Study shows UM economic impact tops $6 billion in tri-county area
One of the largest employers in Miami-Dade County, the University of Miami has a total economic impact of $5.62 billion on Miami-Dade and a $6.1 billion impact on the tri-county (Miami-Dade, Broward, Palm Beach) region, according to a recent study.
Based in Coral Gables, UM is a major engine that contributes widely across the area, with its employment and expenditures driving further economic activity that affects multiple sectors in the economy, the university said in a press release.
“The university’s investment in world-class teaching and research yields academic excellence and research breakthroughs,” said University of Miami President Donna E. Shalala. “This same investment has also dramatically contributed to the economy during a period of economic downturn.”
In spring 2012 UM commissioned Bendixen & Amandi International to conduct an independent study of the university’s economic impact. It analyzed detailed data provided by the university in various fiscal year 2011 financial reports—the most recent period of available comprehensive data—and applied it to an economic input-output model to extrapolate total impact.
The annual expenditures of the university and its student population are multiplied through additional direct, indirect and induced economic impacts resulting in increased total economic output, employment, gross domestic product, wages, and state and local tax revenues.
Since the university’s previous economic impact report, conducted in 2007, its local (Miami-Dade) impact has increased more than 24 percent, from $4.5 billion to $5.6 billion, according to the study, which was presented at an Oct. 22 Beacon Council breakfast.
Coral Gables benefits greatly from the presence of the university within its city limits. The university’s and student expenditures create $1.4 billion in annual economic impact; 5,769 jobs; nearly $600 million in gross city product; $530 million in labor income and wages; and nearly $10 million annually in state and local taxes.
For the city of Miami, the university’s annual expenditures along with annual student spending create more than $2.7 billion in economic impact; 17,803 jobs; nearly $1.6 billion in labor income and wages; almost $1.8 billion in gross city product; and close to $42 million in state and local taxes.
In fiscal year 2011 the university employed 13,070 full-time faculty and staff who were compensated nearly $1.5 billion, and it spent an additional $786 million on operations and capital expenditures. Accordingly, UM directly contributed nearly $2.275 billion to the local and regional economy. Enrollment in the study year was 15,703 students—with 76 percent of undergraduate students and 74 percent of graduate students coming from outside of Miami-Dade County. These out-of-the-area students pumped an additional $199 million into the local economy.
For Miami-Dade County alone, the university’s and students’ annual expenditures create $5.62 billion in annual economic output, 40,631 jobs, nearly $2.73 billion in labor income and wages, and $126.2 million in revenues to state and local governments.
In the tri-county region (Miami-Dade, Broward, Palm Beach), the university and student annual expenditures create $6.1 billion in annual economic output, 43,703 jobs, $2.88 billion in labor income and wages, and more than $150 million in revenues to state and local governments, according to the study.
UM’s construction program, which is changing the face of its campuses, also has a considerable impact on Miami-Dade County: $200.2 million in economic activity, 1,205 jobs created, $85.5 million in labor income, $104.7 million in gross county product, and $3.7 million in state and local taxes, the study found.
The full report is available online at www.miami.edu/economicimpact