Administrative Leadership Meeting

Tuesday, March 10, 2015

Chancellor Randy Woodson

Upcoming ALM Topics

• May 12 Strategic Plan: Next Three

Years(Titmus Theatre)

• July 14 Strategic Resource

Management(Titmus Theatre)

Our Three Winners FundDeah Barakat, Yusor Abu-Salha, Razan Abu-Salha

How to Give• Contributions can be made securely online at go.ncsu.edu/

ourthreewinners.

• Checks made out to Our Three Winners fund may be sent to: Our Three Winners, Campus Box 7474, Raleigh, NC 27695-7474.

• For all other inquiries about honoring their lives and legacies, contact Laurie Reinhardt-Plotnik, ljreinha@ncsu.edu or 919-515-908

Economic Impact:Demonstrating the University’s Value

to the North Carolina Economy

The University Creates Value

• Through Education & Research• Increases students employability and potential• Serves as a hub for research, innovation and

entrepreneurship • Draws students and visitors to North Carolina• Generates income and opportunities for the

state

the Economic Growth Analysis

Components of the Study

• Economic Growth Analysis

• Operations, Research, Student, Visitor and Extension Spending

• Multiplier effects—the additional economic activity created by the initial spending

• All results reflect FY2012-13

Operations Spending Impact

• Includes payroll and non-pay expenditures to support day-to-day operations (less research and extension) plus…

• The indirect income due to associated multiplier effects minus…

• Any monies withdrawn from the state economy to support the university

FY 2012-213 University Spending

Payroll $802 Million

FT and PT Employees

12,535

Goods & Services Spending

$492.4 Million

FY 2012-213 Annual Contribution

University Operations

$504.6 Million

in added state income

(the equivalent of 8,061 new jobs)

Research Spending Impact

$387 Million in added state income for the North Carolina economy

Equivalent of creating 5,591 new jobs

Business Start-Up Impact

$1.2 Billion in added state income for the North Carolina economy

Equivalent of creating 5,799 new jobs

Impact of Spin-Off Companies

$590 Million in added state income for the North Carolina economy

Equivalent of creating 11,641 new jobs

Extension Spending Impact

$103 Millionin added state income for the North Carolina economy

Equivalent of creating 1,285 new jobs

Student Spending

– Measures income generated by spending of students from outside the State plus…

– Associated multiplier effects

FY 2012-213 Annual Contribution

Student Spending

$60 Million

in added state income

(the equivalent of 1,102 new jobs)

Visitor Spending

– Out-of-state visitors bring new dollars to the economy through their spending at hotels, restaurants, and other state businesses.

– Spending is distributed to the various sectors using industry averages.

FY 2012-213 Annual Contribution

Visitor Spending

$17.6 Million

in added state income

(the equivalent of 449 new jobs)

Alumni Impact

– The higher earnings that accrue to alumni employed in the state plus…

– The increased profits of the businesses that employ the alumni.

Accumulated Contribution

Alumni Impact

$4.2 Billion

in added state income

(the equivalent of 67,465 new jobs)

NC State’s Total Economic Impact

• $6.5 Billion in added state income

• 1.5% of Gross State Product

• 91,505 new jobs

the

Investment Analysis

What We Measure

• Student Benefits

• Social Benefits

• Taxpayer Benefits

Student Benefits

• Student benefits consist of the present value of increased future income

• These are measured against student costs - tuition paid and the opportunity cost of time

Student Benefits $4.3 Billion

Student Costs $1.4 Billion

Rate of Return

Student Perspective

Students gain $3.00 in higher future income.

For every $1.00 invested in their education at NC State…

[Average annual return for students is 14.0%.]

Social Benefits

• Higher education is associated with the improved lifestyles of the students

• This translates into:– Added annual income– Higher lifetime earnings– Increased profits to businesses– Social savings from reduced demand for

health, unemployment and law enforcement services.

Social Benefits

• North Carolina as a whole will receive a present value of $19.9 Billion in added state income over the students’ working lives

• Communities will benefit from $2.3 Billion in societal savings related to reduced crime, lower unemployment and increased health and well-being of their citizens.

Rate of Return

Societal Perspective

North Carolina communities gain $9.00 in benefits.

For every $1.00 that society spends on educations at NC State…

Taxpayer Benefits

• Taxpayer benefits consist of the added tax revenue and avoided costs to state and local government in North Carolina.

• These are measured against taxpayer costs – state and local taxes and appropriations

Taxpayer Benefits $2.35 Billion

Taxpayer Costs $617.4 Million

Rate of Return

Taxpayer Perspective

Every $1 in costs to North Carolina taxpayers returns $3.80

in benefits.

11.9%Average Annual Return on Investment

The University Creates Value

• Enriching the lives of lifelong learners• Increasing students’ lifetime incomes• Generating revenue and public sector savings

for taxpayers• Reducing the demand for social services• Contributing to the continued growth and well-

being of the North Carolina economy