At the halfway mark of 2016, TNECD has located more than 70 projects in Tennessee that have received grant funding from the department.
Of these projects, companies have committed to create nearly 8,000 jobs.
But those new jobs are just the start, according to research by TNECD’s Center for Economic Research in Tennessee (CERT).
TNECD conducted an analysis of the anticipated economic and fiscal impact of projects the state has invested in during the first half of 2016. The analysis encompasses 74 projects that have received job training, public infrastructure grants, and capital grants from TNECD. Projects that did not receive funding were not considered in the analysis, which was developed to help TNECD better analyze projects applying for grants through the state’s FastTrack program.
Specifically, this analysis asks: What is the return to the state and the expected economic benefits resulting from the state’s investment in job training for workers as well as grants for infrastructure?
Over a 10-year period, here are the forecasted economic and fiscal impacts of Team Tennessee’s work in the first six months of 2016:
- 22,886 Jobs Created: This includes 7,974 direct jobs through TNECD projects and an anticipated 14,912 indirect and induced jobs created in Tennessee because of these projects.
- $1.84 Billion: Capital investment by the 74 companies.
- $2.13 Billion: Direct economic output from TNECD projects
- $4.79 Billion: Total economic output expected to arise from TNECD projects. Economic output is the value of goods and services produced in the state as a result of the projects. Economic output can be thought of as the revenue generated by direct business and spin-off businesses.
- 51.7 Percent: The annual rate of return to the state for its initial grant funding for projects during the first six months of 2016. TNECD’s model treats incentives as the initial investment and net benefits to the state as the return on investment. Net benefits represent additional tax revenue generated, less the costs of additional services to new residents and businesses.
Additionally, it is expected it will take the state 2.2 years to recover the cost of incentives committed from the additional revenues that it will receive as a result of the projects.