Economic Impact
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| Economic contributions, 2004-05 [Full size] |
The Economic Contribution of UC Santa Cruz to the Santa Cruz Community
The University of California, Santa Cruz, the largest single employer in Santa Cruz County, brings in a substantial amount of money from outside county borders, most of which is spent in the county.
During the 2004-05 year, UCSC was responsible for nearly a billion dollars of economic activity in Santa Cruz County through spending by its faculty, staff, students, out-of-town visitors, and the university itself. (UCSC's fiscal year runs from July 1 through June 30. The 2004-05 totals are the most current figures available.)
Actual spending by the university and its employees, students, and visitors totaled $608 million; when calculated by an economic multiplier formula, the total jumps to $960 million. The economic multiplier is a calculation used by economists to measure not just the actual dollars spent, but the value of those dollars when they are spent again. In essence, the economic multiplier shows the ripple effect of each dollar spent in an economy.
Purchases made by university employees play a major role in the economic vitality of the community. In 2004-05, UCSC faculty, staff, and their immediate families spent $292 million on purchases and services within the county, including payments for health, life, dental, and vision insurance; income to local retirees; and unemployment insurance and worker's compensation. Disposable student income (after payment of university fees) totaled $145 million spent within county borders.
Because the majority of the campus's budget each year is supplied by out-of-county sources, the income spent by university employees is nearly all new to the local economy. Of UCSC's $414 million operating budget in 2004-05, 34 percent came from state appropriations, 24 percent came from student tuition and fees, a total of 22 percent came from governmental contracts and grants and from private gifts and endowments, and 20 percent from other sources.
The campus also uses outside funding to purchase local goods and services. In 2004-05, the university spent about $41 million locally for supplies, equipment, and services. In expenditures for campus construction, $20 million was spent locally.
The campus also attracts approximately 180,000 visitors each year--prospective students and their parents; guests of faculty, staff, and students; summer session students; and others attending special events. In total, summer session students, campus visitors, and guests spent an estimated $23 million locally in 2004-05, including costs of 52,000 room-nights at hotels in Santa Cruz.
Source: Economic Impact Report for 2004-05, Office of Planning and Budget, University of California, Santa Cruz. http://planning.ucsc.edu/budget/economic_impact/
JL 8/06