TUSCALOOSA, Ala. — The University of Alabama has achieved record-breaking economic contributions to both the state and local economies during the 2023-2024 academic year. As the state’s flagship institution, UA generated $3.4 billion in economic impact statewide and $2.354 billion within the Tuscaloosa metropolitan area, according to a new report by the Center for Business and Economic Research at UA’s Culverhouse College of Business. n nUA President Peter J. Mohler emphasized that the university’s success is measured not only by student achievements but also by its broader influence on Alabama’s development. He noted that these results reflect UA’s role in fostering economic expansion, workforce readiness, and community resilience. n nDr. Samuel Addy, associate dean for economic development outreach and senior research economist at CBER, highlighted that rising enrollment and employment levels contributed to these historic impacts. The analysis shows that for every dollar appropriated by the state, UA returned $14.80 in economic value. From a fiscal standpoint, this translates into a 10.4% annual return on public investment, driven largely by increased tax contributions from graduates. Over their careers, the 2023-2024 graduating class is projected to contribute $1.090 billion more in state income and sales taxes than they would have without a UA education. n nStatewide, the university supports 15,238 jobs and generates $164.8 million in state and local tax revenue. Additionally, UA’s seven home football games alone contributed $235 million to the state economy. Locally, the impact includes 13,989 jobs in the Tuscaloosa metro region, $50.0 million in local sales taxes, and $160.1 million in economic activity tied to football weekends. n nBeyond direct financial metrics, UA plays a strategic role in talent attraction and retention. By drawing high-achieving students from across the country, the university increases the likelihood that future professionals will choose to live and work in Alabama after graduation. Its research initiatives, public service programs, and outreach efforts further amplify its societal contributions. n nThe institution also functions as an educational tourism hub, with out-of-state students spending more time and money in Alabama than typical visitors. Many of these students remain in the state post-graduation, contributing to long-term economic vitality. For the 2023-2024 cohort, earning a degree from UA yields private annual returns between 6.7% and 11.5%, depending on the level of study, while marginal returns range from 6.7% to 23.2%. n nAddy concluded that a UA education delivers strong value from both public and private investment perspectives, reinforcing its importance to Alabama’s economic future. n
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UA’s Impact on State, Local Economies Sets Records
TUSCALOOSA, Ala. — 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.