The University of the Cumberlands (UC) in Williamsburg generated an economic impact of $337.6 million during the 2021-2022 fiscal year, which is more than any other independent college or university in Kentucky, according to a report released by the Association of Independent Kentucky Colleges and Universities (AIKCU).
UC’s economic impact was the highest of any of Kentucky’s 18 independent colleges and universities, which contributed a combined $2.06 billion to the state and local economies.
AIKCU recently announced the results of a study of its member institutions for fiscal year 2021-22, the most recent period for which data was available.
UC’s 337.6 million total economic impact was measured in terms of the direct ($261 million) economic impact, and induced ($76.5 million) economic impact of the university’s activity on the local economy
Direct spending is defined as the amount of money spent directly by the university, university employees, students and visitors with $60 million in direct spending by employees, $131.1 million in direct spending by students, $3.3. million in direct spending by visitors, $42 million in university purchases and $24.6 million in investment spending.
Induced economic impact is the additional employment and expenditures of local industries that result because of direct spending.
In addition, UC’s economic impact equaled the creation of 3,280 jobs during the 2021-22 fiscal year.
“Cumberlands was founded out of a strong desire to provide educational opportunities for the people of Appalachia and to improve the economic prospects of Kentucky’s mountainous regions. Now, more than a century later, we hold true to that foundational mission. We are proud to be part of Whitley County and its surrounding communities. It has always been important to us to form local relationships that help drive greater possibilities for our region, and the AIKCU report is a reflection of this work,” UC wrote in a release.
“The university has never been stronger or better positioned for the future. We currently have over 20,000 students eager to use their education to enhance their livelihoods and impact the communities they serve. As long as we stay committed to our students and hold true to our founding principles, we will continue to have this kind of impact on our students, our employees, and the greater region as a whole.”
Campbellsville University had the second highest economic impact among independent colleges and universities at $295.6 million followed by Berea College at $202.8 million.
Barbourville’s Union Commonwealth University had an economic impact of $34.4 million during the 2021-22 fiscal year, including: $9 million in direct spending by employees, $10.3 million in direct spending by students, $303,782 in direct spending by visitors, $8.8 million in university purchases and $1.1 million in investment spending.
In addition, Union Commonwealth University’s economic impact equaled the creation of 240 jobs during the 2021-22 fiscal year.
More than 59,000 students attend AIKCU’s member institutions, which award one in five bachelor’s degrees in Kentucky.
“In addition to providing widespread access to higher education and helping develop Kentucky’s skilled workforce, AIKCU’s member colleges and universities are anchor institutions in communities throughout the commonwealth,” said Mason Dyer, AIKCU president. “They serve as hubs for the arts, culture, athletics, and community engagement, and are uniquely positioned to enhance the quality of life in their regions.”
Dyer added, ”While these institutions are widely recognized for contributing to the well-being of their communities, these numbers reinforce our long-held belief that the investment in state aid for students attending independent colleges and universities represent one of the best rates of return on investment for the commonwealth.”
In addition to measuring the overall impact of the independent college and university sector in Kentucky, the report also drills down to estimate the local impact of each institution, which ranges from $19 million to more than $300 million.
“Kentucky’s private colleges and universities are important economic drivers throughout the state, serving both rural and urban students and communities,” said Dr. John P. Marsden, president of Midway University and chair of the AIKCU Board of Directors. “The financial health of our institutions contributes directly to the state’s economy, and we play a critical role in educating the future workforce of Kentucky.”
Report highlights
Calling the $2.06 billion contribution to Kentucky’s bottom line “remarkable,” Dyer explained that the total economic impact for AIKCU as a whole is the sum of $1.5 billion in direct spending and $546 million in induced spending.
AIKCU members economic impact equaled the creation of 17,933 jobs during the 2021-22 fiscal year.
AIKCU commissioned the study from Mark Paul Gius, Ph.D., professor of economics at Quinnipiac University in Hamden, Connecticut. The report incorporates publicly available data from IPEDS – the Integrated Postsecondary Education Data System – and the institutions’ IRS Form 990s, as well as limited data collected directly from the institutions.
Dr. Gius then used standard input-output economic impact analysis methodology to arrive at conservative estimates for AIKCU members’ direct, induced, and total impacts at the state and local levels.
AIKCU’s 18 member colleges and universities are all accredited by the Southern Association of Colleges and Schools Commission on Colleges and licensed by the Kentucky Council on Postsecondary Education.
You can find the complete report, which includes individual data on the 18 colleges and universities, at https://www.aikcu.org/economic-impact.
