Management, 
614-292-7731.
Written by David Bhaerman, University Communications, 
614-292-8422.