CHEYENNE — The University of Wyoming’s economic contribution to the state has increased significantly over the past decade, according to a new report from the university.
Titled “Economic Footprint of the University of Wyoming,” the report answers the question, “If not for the university, what economic activity would not occur in the region?”
“There’s a lot of data in here, but essentially it’s a way to show that the people of Wyoming invest in this place, and it definitely brings a pretty high return on investment,” Anne Alexander, the primary researcher, economist and Assistant Dean of the Business College at UW, told the Wyoming Tribune Eagle.
The study found that UW’s contribution to the gross state product, which measures the state’s economic output and the sum of economic value added from all industries in the state, grew from 0.3% in the 2013-14 fiscal year to 1.8% in the 2022-23 fiscal year.
If the additional impact of UW alumni living and working in Wyoming are considered, the university’s contribution to the GSP rises to 2.3%, according to the study.
“You have to consider that we are but one entity in the state, we’re only one employer in the state,” Alexander said. “It’s a pretty outsized impact for the size of the organization.”
By looking at where the economic holes would be without the university, the study was able to demonstrate the economic benefits UW generates.
“That’s a pretty big hole in GSP if we’re gone,” Alexander said. “Imagine our GSP being persistently 2% lower. That’s a big hit.”
The economic benefit of the university has been a prominent conversation in the Legislature over the past five to seven years, according to Joint Education Committee member Rep. Landon Brown, R-Cheyenne.
The university has been perceived to be doing good in the community over the past 10 to 15 years, but that good has been slightly overshadowed by “woke ideology,” according to Brown. Specifically, legislators have discussed the value of providing state dollars for liberal arts degrees, and diversity, equity and inclusion initiatives.
“What we’ve seen over the past couple years is Freedom Caucus members have mounted direct attacks on the University of Wyoming with budget amendments to completely defund the University of Wyoming and/or these particular programs solely based on their belief that these are not beneficial programs to the state of Wyoming,” Brown said.
While there have been conversations in the Legislature regarding the value of providing the university with funding for degrees that don’t always yield high-paying local jobs, Brown notes that it’s important to acknowledge programs like the School of Energy Resources, the School of Business, the School of Law and the School of Healthcare, which he said are such prominent and important schools for Wyoming, in particular.
“I think that’s exactly what you see in this study,” Brown said. “We have a very large group of our students that come into our state (and) stay here, students that are from the state staying here, and they’re finding well-paying jobs. They’re getting good educations, and they’re focusing on the sectors that make Wyoming thrive.”
Continuing to invest in the university and the state’s community colleges is important so that the state can continue to see the benefits and economic growth that an educated and employed population provides, according to Brown.
One of the biggest contributors to this growth, according to Alexander, is nonresident students and research funding.
Faculty are applying for and receiving more out-of-state grants for research, and while the enrollment of nonresident students is down, the amount they bring from out of state in tuition dollars and additional spending has gone up, according to the study.
The study also illustrates the economic value of a college education.
“The biggest impact that we have is basically providing a workforce to the state that is skilled and talented,” Alexander said. “Those alumni make more money than they would if they did not go to college.”
The UW alumni living and working in Wyoming make a combined total income estimated at $394 million annually, with a value-added impact of $640 million to the state’s economy. That added impact brings the university’s total economic contribution to $1.36 billion.
The report includes university-specific impacts, including externally funded research support, direct expenditures by nonresident students and visitors, and spinout and startup businesses directly resulting from UW research.
If UW and its alumni, operations and expenditures were not in the state, there would be notable economic impacts, the report said.
Funds appropriated by the state would be repurposed, resident students would go to either an alternative in-state institution or, more likely, an out-of-state institution to study, according to the report.
There would be no UW alumni in the state to contribute to the economy the way they currently do, and nonresident students would not move to Wyoming and spend their tuition dollars and other money here. UW grant-funded research would not come to the state, and the 14,700 jobs that the university provides would be lost, leaving many UW personnel to likely move, spending their incomes elsewhere.
“It’s important for the state of Wyoming and our workforce to have these college-educated people in our state, as opposed to losing them,” Brown said. “The only way that we’re going to continue to flourish as a state is by keeping a younger population here, and that means allowing these studies to be produced that show the value and the benefit of a state dollar going into the university.”
UW President Ed Seidel offered his thoughts in the report, saying, “As Wyoming’s land-grant and flagship university, UW is a powerful engine supporting the state’s growth, as it attracts and spends money that otherwise would not flow to Wyoming. But the university’s impact on the state is much broader than just technical economic impacts, as it provides broad access to educational opportunities and contributes in many ways to the full social, business, cultural, creative and economic environment of the state.”
The report also notes that UW’s presence outside of Laramie plays an important role in the reach of its economic impact.
“UW’s staff, students and faculty view themselves as partners with and contributing members of our communities across Wyoming,” the report states. “What UW does, in collaboration with our stakeholders around Wyoming, provides jobs, creates economic value, increases human capital and citizenship, and enhances the viability of communities for the long term.”
The study was conducted by UW’s Center for Business and Economic Analysis, and was led by Alexander, who conducted the 2014 study as well. According to Alexander, the center hopes to conduct similar studies more frequently in the future, potentially every two years.