pf_01909 - Laserfiche WebLink

Home

an d taxes results in the total expenditures for purposes of this analysis. For 1988, this amount is $559,362. REGIONAL MULTIPLIERS The total college, employee, and student expenditure estimates become the direct impact on the local economy. An indirect im act is also a part of economic impact studies. Each dollar spent is subsequently respent several times in the economy as providers of goods or services pay employees and, in return, they purchase goods and services. Economists use a multiplier to estimate this effect. As stated before, we will be using the U.S. Dept. of Commerce, Regional Impact Office's multiplier for the Twin Cities and the State of Minnesota. The direct impact of all expenditures is $3,055,008. Using the Regional Multiplier 2.1284 of the indirect impact would amount to $3,4470271. This creates a Total Economic Impact on the local economy of $6,502,279. The earnings rnings generated by employees zit Minneapolis Business College also affects the regional economy. This impact can be represented by net wages & salaries multiplied by the regional earnings multiplier of 0.8578. Using the 1988-89 net wages & salaries of $551,699, the added economic impact is $473,247. EMPLQ ENT OTmTFO ^o�am�n The existence of Minneapolis Business College carries with it the necessity for the various jobs to carry out the functions of the college. In addition, expenditures by the school, its students, and faculty and staff, increases economic activity which in turn result in the creation and support of additional jobs in the local economy. The U.S. Dept. of Commerce, Regional Economic Impact office suggests a multiplier of 55.7 be for used every $1,0o0,4A0 of expenditures. Using the direct economic impact on the local economy, and Minneapolis Business College's operations impact is 170 positions. WHAT .WAS NOT CQ This study has been a direct look at Minneapolis Business College's impact on the economy. other considerations need to be given to the impact of construction on the local economy. Banking and other local servicing agents are also impacted by presence of Minneapolis Business College. The tax base now and future tax bases will also be impacted positively by the new Minneapolis Business college. Also, the range of economic impact on the state has not been, considered but is also impacted by the activity generated by Minneapolis Business College.