The Virginian-Pilot 
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Tuesday, June 4, 1996                 TAG: 9606040001
SECTION: FRONT                   PAGE: A14  EDITION: FINAL 
TYPE: Editorial 
                                            LENGTH:   42 lines

EASTERN VIRGINIA MEDICAL SCHOOL TAX BOON, TOO

Even a young, comparatively small medical school with a modest endowment is a powerful economic engine. The private sector benefits. So does the public sector - government.

Eastern Virginia Medical School's annual economic impact upon Hampton Roads is about a half-billion dollars, Old Dominion University researchers reported last year.

EVMS' economic impact upon Virginia is $923 million a year - $401 million in direct business volume and $522 million in indirect business volume, a Pittsburgh research firm reported this year.

For example, the Pittsburgh researchers reckoned that state-government revenue generated by Eastern Virginia Medical School and its hospital affiliates totals more than $35 million annually, which is substantially more than the annual aid flowing from the state treasury to the school. To put a fine point on it, EVMS is a strong plus for Virginia economically as well as medically, as it is for Hampton Roads.

Now the College of William & Mary's Bureau of Business Research reports that EVMS directly and indirectly generated $5,957,400 in tax revenue for seven Hampton Roads cities in 1995. The tax revenue generated for each city by EVMS was far greater than the tax revenue appropriated from each municipality's treasury to support the medical school.

Chesapeake gained $619,700 in tax revenue in 1995; EVMS' 1996 request for city aid totaled $104,000.

Hampton gained $247,000 in tax revenue; EVMS' 1996 request, $71,181.

Newport News gained $340,800; EVMS' request,$35,000.

Norfolk gained $2,606,400; EVMS' request, $683,577.

Portsmouth gained $477,500; EVMS' request, $52,867.

Suffolk gained $$185,300; EVMS' request, $16,224.

Virginia Beach gained $1,480,700; EVMS' request, $448,864.

There are many ways to measure the importance of EVMS to Hampton Roads. The dramatic improvements in the quality and scope of health care linked to the medical school's existence is the most-important measure. But the school's contribution to local cities' treasuries is nothing to sniff at it either. by CNB