Thursday, June 16, 2016

University of New Orleans Generated $470 Million Economic Impact for Metro Area in 2014-15

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The University of New Orleans generated a total economic impact of $470.5 million for the metropolitan New Orleans area in the 2014-15 fiscal year, according to an analysis conducted by the University’s Division of Business and Economic Research. The impact is comprised of $285.3 million in direct expenditures and $185.2 million in secondary expenditures. The total figure encompasses total spending, total income, total employment, and total state and local tax revenues.

“The University of New Orleans received approximately $28 million in state support during the current fiscal year,” said UNO President John Nicklow. “Based on the results of this economic analysis, for every one dollar that the State of Louisiana spends on UNO, the University generates about another $17. Quite simply, that is a staggering rate of return. This report helps quantify what many already know to be true—UNO is a significant economic driver for New Orleans and greatly enhances the prosperity of the region.”

The study seeks to measure the economic impact on the eight-parish New Orleans Metropolitan Statistical Area if the University did not exist. That area is comprised of Orleans, Jefferson, Plaquemines, St. Bernard, St. Charles, St. James, St. John the Baptist and St. Tammany parishes. From a purely economic view, the University of New Orleans is a major business in metro New Orleans. With 1,115 employees, if the University were a private employer, it would be one of the top 10 largest employers in the area, according to the report.

Here are some of the highlights of the analysis from the 2014-15 fiscal year:

* The University’s total economic impact is comprised of $97.2 million from UNO’s daily operations, $25.1 million from non-resident students, $4.9 million from visitors and $343.3 million originated from alumni expenditures.

* Direct spending by UNO and its community also resulted in the creation or support of about 6,500 full- and part-time secondary jobs. These jobs were projected to create a total of $127.9 million in additional secondary earnings for residents of the New Orleans area.

* The University generated a total of $12.7 million in tax revenue for state and local governments. Of that, roughly $9 million went to the State of Louisiana and $3.7 million was claimed by local governments in the New Orleans area.

* During the same fiscal year, the University educated more than 9,200 students and awarded a total of 1,910 degrees. Of those students, more than 7,100 were New Orleans area residents. Total enrollment in UNO accounted for nearly 26 percent of all four-year colleges in the area, representing the largest public institution in New Orleans.

* By the end of the 2014-15 fiscal year, UNO had awarded a total of 85,270 degrees since it opened in 1958.

“The economic study used an extremely conservative approach in its methodology,” said John Williams, dean of the College of Business Administration. “One example is that only non-resident students were included in the study. Being a true economic impact study, the results only show spending that would not occur if the University did not exist. The results should be viewed as the very minimum economic impact of the University of New Orleans on the New Orleans metro area.”

The study does not contain the spending impact of the UNO Foundation, the UNO Research and Technology Park, the UNO Kiefer Lakefront Arena or the UNO Federal Credit Union. The addition of those components would only increase the already significant value of the University to the New Orleans area economy, according to the report.

The report was prepared by project manager Maria J. Ortiz and research analyst Heidi Charters with the Division of Business and Economic Research, which is a research unit of the UNO College of Business Administration. To read the complete analysis, click here.