Study Finds Public Universities Generate 5:1 Return on State Investment

State and land-grant universities provide major stimulus to their state and regional economies – generating jobs, attracting and helping create new high-tech businesses, and increasing state tax revenues in addition to providing a well-educated work-force, according to Shaping the Future – The Economic Impact of Public Universities. The study, prepared by National Association of State Universities and Land-Grant Colleges (NASULGC), is based on a survey of its 212 member institutions. Fifty percent responded to the survey. 



Among the key findings are: 

• State and land-grant universities multiply the effect of state tax dollars, generating an average return of $5 for every state tax dollar invested. 
• State and land-grant universities are a major source of jobs – the average public university campus employs more than 6000 full-time workers – and for every job on campus, another 1.6 jobs are generated beyond the campus. 
• An average of $284 million in yearly spending makes state and land-grant universities major economic players in the cities and towns in which they are located. University employees, visitors and students spend, on average, another $393 million a year – or $138 for every $100 of university spending. 
• Public universities attract significant outside revenue and create a welcoming environment for new business. On average, they attract $105 million a year in research grants and contracts, and nearly two-thirds of the responding institutions have a research park and/or business incubator. 
• Two out of three graduates, on average, remain in the state where they received their degrees for a significant period of time after graduation, paying taxes and becoming part of the state’s educated workforce. 

Shaping the Future also contains an institution-by-institution summary of economic and other data reported by respondents. This section of the report highlights many specific examples of the economic benefits provided by public universities including: medical and technological breakthroughs; support for start-up businesses; expedited commercial availability of promising technologies; a well-educated, productive workforce; and, community service and outreach. 



Print copies of the report will be available at SSTI's 5th Annual Conference. Additional hard copies may be requested by e-mail at pubs@nasulgc.org The report also is available for download on the NASULGC website at www.nasulgc.org