Vanderbilt’s impact on mid-state economy increases to $3.7 billion

NASHVILLE, Tenn. – Vanderbilt’s impact on the local economy totaled
at least $3.7 billion last year, according to a recently completed
analysis. The University’s economic impact on the Middle Tennessee
region in fiscal year 2003 is up from $3.4 billion in fiscal year 2002.

The estimate is based upon generally accepted practices for
assessing economic impact and represents the fiscal year ending June
30, 2003. The analysis takes into account direct expenses such as
salaries and wages, fringe benefits, vendor payments, capital
construction and equipment, and taxes and fees to state and local
government, as well as the spending Vanderbilt’s employees, faculty,
students, patients and visitors inject into the economy. The analysis
encompasses all aspects of Vanderbilt’s operations, including teaching,
research and health care services.

"Our commitment to Middle Tennessee can be seen every day, whether
it is through the health care that our nurses and physicians provide to
the region, the thousands of jobs we generate or the cultural
opportunities we offer," said Vanderbilt Chancellor Gordon Gee. "All of
the people who comprise this wonderful institution take pride in its
role as a citizen and partner in our community," he said.

Nashville Mayor Bill Purcell said, "This city benefits in so many
ways because of this institution. For example, we see it in the
students and faculty who come to live here and the quality health care
the medical center provides. Nashville’s quality of life is richer
because of Vanderbilt University."

"The economic impact of Vanderbilt’s multiple operations plays a
significant role in the overall vitality of the Nashville area," said
Mike Neal, Nashville Area Chamber of Commerce president and chief
executive officer. "In Vanderbilt, we are fortunate to have not only a
prosperous multifaceted business partner in our region, but also a
great community citizen."

The largest private employer in Middle Tennessee and second largest
based in the state, Vanderbilt employs about 17,700 people-more than 70
percent of whom live in Davidson County. The University’s
expenses for fiscal year 2003 included $858.1 million in salaries and
wages, $183.9 million in fringe benefits including employer-paid Social
Security and Medicare, $541.3 million in vendor payments for goods and
services, $194.4 million in capital construction and equipment spending
and $3.5 million in state and local taxes and fees.

The positive economic impact throughout the 40 counties that make up
Middle Tennessee is calculated by applying multipliers to each category
of direct expenses associated with Vanderbilt’s operations. The
multipliers are comparable to those employed by other universities and
were reviewed for reasonableness with the Nashville Area Chamber of
Commerce and the Tennessee Department of Economic and Community

The University’s economic activity supported an estimated 33,300 jobs in Middle Tennessee last year.

Additionally, faculty and staff generated more than $139 million in
federal, state and local taxes as a direct result of their employment
at the University. Vanderbilt employees paid an estimated $104.7
million in federal income tax, $13.7 million in state and local sales
taxes, $17.2 million in local property taxes and $3.4 million in
vehicle registration payments for fiscal year 2003.

Vanderbilt is currently engaged in its largest-ever capital
improvement program, with more than $500 million in campus construction
and renovation either recently completed, underway or expected to begin
shortly. At a cost of $260 million, the newly opened Vanderbilt
Children’s Hospital and adjacent outpatient tower was the largest
construction project in the University’s history.

The University also supports the community through the annual
Community Giving Campaign for the United Way of Middle Tennessee,
Combined Health Appeal and Community Shares. Last year, faculty and
staff donated more than $840,000 through Vanderbilt to the hundreds of
agencies these entities represent. Vanderbilt leads all other schools
in the Southeastern Conference and most colleges and universities
nationwide in contributions to this campaign.

For more information about Vanderbilt, visit the News Service homepage at

Media contact: Susanne Loftis, (615) 322-NEWS

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