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The report was developed by Creighton University economist Ernest Goss, Ph.D., and looked at tobacco settlement dollars invested in the research consortium composed of:
- Boys Town National Research Hospital;
- Creighton University;
- The University of Nebraska-Lincoln; and
- UNMC.
From 2002 through 2010, annual tobacco settlement deposits to the research consortium totaled $106 million. With tobacco money as a springboard during that nine-year period, good stewardship by the consortium has garnered an additional $853 million in grants and gifts. Every dollar deposited attracted an additional $8.
In addition to the high return on investment, other economic benefits of the funding included:
- Invested as “seed” funds to researchers who were awarded nearly $853 million in grants — 80.2 percent from federal funds and 19.8 percent from non-federal sources;
- Generated nearly $2.2 billion in sales/output for the state of Nebraska;
- Generated more than $98 million in state and local tax collections;
- Sup¬ported an average of 1,791 jobs with a total pay¬roll of approximately $783.9 million;
- Improved earnings — average salaries and wages for the direct and indirect jobs supported was more than $45,000 per year — 22.8 percent higher than the state average;
- Affected more than 266 of Omaha’s 274 industries — research spending supported 13.7 jobs, $1.1 million in wages and salaries and $7 million in sales in the real estate industry;
- Increased the attractiveness of the community and encouraged the start up and/or relocation of other businesses in the state.
In addition, scientific and research jobs increased 105.5 percent in Nebraska between 2002 and 2008 when similar job growth expanded by only 63.8 percent across the nation.
“This is a remarkable return on investment,” Dr. Goss said. “Nebraska should be proud of what has happened with this tobacco settlement money. It is truly making a difference in the state’s economy.”