EUGENE, Ore. -- (Feb. 14, 2012) – As Oregon celebrates its 153rd birthday, the University of Oregon is marking the occasion with its annual report about the relationship between the state and the research university.
The University of Oregon is a key driver of the Oregon economy with total impact of spending by the institution, its students and visitors estimated at $2.12 billion, UO economist Tim Duy found in his study, "The Economic Impact of the University of Oregon: FY2010-11 Update." The spending represents a 7.6 percent increase from last year’s total of $1.97 billion. Direct spending by the UO, students and visitors totaled more than $1.14 billion before economic multiplier calculations.
The University of Oregon produces $37.79 in economic impact for every dollar it receives in state appropriations, and accounts for $1 out of every $82 in Oregon's economy, according to the latest report.
“The contributions of public higher education to our state and society are immeasurable,” said Interim President Robert Berdahl. “We can, however, quantify the direct and indirect economic boost of the University of Oregon. The institution is a powerful contributor to the health of the state’s economy in real dollars, and by preparing future generations of Oregonians.”
Using conservative estimates, the UO directly and indirectly supports 21,000 full and part-time jobs in Oregon, with associated household earnings of $706 million. Based on total aggregate earnings tied to the university, the UO generated an estimated $38.1 million in state income taxes. That offsets 68 percent of the state appropriation of $56 million to the UO, which makes up 7 percent of the university budget.
The 9,675 employees who worked for the university during 2010-11 had $18 million withheld from their paychecks for state income taxes.
Duy, director of the Oregon Economic Forum, prepared the report in December 2011. The Forum produces the monthly State of Oregon Economic Indicators (which includes the UO Index of Economic Indicators), the monthly Oregon Regional Economic Indexes, the quarterly Central Oregon Business Index and an annual conference in Portland.
“The University of Oregon is an economic powerhouse in part because of its ability to draw revenue into the state of Oregon from external sources,” Duy noted.
Nonresident tuition, federal awards and visitor spending accounted for $389 million drawn into Oregon by the UO in 2010-11. In addition, the UO received $8.6 million in federal stimulus funding.
Sponsored activity, including research and other grants, at the UO generated $110 million in 2010-11, despite a challenging federal funding climate. Approximately 90 percent of sponsored awards to UO faculty come from outside the state in federal and sub-federal grants through competitive peer-review processes.
"Federal funding reflects the talent and accomplishments of UO’s faculty in its efforts to push the boundaries of knowledge, which in turn, are carried forward into the development of innovative new technologies," said Kimberly Andrews Espy, vice president for research and innovation. "This integrative approach is working. Among the 17 companies that were born as a direct result of our research, more than 250 people were employed and $33 million in revenues were generated in 2011."
New building and renovation projects at the UO, such as the Lewis Integrative Science Building slated to open in fall 2012, contributed significantly to a rise in construction spending. In FY2010-11 total construction spending was $195 million, up from $177 million in 2009-10 and $118 million in 2008-09. Total UO construction spending contributed $359 million to the state economy, $118 million in household earnings and 3,180 jobs.
The economic impact of visitor spending totaled nearly $10.8 million for hotels, food services and other activities, with an estimated 157 jobs created. In January 2011, the Matthew Knight Arena opened and has hosted dozens of concerts, family programs and other events, in addition to UO athletics competitions. The UO was also the host venue for the 2011 U.S.A. Outdoor Track & Field Championships and will host the 2012 U.S. Olympic Team Trials—Track & Field in June.
Graduates of the UO also represent a significant economic contribution. Among public universities in Oregon, the UO leads in the number and percentage of students who complete a degree, degree completion time, and rate of retention in the critical first year. The average debt at graduation for bachelor’s degree recipients and the percentage of graduates with debt at the UO are the lowest in the Oregon University System.
“The contribution of an educated workforce ready to immediately contribute to the job market is a qualitative aspect of the university’s economic impact,” Duy said.
Duy's 15-page report also notes the widespread community service activities, such as internships, career services and cultural events, which contribute to the state’s economy beyond the scope of the study.
The study is available online at http://gcr.uoregon.edu/sites/all/files/gcr/uploads/Tim%27s%20report.pdf.
About University of Oregon
The University of Oregon is among the 108 institutions chosen from 4,633 U.S. universities for top-tier designation of "Very High Research Activity" in the 2010 Carnegie Classification of Institutions of Higher Education. The UO also is one of two Pacific Northwest members of the Association of American Universities.
MEDIA CONTACT: Julie Brown, UO media relations, 541-346-3185, julbrown@uoregon.edu
SOURCE:Tim Duy, UO adjunct assistant professor of economics, 541-346-4660, duy@uoregon.edu
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