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Economic Impact Study - Full Report

Economic Impact Study - Executive Summary

News: Economic study cites UT System's impact on Texas economy (3/9/05)

UTSA Institute for Economic Development website

An Economic Engine

You should take The University of Texas' economic impact personally. After all, our 15 institutions contribute $4 billion to Texans' personal income every year.

Local businesses and communities close to campuses reap another $12.8 billion every year from student, faculty and staff spending. That's an impact you can see in flourishing businesses, new stores, and more and better jobs stimulating the local economy.

A study, conducted by the Institute for Economic Development at the University of Texas at San Antonio, found all these facts - and more. For example, every on-campus job creates another 1.5 jobs because of an institution's spending. Statewide, our institutions provide an impact of 215,700 jobs.

Essentially, our universities and health institutions spur further economic growth across the state. In the fall of 2003, 177,700 UT students spent more than $1.9 billion for goods and services in local economies. For every dollar in initial spending like this, another 44 cents is generated and spent.

All of this is a direct and immediate impact we can see in our communities. But think of the massive effects on our collective and individual futures. In FY 2004, 34,900 students graduated from UT institutions. These graduates will bring increased productivity to our economy, with an estimated earnings impact of $44.6 billion. Assuming 86 percent of these graduates remain in the state, a total incremental earnings impact of $38.4 billion is predicted.

"With each successive class of new workforce entrants fulfilling their higher potential, and leading our knowledge-based industry growth, Texas can compete and win in the global marketplace," said Robert McKinley, lead investigator of the economic impact study. Advisors to the study included Texas economist Ray Perryman and state demographer Steve Murdock.

For each of these new graduates, average lifetime earnings will be increased by more than $1 million beyond what they would have earned with a high-school diploma.

Beyond this enormous enhancement of human capital, UT's institutions contributed an estimated $2 billion to local economies in capital expenditures in FY 2004. Every new building you see on UT campuses adds more than a new silhouette to the skyline; it also brings new jobs and money to our communities. In the next six years, UT institutions are slated to spend an estimated $5 billion on construction projects. With extra expenditures generated by these purchases, the combined impact of UT construction will be $7.7 billion over the next six years.

Equally important, the six UT health institutions bring health care services to our communities and state. Every year, they provide more than $1 billion in uncompensated health care for the uninsured. Along with research and education, the six health institutions add $7.7 billion and 111,700 jobs into our regions, the study found. In FY 2004, these institutions' hospital inpatient and outpatient services, as well as physician services combined to add more than $5.8 billion to their economies.

Every dollar of state and private investment in UT institutions multiplies to improve Texans' lives. As our institutions grow and strengthen, our state's potential to meet future challenges and competitions is enhanced. In the growth of our campuses, we can all see our state's future.