Founded in 1871, the University of Arkansas was established in the city of Fayetteville as both the state university and the major land-grant university for Arkansas. The University of Arkansas is a flagship university for the integration of student engagement, scholarship and research, and innovation that collectively transforms lives and inspires leadership for a global society. As such, the impact of the University of Arkansas extends far beyond the transfer of knowledge from professors to students and is far reaching in social and economic terms. As leading research universities across the country engage in the process of enumerating the socio-economic impacts of their respective institutions, it is appropriate to document, from time to time, the contributions at the local and state levels of operations at the University of Arkansas. This report describes those impacts in detail.
After conducting months of deliberative data gathering and analysis, the researchers from the Center for Business and Economic Research can confidently report that the University of Arkansas delivers a major economic impact to the state of Arkansas, in excess of $725 million, annually. This monetary impact is achieved by serving as a significant source of human capital development, a key partner in fostering the knowledge economy in Arkansas, and also by providing a sustainable economic base for growth in the state and local economies. Presented below are the main findings of the exploration of the University’s impact, followed by highlights from each of the three sections of the report.
- For the fiscal year 2009, the total operational impact of the University of Arkansas was more than $725.4 million.
- With direct expenditures from the University totaling $393.5 million, the economic multiplier associated with the University of Arkansas was 1.8 in 2009.
- The state of Arkansas appropriated $199.7 million to the University for the 2009 fiscal year. The state’s investment was leveraged at the University of Arkansas at 364 percent.
- The University directly employed 1,072 faculty and 2,862 staff members, with a total payroll of $246.5 million.
- Faculty and staff paid $8.4 million in state income taxes and $5.7 million in state sales taxes.
- In addition to payroll, $56.9 million of direct expenditures were made by the University of Arkansas in Northwest Arkansas for fiscal year 2009.
- Over 66 research and outreach centers provided valuable services to the state by serving children, increasing civic knowledge and participation, and making businesses more profitable.
- University of Arkansas alumni accounted for 2.1 percent of the population of the state of Arkansas, but earned 4.9 percent of the state’s income, with $2.2 billion in wages.
- Alumni paid $62.9 million in sales and use taxes to state and county governments and $122.2 million in state income taxes.
- Students spent $173.7 million in the Fayetteville-Springdale-Rogers metropolitan area. This included $6.9 million in state sales taxes.
- Visitors affiliated with the University spent $127.5 million in the local economy in 2009. This included $7.7 million paid in state sales tax.