FRANKFORT, Kentucky, Jan. 31, 2025 — Kentucky’s 18 independent, nonprofit colleges and universities contribute $2.06 billion to the state and local economies, according to a report released by the Association of Independent Kentucky Colleges and Universities. AIKCU announced the results of a study of its member institutions for Fiscal Year 2021-22, the most recent period for which data was available at the time of completion.

 

More than 59,000 students attend AIKCU’s member institutions, which award one in five bachelor’s degrees in Kentucky.

 

“In addition to providing widespread access to higher education and helping develop Kentucky’s skilled workforce, AIKCU’s member colleges and universities are anchor institutions in communities throughout the commonwealth," said Mason Dyer, AIKCU president. “They serve as hubs for the arts, culture, athletics, and community engagement, and are uniquely positioned to enhance the quality of life in their regions.”

 

Dyer added, ”While these institutions are widely recognized for contributing to the well-being of their communities, these numbers reinforce our long-held belief that the investment in state aid for students attending independent colleges and universities represent one of the best rates of return on investment for the commonwealth.”

 

In addition to measuring the overall impact of the independent college and university sector in Kentucky, the report also drills down to estimate the local impact of each institution, which ranges from $19 million to more than $300 million.

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“Kentucky’s private colleges and universities are important economic drivers throughout the state, serving both rural and urban students and communities,” said Dr. John P. Marsden, president of Midway University and chair of the AIKCU Board of Directors. “The financial health of our institutions contributes directly to the state’s economy, and we play a critical role in educating the future workforce of Kentucky.”

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​Report Highlights

Calling the $2.06 billion contribution to Kentucky’s bottom line “remarkable,” Dyer explained that the total economic impact for AIKCU as a whole is the sum of $1.5 billion in direct spending and $546 million in induced spending.

 

The total economic impact of the individual colleges and universities is as follows:

 

Institution/Total Economic Impact

Alice Lloyd College: $33 million

Asbury University: $84.7 million

Bellarmine University: $177.7 million

Berea College: $202.8 million

Brescia University: $33 million

Campbellsville University: $295.6 million

Centre College: $142.9 million

Georgetown College: $53.8 million

Kentucky Christian University: $19.2 million

Kentucky Wesleyan College: $54.7 million

Lindsey Wilson College: $91 million

Midway University:  $36.5 million

Spalding University:  $105.4 million

Thomas More University: $160.8 million

Transylvania University: $66.3 million

Union Commonwealth University: $34.4 million

University of Pikeville: $128.4 million

University of the Cumberlands: $337.6 million

 

Job Creation

In addition, AIKCU created 17,933 jobs.

 

How AIKCU Arrived at the Numbers

AIKCU commissioned the study from Mark Paul Gius, Ph.D., professor of economics at Quinnipiac University in Hamden, Connecticut. The report incorporates publicly available data from IPEDS – the Integrated Postsecondary Education Data System – and the institutions' IRS Form 990s, as well as limited data collected directly from the institutions. Dr. Gius then used standard input-output economic impact analysis methodology to arrive at conservative estimates for AIKCU members’ direct, induced, and total impacts at the state and local levels.

 

The total economic impact of a university can be measured in terms of the direct and induced economic impact of a university’s activity on the local economy. 

 

Direct Spending. Direct spending is defined as the amount of money spent directly by the university, university employees, students, and visitors.

 

Induced Economic Impact. The induced economic impact is the additional employment and expenditures of local industries that result because of direct spending in a regional economy. Due to this direct spending, local businesses must hire additional workers who must then purchase more goods and services in the area. These additional purchases of goods and services have a multiplier effect of inducing even greater increases in employment and increases in the local purchases of goods and services.

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About AIKCU

The Association of Independent Kentucky Colleges and Universities advances the interests of Kentucky's independent, nonprofit colleges and universities by promoting postsecondary affordability and student success through policy advocacy, strategic partnerships, and community engagement. Independent colleges play a critical role in the commonwealth’s postsecondary education system, serving more than 59,000 students and awarding 13,600 degrees annually. AIKCU’s 18 member colleges and universities are all accredited by the Southern Association of Colleges and Schools Commission on Colleges and licensed by the Kentucky Council on Postsecondary Education. 
 

AIKCU Members by County/City

​Adair: Lindsey Wilson College, Columbia

Boyle: Centre College, Danville

Carter: Kentucky Christian University, Grayson

Daviess: Brescia University, Owensboro, and Kentucky Wesleyan College, Owensboro

Fayette: Transylvania University, Lexington

Kenton: Thomas More University, Crestview Hills

Knott: Alice Lloyd College, Pippa Passes

Knox: Union Commonwealth University, Barbourville

Jefferson: Bellarmine University, Louisville, and Spalding University, Louisville

Jessamine: Asbury University, Wilmore

Madison: Berea College, Berea

Pike: University of Pikeville, Pikeville

Scott: Georgetown College, Georgetown

Taylor: Campbellsville University, Campbellsville

Whitley: University of the Cumberlands, Williamsburg

Woodford: Midway University, Midway

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