USC adds $6.2 billion to S.C. economy, study from Darla Moore school says

The University of South Carolina claims to contribute $6.2 billion per year to the S.C. economy, the university said Wednesday.

The study, conducted by USC’s Darla Moore School of Business, factored in wages earned by in-state alumni compared to high school graduates, increased productivity — even among workers without a college degree — caused by having a more educated workforce, money USC spends that didn’t come from state tax dollars and athletics spending, said USC professor and research economist Joey Von Nessen.

“The economic benefits of higher education are far reaching for both individual citizens and for the state as a whole,” Von Nessen said in a press release.

While USC receives hundreds of millions in tax dollars —$156 million in state general fund money in the 2019-2020 fiscal year — 90% of USC’s expenses are funded by dollars that don’t come from the state government, the report said. That means the school is bringing in external money through out-of-state tuition, grants, donations, athletics and more that wouldn’t have come to S.C. without a major university, according to the report.

Of that $6.2 billion in economic impact, $3.7 billion is for the Columbia metropolitan area, according to the report. The Columbia metropolitan area includes Richland, Lexington, Calhoun, Saluda, Fairfield and Kershaw counties, according to the S.C. Department of Employment and Workforce.

The last time USC did a study like this, in 2017, the estimated economic impact was $5.5. billion, The State previously reported.

The news for the Columbia area, however, was not completely positive. The S.C. Midlands has been lagging behind places such as Charleston and Spartanburg in recovering jobs lost because of the coronavirus pandemic, Von Nessen said.

One of the reasons is the Columbia metropolitan area lacks the volume of advanced manufacturing as areas such as Spartanburg and Charleston.

USC also is seeing the majority of its graduates, particularly those who came in from outside S.C., leave the Columbia area once they’ve obtained a degree, Von Nessen said.

One of the ways USC should help keep students in the Columbia area is by creating or expanding programs that match USC students with potential employers in the S.C. Midlands.

“One of the biggest tools will be to provide resources and opportunities for graduates to stay local,” Von Nessen said during a Wednesday press conference.