A jaw-dropping economic impact estimated at more than $214 million annually in Yavapai County? And $278 million in Arizona? All because of Embry-Riddle Aeronautical University?
That was the response by some who first heard the results of an economic impact study about ERAU’s Prescott campus. Such findings were revealed in a research report called, “Comprehensive Economic Impact of ERAU Operations in Florida, Arizona and the Counties Served by the Institution.”
Leaders at the world’s largest fully accredited university in aviation and aerospace education decided a couple of years ago to commission the independent economic impact study by Washington Economic Group, Inc., a Florida consulting firm with almost a quarter-century of experience.
Results were released in this summer and data reveal ERAU has a significant impact through six main activities:
- Daily operation expenses, including payroll, utility expenses and aircraft operating expenses
- Capital projects, including the completion of new facilities such as a 264- bed residence hall valued at $18 million, and a currently under construction STEM Education Center (Science, Technology, Engineering and Math) valued at $22 million
- Student living expenditures
- Out-of-town visitor expenditures
- Additional earnings of ERAU alumni living in the area
- Revenues from worldwide campuses – 125 of them – where ERAU helps provide instruction.
Rodney Cruise, ERAU vice president for administration, (whose office is at the campus in Daytona Beach, Florida), says the study has been many months in the making, for it details economic impacts of both the Arizona and Florida campuses.
In Prescott, ERAU Chief Financial Officer David Hall says study results may be conservative, because campus enrollments and overall campus growth in this area have increased significantly in the past couple of years.
Campus Growth Has Dynamic Financial Impact
Among the positive economic indicators, Hall provided these details about campus growth and its impact:
- The number of employees paid through by university is up from 399 in 2014 to 500 in 2016.
- Nearly 200 Employees on campus because of contracted service such as Sodexo Food Service, Universal Helicopter, Follett Higher Education Services (bookstore, technology services and school supplies.
- Student enrollment has been on the rise. Since last year, enrollment is up almost nine percent: 2,447 students in 2015, compared to 2,050 in 2014.
- With the new residence hall, 1,186 students live on campus while others live with families, or rent homes or apartments in the Quad Cities area.
- Tuition revenue is $80 million in 2016, up from $55.5 in 2014.
“A major source of money that has a direct impact on our local and Arizona economy is a direct result of out-of-town visitors who come to campus,” said Hall. “Our fall and spring graduations bring more than 5,000 visitors to Prescott. Our open houses and parents’ weekends bring an estimated 850 to 900 visitors. And a big source of visitors – the tours by prospective students and their parents – we estimate that to be about 4,500 or so annually.”
The WEG report also points out that jobs created because of ERAU have a direct impact of an estimated 1,567 jobs and an in direct impact of another 941 jobs in Arizona.
ERAU’s economic impact includes tax contributions and fees estimated at $27.5 million in just Yavapai County.
In addition, ERAU supports five industries that have been designated by the Arizona Commerce Authority as target businesses for growth. They are Aerospace and Defense, Semiconductor, Bioscience, Optics and Renewable Energy.
“We at the university are committed to working with local and state business and governmental leaders to be certain we are doing our part to contribute to the overall economy of Arizona. Certainly, this is true in Prescott. I think the results of the economic impact study demonstrate that commitment,” said ERAU Chancellor Frank Ayers. “I’d also add that the fact that we are consistently ranked as one of the top 100 places in Arizona to work shows our ongoing commitment to quality of life for our faculty, staff, students and the greater community.” QCBN
By Ray Newton, QCBN
PHOTO CAPTIONS:
Embry-Riddle Aeronautical University Chief Financial Officer David Hall and Chancellor Frank Ayers say the economic impact report demonstrates that the university is a positive force in Yavapai County and Arizona.
Photo by Ray Newton
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