After revitalizing an economic impact study for the first time in 16 years, an analytics firm found the UW System made a $24 billion economic impact for 2016-17, following the previous $9.5 billion.
UW System President Ray Cross accredited the system-wide creativity and growing presence in research as significant causes for the influence the system has on the state. He said he sees UW on the “frontlines” of devoting their efforts not only locally, but globally as well.
“The UW System is widely considered among the best public education systems in the world,” Cross said. “Our students and our faculty are in high demand as the innovative thinkers and creative problem-solvers that the 21st century needs and expects.”
The largest source of spending directly covers operations and salaries. This makes up half of the overall economic impact. The remaining sources are medical services, startup companies and student spending across all campuses.
Visitors also play an important role in campus spending at almost $2 billion. This includes sports fans, music and film performance attendees and prospective students and their families.
The UW System lent a hand in creating 167,000 jobs and fostering $480 million in combined local and state tax revenue. The system increased enrollment and academic programs while maintaining a presence in the community through research efforts.
Cross called the university the state’s “largest talent and innovation pipeline,” as universities hope to develop graduates to both successful employees and employers. The university gives out more than 36,000 degrees a year and more than 80 percent of them stay in Wisconsin following graduation.
“Throughout history, higher education has always had its doubters and its critics,” Cross said. “But a time when objective analysis clearly shows that a college education is more valuable and more necessary than ever, there should be no doubt, no question, about the need to invest in higher education.”
The private sector totaled 75 percent of the economic benefit, rounding out to $18 billion annually. This includes campus real estate, UW Hospitals and Clinics, as well as computer services, which all receive over $1.5 billion in impact funds for economic activity.
The UW System produced 7.7 percent of the statewide economic value in 2016-17. Essentially, it counted for $7.70 for every $100 spent within the state.
“This is one very good investment because it produces a leverage ratio of 23:1,” CEO of NorthStar Analytics Dr. David J. Ward, regarding a $23 return for every dollar invested.
In return, the UW System receives state funds that contribute to the annual budget. The federal government is a crucial source of financial aid that accounts for nearly 70 percent of the $1.3 billion the state provides to students annually.
“College is clearly a proven, effective path to a better life to which thousands of our alumni can attest,” Cross said.
