Although the University has been lauded lately for its sustainable economic practices, a recent study has found that its role in strengthening the state economy may be drastically understated.
According to a report created by Oregon Economic Forum director Tim Duy, direct spending by the University, its students and its visitors accounted for nearly $1 billion during the 2009-10 fiscal year, translating into nearly $58.5 million of total tax revenue for the state.
“I am proud that the University of Oregon fulfills its mission to serve Oregon in this way,” University President Richard Lariviere said in an e-mail distributed among University faculty and staff regarding the report’s results. “We are a place of great expectations and greater accomplishments.”
In addition to its large economic footprint, the University’s student population of 22,386 students reportedly contribute $232 million directly into the local economy, which resulted in a total impact of $357 million.
As a result of student spending, the report noted that household earnings increase by $96.6 million while supporting a total of 3,917 jobs throughout the state.
The report also noted that Matthew Knight Arena, despite its controversial construction, contributed significantly to a rise in construction spending during the 2009-10 fiscal year — $177 million, from $118 million during the previous fiscal year.
In all, University construction bolstered the state economy by contributing nearly $325 million to the state economy, $107 million in household earnings and the viability or creation of 2,932 jobs.
One of the areas to experience the largest spending growth was research spending, which has risen by 137 percent over the past decade. This increase in University research spending is ranked 11th best among the 63 member institutions of the Association of American Universities.
In addition, research innovations — through the acquisition of licenses — contributed $7.5 million to the Oregon economy last year.
“Despite a challenging economic climate beyond our control, the incredibly hard work and dedication of the University’s community of scholars is having an impact like never before,” Richard Linton, the University vice president for Research and Graduate Studies, said in a prepared statement.
“We are transforming lives through innovation.”
The University has also been able to successfully attract revenue outside of the state by earning numerous research grants totaling over $125.3 million and attracting visitors and students alike to campus. A significant amount of this non-resident spending — over $147.7 million — can be traced back to out-of-state students who pay more than three times the tuition charged to in-state students and account for 64 percent of all undergraduate tuition revenue. In all, non-resident spending associated with the University generated over $367.2 million in revenue.
“I think the University will continue to fulfill its mission and along the way fulfill its educational mission, which will continue to draw out-of-state resources to the University of Oregon,” Duy said. “This would, therefore, help to support the state of Oregon. Given the state’s economic situation, having successful firms, whether they be state agencies or private sector firms, is important to improve our economic outlook looking forward.
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