HARTFORD — The University of Connecticut generates about $5.3 billion worth of economic activity for the state, including nearly 26,000 jobs and $277.5 million in state and local tax revenue through industries that benefit from UConn’s enterprise, according to a new analysis.
The report, which UConn released Tuesday, is intended to put an economic value on the university's contributions through direct and indirect employment, clinical care, research, academic and service activities at its campuses.
The report says that for every dollar spent by UConn, about 77 cents in economic output is generated elsewhere in the state economy — or about $1,500 per resident.
“Effectively measuring UConn’s contributions allows us to demonstrate key aspects of the value the university brings to the state and its people,” UConn President Thomas C. Katsouleas said.
“UConn is part of a constellation of public higher education institutions in Connecticut, and they all bring great value. But as the sole public flagship research university in the state, we have an enhanced responsibility to contribute to our economy and to our communities. Given that, the citizens of Connecticut and their elected representatives should have a clear picture of what the return on their investment in UConn is, including with respect to our economic impact, among many others,” he said.
The full report and related documents, released with an eye on state budget proceedings, can be found at impact.uconn.edu. The site breaks down the economic analysis on a countywide and town-by-town basis.
That information includes the number of alumni and students in each town and city; UConn Health medical and dental patient visits by each communities’ residents; the average financial aid funded by the state and UConn per student there; and the number of UConn employees who live in each location. For example, there are 210 students, 42 faculty or staff members, and 1,642 alumni in Stonington. In North Stonington, the totals are 35 students, 7 faculty or staff members, and 270 alumn.
Katsouleas and other UConn officials shared the report Tuesday at an event with Gov. Ned Lamont, legislators, business leaders, and others at UConn’s Graduate Business Learning Center in downtown Hartford.
The university conducted the study by determining UConn’s direct impacts — employment, equipment purchases, support of goods and services — and combining them with the indirect and induced impacts created by spending from businesses and households as a result of UConn-generated activity.
“In addition, UConn is leading the way into a knowledge-based economy with investments in the education of a modern labor force, cutting-edge research, and high quality performing arts — all of which enhance the quality of life of Connecticut residents,” the report says.
According to the analysis, UConn’s $5.3 billion impact on statewide economic output includes $3 billion generated directly by the university, and from spillover effects on other affected industries ($914 million) and households ($1.4 billion).
About $2.6 billion of the economic impact was generated by activity at UConn Storrs, plus another $2.2 billion at UConn Health. The four regional campuses — Stamford, Hartford, Waterbury and Avery Point — also provide a $383 million benefit to the state’s economic output.
UConn’s economic impact is expected to continue growing as it focuses on research and innovation, and in the development of the Next Generation Connecticut initiative, a partnership with Jackson Lab at UConn Health, and other work.
UConn also continues to have a strong positive impact on Connecticut’s job creation and employee earnings, with the University’s efforts helping to support nearly 26,000 jobs with $2.6 billion in labor income.
The report shows UConn adds significant value to Connecticut’s gross state product as well.
With “value added” referring to the difference between the value of input and the cost of raw materials, UConn added $2.8 billion in value to the Connecticut economy in fiscal year 2018, leaving $440 million in the hands of businesses and $653 million in the hands of households.
And although UConn is not subject to state and local taxes, its activities generate $277.5 million in that revenue through the industries it affects. Its research spending also has a $485.1 million total impact on Connecticut’s economic output.
The analysis also shows that UConn activities, alumni, employees and students can be found throughout each of its 169 towns and cities. The report says that in 2018:
Katsouleas told guests at Tuesday’s event that the university’s value goes far beyond the economic data. “It provides social mobility for students of all ages, expertise for state and local government, including everything from urban planning to quality of life enhancements to research on addiction. And of course the health care and performing arts and athletics that all help to lift the human spirit, he said.