The University of Iowa’s Integral Role in Boosting State Economy
The University of Iowa (UI) is a pivotal force in the economic landscape of the state, contributing significantly to job creation and income generation across Iowa. Recent analysis shows that the university and its students support 123,637 jobs, translating to about 1 in every 18 jobs statewide over a year.
In the 2023–24 fiscal year, UI’s efforts translated into $9.8 billion in additional income for Iowa, equating to roughly 4.2% of the state’s total gross product. This data was presented in a study by the international consulting firm Lightcast to the Iowa Board of Regents during their February meeting.
“These results indicate that the UI is an attractive investment to students with rates of return that exceed alternative investment opportunities,” the report states. It further elaborates on how the presence of the university significantly bolsters the state economy and delivers extensive social benefits to both taxpayers and the wider community in Iowa.
Along with Iowa State University and the University of Northern Iowa, the combined economic contribution reaches $18 billion, accounting for approximately 7.7% of Iowa’s gross state product in the same fiscal year. Collectively, these institutions help sustain over 214,000 jobs, or 1 in every 10 jobs throughout the state.
Detailed Economic Contributions
The economic impact of UI in fiscal year 2023–24 is broken down as follows:
- Alumni impact: $4.3 billion
- UI Health Care spending impact: $2.5 billion
- Operations spending impact: $1.4 billion
- Economic development impact: $824.1 million
- Research spending impact: $457.8 million
- Construction spending impact: $211.8 million
- Student spending impact: $90.9 million
- Visitor spending impact: $85.9 million
- Volunteerism impact: $3 million
Long-term advantages for both students and taxpayers are also highlighted in the study.
Students attending UI in the fiscal year 2023–24 are expected to achieve $3 billion in increased earnings, offering an average return of $4.40 for each dollar spent on their education.
In terms of public finances, the state stands to gain $849.3 million in additional tax revenue from higher lifetime earnings and business income, plus $23.2 million in public savings from decreased demand for government services. Taxpayers can expect a return of $3.30 for each dollar invested in UI during the 2023–24 fiscal year.
The study further projects that the Iowa economy will expand by $10.2 billion over the working lifetimes of students enrolled at UI during the same fiscal year.
The findings are derived from a diverse range of sources, including UI’s academic and financial reports, labor and industry data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, as well as Lightcast’s Multi-Regional Social Accounting Matrix model. Since 2000, Lightcast has accomplished over 3,000 economic impact assessments for educational entities across three nations.
Read More Here
