RICHARDSON, Texas (March 9, 2005) – The University of Texas at Dallas (UTD) had a $348.2-million impact on the North Texas economy in the 2004 fiscal year, according to a study commissioned by the University of Texas System and released today in Austin.
More than $110 million of that was in personal income, the study, which was performed by the Institute for Economic Development at The University of Texas at San Antonio, said.
The assessment of UTD’s impact on the regional economy was part of a much broader study by the institute of the impact across the state of all 15 components of the UT System in Fiscal Year 2004, which began Sept. 1, 2003 and ended last Aug. 31, roughly corresponding to the 2003-04 academic year. The complete 42-page study is available at www.utsystem.edu
The study, subtitled “Taking Investment in Higher Education to the Next Level,” concluded that the system’s nine academic and six health care institutions combined had an impact on the Texas economy last year of $12.8 billion – more than $4 billion of which was in personal income.
Initial direct spending in such areas as operations, faculty and staff salaries, capital expenditures and student spending accounted for $232.5 million of UTD’s impact on the North Texas economy, the study said, noting, however, that when that money was “recirculated” through the economy, the impact grew to $348.2 million.
The same sort of multiplier effect existed with jobs, the report said, pointing out that for every on-campus job created at UTD and the other 14 component institutions, 1.5 off-campus jobs were created. As a result, the study concluded, the 15 UT System institutions last year – directly or indirectly – were responsible for 215,000 jobs across the state.
At the same time, the study found that higher education was an excellent investment, for the state as well as for students, one that returned long-term dividends on the magnitude of 24 to one. “There is a consistent positive correlation between the percentage of college graduates within a state and the per capita income for that state,” the study concluded.
Ongoing capital improvements, of course, are another way that universities and medical centers have a significant economic impact on the areas in which they are located, the institute’s study noted. It projected, for example, that capital expenditures at U. T. Dallas during the 2004-2009 period would be at least $136 million.
Richardson Mayor Gary Slagel predicted that The University of Texas at Dallas would have an even greater impact on the North Texas economy in the years ahead as the university continued to grow its enrollment, expand its facilities and move toward its “goal of achieving Tier One research status.
“I believe that the impact that UTD has on our community will become even be greater,” the mayor said. “And that will not only help existing companies but also new companies that would like to locate in Richardson because of the university. UTD is a tremendous asset for us."
Highly regarded and often-quoted economist Dr. Ray Perryman, president of the Perryman Group, served as one of the expert advisers to the research team that did the study.
The University of Texas at Dallas, located at the convergence of Richardson, Plano and Dallas in the heart of the complex of major multinational technology corporations known as the Telecom Corridor®, enrolls more than 14,000 students. The school's freshman class traditionally stands at the forefront of Texas state universities in terms of average SAT scores. The university offers a broad assortment of bachelor's, master's and doctoral degree programs. For additional information about UTD, please visit the university's Web site at www.utdallas.edu.