University benefits local economy

By: Aaron Sudholt

Posted: 5/24/06

The completion of an economic impact study for the 2005 fiscal year showed SIUE's importance to southwestern Illinois.

The results of the SIUE Economic Impact Study were presented to SIUE Chancellor Vaughn Vandegrift May 16.

Economics and Finance Department Chair Rik Hafer and economics and finance professors John B. Meisel and Timothy S. Sullivan conducted the study.

Results showed a total benefit of about $356 million on the communities around SIUE and more than $178 million in expenditures by SIUE and its employees, students, donors and visitors.

"The purpose of this study, any impact study, is to try to get a snapshot of where the university sits on the economic impact on the region," Hafer said.

"Every dollar from the university that is directly related to it generates two," he said. "That $178 million, that's how much expenditures wouldn't be in the area if SIUE didn't exist."

The result of that doubling is the $356 million.

"You're generating more students and keeping students that would've gone to Eastern (Illinois University), Western (Illinois University) and (Southern Illinois University) Carbondale," Meisel said. "I think the university is on a positive trend."

The study showed that SIUE creates more than 2,000 jobs and gives $19 million in local and state taxes.

The study also found that 37,000 SIUE alumni lived in the region after graduation and 50 percent of graduates stayed in the area.

"It's not just students and faculty that benefited, but businesses," Meisel said.

The study, conducted over nine to 12 months in 2005, was taken through surveys, university budget expenses and taxes and statistics from the SIUE Foundation.

Meisel said that the benefit increase since the last time the survey was taken, in 2001 and 2002, was about 10 percent after inflation.