U' T' System Public Affairs Update for Chairman Miller

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THE UNIVERSITY OF TEXAS SYSTEM
Economic Impact Study March 10, 2005
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Overview

• Purpose Evaluate the Economic Impact of
  UT Institutions on their Regions and the State
• Base Data FY 2004 Expenditures
• Operations
• Faculty and Staff salaries
• Capital Expenditures
• Student Spending

Research Institute for Economic Development
UTSA Team Robert McKinley, Michael E. Cline,
Gary Bridges, Jennifer T. Martinez, Jessica
Bybee-Dziedzic, Peter C. Morales, James Ford
Advisors Ray Perryman, Lynda de la Viña,
Steve Murdock, Kerry Kennedy, Joseph Stafford,
Jude Valdez, Albert Carrisalez
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Statewide Economic Impact

• Initial Direct Spending
• FY 04 Non Resident Student Spending .9 Billion
• FY 04 Actual Expenditures 7.8 Billion
• FY 04 Total Direct Expenditures 8.7 Billion

Output Impact (Initial and Recirculated) 12.8
Billion Personal Income Impact 4.0 Billion
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Employment Impact
Direct Employment 87,800 Created
Employment 127,700 Total Employment
Impact 215,000 For every one on-campus job,
an additional 1.5 off-campus jobs are created
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Future Earnings Impact
FY 2004 Degrees Awarded 34,900 Incremental
NPV of work-life earnings 44.6 Billion
Total 86 Graduates remain in Texas 38.4
Billion Net State Investment 1.6
Billion This investment ultimately results in a
1 to 24 ratio.
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Construction Impact
FY 2004 Capital Investment 1.2
Billion Economic Impact 2.0
Billion 20,100 jobs FY 2004-2009 CIP 5.0
Billion Economic Impact 7.7 Billion
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Student Spending Impact
Fall 2003 students enrolled 177,700 FY 04
student spending 1.9 Billion Out-of Region
or New Money spending 1.0 Billion Economic
Impact 1.5 Billion 17,200 jobs
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Healthcare Impact
Economic Impact from Health Institutions 7.7
Billion 60 of Total Employment Impact from
Health Institutions 111,700 jobs 55 of
Total Value of Health Services delivered in
FY 04 5.8 Billion
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THE UNIVERSITY OF TEXAS SYSTEM
A more-educated population also results in less
stress on the social services, higher family
incomes and increased purchases of consumer
goods. If the enrollment gap were closed, it
would increase the states tax revenue by 21
billion a year Steve Murdock, State Demographer