Letter: Colleges benefit La. financially

• Published: Jun 30, 2009 - Page: 8B

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Those who look upon Louisiana’s state-funded colleges and universities as a burden on taxpayers should be reminded that each of these institutions brings money into its region — money that does not come from the state’s budget, but from spending by individuals and businesses who have relationships with the institution.

At Nicholls State University in Thibodaux, we recently completed a study of the economic and cultural impact our university has on our region and the entire state. The study used a spending model developed by the American Council on Education. Consider just a few of the many ways every single dollar spent at Nicholls amounts to $8 worth of economic activity, and supports educational and cultural opportunities that are priceless.

Money spent at Nicholls has created 2,843 full-time jobs statewide in industries, including construction, health care and food services. These jobs are all in the private sector, and they increase tax revenue for the state, not decrease it.

The typical holder of a two-year degree from Nicholls earns $4,294 more every year than does someone with only a high school diploma. Citizens of Louisiana holding Nicholls four-year degrees earn $17,287 more every year, and those holding master’s degrees from Nicholls earn $27,856 more annually than those whose educations ended after high school. Higher salaries enable increased spending, and they generate higher revenue from income and other taxes.

Every year, more than 188,000 visitors come to the Nicholls campus to attend educational and cultural events and athletics contests. Two out of three come from out of the area, and campus visitors spend a total of $30 million every year on travel, food and lodging. That number is based on a modest average of about $160 spent per person, per visit.

In total, our study found that Nicholls generates $250 million a year in spending by people and organizations who come to Thibodaux simply because Nicholls offers them an opportunity of some kind. The state’s annual investment of $36 million in our operating budget is therefore earning almost a 7 percent annual return on the dollar.

That kind of profit is something for which all residents of the region and state should be proud. Far from being a burden on taxpayers, Nicholls is in fact an important economic multiplier as well as a thriving educational and cultural resource.

Stephen Hulbert, president
Nicholls State University
Thibodaux