UA reports record economic impact at city + state levels
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A recent report from the University of Alabama’s Center for Business and Economic Research shows the university with record-high economic impacts on the state and the city of Tuscaloosa during the 2023-24 academic year.
According to the report, the university created a $3.4 billion economic impact on the state of Alabama as a whole while creating a $2.354 billion impact on the Tuscaloosa metro area.
“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. 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.”
Peter J. Mohler, UA President
University of Alabama
The university measured the economic impact in several different ways including jobs created, income + sales tax, tourism and out-of-state students.
The report said UA created a $14.80 impact per dollar appropriated by the state. And from a public investment perspective, the state should see a 10.4% annual rate of return because the 2023-24 graduating class will pay roughly $1.09 billion more in state income and sales taxes over their careers than they would have without attending the university.
On a state level, the university’s impact reportedly includes 15,238 jobs, $164.8 million in taxes and $235 million from Alabama’s seven home football games during Nick Saban’s final season.
Just on Tuscaloosa alone, the impacts included 13,989 jobs, $50 million in local sales taxes and $160.1 million from the football season.
“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… The UA education is worthwhile and prudent from both public and private investment perspectives for the state of Alabama and the University’s students.”
Dr. Samuel Addy, associate dean for economic development outreach in Culverhouse + a senior research economist for CBER
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