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Cutler Hall located on College Green. (FILE)

Ohio University’s Economic Impact Study shows school's contributions to the Ohio economy

Ohio University released a report in May of 2018 that shows it had a $2.9 billion economic impact on Ohio.

In the 2016-2017 fiscal year, OU’s operations, research, clinical, and construction spending, entrepreneurial activities, students, visitors and alumni generated $2.9 billion in added income to the Ohio economy. This accounts for approximately .5% of the gross state product of the state of Ohio, according to the report.

OU spent $513 million on the salaries and benefits of the 5,277 full- and part-time employees that worked at the university at that time. The university also spent $377.1 million on goods and services for university operations.

The report also highlights visitors, students and residents who would not have worked in Ohio, relocated to Ohio, or visited Ohio had it not been for the university.

The estimated economic contribution of OU alumni employed in Ohio during the fiscal year of the study was $2.2 billion.

Out-of-state visitors who came to Ohio for OU activities spent about $2.4 million in the 2016-2017 fiscal year.

Current students also have major economic contributions to the state. 

About $58.2 million is spent by students who would not be in Ohio if OU had not been able to provide for their needs, according to the report. That is equivalent to 1,195 jobs.

The economic impact of students studying in Athens is reflected in the abundance of local businesses around the campus.

“Donkey couldn't even be a coffee shop if it wasn't for students,” Chris Pyle, owner and operator of Donkey Coffee and Espresso.

Pyle also said many of his other customers were OU employees, or those who were employed at least in part by OU.

“Usually anyone's connected to OU,” Pyle said. “(When) a plumber comes in, chances are he's somebody that works at OU.”

About $189 million of taxpayer money, from both local and state sources, was given to OU in the 2016-2017 fiscal year. The return of this is approximately $705.6 million in tax revenue provided because of OU alumni’s higher lifetime earnings and increased business participation in the Ohio economy. 

There is also a large tax impact in Athens.

“Those citizens who work at the university, depending on where they live, pay income tax,” Chris Knisely, Athens city council president said.

About 80% of the income tax revenue is put toward city services payroll, including police, fire and street personnel. The city is very appreciative of the services the university can help them provide, Knisely said

Knisely also said there are many indirect economic impacts from the university, like the community healthcare interactions with the Heritage College of Osteopathic Medicine and the businesses, like Quidel, brought in by research happening at OU.

Some Athens natives, like Cirus Stowe, a freshman studying Spainsh, are on the fence about OU’s economic impacts.

“That's actually… a pretty contentious topic for locals because (OU) does bring a lot of business,” Stowe said.

Stowe also said that although many local businesses rely on OU for profitability, some locals dislike that the university doesn’t pay property taxes.

@thatdbemyluck

tb040917@ohio.edu

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