A new economic impact study conducted by Central Methodist University states that CMU has an annual impact of over $70 million on Howard County.
The study, completed just weeks ago, indicates that Central Methodist’s impact of $70.5 million is only part of the story. The 165-year-old college has a $123.1 million annual impact on the state of Missouri.
Central employs 301 people in full-time positions, and another 283 in part-time roles. The study says that CMU’s presence generates another 137 jobs indirectly in the economy. Central’s total gross payroll is over $18 million.
“When people hear economic development, most think job creation,” said Amber Overfelt, chair of the Howard County Economic Development Council. “I feel looking out for the health of our existing employers is the most important thing Howard County can focus on.
“CMU is the largest employer in the largest employment industry we have, education,” Overfelt said. “CMU is vital to Howard County’s success now and in the future.”
Many CMU employees live in Howard County. Their tax payments, grocery spending, and other spending in Howard County is about $9 million. In addition, students and their families pour an additional $8 million into Howard County by visiting on special occasions such as Family Day, Homecoming, and Commencement, as well as other visits and expenditures.
CMU spends $35.7 million annually, according to the study, and the college spends another $7.5 million in capital projects annually. Central pours $14.3 million into scholarships and aid for its students.
The study also notes the estimated 7,200 hours of community services hours generated by students, staff, and faculty, which has a value of $169,643. CMU has 4,727 undergraduate students and 332 graduate students.
Data experts at CMU say the study’s significance is in the 1:1 “multiplier” used. Central President Roger Drake said the choice was made to use a very conservative “dollar-for-dollar” multiplier as opposed to other methodologies that use 2:1, 3:1, or even up to 7:1 multipliers.
Drake said Central used the American Council on Education methodology, measuring spending impact, employee expenditures, and student and family expenditures. He said the impact of employee expenditures is calculated as 76 percent of salary.
Overfelt said that President Drake and CMU’s leadership clearly recognize the institution’s unique presence in the community and provide significant financial support of the Howard County Economic Development Council and Howard County’s partnership with Moberly Area Economic Development Council.
“We do our best to contribute our time, talent, and treasure to the betterment of this county,” Drake said. “I think I am most proud of the selfless contributions our students make here. They, along with our employees, do a lot of volunteer work to lift up the community.”