A new study by the UB Regional Institute found that UB contributed $1.7 billion to the Western New York (WNY) economy during the 2006-07 fiscal year, a figure that is expected to increase during the course of UB 2020's growth plan to reach $3.6 billion in the 2023-24 fiscal year.
"It's fair to say that UB is a significant driver to the economy here [in WNY]," said Kathryn Foster, director of the UB Regional Institute.
Buffalo's entire gross metropolitan product for 2007 was $43.1 billion, according to a report from the United States Conference of Mayors and the Council for the New American City. With its $1.7 billion contribution, UB accounts for roughly 4 percent of the area's economy.
According to Marsha Henderson, vice president for External Affairs, UB could expand to have an even greater vital impact on the economy by the time the UB 2020 growth plan is complete, especially with the financial crises that WNY and New York as a whole currently face.
"The successful communities today... that are better sustaining this economic impact are the ones who have built more of their transition around a research university," Henderson said.
Foster believes that the university will find increased importance in the community as the area's economy worsens, citing a statistic that shows post-graduate tuition increases as the economy worsens.
"If [post-undergraduate] jobs aren't out there, graduate school... becomes the next signal to the marketplace that [a person] is qualified," Foster said.
According to a memorandum released by the Regional Institute, UB 2020 will contribute to WNY with the addition of 12,000 students, 1,000 faculty, 6,880 staff, and 1,375 professional and classified related staff. Henderson believes that these additional people will have a multiplier effect on the economy.
"Because there is more economic activity in the community, other employers will have [economic] activity," Henderson said. "There is always a ripple effect from whatever the direct impact is out into the rest of the community."
According to Henderson, UB's growth during the UB 2020 plan will have an impact on all students, regardless of when they graduate.
"The value of their degree over time will be enhanced by growth of the university in size and stature," Henderson said. "We have a vision and a plan for the university that will enhance that value and reputation over time and we think it's the right plan for the community as well."
A report produced for the 2005-06 fiscal year predicted a $2.5 billion figure for 2023-24, over $1 billion less than the current projection. According to Henderson, the figure grew because the growing Downtown Campus was not included in the original study.
The growth of the Downtown Campus helped UB to contribute $821 million to the city of Buffalo during the 2006-07 fiscal year.
The numbers produced by this study were calculated before Gov. Patterson's recent budget cuts went into effect late last year, meaning they may influence the projected numbers for the future.
"The budget cuts from Patterson are significant and will have a real impact on the university," Henderson said. "President [Simpson] said that UB 2020 is a long-term plan... but on the short run they have great impact on us because they take money out of the ability to invest as quickly as we would like in the UB 2020 Initiative."
The numbers are also based on the assumption that UB will implement a predictable tuition plan at some point in the future. The plan would increase tuition cost incrementally each semester to avoid unpredictable and quick raises, such as the $620 spike that occurred over winter break.
The Regional Institute conducted the study by studying where UB spent its $1 billion budget, according to Foster. The institute gathered data from various departments and approximated the spending habits of faculty, staff, students and visitors to UB. A computer program was used to calculate the economic impact of these direct and indirect expenditures to reach a final monetary figure.
Foster also stressed that UB contributes to the WNY economy in ways that cannot be calculated. For example, media attention created by being a part of the recent International Bowl or hosting the Distinguished Speaker Series was not included in the calculations, though it may have some impact on the economy.
Foster believes that with continued support from New York State, UB can help Buffalo transition from an industrial-based economy to a knowledge-based economy.
"It could be argued that in an economy like this, investment in a university is even more important... it's a growing industry in a time when other things may not be growing," Foster said.
Photo: Courtesy of Laron Fomby
