ECONOMIC IMPACT OF EMPLOYMENT, INVESTMENT, & EXPENDITURES

IMPACT OF EMPLOYMENT, INVESTMENT, & EXPENDITURES

The ASMSA annual employment, payroll, and expenses were modeled to determine overall economic impact from 2017 through 2021. All of the measures included in this impact are expected to remain constant or increase in the coming years, which will result in an ongoing annual impact similar to or greater than the impact of 2021 employment and expenditures. The table below provides an overview of the aggregated impact that includes employment and payroll; capital investment; and operating expenses. Details of the impact for the State of Arkansas and for Garland County follow.

The aggregated five-year employment and expenditures resulted in a total impact of more than $104 million in Arkansas. This impact is based on the 2017 - 2021 employment, payroll, and capital investment. The impact includes an increase in the Gross State Product (GSP) of more than $79 million in the state. Total labor income is almost $58 million statewide. The employment and expenditures result in state and local taxes of nearly $4.1 million.

EMPLOYMENT, EXPENSES & CAPITAL EXPENDITURES IMPACT

Employment and expenditures by ASMSA from 2017 to 2021 resulted in a total impact of $98.4 million in Garland County. The impact includes an increase in the Gross Regional Product (GRP) of more than $76 million in the county. Total labor income is more than $56 million in the county. The employment and expenditures result in state and local taxes of more than $3.8 million when measuring impact in Garland County.

EMPLOYMENT & CAPITAL EXPENDITURES IMPACT OVERVIEW

Garland County

Arkansas School for Mathematics, Sciences, and the Arts

Total Impact

(Includes Employment, Payroll, Annual Expenses, & Capital Expenses for 2017 - 2021)

EMPLOYMENT & OPERATING EXPENSES

The general operations of ASMSA based on employment, payroll, and operating expenses result in a total impact of nearly $87.4 million in Arkansas. This includes labor income of more than $53 million and an increase in the state economy of more than $72 million.

The same economic activity resulted in a total impact of $18.7 million for a single year – 2021. If employment and expenditures remain consistent, it is likely that ASMSA would continue to generate an annual impact of approximately $19 million in Arkansas.

The five-year impact of employment and expenditures generated a total impact of nearly $83 million in Garland County. That impact includes labor income of more than $52 million for the county, based on total employment ranging from 93 to 99 employees. The employment and operating expenses result in a contribution to the county GRP of almost $70 million.

The 2021 total impact from ASMSA employment and expenditures is nearly $18 million in Garland County. As referenced above, this annual impact would provide a reasonable approximation of annual impact in the future assuming employment and expenditures at ASMSA remain stable.

Capital Expenditures

ASMSA has made capital investments in each of the last five years, including $4.46 million in 2021. The five-year aggregated investment totaled approximately $9.4 million. Capital projects have always posed challenges for ASMSA since the school does not receive local millage support, nor does the Arkansas General Assembly appropriate capital funds for institutions of higher education. Over this period, the school developed a system to prioritize annual funding toward capital needs that would facilitate projects without issuing bonded debt service

ASMSA’s five-year capital investment total had an impact of more than $17 million in the State of Arkansas. This impact includes labor income of more than $4.3 million and an increase in GSP of almost $7 million at the state level.

Considering the impact of the same capital investment in Garland County, the total impact is $15.6 million, with 93 supported jobs. This results in labor income of nearly $4.6 million and an increase in GRP of $6.8 million.

Capital

TOTAL STATE & LOCAL TAX IMPACT

State and local taxes generated as a result of ASMSA employment and operating expenses in Hot Springs total more than $3.4 million when measured at the state level, compared to nearly $3.2 million when using Garland County as the geography.

Capital investment from 2017 through 2021 results in a total state and local tax impact of $740,744 when measuring at the state level and $675,434 at the county level.

Between 2017 and 2021, ASMSA continued investing in its legislated arts missions by adding faculty and growing programs. As a result, nearly onequarter of students now participate in the music program.