UC DAVIS' ECONOMIC IMPACT TOPS $2.93 BILLION ANNUALLY

University of California, Davis
March 4, 2005

UC DAVIS' ECONOMIC IMPACT TOPS $2.93 BILLION ANNUALLY

The University of California, Davis, generated an estimated $2.93 billion in economic activity in California during the last full fiscal year, based on recently released financial information for 2003-04.

After state government, UC Davis remains the second-largest employer in the seven-county capital region, with 28,230 full-time and part-time employees. UC Davis paid out $1.086 billion in salaries and wages to those employees in the 2003-04 fiscal year, ending June 30, 2004, while collecting revenues totaling $2.15 billion -- half of which are estimated to have come from outside the area.

"This latest round of financial figures shows that UC Davis continues to have a profound impact on the long-term economic health of California and the Sacramento region," said Chancellor Larry N. Vanderhoef. "But perhaps more important is the impact of our 30,000-plus students, our more than 6,000 graduates each year, and our faculty and staff's commitment to our mission."

UC Davis' more recent estimated economic impact is based on the university's revenue and expenditure figures for the 2003-04 fiscal year, and economic multipliers generated by the Sedway Group of San Francisco for a similar analysis last year. At the time, the consultants examined all spending, employment, student, alumni, visitor and local tax impacts of the main Davis campus, its Sacramento medical center and health system for the 2001-02 fiscal year. Sedway's report estimated the direct and indirect economic effects of campus spending at the local, regional and statewide levels.

Using Sedway's original economic analysis as a guidepost for this year, UC Davis officials offered the following economic impact
analysis:

* For every two direct jobs at UC Davis, another job is created in the state of California. That translates to UC Davis' 28,230 full- and part-time positions generating an additional 14,115 jobs across the state.

* The campus budget of $1.97 billion generated about $2.67 billion in multiplied economic activity in the state for the 2001-02 fiscal year. Using similar multiplier estimates, the 2003-04 budget of $2.15 billion would have generated about $2.93 billion in statewide economic activity last year.

In addition to the state support, UC Davis collected $421 million in research funding in 2003-04, enabling it to hold its place as one of the leading research institutions in the nation -- ranked 14th, according to the National Science Foundation. The university also received $73 million in private support in 2003-04.

The discoveries that result are increasingly being transferred to the public sector, with 136 patent applications filed in 2003-04, and 32 U.S. patents were issued.

For the purposes of the economic analysis, the consultants used the Impact Analysis for Planning model developed by the U.S. Department of Agriculture. This is the same model that California State University, Sacramento, and the University of California, Berkeley, have used for similar studies of those campuses.

For more information on UC Davis' 2003-04 budget and other key financial and academic data, please visit the UC Davis FACTS Web site, at <http://facts.ucdavis.edu/>.

Media contact(s):
* Mitchel Benson, UC Davis News Service, (530) 752-9844, mdbenson@ucdavis.edu