{"id":49135,"date":"2011-02-04T00:00:00","date_gmt":"2011-02-04T06:00:00","guid":{"rendered":"https:\/\/www.unmc.edu\/newsroom\/2011\/02\/04\/economic-impact-report-shows-state-research-investment-provides-strong-return\/"},"modified":"2022-08-28T19:17:29","modified_gmt":"2022-08-29T00:17:29","slug":"economic-impact-report-shows-state-research-investment-provides-strong-return","status":"publish","type":"post","link":"https:\/\/www.unmc.edu\/newsroom\/2011\/02\/04\/economic-impact-report-shows-state-research-investment-provides-strong-return\/","title":{"rendered":"Economic impact report shows state research investment provides strong return"},"content":{"rendered":"<div class=\"panel body-content\"><div class=\"panel__container\"><p><b><i>Tobacco settlement funds yield 8 to 1 return on investment and much more <\/i><\/b><\/p>\n<div style=\"margin: 0in 0in 0pt\">An economic impact report by one of the leading economists in the Midwest has found that tobacco settlement funds invested into biomedical research at Nebraska&rsquo;s four leading research institutions has produced an 8 to 1 return.<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">The report was developed by <a href=\"http:\/\/www.ernestgoss.com\/?q=node\/2\">Ernest Goss, Ph.D.,<\/a> MacAllister Chair and professor of economics at <a href=\"http:\/\/www.creighton.edu\/\">Creighton University<\/a> and director of the Goss Institute in Denver.<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">It looked at tobacco settlement dollars invested in the Research Consortium made up of <a href=\"http:\/\/www.boystownhospital.org\/pages\/default.aspx\">Boys Town National Research Hospital<\/a>, <a href=\"http:\/\/www.creighton.edu\/\">Creighton University<\/a>, the <a href=\"http:\/\/www.unl.edu\/\">University of Nebraska-Lincoln<\/a> and the <a href=\"http:\/\/www.unmc.edu\/\">University of Nebraska Medical Center<\/a>.<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">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.&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">In addition to the high return on investment, other economic benefits of the funding included:<\/div>\n<div style=\"text-indent: -0.25in;margin: 0in 0in 0pt 0.5in\"><span>&middot;<span style=\"font: 7pt 'Times New Roman'\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span>Invested as &ldquo;seed&rdquo; funds to researchers who were awarded nearly $853 million in grants &ndash; 80.2 percent from federal funds and 19.8 percent from non-federal sources;<\/div>\n<div style=\"text-indent: -0.25in;margin: 0in 0in 0pt 0.5in\"><span>&middot;<span style=\"font: 7pt 'Times New Roman'\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span>Generated nearly $2.2 billion in sales\/output for the state of Nebraska;<\/div>\n<div style=\"text-indent: -0.25in;margin: 0in 0in 0pt 0.5in\"><span>&middot;<span style=\"font: 7pt 'Times New Roman'\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span>Generated more than $98 million in state and local tax collections;<\/div>\n<div style=\"text-indent: -0.25in;margin: 0in 0in 0pt 0.5in\"><span>&middot;<span style=\"font: 7pt 'Times New Roman'\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span>Sup&shy;ported an average of 1,791 jobs with a total pay&shy;roll of approximately $783.9 million;<\/div>\n<div style=\"text-indent: -0.25in;margin: 0in 0in 0pt 0.5in\"><span>&middot;<span style=\"font: 7pt 'Times New Roman'\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span>Improved earnings &#8211; average salaries and wages for the direct and in&shy;direct jobs supported was more than $45,000 per year &#8211; 22.8 percent higher than the state average;<\/div>\n<div style=\"text-indent: -0.25in;margin: 0in 0in 0pt 0.5in\"><span>&middot;<span style=\"font: 7pt 'Times New Roman'\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span>Impacted more than 266 of Omaha&rsquo;s 274 industries &ndash; research spending supported 13.7 jobs, $1.1 million in wages and salaries and $7 million in sales in the real estate industry;<\/div>\n<div style=\"text-indent: -0.25in;margin: 0in 0in 0pt 0.5in\"><span>&middot;<span style=\"font: 7pt 'Times New Roman'\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span>In&shy;creased the attractiveness of the community and encouraged the startup and\/or relocation of oth&shy;er businesses in the state.<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">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.<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">&ldquo;This is a remarkable return on investment,&rdquo; Dr. Goss said. &ldquo;Nebraska should be proud of what has happened with this tobacco settlement money. It is truly making a difference in the state&rsquo;s economy.&rdquo;<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\"><b>The&nbsp;Nebraska Tobacco Settlement Biomedical Research Fund: Timeline<\/b><\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">November 1998 &ndash; Four largest U.S. tobacco companies agree to provide yearly payments to 46 states provided the states drop their Medicaid lawsuits against them and exempt the companies from private tort liability regarding harm caused by tobacco use.<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">2001 &ndash; Nebraska Legislative Bill 692 created the Nebraska Tobacco Settlement Biomedical Research Fund. Initially, about one-third of the annual return was set aside for biomedical research. In 2001, $10 million was set aside for this purpose.<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">2006 &ndash; The Unicameral increased the amount of tobacco settlement funds distribution to $12 million.<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<div style=\"margin: 0in 0in 0pt\">2008 &ndash; The Unicameral increased the amount of tobacco settlement funds distribution to $14 million.<\/div>\n<div style=\"margin: 0in 0in 0pt\">&nbsp;<\/div>\n<p>&nbsp;<\/p>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Tobacco settlement funds yield 8 to 1 return on investment and much more An economic impact report by one of the leading economists in the Midwest has found that tobacco settlement funds invested into biomedical research at Nebraska&rsquo;s four leading research institutions has produced an 8 to 1 return. &nbsp; The report was developed by [&hellip;]<\/p>\n","protected":false},"author":79,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-49135","post","type-post","status-publish","format-standard","hentry","category-uncategorized","department-press-release"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Economic impact report shows state research investment provides strong return<\/title>\n<meta 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