UA’s Impact on State, Local Economies Sets Records

TUSCALOOSA, Ala. - The University of Alabama continues to be an economic driver for the state as its flagship university set record high economic and fiscal impacts for the 2023-2024 academic year.

"At The University of Alabama, we measure our success not only by the achievements of our students, but also by the impact we create across our state and beyond," UA President Peter J. Mohler said. "These record-setting results highlight how UA fuels economic growth, prepares the workforce and strengthens communities. We are proud to deliver lasting value for Alabama and to build on this momentum together."

According to latest UA economic impact report conducted by the Center for Business and Economic Research in the UA Culverhouse College of Business, the University's $3.4 billion economic impact on the state and $2.354 billion impact on the Tuscaloosa metro area economy are record highs.

"With increasing enrollment and employment, UA set record economic impacts on Alabama for academic year 2023-2024 and continued to deliver both tangible and intangible benefits to its graduates and the state that have positive spillovers to the nation and the world," said Dr. Samuel Addy, associate dean for economic development outreach in Culverhouse and a senior research economist for CBER.

State Impact

UA had a $14.80 impact per dollar appropriated by the state. From a public investment perspective, the state will realize a 10.4% annual rate of return on the appropriation because the 2023-2024 graduating class will pay $1.090 billion more in state income and sales taxes over their careers than they would have without their UA education.

Additional impacts for the state include 15,238 jobs, $164.8 million in income and sales taxes, and $235 million from UA's seven home football games.

Local Impact

The Tuscaloosa metro economy impacts were 13,989 jobs, $50.0 million in local sales taxes and $160.1 million from home football games.

Return on Investment

UA's contributions to economic and workforce development extend beyond education and training. Attracting the best and brightest students from Alabama and beyond beneficially exposes more future leaders to opportunities in the state and potential for development. UA also delivers many other public and private benefits through research, service and outreach programs.

The University is an educational tourism asset as out-of-state students spend significantly more money and time in the state than ordinary tourists do. Additionally, many out-of-state students stay, work and spend in the state after graduation.

A degree from the University provides real annual rates of return that range from 6.7% to 11.5% for the 2023-2024 graduating class over high school completion depending on degree level; corresponding marginal annual rates of return range from 6.7% to 23.2%.

"The UA education is worthwhile and prudent from both public and private investment perspectives for the state of Alabama and the University's students," Addy said.