University of Oregon made a $2.3 billion impact on the economy last year, according to a study by UO economics professor Tim Duy. This impact mainly consisted of university spending, student spending, construction activity and visitor spending.
“The idea is that one person’s spending is essentially another persons income,” Duy said. “So that $1 spent by the university influences somebody else’s spending in the community and also influences that behavior of producers who then pays their employees more and then that adds to additional household spending in the community.”
Duy considers the $2.3 billion number a “footprint,” as this is the amount of economic activity impacting Oregon. $1.3 billion is the new activity created by the presence of UO, and is the real number Duy tries to focus on.
The amount of spending grew 16.5 percent from last year.
The university created 24,500 jobs, employed 1,488 students and generated $42.7 billion in tax revenue.
On campus, student spending includes books, supplies and miscellanous items. Off campus, student spending includes the same, plus utilities, food and housing.
Tickets purchased for athletic events by outside visitors and campus visits by future students and family contribute to visitor spending.
A $333.5 million impact was made by construction, jobs and indirect spending. The construction of the new EMU and Student Rec Center were a part of the 2013–2014 fiscal budget, according to Robin Holmes, vice president for Division of Student Life.
Out-of-state students create demand because the outside money generates revenue through the state’s economy.
Despite this, the university is trying to increase the amount of in-state students who attend the UO.
“Because Oregon is a small-population state with only about 35,000 high school graduates per year, our in-state interest sometimes seems overshadowed by the massive interest from neighboring and nearby states like California, Washington, Colorado and Hawai’i, even though Oregonians are the students we most want to serve well and attract,” Director of Admissions Jim Rawlins said.
In-state and out-of-state students are both part of the impact. The UO will continue to attend to both groups, said Rawlins.
“So to the extent that the university stays the same size it is, the economic impact, the growth of the impact will be more moderate going forward,” Duy said. “If we choose to expand in someway shape or form, then we would expect faster growth.”