Birmingham-Southern College Generates $97.2 Million in Direct Economic Impact for State

For Immediate Release
Feb. 15, 2023

A study by an independent economist has found Birmingham-Southern College has a direct economic impact of $97.2 million each year on the State of Alabama’s economy. When the economic contribution of BSC alumni is added, the impact is even greater. The study, conducted by M. Keivan Deravi, Ph.D. of Economic Research Services, Inc., found that in addition to the College itself, BSC’s alumni “…are responsible for a value-added social benefit of approximately $211.5 million in 2022. That is their annual contribution to the state’s economy,” the study found.

The College, which is asking for a one-time investment of $37.5 million in bridge funding from the State, the City of Birmingham, and Jefferson County, provides considerably more than that amount ($52.9 million) in direct spending, much of it in the local area.

Birmingham-Southern’s fiscal impact was pegged at more than $20 million annually, including $6.8 million in State taxes; another $7 million was generated in local taxes. The estimates do not include taxes realized from the income of BSC graduates.

The study reveals that the amount BSC is seeking in public funding is only about 12% of its annual economic impact on the state and less than 40% of its direct annual economic impact in 2022 and for every year in the foreseeable future.

Stated another way, even assuming no year-on-year growth, BSC is projected to have a direct economic impact of at least $972 million over the next decade, while asking governments to invest less than 4% of that amount in one-time funding to give the school time to return itself to a sound financial footing.

BSC President Daniel Coleman said the study clearly demonstrates why a state investment in the college’s future is warranted. “Dr. Deravi’s study validates the fact that a $37.5 million investment by the public sector can return nearly a billion dollars in direct impact over the next ten years to our state’s economy. That’s a great deal for city, county, and state taxpayers,” Coleman said.

Click here to read the full report.

Founded in 1856, Birmingham-Southern College has raised almost $46 million toward an endowment goal of $200 million, which it is on track to reach by May 2026. For more information about BSC, how its financial challenges arose, and its workable plan to return to long-term financial resilience, visit bsc.edu.