Economic Contribution of University of Nebraska at Kearney

Economic Contribution of

ECONOMIC GROWTH ANALYSIS

INVESTMENT ANALYSIS

Study consists of…

Student perspective

Social perspective

Taxpayer perspective

INVESTMENT ANALYSIS

• Benefits—present value of increased future income

• Costs—tuition and fees, books and supplies, and opportunity cost of time

INVESTMENT ANALYSIS: Student Perspective

benefit/cost ratio

INVESTMENT ANALYSIS: Student Perspective

UNK student benefits and costs, $ millions

$605.4

$97.4

Present Cost

Future Benefit Stream

6.2

return on investment

INVESTMENT ANALYSIS: Student PerspectiveINVESTMENT ANALYSIS: Student Perspective

16.5%

INVESTMENT ANALYSIS: Student Perspective

Average income in Nebraska at career midpoint

<HS HS Associate’s Bachelor’s

$58,400

$39,800

$28,100

$19,400

INVESTMENT ANALYSIS: Social Perspective

• Added income—higher earnings and increased property income

• Social savings—reduced medical costs, lower crime rates, and reduced income assistance

INVESTMENT ANALYSIS: Social Perspective

Annual benefits to Nebraska public due to UNK, $ millions

Social

savings, $11.1

Added income, $655.4

INVESTMENT ANALYSIS: Taxpayer Perspective

• Benefits—added tax revenue and avoided costs to government

• Costs—state government funding

INVESTMENT ANALYSIS: Taxpayer Perspective

Benefits and costs to state taxpayers due to UNK, $ millions

$693.7

$38.3

State appropriations and other state

support

Annual Benefit

benefit/cost ratio

18.1

return on investment

INVESTMENT ANALYSIS: Taxpayer Perspective

6.0%

College operations

Student spending

Student productivity

Transfer student effect

ECONOMIC GROWTHANALYSIS

ECONOMIC GROWTH: College Operations Effect

• Direct income of faculty and staff

• Associated multiplier effects

• Adjustment for alternative uses of funds

net contribution to Nebraska income

ECONOMIC GROWTH: College Operations Effect

$47.4 million

• Spending by students from outside Nebraska

• Associated multiplier effects

ECONOMIC GROWTH: Student Spending Effect

net contribution non-Nebraskan students’ spending to state’s economy

ECONOMIC GROWTH: Student Spending Effect

$2.6 million

ECONOMIC GROWTH: Student Productivity Effect

• Higher income of former students who are still active in the Nebraska workforce

• Associated multiplier effects

net annual contribution of 30,000 UNK alumni to Nebraska economy

ECONOMIC GROWTH: Student Productivity Effect

$590.5 million

UNK’s net annual contribution to Nebraska economy

ECONOMIC GROWTH: Total Effect

$653.8 million

SO WHAT DOES ALL THIS MEAN?

• Enriches the lives of students

• Increases students’ lifetime income

• Generates government revenue

• Reduces the demand for social services

• Contributes to the growth of the economy

University of Nebraska at Kearney....

University of Nebraska at Kearney....

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