Longwood measures its economic impact on the Farmville community

Longwood University accounts for one-fourth of the annual taxable
sales in the Farmville area and 11 percent of local tax revenues, according
to a study by the University.

The Longwood University Economic Impact Study, conducted by the
Longwood Small Business Development Center (LSBDC), measures direct
expenditures by the institution's employees, students and visitors and
their impact on the economy of the Farmville community.

"Much of the direct local spending becomes income for Farmville
business owners and their employees and suppliers," the study says. "In
turn, they spend much of that income locally, and this spending again
becomes local income for other Farmville businesses. This local spending
and re-spending of dollars derived from Longwood activity implies that
Longwood's total impact in Farmville is much larger than reported in the
initial dollar amounts quantified from the survey results."

Thus, the study's authors, using methodology found in similar
studies, estimated the economic effect through a "multiplier" of "Times
1.5" to show the "reinvestment within the Longwood community of all
transactions originating" at Longwood.

"The 1.5 multiplier is extremely conservative for a school like
Longwood in a rural region," said Ken Copeland, LSBDC director, who was
commissioned to do the study by President Patricia Cormier.

Actual expenditures by Longwood and by its employees, students and
visitors totaled $67 million in 2001, or nearly $101 million with the
multiplier. Some $54 million of the larger figure was spent in Farmville
and eight surrounding counties (Amelia, Appomattox, Buckingham, Charlotte,
Cumberland, Lunenburg, Nottoway and Prince Edward).

"Longwood's spending represents 25 percent of the $212 million
annual taxable sales in Farmville area in 2001," the study says. "One out
of every four dollars spent in the Farmville area can be attributed to
Longwood's presence."

The university's expenditures in Farmville alone accounted for $33
million, or just under $50 million with the multiplier. Of the actual
expenditures in Farmville, students accounted for $12.6 million, employees
$9.5 million, the university directly (for goods and services, but
excluding salaries and benefits) $7.4 million and visitors $3.7 million.

Employees make about 51 percent of their total expenditures in the
Farmville area, even though only 38 percent of the university's workforce
lives in Farmville. Spending in Farmville by employees who live in the
surrounding counties and even by the smaller percentage who live outside
those counties is "significant," the study says. Employees spent another
$4.7 million in the surrounding counties and $4.6 million elsewhere.

Faculty, staff and students paid $787,246 in real estate, personal
property, vehicle license and utility taxes in Farmville and Prince Edward
County, which is 11.4 percent of all such taxes collected. This figure
excludes other local taxes such as sales taxes.

The study also examined Longwood's cultural impact on its host
community. "There's no way you can put a dollar figure on that, but the
cultural impact is pervasive," Copeland said.

The study was done through surveys given to faculty, staff and
students in October 2001. Some 1,606 students (more than 39 percent of the
student body) and 187 faculty and staff members (32.5 percent of the total
workforce) completed the survey. The results were tabulated last spring
semester. "It took about nine months to do the study," Copeland said.

The School (now College) of Business & Economics conducted economic
impact studies in 1996 and 1991. "It was time to do another one, since
we've had significant enrollment growth and significant capital projects
have been done here, including the Hiner renovation, since the 1996 study,"
Copeland said.

Interestingly, the surveys were going to be mailed out the week of
the fire of April 24, 2001 that destroyed the Ruffner complex. "Dr.
Berkwood Farmer (then dean of the business school) wanted to hold off
because he felt the response wouldn't be as good since it was near the end
of the semester," Copeland said. "I'm glad we waited until early fall."

The LSBDC did a similar survey for Liberty University in 2000. That
study used a multiplier of 2 because Liberty is in an urban setting,
Copeland said.