October 22, 2012 — Coral Gables — The University of Miami’s extraordinary ascent into the top tier of American higher education—the advent of the “New U”—is a testament to those who believe in the University and a success story for all of South Florida.
In spring 2012 the University of Miami commissioned Bendixen & Amandi International to conduct an independent study of the University’s economic impact. They analyzed detailed data provided by the University in various FY 2011 financial reports—the most recent period of available comprehensive data—and applied it to an economic input-output model to extrapolate total impact. The annual expenditures of the University and its student population are multiplied through additional direct, indirect, and induced economic impacts resulting in increased total economic output, employment, gross domestic product, wages, and state and local tax revenues.
The close and enduring collaboration between UM and its community is highlighted in the report, which was presented this morning at The Beacon Council breakfast event. This synergy is also clearly apparent in UM’s economic impact on Miami-Dade County as well as the region and state.
“The University’s investment in world-class teaching and research yields academic excellence and research breakthroughs,” says University of Miami President Donna E. Shalala. “This same investment has also dramatically contributed to the economy during a period of economic downturn.”
One of the largest employers in Miami-Dade County, the University of Miami has a total economic impact of $5.62 billion on Miami-Dade County and an impact of $6.1 billion on the tri-county (Miami-Dade, Broward, Palm Beach) region. It is a major engine that contributes widely across the area, with its employment and expenditures driving further economic activity that affects multiple sectors in the economy.
Since the University’s last economic impact report, conducted in 2007, its local (Miami-Dade County) impact has increased more than 24 percent, from $4.5 billion to $5.6 billion.
Coral Gables benefits greatly from the presence of the University within its city limits. The University’s and student expenditures create $1.4 billion in annual economic impact; 5,769 jobs; nearly $600 million in gross city product; $530 million in labor income and wages; and nearly $10 million annually in state and local taxes.
For the city of Miami, the University’s annual expenditures along with annual student spending create more than $2.7 billion in economic impact; 17,803 jobs; nearly $1.6 billion in labor income and wages; almost $1.8 billion in gross city product; and close to $42 million in state and local taxes.
In FY 2011 the University employed 13,070 full-time faculty and staff who were compensated nearly $1.5 billion, and it spent an additional $786 million on operations and capital expenditures. Accordingly, the University directly contributed nearly $2.275 billion to the local and regional economy. In FY 2011, enrollment was 15,703 students—with 76 percent of undergraduate students and 74 percent of graduate students coming from outside of Miami-Dade County. The University’s reputation, prestige, and quality of education attracted these out-of-the-area students, who pumped an additional $199 million into the local economy.
For Miami-Dade County alone, the University’s and students’ annual expenditures create $5.62 billion in annual economic output, 40,631 jobs, nearly $2.73 billion in labor income and wages, and $126.2 million in revenues to state and local governments. In the tri-county region (Miami-Dade, Broward, Palm Beach), the University and student annual expenditures create $6.1 billion in annual economic output, 43,703 jobs, $2.88 billion in labor income and wages, and more than $150 million in revenues to state and local governments.
The University’s construction program, which is changing the face of its campuses, also has a considerable impact on Miami-Dade County: $200.2 million in economic activity, 1,205 jobs created, $85.5 million in labor income, $104.7 million in gross county product, and $3.7 million in state and local taxes.
These benefits provide a solid foundation for the local and regional economies—and would not exist without the presence of the University of Miami. In spite of the negative impacts of the worst economic recession since the Great Depression over the past five years, the University of Miami has provided a reliable, consistent, and positive contribution to the South Florida economy.
The full report will be available online at www.miami.edu/economicimpact
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