Study Estimates LSU’s Economic Impact on Louisiana at $3.9 Billion and 36,757 Jobs

01/31/2014 02:34 PM

BATON ROUGE – A study by the LSU Division of Economic Development at the E. J. Ourso College of Business has determined that LSU’s economic impact on Louisiana totals $3.9 billion. The study measures the impact of all nine LSU campuses – LSU, the LSU AgCenter, the Paul M. Hebert Law Center, Pennington Biomedical Research Center, LSU  Alexandria, LSU Eunice, LSU Shreveport, and the LSU Health Sciences Centers in Shreveport and New Orleans – at both the state level and on a regional basis.

“These numbers demonstrate how invaluable LSU is to our state from a variety of angles, whether it’s through jobs created, sales generated or drawing non-residents into Louisiana,” said Stephen Barnes, study author, assistant professor of economics and director of the LSU Division of Economic Development at the E. J. Ourso College of Business. “LSU is most definitely a critical economic driver for the state of Louisiana.”

During 2013 fiscal year, LSU supported nearly $3.9 billion in Louisiana sales, $1.5 billion in new statewide earnings and an estimated 36,757 direct and indirect annualized jobs. For every operating and capital dollar provided by the state, LSU provided a return $5.08 of economic activity. The immediate economic benefits brought to Louisiana by non-resident students attracted to programs across LSU include more than $353 million in new Louisiana sales, $137 million in earnings and nearly 3,500 new jobs for Louisiana.


“It’s no surprise that LSU has such an economic impact on Louisiana,” said LSU President and Chancellor F. King Alexander. “With campuses, research stations and extension offices in every corner of our state, we don’t just make money for Louisiana  – we attract new business and industry, provide solutions to the state’s most pressing issues and improve the overall quality of life for our citizens. We do this all with a keen eye toward value because we believe it’s important to provide exceptional higher education opportunities without an inflated price tag and a lifetime of debt.”

The Baton Rouge MSA
The total economic impact of local LSU institutions on the Baton Rouge MSA comes to $2.1 billion in sales, $764 million in earnings, and more than 21,400 jobs. The nine parish region, which includes Ascension, East and West Baton Rouge, East and West Feliciana, Iberville, Livingston, Pointe Coupee, and St. Helena Parish, houses more than 8,300, or 62.7 percent, of full-time LSU employees.

LSU itself brings $1.7 billion in sales, $610 million in earnings and 17,806 jobs to the Baton Rouge MSA.

The LSU AgCenter generates $235 million in sales, $92 million in earnings and 2,278 jobs.

“The LSU AgCenter is an economic driver providing individuals, families, businesses, industries and local governments with valuable information to improve economic conditions and quality of life,” said LSU Vice President for Agriculture Bill Richardson. “Its faculty and staff across the state are here to serve all the people of Louisiana – and Louisiana’s vital $30 billion agricultural industries.”

The Pennington Biomedical Research Center, or PBRC, delivers $112 million in sales to the area, $45 million in earnings and 889 jobs.

"The research grants awarded to Pennington Biomedical not only support existing faculty positions and support staff, but also generate new faculty and staff jobs, as new research teams are funded. Each grant supports area businesses by purchasing supplies and equipment," said Dr. William Cefalu, PBRC executive director. "For every $1 million from Pennington Biomedical's operating expenses, it was estimated to generate $1.9 million in new business sales and 20.5 new jobs. In addition, many of our grants are in collaboration with our fellow campuses which enhances research programs and creates new jobs and programs around the state.”

LSU’s Paul M. Hebert Law Center contributes $44.5 million in sales to the MSA, $16.5 million in earnings and 459 jobs.

New Orleans MSA
Though only housing one LSU institution, more than 2,000, or 15 percent, of full-time LSU workers are employed in the New Orleans MSA, an eight parish region including Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. James, St. John the Baptist and St. Tammany Parishes.


“LSU Health Sciences Center New Orleans has people and programs that span the state, with significant concentrations in Baton Rouge and Lafayette as well as New Orleans,” said Dr. Larry Hollier, LSUHSC-NO chancellor. “A powerful economic engine, LSU Health Sciences Center New Orleans not only makes significant contributions to our state’s economic health, but also to the health and wellbeing of its citizens and the quality of life in their communities.”

Impacts for the region were generated by measuring the impact of the university spending and student spending associated with the LSU Health Sciences Center, which supported about $887.8 million in sales, $391.2 million in earnings and approximately 6,900 jobs in the New Orleans MSA.

Shreveport-Bossier City MSA
For the Shreveport-Bossier City MSA, which consists of Bossier, Caddo, and De Soto Parishes, the economic impact of all LSU institutions results in $535.7 million, $214.8 million in earnings and 2,082 jobs. Impacts for the MSA were calculated using the inputs from the two system institutions in the area, LSU Shreveport and the LSU Health Sciences Center in Shreveport. These two institutions employ about 2,400 full-time employees, representing approximately 18 percent of LSU’s full-time workforce.


“The LSU Health Sciences Center Shreveport campus is home to three professional schools in the health sciences, attracting nationally and internationally recognized faculty and helping provide future physicians and healthcare providers for the region and the state,” said Dr. Robert A. Barish, chancellor of LSU Health Sciences Center in Shreveport. “Our campus provides jobs and income for Louisiana residents, investments in human and physical capital, cutting-edge health research and clinical trials, support for private sector businesses through purchases of goods and services and tax revenue for state and local governments.

LSU Shreveport is responsible for $86.6 million in sales, nearly $34 million in earnings and 838 jobs.

“We have always known that LSU Shreveport has had a tremendous impact on our region.  This research provides us validity and gives us the opportunity to show the Ark-La-Tex precisely how much of a direct effect we have had on this community,” said Paul Sisson, interim chancellor at LSU Shreveport.

Alexandria MSA
LSU impacts on the Alexandria MSA, which consists of Grant and Rapides Parish, were generated by measuring the impact of the university spending and student spending associated with LSU Alexandria. LSUA employs approximately 290 full-time workers and generates about $52.7 million in sales, $17.6 million in earnings and about 640 jobs within the MSA.


“This study delineates how LSUA contributes significantly to the economy through direct and indirect campus-based faculty and staff jobs,” said Paul Coreil, interim chancellor of LSU Alexandria.  “Additionally, LSUA provides a pipeline of qualified new employees that continuously enter the Central Louisiana regional economy through new graduates entering the workforce, starting businesses and paying taxes.”

Lafayette MSA
The total economic impact of LSU Eunice on the Lafayette MSA, which consists of Lafayette and St. Martin Parishes, is $47.2 million in sales, $17.1 million in earnings, and 515 jobs. It is home to approximately 190 full-time LSU employees. The university spending and student spending associated with LSU Eunice was used to generate impact estimates for the region.


“Each year LSU Eunice infuses our region's economy with $30.08 million which, when spent again and again magnifies into a five-fold total fiscal impact of $150.4 million.  That dollar amount does not include the student spending impact, and nor does it include the human impact which the faculty, staff and students/graduates provide to the communities within which they reside and to which they enrich through their talents and contributions,” said William Nunez, chancellor of LSU Eunice. “In short, for nearly 50 years LSU Eunice has been an economic and talent engine for the greater Acadiana region.”


To view the report in its entirety, including details about its methodology, visit

For more information, contact Ashley Berthelot-Arceneaux, director of research communications, at 225-578-3870 or

Ashley  Berthelot 
LSU Research Communications

Posted on Friday, January 31, 2014