IU Kokomo combats recession with education, employment, opportunities
National media have recently noted that Kokomo, Ind., is one of the areas hardest hit by the recession, with one in five workers unemployed. A little over a year ago the unemployment rate was 7.1 percent, but it had skyrocketed to 19.5 percent this May.
Remaining stable in the Kokomo community is Indiana University, with an impressive "economic footprint" on the north-central Indiana region of more than $22 million. This figure includes compensation for faculty and staff and payments for goods and services.
The economic activity generates approximately $627,000 in state and local taxes, according to an impact study conducted by the Indiana Business Research Center at IU's Kelley School of Business.
IU Kokomo faculty and staff spending, together with university direct purchases and construction projects, results in ripple effects of approximately $3 million in additional economic activity and accounts for additional jobs in the campus region.
In addition to economic value, the IU Kokomo provides artistic and cultural value as well as direct services. Local residents can enjoy performances at the auditoriums and theater, use of the library and bookstore, and many other campus services. These services increase property values and economic development by making communities more attractive to live in.
"The value IU Kokomo has on north central Indiana is usually demonstrated by declaring the number of students, degrees conferred, and alumni residing in the area," said IUK Interim Chancellor Stuart M. Green. "This study provides a much broader view as it presents Indiana University Kokomo's contribution to the region in terms of its direct economic impact, its role in the development of human capital, the arts and cultural climate, and the increased earning power of our graduates, all of which extend beyond the standard core benefits provided by a university.
"As our region works to rebound from the current economic conditions, the campus has been and will continue to be a key player in these efforts," he said.
Through service-learning programs and volunteerism, students as well as staff and faculty "give back" to their community. In the 2006-2007 school year, IUK students spent 125,388 hours volunteering in services such as poverty relief, arts and recreation instruction, religious activities, school volunteering, tutoring, animal care, camps and many others.
The estimated benefits of student and staff civic contributions in 2006-07 were $123,300. In addition, members of the IU Kokomo community made $220,500 in charitable contributions to organizations within the campus region.
One recent example is the university seeking to directly support the community through the sharing of knowledge and connections. Last Friday, IU Kokomo hosted a free "Support Gateway for Community Workers" to help unemployed workers meet with more than 20 local agencies and organizations. The event offered mini-seminars on a variety of topics including looking for new work, penny-pinching in the tough economy and seeking additional education and training.
Additional education can be a compelling option for those temporarily unemployed as IU Kokomo graduates earning baccalaureate degrees can expect far greater lifetime earnings than someone with a two-year associate degree or no higher education. Indiana University Kokomo serves a seven county, primary service area in north central Indiana. It offers more than 40 academic programs, including four graduate degrees.
The typical male IU Kokomo graduate can expect to earn $1.8 million over his lifetime and the typical female graduate can anticipate $1.3 million in lifetime earnings. These figures are 39 percent and 30 percent greater, respectively, than the expected lifetime earnings of male and female associate degree recipients. Additionally, 87 percent of IU Kokomo graduates who received degrees between 1998 and 2002 had remained in the state as of 2008, and 76 percent reside within an 11-county area.
To review the entire "Impact Study 2008," go to www.iuk.edu and click on the link found on the home page.
