Although not the largest public university in Oregon by enrollment, the University of Oregon (UO) has emerged as the state’s top contributor to economic activity. According to a newly released report detailing fiscal year 2024, the institution generated $3.7 billion in economic output and supported over 21,500 jobs across Oregon. The analysis tracks financial flows from university operations into the broader state economy, marking the first comprehensive assessment since 2011. n nUO President Karl Scholz emphasized that the institution’s academic instruction, research initiatives, and community outreach are key drivers of economic strength and long-term workforce development. n nThe university outpaces Oregon State University (OSU) by approximately $200 million in total statewide economic contribution. OSU’s own study, published in June, reported $3.5 billion in economic impact. Meanwhile, Portland State University contributed more than $1.8 billion to the state’s economy in its 2023 report. n nThese findings come at a challenging time for higher education, as institutions face tightening federal research funding, uncertainty around student financial aid, political scrutiny over institutional value, and demographic shifts expected to reduce student enrollment in coming years. n nThe majority of UO’s economic footprint stems from operational expenditures, including construction projects, faculty salaries, and employee benefits. Athletics also plays a major role: the university’s NCAA Division I programs spurred $649 million in economic activity in 2024, more than double OSU’s reported $325 million. n nResearch expansion is another growing area of impact. UO’s research activities produced over $424 million in economic output last year. One standout example is Penderia Technologies, a medical sensor startup launched through the Phil and Penny Knight Campus for Accelerating Scientific Impact. n nTina Guldberg, UO’s Assistant Vice President for Economic Development, noted that such ventures not only create local employment but also hold potential to influence global healthcare advancements. n nDespite UO’s strong performance, OSU remains the state’s leading research contributor, generating nearly $798 million in economic impact during the same period. n nAdditionally, the University of Oregon contributed over $238 million in state and local tax revenue, funds that support public services such as transportation and healthcare infrastructure. Guldberg highlighted this as direct fiscal benefit to Oregon communities. n nHowever, ECONorthwest senior economist Andrew Dyke cautioned that such reports offer estimates rather than definitive impact measurements. He stressed that this type of analysis should not be interpreted as a full economic impact study, which would model economic conditions in the absence of the university. n nStill, Dyke acknowledged the broader value of universities: they educate future workers, attract external investment and talent, and stimulate innovation both regionally and globally. n nThe timing of the report is significant, as UO currently faces a $29 million budget shortfall. University leaders attribute this to declining out-of-state enrollment, rising personnel costs, and pressures on state and federal funding. Administrators plan to present the findings to state legislators in the coming week. n
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University of Oregon’s statewide economic contribution edges out peer institutions
The University of Oregon may not be the public university with the most students in the state, but it is the institution contributing the most to Oregon’s economy. That’s according to estimates in a new economic contribution report released by the university Thursday. n nIn fiscal year 2024, UO generated $3.7 billion in total economic contributions for the state and supported more than 21,500 jobs. The report examined the flow of money coming from the university to the state economy. UO’s last comprehensive economic study was completed in 2011. n n“Our teaching, research and public engagement fuel Oregon’s economy, strengthen its workforce and build resilience for generations to come,” said UO President Karl Scholz in a statement. n nUO slightly leads Oregon State University by about $200 million in its total statewide economic contribution. OSU released the results of a similar study in June, highlighting $3.5 billion in state economic output. Portland State University’s 2023 report noted the school contributed over $1.8 billion to Oregon’s economy. n nThese reports come as universities and colleges face multiple financial headwinds: including paused or canceled federal research and student aid grants, increased pressure from the Trump administration to prove their value and a looming demographic cliff that many higher education experts believe will result in fewer tuition-paying students. n nThe bulk of UO’s output comes from spending to sustain the university’s day-to-day operations, including expenses ranging from building projects to wages and benefits for faculty and staff. n nDuck athletics represents a significant portion of the university’s economic contribution. UO’s NCAA Division I sports programs created more than $649 million in financial activity in 2024. OSU’s athletics reported over $325 million in economic contributions. n nUO’s work to build out its research operations is also paying off, generating over $424 million in economic output last year. A highlight from this effort is the medical sensor startup, Penderia Technologies, which originated from the Phil and Penny Knight Campus for Accelerating Scientific Impact. n n“It’s an innovation that’s born out of UO Labs and now it’s creating jobs,” said UO Assistant Vice President for Economic Development Tina Guldberg. “Eventually it will advance global health care.” n nOregon State remains the state’s largest research engine, reporting nearly $798 million in statewide economic contributions over the same time period. n nUO also produced over $238 million in state and local tax revenue, according to the report. n n“That’s direct revenue for the state that can be used for health care, transportation and other important infrastructure in Oregon,” Guldberg said. n nAlthough the report boasts impressive numbers for UO, it’s important to remember that its methodology resulted in an approximate measure of UO’s economic contributions to the state, said ECONorthwest senior economist Andrew Dyke. n n“With respect to this type of analysis, the most important point is not to take the findings too far,” Dyke said. n nThe report itself is not a true economic impact study, which would also predict the state of the economy if the university did not exist at all. But that doesn’t mean universities don’t bring significant value to economies. n n“Universities educate students and play a role in the workforce. They bring in dollars and human capital from outside the state,” Dyke said. “That helps innovation within Oregon and more globally.” n nThis economic contribution study arrives at a pivotal time for UO as it faces a $29 million budget deficit this school year. University officials blame the shortfall on decreasing out-of-state student enrollment, increasing personnel costs and federal and state funding pressures. n nUO administrators plan to present the report to state lawmakers next week.