Economic Impact Calculator


ECONOMIC IMPACT REPORT GENERATOR

The Federation of Independent Illinois Colleges and Universities developed an online economic impact calculator to provide a summary of economic impact, jobs, and taxes for our members. Select the dropdown to choose a specific college or university.


METHODOLOGY

Input-Output Analysis has served as a primary tool for tracing the economic linkages between various economic sectors and whole communities since the 1930's. This study utilized input-output analysis to show direct, indirect and induced industry output and employment as a result of institutional E&G expenditures, construction, independent operations, related student expenditures and visitor activity.

Total student expenditures were based on College Board student living budget. Specifically designated expenditures for transportation and books were coded within those industry clusters, while miscellaneous expenses were based on the Consumer Expenditure Survey purchase patterns of persons between the ages of 18-24. Corresponding expenditures from the college's auxiliary operations, such as room and board and food services, were subtracted from the student's total expenditures to avoid double counting. The distribution of faculty and staff expenditures were also based on the spending patterns reported in the Consumer Expenditure Survey.

Visitor expenditures were based on estimates of visitor person-days that is collected across campus by admissions, the college event office and academic centers. Average daily expenditures and expenditure types were derived from visitor and tourist budgets computed by the Illinois Department of Tourism and the Travel Industry of America.

Operations expenditures were based on the higher education sector purchase pattern captured in the USIO Benchmark Input-Output Account of the US Economy by the Bureau of Economic Analysis. Because capital spending is cyclical the EI tool provides a separate calculation of this activity. It is suggested that colleges use a five year window, and report the results as a "Five Year Impact". However, the EI tool can provide estimates for any time frame.

To estimate the impact of Independent Colleges and Universities expenditures on the Illinois economy and to understand the linkages, or dollar flows between higher education activity and its supplying sectors, an Input-Output (IO) table was developed by updating a 65 sector 2014 Annual USIO table. The table was updated for 2015 prices and employment based on various national and local sources. To "regionalize" the table and estimate state activity, a standard location quotient (LQ) update method was applied to the US table-- where individual values from the IO technical coefficient, or "A" matrix are proportionately adjusted based on state employment LQs derived from the 2014 US County Business Patterns. LQ's are based on the ratio of the percent of persons employed in each industry in Illinois to the percent employed in each industry nationally.

In considering the impact or multiplier effect under this technique, it is important to recognize that this method, like all non-survey or partial survey-based IO tables, represent an estimate of actual economic activity. Because of individual supplier arrangements between individual business establishments and unique consumer preferences, it is impossible to state precisely the extent to which all transactions actually occurred within state boundaries. The LQ method assumes that the state of Illinois is relatively "self-sufficient" in meeting local demand for inputs which have at least the national percent employed in a particular industry. Separate multipliers were calculated for operations, faculty and staff, students, and tourism activity.

The estimates of generated federal tax revenue are based on estimates derived from the Consumer Expenditure Survey and methods from other Economic Impact Studies. The tax rates used to estimate federal, state, and county generated tax revenue is based on effective tax rates derived from Individual Tax Return Data, the Annual Report of Collections and Distributions from the Illinois Department of Revenue.

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Direct Expenditures

Total Expenditures
Salary Expenditures
Total Operational Expenditures
Total Students
Total Staff
Estimated In State-Alumni
Student Expenditures
Total Estimated Visitors
Total Estimated Visitor Expenditures
Capital Expenditures

Total Economic Impact

Total Impact to Illinois
Total Illinois Jobs
Total Local Impact
Total Local Jobs

Tax Revenue Generated

Sales
Property
Income
Other State
Federal
Total