For every dollar the state puts into operations and capital to University, the LSU system provides $5.08 of economic activity, creating jobs, bringing in revenues and drawing non-residents into Louisiana, according to a study conducted by the LSU Division of Economic Development and the E.J. Ourso College of Business.
The study, released on Friday, found that in 2013, the University supported nearly $3.9 billion in Louisiana sales, $1.5 billion in new statewide earnings and nearly 3,500 new jobs brought in by non-resident students attracted to LSU programs.
“It’s no surprise that LSU has such an economic impact on Louisiana,” said LSU President F. King Alexander. “With campuses, research stations and extension offices in every corner of the state, we don’t just make money for Louisiana — we attract new business and industry.”
LSU supported an estimated 36,757 direct and indirect annualized jobs, with 6,090 full-time employees and 9,930 part-time employees at the flagship campus, the study found.
In the Baton Rouge area, the flagship campus, LSU AgCenter and Pennington Biomedical Research Center contribute to $2.1 billion in sales, $764 million in earnings and more than 21,400 jobs.
William Cefalu, executive director of Pennington, said that research grants awarded to the research center support area business though the purchase of supplies and
equipment.
“For every $1 million from Pennington Biomedical’s operating expenses, it was estimated to generate $1.9 million in new business sales and 20.5 new jobs,” Cefalu said.
In addition to the research center’s direct impact on the area, Cefalu said that many of the center’s grants are in collaboration with fellow campuses enhancing their research programs and creating more new jobs.
The LSU AgCenter, another economic driver in Baton Rouge, provides information to improve quality of life and the state’s $30 billion agricultural industries and also provides more than 2,000 jobs and $92 million in earnings, said LSU Vice President for Agriculture Bill Richardson.
The study also found the New Orleans metropolitan statistical area employs 15 percent of the system’s full-time workers, despite only housing the Health Sciences Center.
In the Shreveport-Bossier City metropolitan statistical area, home to LSU Shreveport and the Health Sciences Center-Shreveport, University facilities generate more than $200 million in earnings and employs 18 percent of the University’s full-time workforce.
Paul Sisson, interim chancellor at LSU Shreveport, said the study’s findings confirmed the economic impact known to the area, and gives the university an opportunity to show the surrounding region the degree to which it directly affects the community.
“These numbers demonstrate how invaluable LSU is to our state from a variety of angles,” said Stephen Barnes, study author and director of the LSU Division of
Economic Development.