The University of Alabama (UA) has reached unprecedented levels of economic influence within the state and its surrounding regions during the 2023-2024 academic year. President Peter J. Mohler emphasized that the institution measures success not only through student achievements but also by its broader societal contributions. “These record-setting results highlight how UA fuels economic growth, prepares the workforce and strengthens communities,” he stated. n nA comprehensive analysis by the Center for Business and Economic Research (CBER) at UA’s Culverhouse College of Business found that the university generated $3.4 billion in economic impact statewide and $2.354 billion within the Tuscaloosa metropolitan area—both all-time highs. n nFrom a public investment standpoint, every dollar allocated by the state yielded a return of $14.80. The 2023-2024 graduating cohort is projected to contribute an additional $1.090 billion in state income and sales taxes over their working lives due to their education, resulting in a 10.4% annual return on state funding. n nAdditional statewide benefits include the support of 15,238 jobs, $164.8 million in state tax revenue, and $235 million generated from seven home football games. Locally, UA sustained 13,989 positions, contributed $50.0 million in local sales taxes, and brought in $160.1 million from game-day activities. n nBeyond direct fiscal outcomes, the university plays a strategic role in workforce development and regional appeal. By attracting top students from across the country, UA increases the likelihood that skilled professionals will remain in Alabama post-graduation. Its research, outreach, and service initiatives further amplify public and private gains. n nUA also functions as an educational tourism engine, with out-of-state students spending more during their time in Alabama than typical visitors. Many choose to stay and build careers locally after earning their degrees. n nFor the latest graduating class, earning a degree from UA translates into private annual returns between 6.7% and 11.5%, depending on the level of study. Marginal returns range from 6.7% to 23.2%, reinforcing the value of higher education as both a personal and public investment. “The UA education is worthwhile and prudent from both public and private investment perspectives,” said Dr. Samuel Addy, associate dean for economic development outreach and senior economist at CBER. n— news from 256 Today
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University of Alabama’s impact on state and local economies sets records
TUSCALOOSA — The University of Alabama continues to be an economic driver for the state as its flagship university set record high economic and fiscal impacts for the 2023-2024 academic year. n n“At The University of Alabama, we measure our success not only by the achievements of our students, but also by the impact we create across our state and beyond,” UA President Peter J. Mohler said. “These record-setting results highlight how UA fuels economic growth, prepares the workforce and strengthens communities. We are proud to deliver lasting value for Alabama and to build on this momentum together.” n nAccording to latest UA economic impact report conducted by the Center for Business and Economic Research in the UA Culverhouse College of Business, the University’s $3.4 billion economic impact on the state and $2.354 billion impact on the Tuscaloosa metro area economy are record highs. n n“With increasing enrollment and employment, UA set record economic impacts on Alabama for academic year 2023-2024 and continued to deliver both tangible and intangible benefits to its graduates and the state that have positive spillovers to the nation and the world,” said Dr. Samuel Addy, associate dean for economic development outreach in Culverhouse and a senior research economist for CBER. n nState Impact n nUA had a $14.80 impact per dollar appropriated by the state. From a public investment perspective, the state will realize a 10.4% annual rate of return on the appropriation because the 2023-2024 graduating class will pay $1.090 billion more in state income and sales taxes over their careers than they would have without their UA education. n nAdditional impacts for the state include 15,238 jobs, $164.8 million in income and sales taxes, and $235 million from UA’s seven home football games. n nLocal Impact n nThe Tuscaloosa metro economy impacts were 13,989 jobs, $50.0 million in local sales taxes and $160.1 million from home football games. n nReturn on Investment n nUA’s contributions to economic and workforce development extend beyond education and training. Attracting the best and brightest students from Alabama and beyond beneficially exposes more future leaders to opportunities in the state and potential for development. UA also delivers many other public and private benefits through research, service and outreach programs. n nThe University is an educational tourism asset as out-of-state students spend significantly more money and time in the state than ordinary tourists do. Additionally, many out-of-state students stay, work and spend in the state after graduation. n nA degree from the University provides real annual rates of return that range from 6.7% to 11.5% for the 2023-2024 graduating class over high school completion depending on degree level; corresponding marginal annual rates of return range from 6.7% to 23.2%. n n“The UA education is worthwhile and prudent from both public and private investment perspectives for the state of Alabama and the University’s students,” Addy said.