Altoona, Pa — Penn State's impact extends well beyond its teaching and research. In fact, Penn State is Pennsylvania's largest economic engine, generating more than $17 billion a year in overall economic impact and supporting more than 67,000 jobs. Penn State Altoona contributed about $214 million to that total.
In an independent report released April 23, data show that Penn State not only is fueling the growth of Pennsylvania by directly generating nearly $8.5 billion in economic impact but also influences an additional $8.7 billion through business.
The economic impact of Penn State's operations and employment is only the first chapter in a powerful economic story that affects every community in the Commonwealth. Just over 1,300 jobs are in place because of Penn State Altoona, and faculty and staff spent about $16.5 million of their disposable income in the Commonwealth in 2008.
Penn State students add millions of dollars to the Pennsylvania economy. Penn State students overall spent more than $932 million in the Commonwealth in 2008, and Penn State Altoona students were responsible for more than $40.3 million of that contribution. Out-of-state visitors to the campus brought in nearly $29 million to the region's economy through accommodations, gifts, services and other items during their stay in Blair County.
Clearly, Penn State Altoona alone has positive effects on the Pennsylvania economy and contributes much to the economic vitality of the state.
According to the report, the University generated more than 2 percent of the state's business volume or more than $1 out of every $50 dollars in the state's total economy. In addition, Penn State leverages its state funding. For every dollar invested in 2008 by the Commonwealth to support the operations of Penn State, the University returned $25.06 in economic impact to Pennsylvania.
The four-month study by Pittsburgh-based Tripp Umbach indicates that Penn State's impact far outweighs other industries in the state. With the total direct, indirect and induced annual economic impact equaling more than $17 billion, the University currently creates more impact than the combined total impact of all of the state's airport hubs, professional sports teams, and arts and cultural organizations, by attracting nearly 1 million visitors and channeling more than $1.73 billion annually into Pennsylvania's economy.
Additional key findings in the 2009 Tripp Umbach report include:
• The University annually expends more than $700 million through its research activities. Research at Penn State supports more than 18,000 additional jobs in Pennsylvania, which generates more than $1.9 billion in additional economic impact and more than $61 million in additional revenue for the Commonwealth annually.
• Penn State Altoona spent nearly $7.4 million in 2008 on capital improvements, goods and services, and supplies. These may include a broad range of purchases such as food and beverage supplies, administrative supplies, computer consulting, etc.
• A major misconception held by business leaders, elected officials, and the general public, is that universities do not generate government revenue. In 2008, Tripp Umbach estimates that $393.3 million in state government revenue was generated directly and indirectly by Penn State. In addition, the substantial spending with Pennsylvania business generates large-scale revenues for the state in the form of sales tax, corporate net income tax and capital stock/franchise taxes. Penn State Altoona's portion of this impact is $9.4 million.
You may view the report in its entirety at http://econimpact.psu.edu.