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1. Economic Impact of HSU
Traditionally, the impact of a university is thought of as the incalculable value of knowledge and learning that its students receive. While education is indeed valuable in its own right, the economic impact of a university can be accounted for, in monetary terms, through its spending, student activity and the incremental life-time income of its alumni. The direct economic activity associated with the university has a multiplier effect on employment, labor income and industry activity across the region. Quantifying these impacts will allow HSU to raise awareness about its crucial role in the regional economy and to utilize relevant information in garnering stakeholder support for its long-term development plan.
ICF used the IMPLAN input-output model to measure the inter-industry impacts of university spending, student spending and enhanced alumni earnings on the regional economy. IMPLAN calculates the flow of expenditures from various industry sectors--e.g., university operations or construction expenditures--using a model specific to the regional economy of Humboldt County. For more information about the IMPLAN model, see Appendix A. By tracking HSU-related spending throughout the economy, the model calculates the secondary impacts of the initial spending. The results of the economic impact assessment are presented below.