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1Lightcast.io  208-883-3500This analysis quanties the economic impacts associated with the growth of Algoma University (Algoma U) as the university expands to serve 3,000 students on its Sault Ste. Marie campus in scal year (FY) 2025-26. Algoma U creates a signicant positive impact on the business community and generates a return on investment to its major stakeholder groups—students, taxpayers, and society. Using a two-pronged approach that involves an economic impact analysis and an investment analysis, this study calcu-lates the expected benets received by each of these groups as the university grows.Economic impact analysisIn FY 2022-23, Algoma U added $145.4 million in income to the Sault Ste. Marie econ-omy, a value approximately equal to 3.8% of the region’s total gross regional product (GRP). By FY 2025-26, Algoma U expects to grow its Sault Ste. Marie campus enrolment to 3,000 students. This growth is projected to increase Algoma U’s impact to $200.6 million in added income, a value approximately equal to 5.3% of the region’s GRP. Expressed in terms of jobs, Algoma U’s projected impact will support 2,235 regional jobs, which is equivalent to supporting one out of every 17 jobs in Sault Ste. Marie. Operations spending impactAs the university grows to serve additional students, Algoma U is projected to employ 393 full-time equivalent (FTE) employees (excluding research employees) in FY 2025-26, with payroll amounting to $46.4 million (excluding payroll from APRIL 2O24Fact SheetThe Economic Value of Algoma University’s Growth to 3,000 Students in Sault Ste. MarieSault Ste. Marie, Ontario

2Lightcast.io  208-883-3500research employees), much of which will be spent in the region for groceries, mortgage and rent payments, dining out, and other household expenses. The university will spend another $19.8 million on day-to-day expenses related to facilities, supplies, and professional services (excluding research expenditures).The net impact of the university’s operations spending will add $65.6 million in income to the regional economy in FY 2025-26.Research spending impactResearch activities at Algoma U impact the regional economy by employing people and making purchases for equipment, supplies, and services. They also facilitate new knowledge creation in Sault Ste. Marie. In FY 2025-26, Algoma U is projected to spend $1.4 million on payroll and $274.8 thousand on other expenses to support research activities.Algoma U’s research spending will generate $1.9 million in added income for the Sault Ste. Marie economy in FY 2025-26.Construction spending impactAlgoma U spends money on construction each year to maintain its facilities, cre-ate additional capacities, and meet its growing educational demands. While the amount varies from year to year, this spending generates a short-term infusion of spending and jobs in the regional economy.The net impact of Algoma U’s projected construction spending in FY 2025-26 is $12.6 million in added income for Sault Ste. Marie.Visitor spending impactOut-of-region visitors attracted to Sault Ste. Marie for activities at Algoma U bring new dollars to the economy through their spending at hotels, restaurants, gas stations, and other regional businesses. By serving more students, Algoma U will also attract more visitors to the region. This increase in visitor spending will add approximately $139.1 thousand in income to the Sault Ste. Marie economy in FY 2025-26.Student spending impactAround 95% of students attending Algoma U originated from either outside the region or outside Canada in FY 2022-23, and all of these students relocated to Sault Ste. Marie to attend Algoma U. In addition, a number of local students would have left the region if not for Algoma U. These students spent money on groceries, mortgage and rent payments, and so on at regional businesses. As the university grows to serve nearly 1,100 additional students, or 3,000 students in total, the impact of student spending on the region is projected to add $21.7 million in income to the Sault Ste. Marie economy in FY 2025-26. Of this impact, $11.7 million will be attributable to international students who relocate to Sault Ste. Marie to attend Algoma U.Projected impacts created by Algoma U in FY 2025-26 with 3,000 studentsOperations spending impact$65.6 millionResearch spending impact$1.9 millionConstruction spending impact$12.6 millionVisitor spending impact$139.1 thousandStudent spending impact$21.7 millionAlumni impact$98.7 millionORTotal economic impact$200.6 millionJobs supported2,235

3Lightcast.io  208-883-3500Alumni impactOver the years, students have studied at Algoma U and entered or re-entered the workforce with newly-acquired knowledge and skills. Today, thousands of these former students are employed in Sault Ste. Marie.As Algoma U’s enrollment grows to reach 3,000 students, the university will add more skilled and knowledgeable workers to the regional workforce. By FY 2025-26, the net impact of Algoma U’s former students employed in the regional workforce will grow to $98.7 million in added income. Of this impact, $26.9 million will be attributable to former international students working in Sault Ste. Marie.Investment analysisStudent perspectiveAlgoma U’s FY 2025-26 students are expected to pay a present value of $53.6 million to cover the cost of tuition, fees, and supplies. They will also forgo $30.8 million in money that they would have earned had they been working instead of attending university.In return for their investment, students will receive $127.8 million in increased earnings over their working lives. This translates to a return of $1.50 in higher future earnings for every dollar students invest in their education. Students’ average annual rate of return is 10.8%.Taxpayer perspectiveProvincial taxpayers support Algoma U with funding, and in FY 2025-26, taxpay-ers are projected to provide $11.8 million of funding for the university. In return, they will benet from added tax revenue, stemming from students’ higher lifetime earnings and increased business output, amounting to $88.2 million. A reduced demand for government-funded services in Ontario will add another $1.3 million in benets to taxpayers.For every dollar of public money invested in Algoma U, taxpayers will receive $7.60 in return, over the course of students’ working lives.Social perspectiveSociety in Ontario is projected to invest $101.5 million to support Algoma U in FY 2025-26, including all student and all university costs. In turn, the Ontario economy will grow by $671.2 million, over the course of students’ working lives. Society will also benet from $3.2 million in present value social savings related to reduced crime, reduced demand for income assistance, and increased health and well-being across the province.For every dollar invested in Algoma U in FY 2025-26, people in Ontario will receive $6.60 in return, for as long as Algoma U’s FY 2025-26 students remain active in the provincial workforce.Students gain in lifetime earnings$1.50Taxpayers gain in added tax revenue and public sector savings$7.60Society gains in added income and social savings$6.60For every $1...