TUSCALOOSA — The University of Alabama plays a vital role in the state’s economy. For the 2023-2024 academic year, it reported record economic contributions.
“Our success goes beyond student achievements; it’s about our impact on the state and community,” said UA President Peter J. Mohler. “These impressive results show how UA boosts economic growth, prepares workers, and strengthens communities. We aim to provide lasting benefits for Alabama.”
A recent report by the Center for Business and Economic Research at UA highlights a remarkable $3.4 billion economic impact on Alabama and $2.354 billion on the Tuscaloosa area. Dr. Samuel Addy, an economist at CBER, noted that as enrollment and employment rise, UA’s contributions grow, benefiting both graduates and the broader state.
Each dollar the state invests in UA returns $14.80. Graduates from the class of 2023-2024 are projected to contribute $1.09 billion more in taxes throughout their careers than if they hadn’t attended UA. This investment has led to the creation of over 15,000 jobs and substantial tax revenues.
Locally, the effects are just as significant. UA has generated nearly 14,000 jobs in the Tuscaloosa metro area, along with $50 million in local sales taxes and $160 million from home football games.
But UA’s benefits aren’t only financial. The university attracts talented students, providing them with opportunities that keep them in Alabama after graduation. Out-of-state students contribute significantly to the local economy, often spending more than regular tourists.
Earning a degree from UA leads to a solid return on investment. Depending on the degree level, graduates can expect annual returns ranging from 6.7% to 11.5% compared to just completing high school. This highlights the value of a UA education for both students and the state.
As Dr. Addy emphasized, “Investing in UA education is smart for both the state and its students.”
This relationship between education and economic growth is crucial. As one study by the U.S. Department of Education found, states with higher education levels typically have stronger economies. Understanding how universities can fuel local economies offers insights into future initiatives for sustainable growth.
With this focus, UA continues to shape Alabama’s economic landscape.
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