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UConn has large economic impact on state, says report
Katherine Martinez
Issue date: 2/2/09 Section: News
The University has recently issued "UConnomy," a report analyzing UConn's economic impact on the state of Connecticut, according to Stan McMillen, managing economist in the Department of Economic and Community Development.
The study began last spring, before the recession, when President Michael Hogan expressed an interest in demonstrating the university's impact on the state. "We play an active role in promoting the well-being of citizens in the state of Connecticut, including economic well-being," Hogan said.
According to the official report, UConn generates more than 29,000 jobs across the state, adds an average of $2.3 billion to Connecticut's Gross Domestic Product each year and has a net financial gain of more than $76 million annually.
The study addresses all areas of spending that is associated with the university, including the different branches and the Health Center.
It is important to recognize the impact employees, students and out-of-state visitors have on the economy, said McMillen. Employees spend their income in their hometowns, students spend money at local businesses around the university, and visitors come into Connecticut for sporting events and shows that the university puts on.
Another aspect that McMillen says needs to be considered is that 71 percent of UConn graduates stay within the state, taking on jobs that contribute to the economy.
"We collected enormous amounts of data from almost every department you can imagine," said McMillen. The data is then put through a model and processed resulting in an executive summary and methodology.
"I think the numbers are very compelling," said Hogan, who is unsure whether the study will have any impact on the budget cuts that will be announced by Gov. Jodi Rell on Wednesday.
The university is bracing for a 5-10 percent budget cut.
"It won't be easy, but we'll be prepared," Hogan said.
CORE, a task force assembled by Hogan last semester to find ways to cut back on spending has already found $7 million in reductions. That is about one-fourth of the amount of money that could potentially be cut from the budget, Hogan said.
The university must explore other options for reductions within the departments, and may have to cut wages or raise tuition.
"To quote President Obama, 'if there's pain, everyone will share in it,'" Hogan said.
Hogan continued to stress that the university must be strategic about making cuts and work to maintain quality in the face of reduced funds.
The study began last spring, before the recession, when President Michael Hogan expressed an interest in demonstrating the university's impact on the state. "We play an active role in promoting the well-being of citizens in the state of Connecticut, including economic well-being," Hogan said.
According to the official report, UConn generates more than 29,000 jobs across the state, adds an average of $2.3 billion to Connecticut's Gross Domestic Product each year and has a net financial gain of more than $76 million annually.
The study addresses all areas of spending that is associated with the university, including the different branches and the Health Center.
It is important to recognize the impact employees, students and out-of-state visitors have on the economy, said McMillen. Employees spend their income in their hometowns, students spend money at local businesses around the university, and visitors come into Connecticut for sporting events and shows that the university puts on.
Another aspect that McMillen says needs to be considered is that 71 percent of UConn graduates stay within the state, taking on jobs that contribute to the economy.
"We collected enormous amounts of data from almost every department you can imagine," said McMillen. The data is then put through a model and processed resulting in an executive summary and methodology.
"I think the numbers are very compelling," said Hogan, who is unsure whether the study will have any impact on the budget cuts that will be announced by Gov. Jodi Rell on Wednesday.
The university is bracing for a 5-10 percent budget cut.
"It won't be easy, but we'll be prepared," Hogan said.
CORE, a task force assembled by Hogan last semester to find ways to cut back on spending has already found $7 million in reductions. That is about one-fourth of the amount of money that could potentially be cut from the budget, Hogan said.
The university must explore other options for reductions within the departments, and may have to cut wages or raise tuition.
"To quote President Obama, 'if there's pain, everyone will share in it,'" Hogan said.
Hogan continued to stress that the university must be strategic about making cuts and work to maintain quality in the face of reduced funds.
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