Economic Impacts of the University of North Carolina at Asheville

Economic Impacts of the University of North Carolina at Asheville Conducted by December 2017

Table of Contents Executive Summary 3 Finding Highlights 4 Introduction 5 UNC Asheville Economic Impacts Total Impacts 7 Major Activities: UNC Asheville Campus Operations 12 UNC Asheville Student Spending 13 UNC Asheville Outside Visitors 14 UNC Asheville Alumni Education Premium 15 Annual New Resident Attraction 16 Actual & Planned Capital Spending 17 Definitions 20 Firm Profile 21 Economic Impacts of the University of North Carolina at Asheville 2017 2

Executive Summary Since 1927, UNC Asheville has been the creative and intellectual hub for a region inherently innovative and inspiring. As North Carolina s only designated liberal arts university among the 17 institutions of the University of North Carolina System, UNC Asheville is consistently ranked as one of the nation s top liberal arts universities, widely recognized for outstanding faculty, top notch academics, and championship winning athletics. About 3,800 undergraduate students and about 330 full and part time faculty collaborate to foster critical thinking and workforce skills to last a lifetime. Small class size, award winning faculty and a nationally acclaimed undergraduate research program foster creativity as well as recognition. The work being done by the university s faculty, staff, and students further enhance their reputations as innovators, difference makers, and leaders in their fields. Additionally, UNC Asheville faculty, staff, students, and Osher Lifelong Learning Institute (OLLI) members contribute over 100,000 volunteer hours annually. While the civic engagement of the UNC Asheville community is not measured for local economic impact, it represents a significant range of social, health, and broader economic outcomes. With a strategic plan charting UNC Asheville s mission driven course, the core values of diversity and inclusion, innovation, and sustainability permeate the university. Four strategic directions support those core values: academic rigor, student success, community engagement, and organizational capacity. Together they bring the strategic plan to life and establish a solid foundation to make the greatest impact on the region. The university is an important driver of Asheville s creative economy; raising local economic output by $450 million. Through its faculty, students, staff and facilities, UNC Asheville serves as a comprehensive and dynamic academic, cultural, economic and social center of the Asheville region. In the report that follows, the economic impact of the University for the fiscal year 2017 on the Asheville North Carolina metro area is explained on many levels. The study examines the annual impacts of: 1. UNCA Campus Operations ($278 million output) 2. UNCA Student Spending ($44.3 million output) 3. Outside Visitors ($15.3 million output) 4. UNCA Alumni Education Premium ($96.1 million output) 5. Annual New Resident Attraction ($9.4 million output) 6. On Campus Capital Spending ($7.0 million output) It is clear that UNC Asheville is an engine of economic growth within the region. While it is impossible to put a value on the cultural impact of the institution, the students and wide scope of events held on campus reinforce the critical role the university plays in the creative economy. UNC Asheville s regional impact is multifaceted, vibrant, sustainable, and diverse, further solidifying its status as the academic, cultural, economic and social hub of the region. Economic Impacts of the University of North Carolina at Asheville 2017 3

Finding Highlights Economic activity generated by UNC Asheville supports 3,911 local jobs, adds $164.6 million in local income, and raises total economic output in the Asheville area by $450 million For every dollar the state of North Carolina appropriates to UNC Asheville: o Income increases by $4.13 in the Asheville area o Total economic output increases by $11.30 in the Asheville area Economic activity generated by UNC Asheville increases annual tax revenues by more than $62.4 million dollars: o $8.9 million in County & Local tax revenues o $14.8 million in State tax revenues o $38.7 million in Federal tax revenues Direct on campus operations employment accounts for less than one quarter of the total local jobs UNC Asheville supports. For example, UNC Asheville supports 500 local jobs in Retail Trade, 488 local jobs in Health & Social Services, 425 local jobs in Restaurants & Lodging and local 367 jobs in Real Estate & Rental Services UNC Asheville students spend over $31 million annually in the local economy o Student spending annually supports 404 local jobs, raises economic output by $44.3 million, and increases tax revenues by $5.2 million Visitors who traveled from outside the Asheville area to attend or participate in a UNC Asheville event spend an estimated $9.2 million annually in the local economy o The visitor spending annually supports 166 local jobs, raises local economic output by $15.3 million, and increases tax revenues by $2 million Graduates of UNC Asheville living in the Asheville area increase local earnings by $115.9 million on an account of having attained a Bachelor's or Graduate s degree o The alumni education premium supports 835 local jobs by means of added spending, raises economic output by $96.1 million, and increases tax revenues by $12.2 million UNC Asheville attracts new residents to the Asheville area. Results from the Osher Lifelong Learning Institute attribute the annual relocation of 115 new households, partially on account of the Institute s activities and introduction to the community o Added local spending from new 115 households supports 81 local jobs, raises economic output by $9.4 million, and increases tax revenues by $1.1 million Beginning in the current 2017 fiscal year through 2021, UNC Asheville is planning to spend slightly more than $79 million on capital projects, the spending will support an annual average of 224 local jobs, add $3.1 million in income, raise economic output by $31 million and generate $2.6 million in tax revenues Economic Impacts of the University of North Carolina at Asheville 2017 4

Introduction Background & Purpose The University of North Carolina Asheville retained SYNEVA Economics LLC to conduct a comprehensive analysis of the University s impact upon the Asheville North Carolina regional economy. The purpose of the analysis was to gain a greater understanding and appreciation of the University s economic effects upon the region. The analysis is expected to objectively quantify local spending that occurs as a result of the presence of UNC Asheville; and track that spending as it moves through the local economy. Results of the analysis can demonstrate the economic contribution and value of UNC Asheville in terms of local supported jobs, increased income, Value added, raised economic output, and additional tax revenues generated. Limitations Economic impact analyses use spending as the primary factor to capture the effects of an economic activity. Spending presents a quantifiable variable from which an analyst can reliably model and track where and how dollars will flow in a particular situation. While spending is an important element, it fails to capture broader social and cultural impacts. This is a severe shortcoming in the context of measuring the impact of a University; an institution that at its core widely impacts the local social and cultural environment. Issues such as innovation or creativity, which are increasingly recognized as critical factors in economic development, are rooted within social or cultural forces and are thus largely untouched by an analysis based primarily on spending. As such, the reader should recognize that the results presented in this analysis likely capture only a small portion of the actual total impact that UNC Asheville has on the Asheville area. Methodology To measure economic impacts the IMPLAN system 1 was employed. IMPLAN is an input output model that is comprised of software and regional data sets. IMPLAN is an acronym for IMpact analysis for PLANning. The IMPLAN model was originally developed by the USDA Forest Service in cooperation with the Federal Emergency Management Agency (FEMA) and the USDI Bureau of Land Management to assist in resource management and planning. Currently the model is used by hundreds of public, private, and academic organizations. The overriding objective of the model is to measure the full economic impact to a local economy as the result of a specific economic activity. The model is built upon a matrix detailing the input output relationships among industries and consumers. The primary matrix structure is derived from the National Bureau of Economic Analysis s Benchmark Input Output Model. The national model was realigned to match the regional Asheville economy. Output ratios and imports for over 536 industrial 1 IMPLAN Group, Inc., 16905 Northcross Drive, Suite 120 Huntersville, NC 28078 Economic Impacts of the University of North Carolina at Asheville 2017 5

sectors in the area are assigned. Purchase coefficients are derived to measure the percentage of intermediate and final demands that are satisfied from local production and the percentage that are imported from outside the area. Consumer expenditure patterns, price deflators, industry employment levels, household income groups and the area population are also factored in for the local economy. The analysis measures the impacts occurring in the Asheville North Carolina metropolitan area. The Asheville metropolitan area is comprised of four counties (Buncombe, Haywood, Henderson, and Madison) located in the western part of North Carolina (Figure 1). The U.S. Census Bureau delineates a metropolitan area based on worker flows and the presence of a dense central urban core; terming the entire area a single economic entity. The City of Asheville in Buncombe County is the metropolitan area s urban core, and worker flows from and to the surrounding three counties demonstrate strong cross boundary economic linkages. UNC Asheville is located in central Buncombe County. In the report, references to the local economy, community or area all denote the Asheville North metropolitan area. Results are presented for a single oneyear period, based on information covering the University s fiscal year 2016 2017. Figure 1 Four County Asheville Metropolitan Area The economic impacts are measured as three local effects: direct, indirect, and induced. 2 Each of these effects is expressed in terms of their effect on jobs (local employment), income (local wages and proprietor income), value added (incremental value of production less intermediate outputs), output (total value of production), and tax revenues. 2 Direct effects are those initial changes occurring to a organization in expenditures or production as a result of a change in demand. Indirect effects occur to industries in the backward linked industries that supply the firm. Induced effects result from household spending generated by the additional income received in the local area. A more complete description can be found in Definitions section. Economic Impacts of the University of North Carolina at Asheville 2017 6

UNC Asheville Total Economic Impacts UNC Asheville s total economic impact is the sum of six major economic activities: UNCA Campus Operations UNCA Student Spending Outside Visitors UNCA Alumni Education Premium Annual New Resident Attraction On Campus Capital Spending UNC Asheville s total economic impact results in $450 million of economic output in the Asheville area (Table 1). The University supports 3,911 local jobs annually and raises labor income by $164.6 million. Local economic activities stimulated by UNC Asheville generate annual tax revenues of $162.4 million (Table 2). Table 1 UNC Asheville Total Economic Impact Effects Employment Labor Income Value Added Output Direct 1,187 $70,469,215 $93,740,553 $135,899,567 Indirect 380 $10,703,262 $20,982,806 $44,412,094 Induced 2,345 $83,474,006 $146,756,350 $270,077,363 Total 3,911 $164,646,482 $261,479,709 $450,389,025 Table 2 UNC Asheville Total Tax Revenues Generated County & Local $8,918,316 State $14,829,447 Federal $38,726,523 Total $62,474,286 In terms of return on investment, UNC Asheville appropriations from the state of North Carolina totaled $39,864,860 in Fiscal Year 2016 2017; meaning for every dollar appropriated by the state, labor income increased by $4.13, economic value was raised by $6.56 and total economic output increased by $11.30 in the Asheville area (Figure 2). Economic Impacts of the University of North Carolina at Asheville 2017 7

Figure 2 UNC Asheville Total Return on Investment For every dollar invested by the State of North Carolina... $11.30 $6.56 $4.13 $1.00 Invested by State Labor Income Increase Economic Value Added Economic Output Increase Direct on campus operations employment accounts for less than one quarter of the total local jobs UNC Asheville supports in the Asheville metro. UNCA faculty and staff employment of 823 is 21 percent of the full 3,911 local jobs supported (Figure 3). Economic Impacts of the University of North Carolina at Asheville 2017 8

Figure 3 UNC Asheville Local Employment Supported Among the six major components of UNC Asheville s total economic impact when counting total effects, Campus Operations is unsurprisingly the largest contributor; accounting for 61 percent of the total jobs supported, 70 percent of total labor income, 65 percent of added value, 62 percent of total output and 66 percent of the total tax revenue generated (Tables 3 7). Table 3 UNC Asheville Employment Impacts Major Component Breakdown Direct Indirect Induced Total UNC Asheville Total Economic Impact 1,187 380 2,345 3,911 Major Components: UNCA Campus Operations 823 263 1,290 2,376 UNCA Student Spending 212 78 115 404 Outside Visitors 93 18 54 166 UNCA Alumni Education Premium 0 0 835 835 Annual New Resident Attraction 37 12 32 81 On Campus Capital Spending 23 8 20 50 Economic Impacts of the University of North Carolina at Asheville 2017 9

Table 4 UNC Asheville Labor Income Impacts Major Component Breakdown Direct Indirect Induced Total UNC Asheville Total Economic Impact $70,469,215 $10,703,262 $83,474,006 $164,646,482 Major Components: UNCA Campus Operations $61,910,895 $7,030,970 $45,934,600 $114,876,465 UNCA Student Spending $4,028,666 $2,351,271 $4,084,436 $10,464,374 Outside Visitors $2,390,393 $603,646 $1,917,305 $4,911,344 UNCA Alumni Education Premium $0 $0 $29,708,783 $29,708,783 Annual New Resident Attraction $1,378,901 $388,990 $1,132,019 $2,899,910 On Campus Capital Spending $760,360 $328,384 $696,863 $1,785,607 Table 5 UNC Asheville Value Added Impacts Major Component Breakdown Direct Indirect Induced Total UNC Asheville Total Economic Impact $93,740,553 $20,982,806 $146,756,350 $261,479,709 Major Components: UNCA Campus Operations $73,365,915 $14,718,315 $80,712,990 $168,797,220 UNCA Student Spending $12,947,311 $4,082,761 $7,191,036 $24,221,108 Outside Visitors $4,014,499 $980,033 $3,373,580 $8,368,112 UNCA Alumni Education Premium $0 $0 $52,259,046 $52,259,046 Annual New Resident Attraction $2,448,429 $671,329 $1,992,197 $5,111,956 On Campus Capital Spending $964,399 $530,367 $1,227,501 $2,722,268 Table 6 UNC Asheville Total Output Impacts Major Component Breakdown Direct Indirect Induced Total UNC Asheville Total Economic Impact $135,899,567 $44,412,094 $270,077,363 $450,389,025 Major Components: UNCA Campus Operations $97,896,602 $31,639,076 $148,552,107 $278,087,784 UNCA Student Spending $22,898,010 $8,183,562 $13,226,168 $44,307,739 Outside Visitors $7,123,249 $2,055,333 $6,207,158 $15,385,740 UNCA Alumni Education Premium $0 $0 $96,169,828 $96,169,828 Annual New Resident Attraction $4,361,707 $1,395,748 $3,665,098 $9,422,553 On Campus Capital Spending $3,620,000 $1,138,376 $2,257,004 $7,015,380 Economic Impacts of the University of North Carolina at Asheville 2017 10

Table 7 UNC Asheville Tax Revenues Generated Major Component Breakdown County & Local State Federal Total UNC Asheville Total Economic Impact $8,918,316 $14,829,447 $38,726,523 $62,474,286 Major Components: UNCA Campus Operations $5,545,202 $9,478,315 $26,081,592 $41,105,109 UNCA Student Spending $876,090 $1,349,575 $3,009,504 $5,235,169 Outside Visitors $349,393 $540,345 $1,204,721 $2,094,458 UNCA Alumni Education Premium $1,891,230 $3,032,792 $7,329,316 $12,253,339 Annual New Resident Attraction $183,903 $295,326 $716,548 $1,195,777 On Campus Capital Spending $72,498 $133,093 $384,843 $590,434 An examination of employment impacts by industry demonstrates the far reaching effects of UNC Asheville on the Asheville economy. For example, outside of Educational Services, UNC Asheville supports 500 local jobs in Retail Trade, 488 local jobs in Health & Social Services, 425 local jobs in Restaurants & Lodging and local 367 jobs in Real Estate & Rental Services (Table 8). Table 8 UNC Asheville Employment Impacts By Industry Sector Industry Direct Indirect Induced Total Educational Services 823 15 71 909 Retail trade 79 10 411 500 Health & Social Services 10 0 478 488 Restaurants & Lodging 71 31 323 425 Real Estate & Rental Services 133 93 141 367 Other Misc. Services 23 16 267 306 Administrative Services 0 88 162 250 Professional, Scientific & Tech Services 0 28 98 126 Arts Entertainment & Recreation 15 11 92 118 Finance & Insurance 1 11 97 109 Transportation & Warehousing 7 20 62 89 Construction 23 22 34 79 Wholesale Trade 1 7 38 46 Information 0 8 30 38 Manufacturing 0 6 11 17 Forestry, Fish & Hunting 0 2 11 13 Government 0 5 7 12 Utilities 0 5 5 10 Management of Companies 0 1 6 7 Mining 0 1 1 2 Total 1,187 380 2,345 3,911 Economic Impacts of the University of North Carolina at Asheville 2017 11

Major Activities: UNC Asheville Campus Operations UNC Asheville Campus Operations include the impacts of operating expenses, purchases from suppliers and household spending by faculty and staff. Operating expenses include the regular purchasing of products and services to run the University. For fiscal year 2016 2017 total operating expenses for UNC Asheville equaled $97,896,602. 3 In the fiscal year UNC Asheville engaged 823 permanent employees; 706 full time and 117 part time. Total annual salaries and benefits for these employees equaled $61,910,895. UNC Asheville s campus operations support a total of 2,376 local jobs; 823 directly, 263 indirectly and 1,290 induced (Table 9). In terms of income activity, campus operations spending cause local labor income to increase by $114.8 million. Annually, economic value rises $168.7 million and total economic output increases by $278 million in the Asheville region as a result of spending on operations by UNC Asheville. As local purchases are made they generate additional tax revenues; increasing county, local, state and Federal revenues by $41.1 million annually (Table 10). A sample of supported local jobs resulting from UNC Asheville campus operations demonstrates the wide ranging impacts as spending flows through the Asheville economy; examples include 264 jobs in Health & Social Services, 228 jobs in Retail Trade and 201 jobs in Restaurants & Lodging. Table 9 UNC Asheville Campus Operations Effects Employment Labor Income Value Added Output Direct 823 $61,910,895 $73,365,915 $97,896,602 Indirect 263 $7,030,970 $14,718,315 $31,639,076 Induced 1,290 $45,934,600 $80,712,990 $148,552,107 Total 2,376 $114,876,465 $168,797,220 $278,087,784 Table 10 UNC Asheville Campus Operations Tax Revenues Generated County & Local $5,545,202 State $9,478,315 Federal $26,081,592 Total $41,105,109 3 UNC Asheville Factbook 2016 2017, Office of Institutional Research, Effectiveness and Planning Economic Impacts of the University of North Carolina at Asheville 2017 12

UNC Asheville Student Spending UNC Asheville student enrollment as of Fall 2017 totaled 3,830. Of these students, 2,470 (64%) lived offcampus, with the remaining 1,360 (36%) living on campus. Based on the yearly estimated cost of attendance expected local spending figures were derived for each of the two groups of students. Spending on tuition, fees, books, supplies, loan fees, and health insurance was not included. Off campus students spending comprises room & board, transportation and personal items. On campus students spending comprises transportation and personal items. In total, estimated annual local student spending equals $31,264,320. Local spending by UNC Asheville students supports 404 local jobs (Table 11). In terms of income activity, student spending causes local labor income to increase by $10.4 million. Annually, total economic output increases by $44.3 million in the Asheville region as a result of student spending. As student spending occurs it generates additional tax revenues; increasing County & local, state and Federal revenues by $5.2 million annually (Table 12). A sample of local industries impacted by UNC Asheville student spending includes annually supporting 148 jobs in Real Estate & Rental Services, 80 jobs in Retail Trade and 42 jobs in Administrative Services. Table 11 UNC Asheville Student Spending Local Impacts Effects Employment Labor Income Value Added Output Direct 212 $4,028,666 $12,947,311 $22,898,010 Indirect 78 $2,351,271 $4,082,761 $8,183,562 Induced 115 $4,084,436 $7,191,036 $13,226,168 Total 404 $10,464,374 $24,221,108 $44,307,739 Table 12 UNC Asheville Student Spending Tax Revenues Generated County & Local $876,090 State $1,349,575 Federal $3,009,504 Total $5,235,169 Economic Impacts of the University of North Carolina at Asheville 2017 13

UNC Asheville Outside Visitors UNC Asheville attracted outside visitors 4 for a variety of events such as admissions tours and open houses, athletic competitions, summer camps and the National Physical Education and Sports School Institute. Over 2016 2017 fiscal year it is estimated that $9.2 million was spent locally by slightly more than 52 thousand outside visitors attending UNC Asheville events. Spending patterns of outside visitors are derived from two methodologies. For sporting events a model of event attendee spending utilized by the National Association of Sports Commissions was employed. 5 For nonsporting events, spending patterns of Asheville area leisure visitors by Longwoods International for was adopted. 6 Spending by outside visitors at UNC Asheville events annually supports 166 local jobs (Table 13). In terms of income, the outside spending causes local labor income to increase by $4.9 million. Annually, economic value is raised by $8.3 million and total economic output increased by $15.3 million in the Asheville region as a result of the spending by outside visitors. As spending occurs it generates additional tax revenues; increasing County, local, state and Federal revenues by $2 million annually (Table 14). A sample of the local industries impacted by outside visitors to UNC Asheville events includes annually supporting 74 jobs in Restaurants & Lodging, 23 jobs in Retail Trade and 17 jobs in Arts Entertainment & Recreation. Table 13 UNC Asheville Outside Visitors Local Impacts Effects Employment Labor Income Value Added Output Direct 93 $2,390,393 $4,014,499 $7,123,249 Indirect 18 $603,646 $980,033 $2,055,333 Induced 54 $1,917,305 $3,373,580 $6,207,158 Total 166 $4,911,344 $8,368,112 $15,385,740 4 Outside visitors only includes nonresidents from outside the four county Asheville metropolitan area, under the reasoning that economic activity by residents does not represent new spending to the area. 5 Based on studies completed by Sportsimpacts at over 50 sporting events spanning various market sizes and sporting event types, and a 2011 2012 Consumer Spending study conducted by the University of Arizona Sports Management program that analyzed daily visitor spending trends at 30 sporting events spanning various market sizes and event types. Source: National Association of Sports Commissions (NASC). 6 Asheville 2016 Visitor Research, Longwoods International; courtesy of Buncombe County Tourism Development Authority. Economic Impacts of the University of North Carolina at Asheville 2017 14

Table 14 UNC Asheville Outside Visitors Tax Revenues Generated County & Local $349,393 State $540,345 Federal $1,204,721 Total $2,094,458 UNC Asheville Alumni Education Premium This study gauges economic impacts primarily by measuring the changes in local spending. To truly measure the local value of a postsecondary degree this analysis would also need to include such factors as added employment opportunities, increased productivity, improvements in quality of life, and other more intangible, yet significant, variables. To roughly gauge the cumulative value of postsecondary degrees earned by UNC Asheville alumni in the Asheville economy the additional spending from raised incomes is analyzed. As such it should be recognized that these results are limited; capturing only a very small portion of the true community impacts. Presently 7,198 UNC Asheville alumni reside in the four county Asheville metro. 7 According to the U.S. Census Bureau, the median annual earnings for Asheville metro residents over the age of 25 who have attained a Bachelor's or Graduate degree is $16,111 greater than those who have not. 8 Annually then, UNC Asheville alumni should expect to add $115.9 million in local earnings as an account of having attained a Bachelor's or Graduate degree. The increase in local spending from the earnings premium of UNC Asheville alumni support 835 local jobs 9 (Table 15). In terms of income activity, the added spending causes local labor income to increase by $28.7 million. Annually, economic value is raised by $52 million and total economic output increases by $96 million in the Asheville region as a result of the increased spending. As the added spending occurs it generates additional tax revenues; increasing county, local, state and Federal revenues by a total of $12.2 million annually (Table 16). 7 UNC Asheville Fact Book 2016 17, Office of Institutional Research, Effectiveness and Planning 8 2011 2015 American Community Survey 5 Year Estimates. Weighted median annual earnings are $41,699 for those with a Bachelor's or Graduate degree and $25,588 for those with less educational attainment. 9 Because the increase represents an increase in compensation, the impacts are all induced. Economic Impacts of the University of North Carolina at Asheville 2017 15

Table 15 UNC Asheville Alumni Premium Local Impacts Effects Employment Labor Income Value Added Output Induced 835 $29,708,783 $52,259,046 $96,169,828 Total 835 $29,708,783 $52,259,046 $96,169,828 Table 16 UNC Asheville Alumni Premium Tax Revenues Generated County & Local $1,891,230 State $3,032,792 Federal $7,329,316 Total $12,253,339 Annual New Resident Attraction The presence of a college or university can be a positive determining factor in where people live. Access to collegiate educational programs and cultural or sporting events is generally viewed as a powerful force for attracting new residents. However, actually attributing the number of residents who have moved to the area as a result of the presence of a college or university can be difficult to document. UNC Asheville is fortunate to have a campus organization which regularly surveys its participants and quantifies the number that subsequently moves to the area. The Osher Lifelong Learning Institute (OLLI) 10 estimates an annual attraction of 115 new households. The data provides a credible baseline from which to estimate impacts. Because the analysis does not account for other sources of new resident attraction, and only counts the impact for the single year the resident moves to the Asheville area, the total results likely well underestimates the full impact. The added local spending from new 115 households 11 supports 81 local jobs annually (Table 17). In terms of income activity, the added spending causes local labor income to increase by $2.8 million. Annually, economic value rises by $5.1 million and total economic output increases by $9.4 million in the Asheville region as a result of increased spending of 1115 new households. As the added spending occurs it generates additional tax revenues; increasing county, local, state and Federal tax revenues by $1.19 million annually (Table 18). 10 The Osher Lifelong Learning Institute at UNC A conducts ongoing programs in the arts and humanities, the natural world, civic engagement, wellness, life transition and retirement relocation planning, and intergenerational co learning. 11 To estimate annual household spending; personal consumption expenditures ratios from the U.S. Census Bureau were applied on a weighted average OLLI participant household income. Economic Impacts of the University of North Carolina at Asheville 2017 16

Table 17 UNC Asheville New Resident Attraction Local Impacts Effects Employment Labor Income Value Added Output Direct 37 $1,378,901 $2,448,429 $4,361,707 Indirect 12 $388,990 $671,329 $1,395,748 Induced 32 $1,132,019 $1,992,197 $3,665,098 Total 81 $2,899,910 $5,111,956 $9,422,553 Table 18 UNC Asheville New Resident Attraction Tax Revenues Generated County & Local $183,903 State $295,326 Federal $716,548 Total $1,195,777 Actual & Planned Capital Spending Actual & Planned Capital Spending includes capital spending for the current 2017 fiscal year and planned capital spending for the following four fiscal years. Across the entire five year period the University is planning to spend a total of slightly more than $79 million on capital projects. The largest capital project is the $33.8 million construction of a new apartment style 294 bed residence hall. Additionally, the University will receive $21 million from Connect NC Bond proceeds for the renovation of Owen Hall and Carmichael Hall. Other capital projects include the renovation of the Highsmith Student Center and the Justice Center. Capital spending in the current 2017 fiscal year supported a total of 50 jobs in the local economy. Over the following four years capital spending will annually support between 64 and 474 local jobs (Table 18). Over the entire 2017 2021 period capital spending will support an annual average of 224 local jobs, add $3.1 million in local income, raise $12.1 million in local economic value, increase local economic output by $31 million and generate $2.6 million in tax revenues (Tables 19 23). Economic Impacts of the University of North Carolina at Asheville 2017 17

Table 19 UNC Asheville Capital Spending Annual Employment Impacts 2017 2018 2019 2020 2021 Five Year Average Direct 23 185 215 56 29 102 Indirect 8 63 73 19 10 35 Induced 20 159 185 49 25 88 Total 50 407 474 125 64 224 Table 20 UNC Asheville Capital Spending Labor Income Impacts 2017 2018 2019 2020 2021 Five Year Average Direct $760,360 $6,180,001 $7,192,624 $1,896,151 $970,696 $3,399,966 Indirect $328,384 $2,658,748 $3,096,080 $808,638 $408,953 $1,460,161 Induced $696,863 $5,657,367 $6,585,426 $1,731,257 $883,087 $3,110,800 Total $1,785,607 $14,496,116 $16,874,130 $4,436,046 $2,262,736 $7,970,927 Table 21 UNC Asheville Capital Spending Value Added Impacts 2017 2018 2019 2020 2021 Five Year Average Direct $964,399 $7,833,844 $9,118,200 $2,400,442 $1,226,647 $4,308,706 Indirect $530,367 $4,292,676 $4,999,002 $1,304,597 $659,073 $2,357,143 Induced $1,227,501 $9,965,162 $11,599,909 $3,049,445 $1,555,420 $5,479,488 Total $2,722,268 $22,091,682 $25,717,111 $6,754,485 $3,441,140 $12,145,337 Table 22 UNC Asheville Capital Spending Output Impacts 2017 2018 2019 2020 2021 Five Year Average Direct $3,620,000 $29,095,000 $33,916,000 $8,700,000 $4,294,000 $15,925,000 Indirect $1,138,376 $9,182,107 $10,698,159 $2,768,523 $1,382,975 $5,034,028 Induced $2,257,004 $18,323,046 $21,328,852 $5,607,132 $2,860,071 $10,075,221 Total $7,015,380 $56,600,152 $65,943,011 $17,075,656 $8,537,047 $31,034,249 Economic Impacts of the University of North Carolina at Asheville 2017 18

Table 23 UNC Asheville Capital Spending Tax Revenues Generated 2017 2018 2019 2020 2021 Five Year Average County & Local $72,498 $588,668 $685,219 $180,214 $91,974 $323,715 State $133,093 $1,080,515 $1,257,764 $330,672 $168,681 $594,145 Federal $384,843 $3,125,471 $3,637,992 $957,275 $488,873 $1,718,891 Total $590,434 $4,794,654 $5,580,976 $1,468,161 $749,527 $2,636,750 Economic Impacts of the University of North Carolina at Asheville 2017 19

Definitions Local Asheville Economy Time Period Direct Effect Indirect Effect Induced Effect Total Effect IMPLAN Labor Income Value Added Output Tax Revenues The local Asheville economy represents the four county metropolitan statistical area (Buncombe, Haywood, Henderson, and Madison counties). All impacts occur within a one year period. Primary data for the economic activities were collected for Fiscal Year 2016 2017. The set of expenditures applied to the predictive model (i.e., I/O multipliers) for impact analysis. It is a series (or single) of production changes or expenditures made by producers/consumers as a result of an activity or policy. These initial changes are determined by the analyst to be a result of this activity or policy. The impact of local industries buying goods and services from other local industries. The cycle of spending works its way backward through the supply chain until all money leaks from the local economy, either through imports or by payments to value added. The response by an economy to an initial change (direct effect) that occurs through re spending of income received by a component of value added. This money is recirculated through the household spending patterns causing further local economic activity. The sum of direct, indirect, and induced effects. IMPLAN (IMpact analysis for PLANning) economic impact modeling system. IMPLAN is used to create complete detailed multi regional Social Accounting Matrices (SAMs) and Multiplier Models of reginal economies. All forms of employment income, including Employee Compensation (wages and benefits) and Proprietor Income. Incremental value of production less intermediate outputs. The difference between an industry's or an establishment's total output and the cost of its intermediate inputs. Output represents the value of industry production. For manufacturers this is sales plus/minus change in inventory. For service sectors production = sales. For Retail and wholesale trade, output = gross margin and not gross sales. An estimate of the changes in income received by Federal, State, County and Local governments that stem from a specific economic impact or activity. Local agencies include cities, townships, villages, public school and fire districts Economic Impacts of the University of North Carolina at Asheville 2017 20

Firm Profile SYNEVA Economics, incorporated in the State of North Carolina since 2003 and based in Asheville, is an innovative leader in data driven regional economic analysis. As a regional economic research expert, SYNEVA Economics follows an adaptive business model, its role adjusting to the specific needs of each client and project. The firm at times works directly with municipal, community and economic development leadership and at other times serves as the research expert for firms such as Deloitte, Garner Economics, McCallum Sweeney Consulting, Magellan Strategy Group, Urban3, and Younger Associates. SYNEVA Economics broad portfolio includes economic assessments for dozens of communities, industry targeting, economic impact analyses, workforce & skills assessments, micro demographic analyses, and a host of custom analyses answering specific site and client needs. The range of research activities has been as diverse as economic impact analyses of universities, international airports and major infrastructure projects to micro demographics analyses of neighborhood gentrification and sub state health insurance coverage. Besides economic developers, municipalities, and workforce development boards, SYNEVA Economics clients have included commercial developers, community organizations, architectural and planning firms, a national insurance provider, and even the national offices of the Boy Scouts of America in site selection decisions. Innovative projects have included in depth evaluations of community and industry trends for the cities of Charlotte NC and Atlanta GA. Besides numerous community level assignments, comprehensive workforce assessments have been conducted for the St. Joe Company in Florida, and an exhaustive evaluation of precise workers skills for all workforce investment areas in the state of Mississippi. SYNEVA Economics projects have included the economic impacts of a permanent National Scouting Center for the Boys Scouts of America, Greenville Spartanburg International Airport, Asheville Regional Airport and the National Medal of Honor Museum in Charleston SC. For complete listing of projects and current activities visit www.syneva.com. Contact Information: Tom Tveidt, Research Economist tom@syneva.com 828.734.5021 SYNEVA Economics, LLC PO Box 885 Asheville NC 28802 www.syneva.com SYNEVA Economics, LLC has prepared this report for the sole use of the Client. This report may not be relied upon by any other party without express written agreement. SYNEVA Economics, LLC has exercised due and customary care in conducting this analysis, but has not independently verified information provided by others. No other warranty, express or implied is made in relation to the conduct of the Client or the contents of the analysis. SYNEVA Economics, LLC assumes no liability for any loss resulting from errors, omissions, or misrepresentations made by others. Any findings stated in this report are based on circumstances and facts as they existed at the time the work was performed. Any changes in circumstances and facts upon which this report is based may adversely affect the finding contained in this report. Economic Impacts of the University of North Carolina at Asheville 2017 21