CSU contributes to Colorado's economic growth, study finds

Colorado State University and its Colorado-based alumni generate about $4.1 billion in household income, making it one of the most significant economic growth engines in the state, according to a report by two state economists.

The earnings represent 3.1 percent of Colorado's total household income and generate more than $130.8 million in income tax revenue and $50.2 million in sales tax revenue, reports Martin Shields, regional economist for Northern Colorado and associate professor of economics at Colorado State University.

Shields presented the report, Created to Serve: Colorado State University's Impact on the State's Economy, at the 22nd Annual South Metro Denver Economic Forecast Breakfast in January. Colorado State economics professor Harvey Cutler collaborated with Shields on the research, which was funded by CSU and the Northern Colorado Economic Development Corp.

Colorado State University serves the state's economic and educational interests by generating jobs through business start-ups, preparing a skilled workforce, and working in partnership with industry, says CSU Interim President Tony Frank. "As we look to build an economically competitive, entrepreneurial state for future generations, we must emphasize the value illustrated by our institution as well as other Colorado colleges and universities."

The study reports that 50,000 CSU alumni are employed in the state and 6,200 employees work for the University. Additionally, the University draws about $300 million in annual research dollars from federal, state, and local sources.

"Colorado State University is a key part of the economic health of Northern Colorado, spinning off entrepreneurs with some regularity and providing jobs that have direct and indirect benefits that reverberate through the region," says Maury Dobbie, president and CEO of the Northern Colorado Economic Development Corp.

University employees use their income to purchase goods and services, resulting in economic growth for the state, Cutler says. These purchases lead to expansions in retail, grocery stores, services, and housing sectors, which translate to increases in household income earned, sales taxes, and personal income taxes paid to the state.

The study concluded that people with college degrees in Colorado have a competitive edge, but they benefit the entire economy. In Colorado, increasing the percentage of workers with a four-year college degree by only one percentage point — about 5,372 new college workers – increases the average earnings of all college-educated workers by $481 per year. Workers without a four-year degree also benefit from such an increase — the same one percentage point increase in college educated workers increases the average earnings for high-school-only graduates by $250 per year.

"By increasing innovation capacity, growth in the state's college-educated workforce spills over to other sectors, increasing the productivity of all workers," Shields says. "With rising productivity, wages increase for workers of all education levels. The benefits of individual higher education extend across society."

Access the report Created to Serve: Colorado State University's Impact on the State's Economy at http://www.president.colostate.edu/.