The University of Arizona

Study Shows UA Contributes $1.86 Billion to the Pima County Economy

By Janis Leibold, September 29, 1999

The University of Arizona contributed $1.86 billion to the Pima County economy in FY 97-98, according to an economic impact study released by the University Sept. 29. The extensive study analyzed both the University's direct impact on the economy through employment and wages as well as its indirect impacts - jobs, wages and sales that are created as a result of activities of the University, its employees, students and visitors.

The study, The University of Arizona: An Investment in Arizona's and Pima County's Future, was conducted by Vera Pavlakovich of the University's Office of Economic Development and Alberta Charney research specialist with the Eller College of Business and Public Administration. A briefing on the study was held prior to the second annual Business Matters luncheon at the La Paloma.

Following are some of the study's highlights:
• In FY 97-98, the University of Arizona was Pima County's largest employer. It had 12,043 employees and paid $402 million in direct wages.
• Employee spending during the same period created 5,947jobs and $297 million in wages and sales.
• University construction projects created 463 jobs and $41 million in wages and sales.
• Purchases and operating expenditures created 2,009 jobs and $146 million in wages and sales.
• Students' spending created 17,601 jobs and $874 million in wages and sales.
• Visitors' spending created 2,848 jobs and $102 million in wages and sales.

State appropriations accounted for approximately one-third of the University of Arizona' s budget during this period. Almost two-thirds of the University of Arizona' s revenues came from sources other than state funds. The largest portion of the University's budget-$335.7 million or 37.9 percent - came from grants, contracts and gifts.

In addition to its impact on jobs, wages and sales, the University also generated more than $96 million in tax revenues for the state of Arizona, Pima County , Tucson and other municipalities. This revenue included taxes on University purchases, along with taxes paid by employees, students and visitors.

The University also played a significant economic role outside of Pima County. University activities created more than 1,600 jobs outside of Pima County. These jobs contributed $67 million in wages and sales to the state of Arizona.

The University of Arizona Science and Technology Park generated an additional $699.6 million in total value to the economy in FY1997-98 by attracting new high technology businesses to the state and encouraging existing businesses to stay and grow in Arizona.

The researchers concluded that for every one dollar of state-appropriated funds in FY 1997-98, the University of Arizona generated $6.31 to benefit the people of Tucson, Pima County and the state of Arizona.

For a complete copy of the report, contact the Office of Economic Development, 621-4088.