UCLA’s contributions to Los Angeles and the state of California extend beyond academics to the tune of over $9 billion in yearly economic activity, according to a study released earlier this week.
UCLA funded the study by the nonprofit Los Angeles Economic Development Corporation, which conservatively placed the university’s total economic impact at more than $9.34 billion annually in the greater L.A. area and $9.89 billion statewide.
“There would only be a handful of universities in the country that would be on the same scale (of economic impact) as UCLA,” said Greg Freeman, vice president of the corporation and lead author of the study.
“One of the interesting findings of the study is that UCLA has been growing consistently over the past several years. Because UCLA is so big and because its growth has been so steady, it helps act as a source of growth when the rest of the economy is struggling,” Freeman said.
Some sources of UCLA’s strong economic activity include its recent increase in construction, purchases of goods and services by the UCLA community, and employment, Freeman said.
UCLA is the seventh-largest employer in the greater L.A. area, employing more than 27,000 people campuswide, including faculty.
“UCLA faculty are helping to power the economy and improve quality of life through research breakthroughs that pave the way to new medical treatments and new understanding in a wider range of fields, from engineering and nanotechnology to the arts and education and the social sciences,” Interim Chancellor Norman Abrams said in a statement.
The study also found that spending on goods and services by UCLA students, staff, faculty and visitors serves to anchor approximately 42,800 more jobs in the surrounding areas.
“It’s clear that UCLA’s major contributions to education are matched by its major benefits to the local economy. The university brings billions of dollars into Los Angeles every year and will continue to play a central role in the city’s cultural, educational and economic identity,” said Gil Duran, press secretary for the office of L.A. Mayor Antonio Villaraigosa, in a statement.
In all, UCLA generates approximately $1.2 billion in federal, state and local tax revenue, according to the corporation.
Also, for every $1 that state taxpayers spend on UCLA, the university creates almost $15 in economic activity. Freeman said he believes this proves that UCLA is a valuable investment for the state.
“The state only provides about 17 percent of UCLA’s budget. It is important that state legislators know that they are getting the value that they are investing in the university, and this study confirms that they are,” Freeman said.
Tina Park, outgoing external vice president for the undergraduate student government, said more state investment would have positive effects for both the state and students.
“Right now we are fighting to have the state Legislature restore funding into the UC system so that students and families aren’t burdened with the increasing costs of higher education. This study should be a sign to the state Legislature that putting money into the UCs and Cal States is a smart decision,” she said.