Report: WKU’s economic impact on region, state is ‘significant’

BOWLING GREEN, Ky. – A report has highlighted the economic impact Western Kentucky University has on the Commonwealth.

According to a release by WKU, an analysis by Lightcast has found that the university has a “significant economic impact” that reaches the “community, region and state and creates a positive return on investment for students, taxpayers and society.”

In fiscal year 2022-23, the release states the impact of WKU’s operations, research, visitor and student spending, together with volunteerism and the enhanced productivity of its alumni, included the following:

• WKU added $528.4 million in income for the Bowling Green region, a value approximately equal to 4.3% of the region’s total gross regional product. WKU’s impact is equivalent to supporting 9,404 jobs. For perspective, the activities of WKU and its students support one out of every 17 jobs in the region of Allen, Barren, Butler, Edmonson, Logan, Simpson and Warren counties.
• WKU added $1.6 billion in income to the Kentucky economy, equivalent to supporting 23,996 jobs.
• WKU added $134.0 million in income to the Regional Campus service areas, equivalent to supporting 2,167 jobs in the areas served by campuses in Glasgow, Owensboro, Elizabethtown/Fort Knox and Somerset.

The university states the report evaluated WKU while looking at economic impact analysis and investment analysis.

In fiscal year 2022-23, WKU says it spend $139.7 million on payroll and benefits for 2,580 full-time and part-time employees. It also spent another $142.8 million on good and services to carry out its daily activities, research and construction projects, the release says.

In addition, the release says WKU provided social benefits that accrue “to taxpayers and society in general within Kentucky.”

For each dollar students, taxpayers and society invested, WKU says it offered a benefit of $3.90, $2.20 and $5.90, respectively.

During that same time frame, WKU says students also paid a current value of $103.8 million to cover tuition, fees, supplies and interest on student loans.

In return, the university says students will receive a cumulative present value of $951.3 million in increased earnings over their working lives or a return of $3.90 for each dollar invested. Students’ average annual rate of return is 14.7%, according to the release.

In terms of funding, WKU says taxpayers provided it with $119.3 million of funding during 2022-23. Total taxpayer benefits reached $258 million from added tax revenue and public sector savings, and for every dollar of public money spent, taxpayers will receive $2.20 in return over the course of students’ working lives or an average annual rate of return of 5.1%, the release states.

During the above fiscal year, the release says Kentucky invested $452.5 million to support WKU.

In turn, WKU says the Commonwealth’s economy will grow by $2.5 billion over the course of students’ working lives and will benefit from $210.3 million of public and private sector savings. For every dollar invested in WKU in fiscal eyar2022-23, people in Kentucky will receive $5.90 in return, for as long as 2022-23 students remain active in the workforce, the university says.

The report on the Economic Value of Western Kentucky University included three sections – the Bowling Green Service Area (Allen, Barren, Butler, Edmonson, Logan, Simpson and Warren counties), the Regional Campus Service Areas (Glasgow, Owensboro, Elizabethtown/Fort Knox and Somerset) and Kentucky.