Economic/Social Impact Report Documents University's Value

A new study of the contributions of the University of California, Berkeley to the state of California, the Bay Area and local community was recently released, documenting the economic and social benefits of the campus as a major research university.

Among the study's key findings (based on 2005-2006 data):

Revenue: UC Berkeley had revenues of $1.4 billion, of which approximately 71% came from outside the Bay Area.

Expenditures: The university spent over $401 million in goods and services, more than $135 million in the Bay Area.

Payroll: UC Berkeley's payroll was almost $808 million, 96% of which went to Bay Area residents. In addition, almost $145 million was paid out to UC Berkeley retirees, with about $50 million of this going to retirees who live in the city of Berkeley.

Capital Projects: UC Berkeley spent about $144 million on capital projects, of which $117 million, or 81%, was on projects located in Berkeley. Almost $27 million, or 19%, was spent on projects in Albany and Richmond.

Student Spending: UC Berkeley students spent about $395 million in the Bay Area.

Visitor Spending: UC Berkeley attracts about one million visitors each year to the campus to its academic programs and resources, cultural and athletic events, conferences and museums. Conservatively estimated, these visitors contribute $30 million annually to the local economy.

University Employment: In 2005-2006, the university employed about 24,700 people (including about 9,700 students) and is the largest employer in the East Bay (Alameda and Contra Costa Counties).

Multiplier Effect: UC Berkeley's direct spending and payroll generated millions of dollars of additional spending and thousands of additional jobs as dollars spent by the university circulated through the economy. UC Berkeley's direct expenditures of over $1 billion in the Bay Area generated over $464 million in indirect and induced spending and an additional 9,200 jobs for Bay Area residents.

Human Capital: Although 64% of UC Berkeley students come from outside the Bay Area, many remain here after they graduate and add to the intellectual talent of the region. About 170,000 of the alumni registered with the California Alumni Association live in the Bay Area, with 17,000 residing in Berkeley. This talent pool attracts businesses to the Bay Area. Companies founded and developed by UC Berkeley alumni contribute to the vitality and innovation of the regional economy.

The economic and social benefits for the city of Berkeley are notable:

• One third of Berkeley's population is either employed by, retired from, or a student at the campus.
• As the city's largest employer, UC Berkeley employs more people than the next 9 largest employers combined, with a payroll of $314 million paid in 2005-2006 to Berkeley residents.
• UC Berkeley students spent $282 million in the city of Berkeley in 2005-2006.
• Visitors to the campus spend dollars locally on goods, services and hospitality, generating sales tax and transient occupancy tax for the City of Berkeley.
• Annually, UC Berkeley faculty, staff, and students devote more than 300,000 hours to public service, serving about 250,000 people in the community and across California — a monetary value of over $6 million.
• The university offers hundreds of educational, cultural, and recreational programs that are available to the public, enriching the lives of local residents.

The report highlights research that addresses the critical issues facing the state, region, nation, and planet, from children's health problems to global warming to world poverty and disease. A section on environmental policies and practices summarizes the campus's ongoing progress towards sustainability.

The report's findings support the assessment of the Washington Monthly annual college guide, which uses three indicators to measure how a college or university benefits the country: (1) how well it performs as an engine of social mobility, (2) how well it fosters scientific and humanistic research, and (3) how well it promotes an ethic of service to the country. Its September 2006 assessment ranked UC Berkeley second in the nation, concluding, "By our yardstick, University of California, Berkeley is about the best thing for America we can find. It's good by all of our measurements."

TOP
NEXT
PREVIOUS