Economic impact analysis
In FY 2018-19, UHV spent $34.4 million on payroll and benefits for 509 full-time and part-time employees, and spent another $24.3 million on goods and services to carry out its day-to-day operations and research activities. This initial round of spending creates more spending across other businesses throughout the regional economy, resulting in the commonly referred to multiplier effects. This analysis estimates the net economic impact of UHV that directly takes into account the fact that state and local dollars spent on UHV could have been spent elsewhere in the region if not directed towards UHV and would have created impacts regardless. We account for this by estimating the impacts that would have been created from the alternative spending and subtracting the alternative impacts from the spending impacts of UHV.
UHV’s annual impact will increase by 53% and will continue to grow for many years as more alumni enter the regional workforce.
This analysis shows that in fiscal year (FY) 2018-19, university, visitor, and student spending of UHV, together with the enhanced productivity of its alumni, generated $320.5 million in added income for the Coastal Bend(1) economy. The impact of $320.5 million is equivalent to supporting 3,526 jobs.
(1) The Coastal Bend is a region in Texas along the coast of the Gulf of Mexico and for purposes of this study is comprised of the following counties: Bexar, Bee, Brazoria, Calhoun, Colorado, Dewitt, Fort Bend, Goliad, Gonzales, Harris, Jackson, Karnes, Lavaca, Matagorda, Refugio, Victoria, Wharton, and Wilson.
By 2028-29, UHV expects to grow its enrollment by almost 3,000 FTEs to a total of 6,000 FTEs. This growth will increase the impact from UHV by 53%, amounting to $490.8 million in income and equivalent to supporting 5,365 jobs. Even if UHV does not exceed 6,000 FTEs after FY 2028-29, the impact will continue to increase for many years as more alumni enter the regional workforce.
When reviewing the impacts estimated in this study, it’s important to note that it reports impacts in the form of added income rather than sales. Sales includes all of the intermediary costs associated with producing goods and services, as well as money that leaks out of the region as it is spent at out-of-region businesses. Income, on the other hand, is a net measure that excludes these intermediary costs and leakages, and is synonymous with gross regional product (GRP) and value added. For this reason, it is a more meaningful measure of new economic activity than sales.
University spending impact
Payroll and benefits to support UHV’s day-to-day operations, research, and construction activities amounted to $34.4 million. The university’s non-pay and construction expenditures amounted to $53.4 million. The net impact of the university in the Coastal Bend during the analysis year was approximately $63.6 million in added income, which is equivalent to sup- porting 841 jobs.
By FY 2028-29, in order to serve 6,000 FTEs, nearly doubling the university’s current student body, UHV will increase its associated day-to-day operational, research, and construction expenditures, which will include additional payroll for new employees and spending on operation and maintenance. UHV’s spending impact will increase by 34%, amounting to $85.3 million in income, equivalent to supporting 1,097 jobs.
Visitor spending impact
Out-of-region visitors attracted to the Coastal Bend for activities at UHV bring new dollars to the economy through their spending at restaurants, gas stations, and other regional businesses. In FY 2018-19, the spending from these visitors added approximately $84.6 thousand in income for the Coastal Bend economy, which is equivalent to supporting two jobs.
By serving more students, UHV will also attract more visitors to the region. This increase in visitors will create an increase of 71% in impact, amounting to $144.7 thousand in added income to the Coastal Bend economy in FY 2028-29 and equivalent to supporting three jobs.
Student spending impact
Around 18% of graduate and undergraduate students attending UHV in FY 2018-19 originated from outside the region. Some of these students relocated to the Coastal Bend to attend the university. In addition, some students, referred to as retained students, are residents of the Coastal Bend who would have left the region if not for the existence of UHV. The money that these students spent toward living expenses in the Coastal Bend is attributable to UHV. In FY 2018-19, the expenditures of relocated and Important note When reviewing the impacts estimated in this study, it’s important to note that it reports impacts in the form of added income rather than sales. Sales includes all of the intermediary costs associated with producing goods and services, as well as money that leaks out of the region as it is spent at out-of-region businesses. Income, on the other hand, is a net measure that excludes these intermediary costs and leakages, and is synonymous with gross regional product (GRP) and value added. For this reason, it is a more meaningful measure of new economic activity than sales. Executive Summary 5 retained students in the region during the analysis year added approximately $9.4 million in income for the Coastal Bend economy, which is equivalent to supporting 190 jobs.
By almost doubling UHV’s FTEs by FY 2028-29, the impact from student spending will increase by 88%, amounting to $17.6 million in income, equivalent to supporting 358 jobs in the region.
Over the years, students gained new skills, making them more productive workers, by studying at UHV. Today, thousands of these former students are employed in the Coastal Bend. In FY 2018-19, the accumulated impact of former students currently employed in the Coastal Bend workforce amounted to $247.5 million in added income for the Coastal Bend economy, which is equivalent to supporting 2,493 jobs. As UHV’s enrollment grows to reach 6,000 FTEs, the university will add more skilled and knowledge- able workers to the regional workforce.
By FY 2028-29, UHV’s alumni impact will grow by 57%, resulting in $387.8 million in added income to the Coastal Bend, equivalent to supporting 3,907 jobs. This impact will continue to grow as UHV adds more alumni to the regional workforce.
Emsi gratefully acknowledges the excellent support of the staff at the University of Houston-Victoria in making this study possible. Special thanks go to Dr. Bob Glenn, President, who approved the study, and to Bob Mahaney, Special Projects, who collected much of the data and information requested. Any errors in the report are the responsibility of Emsi and not of any of the above-mentioned individuals.