The Impact of Publicly Supported Higher Education on the Charleston, South Carolina Region Produced for the community by Charleston Regional Development Alliance 2013 Table of Contents Executive Summary .................................................................................................................... 1 Introduction ................................................................................................................................ 5 Economic & Tax Revenue Impact of the Four Public Higher Education Institutions .................. 8 Data Sources ........................................................................................................................... 8 Model Inputs .......................................................................................................................... 9 Economic Impact of Methodology ....................................................................................... 12 The Citadel: The Military College of South Carolina ............................................................ 13 College of Charleston............................................................................................................ 16 Medical University of South Carolina ................................................................................... 19 Trident Technical College ..................................................................................................... 22 Aggregate Economic Impact of Charleston’s Public Higher Education Institutions ............. 25 State of South Carolina Tax Revenue Impact ....................................................................... 27 Social & Community Impact of Public Higher Education .......................................................... 30 Higher Education’s Impact on Regional Competitiveness .................................................... 32 Public Sector Savings Attributable to Education .................................................................. 35 Spillover Effect on Other Residents ...................................................................................... 37 Charleston’s Public Higher Education Sector Leads to Private Sector Jobs for the Region.. 40 Benchmarking Against Higher Education Regions .................................................................... 45 Performance Indicators & Implications for the Charleston Region ..................................... 46 Indicator #1 – Educational Attainment ................................................................................ 47 Indicator #2 – Median Income by Education Attainment .................................................... 48 Indicator #3 – Students Enrolled in Higher Education.......................................................... 49 Indicator #4 – STEM Degrees Awarded Per Year .................................................................. 50 Indicator #5 – Percent of Total Workforce in Higher Education .......................................... 51 Strategic Implications for the Region’s Higher Education Sector ............................................. 52 Potential Challenges Requiring Further Consideration ........................................................ 52 Opportunities to Build Upon ................................................................................................ 55 Conclusion ................................................................................................................................ 59 Legal Disclaimer ........................................................................................................................ 60 Economic Impact of Charleston Southern University .............................................................. 61 References ................................................................................................................................ 64 Appendix 1 – Peer Region Higher Education Institutions ......................................................... 66 Appendix 2 – Estimated State Appropriations Per Capita by State .......................................... 74 Appendix 3 – Location of Publicly Supported Institutions in the Charleston Region ............... 76 Impact of Publicly Supported Higher Education on the Charleston, SC Region| 2013 List of Figures Figure 1: Annual Enrollment by Public Higher Education Institution ......................................... 2 Figure 2: Degrees Awarded by Public Higher Education Institution .......................................... 2 Figure 3: The Flow of Economic Impacts ................................................................................. 12 Figure 4: Annual Enrollment at The Citadel ............................................................................. 14 Figure 5: Annual Degrees Awarded/Certificates at The Citadel .............................................. 14 Figure 6: Annual Enrollment at the College of Charleston ...................................................... 17 Figure 7: Annual Degrees/Certificates Awarded at the College of Charleston ....................... 17 Figure 8: Annual Enrollment at MUSC ..................................................................................... 20 Figure 9: Annual Degrees/Certificates Awarded at MUSC ...................................................... 20 Figure 10: Annual Enrollment at Trident Technical College .................................................... 23 Figure 11: Annual Degrees/Certificates Awarded at Trident Technical College ..................... 23 Figure 12: State Appropriations by Institution ........................................................................ 28 Figure 13: Fall 2011 Distribution of Enrollments by Student Origin* ...................................... 34 Figure 14: South Carolina Health Insurance by Educational Attainment ................................ 36 Figure 15: Total Percent of Adult Population with Post-Secondary Education (2010) ........... 47 Figure 16: Median Earnings for Residents with a Bachelor's Degree (2010) .......................... 48 Figure 17: STEM Degrees Awarded as a Percent of Total Regional Degrees (2010-11) .......... 50 Figure 18: Annual Enrollment at Charleston Southern University .......................................... 62 Figure 19: Annual Degrees/Certificates Awarded at Charleston Southern University ........... 62 Figure 20: Publicly Supported Institutions in the Charleston Region ....................................... 76 Figure 21: Other Publicly Supported Higher Education Facilities in the Charleston Region .... 77 List of Tables Table 1: Estimated Impact of Charleston Public Higher Education Institutions for FY 10-11 ... 3 Table 2: Aggregate Public Higher Education Normal Operational Expenditures .................... 10 Table 3: Aggregate Public Higher Education Construction Spending ...................................... 10 Table 4: Estimated Student Spending...................................................................................... 11 Table 5: The Citadel Economic Impact Model Inputs .............................................................. 13 Table 6: The Citadel Estimated Economic Impact FY 2010-11 ................................................ 15 Table 7: The Citadel Detailed Economic Impact by NAICS Sector ........................................... 15 Table 8: College of Charleston Economic Impact Model Inputs .............................................. 16 Table 9: College of Charleston Estimated Economic Impact FY 2010-11 ................................ 18 Table 10: College of Charleston Detailed Economic Impact by NAICS Sector ......................... 18 Table 11: MUSC Economic Impact Model Inputs .................................................................... 19 Table 12: Medical University of South Carolina Estimated Economic Impact FY 2010-11 ..... 21 Table 13: Medical University of South Carolina Detailed Economic Impact by NAICS Sector 21 Impact of Publicly Supported Higher Education on the Charleston, SC Region| 2013 Table 14: Trident Technical College Economic Impact Model Inputs ..................................... 22 Table 15: Trident Technical College Estimated Economic Impact FY 2010-11 ........................ 24 Table 16: Trident Technical College Detailed Economic Impact by NAICS Sector ................... 24 Table 17: Estimated Charleston Region Total Higher Education Economic Impact FY 10-11 . 25 Table 18: Charleston Region Higher Education Detailed Impact by NAICS Sector .................. 26 Table 19: State Appropriations as Percent of Total Revenues* .............................................. 27 Table 20: Tax Revenue as a Percent of State GDP ................................................................... 29 Table 21: Federal Contracts and Grants .................................................................................. 29 Table 22: Educational Attainment for Adult Population (2010) .............................................. 32 Table 23: Unemployment Rate by Educational Attainment for Adult Population .................. 32 Table 24: Labor Force Participation by Educational Attainment for Adult Population ........... 33 Table 25: Awards by Level and Provider, 2010-11 Academic Year ......................................... 33 Table 26: Poverty Rate by Educational Attainment for Adult Population ............................... 35 Table 27: Charleston Region Health Insurance by Educational Attainment ........................... 36 Table