An analysis conducted by Regional Economic Models Inc. has indicated that, for the year 2008, the disposable personal income for Oklahoma will increase by $39 million as a result of Northeastern Oklahoma A&M College.
The college’s contribution to total consumption across the state was $51 million, college officials announced Tuesday.
The study also indicates that NEO created 1,057 Oklahoma jobs in 2008.
Using a model of the state and data provided by the Oklahoma State Regents for Higher Education, REMI evaluated contributions of higher education — such as direct institutional employment and spending, students and visitor spending, and graduate earnings.
The study also indicated that for every dollar of state-appropriated funds spent on higher education in Oklahoma, an additional $5.15 is pumped into the state’s economy. The study also revealed that the creation of jobs, direct expenditure, increased productivity and the impact of athletics and tourism related to higher education directly and indirectly account for approximately 23 percent of the state’s economy.
Individual communities experience improved economic prosperity resulting from the resources invested in local institutions of higher education, the report indicates.
“Oklahoma higher education is an invaluable resource which produces graduates who stay in Oklahoma, have jobs in Oklahoma, significantly contribute to the quality of life in Oklahoma and have an extra incentive to keep improving it,” said Chancellor Glen Johnson. “Taxpayers continue to receive a great return on their investment as higher education drives Oklahoma toward a future of long-term, sustained economic growth.”
The disposable income of college graduates in Oklahoma creates a buying power of $778 million annually, which benefits retailers and merchants across the state.
Every public college and university in Oklahoma spends money on capital improvements, including construction of new buildings; furniture for faculty, students and staff; equipment for labs and offices; and library materials. In 2008, capital expenditures and construction spending were projected to add 23,750 jobs in Oklahoma.