UC generates $46.3 billion in annual economic activity for California
The University of California is a key economic catalyst for the state, generating $46.3 billion in annual economic activity for California and contributing $32.8 billion toward California’s gross state product through direct spending and multiplier effects, according to an independent economic impact report released on Sept. 14.
Put another way, every $1 the California taxpayer invests in UC provides the foundational support that, supplemented by revenues from other sources, results in nearly $14 in overall economic output.
The study by Economic & Planning Systems Inc. further shows that UC supports 1 in 46 jobs in California, uses state funding to leverage significant additional non-state revenue that benefits Californians, and makes economic contributions to all regions of California through the economic ripple effects of its activities.
The report did not measure the impact of UC’s development of human capital – additional benefits such as spinoff companies created from UC research, tax revenue generated by UC activities or the social and economic contributions of UC alumni.
“UC is a cornerstone of the California economy,” UC President Mark Yudof said. “This report shows that the state receives a strong direct return on its investment in public higher education.
These findings tell part of a larger story of the 143-year relationship between the university and the state it serves. But an even greater return on investment, beyond the impact of expenditures, occurs because UC helps transform lives and society through its education, research, public service and health care. It nurtures the human capital that leads to startup companies, new product lines, agricultural productivity and job creation.”
The study, “The University of California’s Economic Contribution to the State of California,” is the first UC economic impact report conducted on a systemwide level since 2003. The study is the first to isolate the economic contributions of the UC Health enterprise, which accounts for more than a third of UC’s overall economic output.
For more, including links to the full report, go to the UC Newsroom website.