2008

ECONOMIC IMPACT STUDY

PRESENTED BY:KEN COPELAND

DIRECTOR OF ECONOMIC

DEVELOPMENT

Methodology

Two surveys were conducted in Spring 2008

Faculty survey – 398 responses from 794 employees or 50%

Student survey – 994 responses from 4727 students or 21%

Each survey asked respondents to list average monthly expenditures in the Farmville area for all types of consumer goods and services.

These amounts were added to total University expenditures.

Economic Impact Multiplier

The idea behind an economic multiplier is that much of the direct local spending from the University, faculty, staff and students becomes income for Farmville business owners and their employees and suppliers. This local spending and re-spending of dollars derived from Longwood’s activities implies that the total impact is larger than the initial dollar amounts. The authors of the report have used a “1.5 times” multiplier and believe this to be a conservative estimate for the Farmville region.

Total Direct Longwood University Expenditures

2001 Expenditure

Percentage of Total

2007 Expenditure

Percentage of Total

Farmville $33.3 million 49.5 $49.1 million 54.3

Surrounding Counties $2.7 million 4.1 $10.4 million 11.5

Elsewhere $31.2 million 46.4 $30.9 million 34.2

Total $67.3 million 100.0 $90.4 million 100.0

Estimated Effect using a Multiplier of 1.5

$100.9 million $135.6 million

ExpenditurePercentage of

TotalFarmville $15.7 million 48.2

Surrounding Counties $8.7 million 26.9

Elsewhere $8.1 million 24.8

Total $32.5 million 100.0

Estimated Effect using a Multiplier of 1.5

$48.8 million

Longwood University Employee Expenditures

Expenditure Percentage of Total

Housing $3,085,044 15.3

Utilities $832,073 4.1

Groceries $4,262,045 21.2

Entertainment $3,253,680 16.2

Clothing $1,372,866 6.8

General Merchandise $1,292,313 6.4

Transportation $3,296,223 16.4

Local Services $420,280 2.1

Miscellaneous $1,257,933 6.3

Medical Care $971,077 4.8

Child Care $76,021 0.4

Total $20,119,554 100.0

Estimated Effect using a Multiplier of 1.5

$30,179,331

Longwood University Student Expenditures for Goods and Services in Farmville

Expenditure Percentage of Total

Employees' Visitors $1.8 million 29.2

Students' Visitors $4.3 million 70.8

Total $6.0 million 100.0

Estimated Effect using a Multiplier of 1.5

$9.1 million

Longwood University Visitor Expenditures

Longwood University Expenditures in Farmville (Direct & Indirect)

Expenditure Percentage of Total University $7.3 million 14.8

Employees $15.7 million 31.9

Students $20.1 million 41.0

Visitors $6.0 million 12.3

Total $49.1 million 100.0

Estimated Effect using a Multiplier of 1.5

$73.7 million

Other Contributions

• Longwood Center for the Visual Arts– Approximately 10,000 people attended and volunteered at LCVA sponsored

offerings

• Longwood Center for Language, Literacy, and Learning– Assisted over 350 people

• Sports and Athletics– Approximately 15,000 people attended University athletic events

• Cook – Cole College of Arts and Sciences– Music: 70 performances attended by approximately 10,000 people– Theatre: 28 performances attended by over 4,900 people

• Dining and Catering Services– 200 events and meals served to more than 100,000 guests

• The University Inn– Approximately 1,000 guests and hosted numerous special events on-site

• Longwood Small Business Development Center– Provided services to 492 small business clients with over 3,600 hours of one-on-one

business counseling and associated business assistance.