State Receives 20-fold Return on Investment in University of Oregon; Study: Revenue generated by university nearly offsets state funds
DATELINE: EUGENE, Ore.
The University of Oregon pumped $20 into the state's economy for every $1 it received from the Oregon Legislature in 2004 and 2005, according to an economic impact report by UO economics professor Larry Singell.
Singell's report, commissioned in 2006 by the university and prepared in association with the UO Office of Public and Government affairs and the Office of Resource Management, shows that the university generated $1.2 billion in expenditures while receiving $59.7 million from state coffers. In other words, the university spent 20 times more than the state provided. Singell estimates that university expenditures yielded around $54 million in additional income tax revenue for Oregon, offsetting more than 90 percent of state funding.
"The university is an economic and intellectual powerhouse that serves the entire state," said UO President Dave Frohnmayer. "When the state spends money on the university, taxpayers receive an invaluable return on their investment, not only in dollars but also in preparing the next generation of Oregon's leaders."
In fact, Singell's report estimates that Oregon taxpayers receive $4.67 in tax revenue for every $1 of state funding invested in a UO student. Members of the UO's 2005 graduating class will pay almost $280 million in state income tax over the course of their careers. More than 70,000 UO graduates reside in Oregon, nearly half in the Portland metropolitan area.
Singell's report also shows that the university has become increasingly effective at turning the products of basic research into practical and profitable applications, generating $4.3 million in 2006, the 11thstraight year of record income. Since 1982, the university has received 86 U.S. patents and entered into 195 licensing agreements for technology developed on campus.
UO faculty members play a strong role in innovation and economic development, said Rich Linton, vice president for research and graduate studies.
"The university continues to elevate its performance in the areas of federally sponsored research and the subsequent translation of new discoveries into products, services and businesses serving society," Linton said. "The most recent national data for top research universities indicate that the UO is Oregon's leader in technology transfer revenues and that it created three of the seven university spin-off companies statewide."
In addition, funds spent by the university cycle through the state's economy, in a process economist Singell calls "recycling of the expenditures." Money spent by the university is then spent again by employees and businesses, and yields an economic impact far greater than the initial investment. Income tax from university employees - 4,000 full-time workers - totaled $12 million in 2004-2005, or one fifth of the almost $60 million in state funds received by the university.
In addition, the UO is a good investment for taxpayers because it draws most of its revenue from out of state, yet spends most of its revenue in state, according to the report. In-state tuition and funds from the Legislature made up less than 30 percent of the UO's revenue in 2005, with state appropriations making up 13 percent of the university's budget. Federal grants and out-of-state tuition made up 42 percent of revenues during the same year.
The university is currently on track to raise more $600 million in private gifts as part of Campaign Oregon: Transforming Lives. The funds would double the university's endowment, support research, fund new construction and double funds of an endowment earmarked for faculty support.
Singell's full report, "A Study of the Economic Impact of the University of Oregon," is available online at http://economicimpact.uoregon.edu.
Link:http://economicimpact.uoregon.edu
CONTACT: University of Oregon
Phil Weiler, 541-346-3873
pweiler@uoregon.edu