Study Shows UVA Wise Delivers $188 Million Economic Impact, $13 Million in State Revenue in FY 2021
UVA Wise plays a key role in stimulating economic growth, contributing $188 million in state gross domestic product, or GDP, and $13 million in state tax revenues during fiscal year 2021, according to a report issued recently week by the Virginia Business Higher Education Council.
“Providing a top-quality education is one of the best public investments we can make for our talented students, our region and the Commonwealth. We are proud of our role in boosting the state’s economic vitality and creating a thriving economy here in Southwest Virginia,” said UVA Wise Chancellor Donna P. Henry, who is a member of the Virginia Business Higher Education Council’s governing board.
Overall, Virginia public higher education institutions had a total economic “footprint” of $52.4 billion dollars in state GDP and supported 188,379 jobs in fiscal year 2021.
Each dollar the Commonwealth spends in the public higher education system results in a return of $1.89 in state revenue and in $25.59 state GDP, the study shows.
The study was commissioned by the Virginia Business Higher Education Council as part of its fall “Growth4VA” campaign, which aims to secure additional funding to support internships and new “talent pathways” for students.
The report, conducted by the Weldon Cooper Center for Public Service, part of the University of Virginia’s Karsh Institute of Democracy, provides a comprehensive economic impact report of each public college and university in Virginia, including UVA Wise.
Using the same methodology as the larger study, the report found UVA Wise’s “total economic contribution” was $188 million in state gross domestic product (GDP) and $13 million in state tax revenues.
Those estimates come from two sources: the College’s overall expenditures and projected magnified earnings from graduates during fiscal year 2021.
The first source, college expenditures, generated $55 million in state GDP and more than $3 million in state revenues.
Estimates from the report “include the direct economic effect of college-related spending as well as the economic indirect and induced effects (i.e., multiplier effects) that result from college purchases and payroll turnover when money changes hands in the state economy.”
The second source, the enhanced economic impact in state economic earnings and productivity from UVA Wise bachelor degree graduates, is estimated at contributing $133 million in state GDP and close to $10 million in state tax revenue in 2020-2021. Of those college graduates, 93 percent were state residents.
The new study also provides a clearer understanding of UVA Wise’s role as a regional employer in 2021. UVA Wise spent $10.9 million on goods and services and $1.4 million in capital purchases. The College employed 364 faculty and staff, including part time positions, and spent $22.6 million on employee compensation.
UVA Wise full-time students spent an estimated $17.1 million during the year while student visitors purchased $401,400 an additional goods and services.