February 6, 1997
SDSU has regional impact of $770 million
Contact: Louise Snider, 619/594-5204
Producing a $770 million impact on the regional economy, San Diego State University is not only a center of teaching and research, but a major contributor to the economic health and well being of the San Diego area, according to a newly released economic impact study of the 1995-1996 academic year.
Described in industry terms, SDSU would be a multimillion dollar corporation with 3,900 employees and a record of steady growth during its nearly 100 years of operation.
San Diego State's direct expenditures--wages and salaries, goods and services, and expenditures by students--totaled $544 million, of which $455 million was spent in the San Diego region. Of the direct expenditures, $181.5 million was in wages and salaries, $69.0 million was in purchases of goods and services, and $293.5 million was in expenditures by students.
When the indirect and long-run impacts of these initial expenditures are calculated, the total reaches $770 million. Looked at in another way, every dollar spent by the University generated another 69 cents of production and payroll for regional industries. Overall, SDSU generated a 442 percent return on the $142 million appropriation it received from the State of California.
The top four business sectors benefiting from the total impact were real estate, $129.5 million; retail trade, $97.7 million; automobile repair and services, $51.3 million; and eating and drinking places, $43.8 million. These expenditures also led to the creation of 12,204 jobs in the region.
As shown in the report, the University, in its payroll, purchasing, contracting, and expenditures by its students, contributed in major ways to the economic well being of the community, and returned the State's investment many times over. SDSU also led the California State University system in revenue from research grants and contracts which totaled $74 million.
But revenue, expenditures and return on investment are only part of the story. There are the 1.25 million hours of community service provided by students; the 200,000 hours of consulting service provided by faculty and staff--most for local business and industry; and the more than 5,000 well trained graduates each year, most of whom remain in the San Diego area.
The University also plays a major role in the cultural and recreational life of the community offering a wide range of art exhibitions and more than 200 performances of music, dance, and drama annually. And its athletic events attracted more than 265,000 people to the games of the seven leading sports.
San Diego State also is home to KPBS-TV, seen by approximately 90 percent of San Diego households, and KPBS-FM, which has nearly 50 percent of its funding coming from community supporters.
Overall, as the University prepares for its Centennial celebration, the economic study documents its vital role in the San Diego community.
The study was prepared by SDSU faculty members James Gerber, associate professor of economics; Dipak K. Gupta, professor of public administration and urban studies; and Sergio Rey, assistant professor of geography; assisted by Lyle Farmer, graduate student, geography.
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Note: A summary of the highlights of the economic impact study is included.
The individual authors may be contacted as follows: James Gerber, 594-5532; Dipak K. Gupta, 594-4067; and Sergio Rey, 594-8029