UA estimates statewide economic impact at nearly $3 billion

Ken Roberts, Tuscaloosa News
·2 min read

The University of Alabama added almost $2.948 billion to the state economy during the 2020-21 academic year, according to a study by the Center for Business and Economic Research in the UA Culverhouse College of Business.

The study, released Wednesday, notes this economic impact was achieved despite lingering effects of the COVID-19 pandemic.

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For each dollar allocated by the state, UA returns a $15.47 estimated impact for Alabama, according to the study. The state received an 11% annual rate of return on its investment in UA during the period studied.

Also, the 2020-21 graduating class will pay about $1 billion in additional state income and sales taxes than they would have without their UA education.

The University of Alabama presented more than 2,100 degrees during the Fall 2023 Commencement Saturday, Dec. 16, 2023, in Coleman Coliseum. President Stuart Bell leads the platform party as they enter the arena.
The University of Alabama presented more than 2,100 degrees during the Fall 2023 Commencement Saturday, Dec. 16, 2023, in Coleman Coliseum. President Stuart Bell leads the platform party as they enter the arena.

UA President Stuart R. Bell said the Capstone “... isn’t just shaping minds; it’s shaping economies and futures.”

In a news release, Bell said “Our strategic focus goes beyond traditional education, reaching into the realms of research, service and outreach programs. We’re not just contributing to the state; we’re creating a legacy of innovation and success through our graduates, and the dedicated efforts of our faculty and staff.”

UA football remained a powerful economic force in 2020, according to the study, despite limits on attendance and a shortened schedule of home games due to the COVID-19 pandemic.

The 2020 UA football season had a $134.5 million impact on the state. The Tuscaloosa metro area experienced a $100 million impact from the five home games (instead of the usual seven games per fall at Bryant-Denny Stadium).

Oct 31, 2020; Tuscaloosa, Alabama, USA; Alabama fans come dressed for a COVID halloween where masks were not optional for the Halloween Day game with Mississippi State at Bryant-Denny Stadium. Mandatory Credit: Gary Cosby Jr/The Tuscaloosa News via USA TODAY Sports
Oct 31, 2020; Tuscaloosa, Alabama, USA; Alabama fans come dressed for a COVID halloween where masks were not optional for the Halloween Day game with Mississippi State at Bryant-Denny Stadium. Mandatory Credit: Gary Cosby Jr/The Tuscaloosa News via USA TODAY Sports

Other notable information from the study:

  • In the Tuscaloosa metro area, UA had an economic impact of $2.175 billion, while generating 12,853 jobs and $42.5 million in local sales tax revenue. The Tuscaloosa metro area includes Hale, Pickens and Tuscaloosa counties.

  • Statewide, UA generated 13,613 jobs and $136.5 million in income and sales taxes.

  • UA employed 6,947 faculty and staff, along with several thousand student-workers during the 2020-21 academic year. UA expenditures totaled $1.678 billion for the year.

  • The 2020-2021 graduating class can expect an annual rate of return on their investment in UA education ranging from 9.5% to 18.3% over completion of high school, depending on the level of degree they attained.

  • UA had an increase in the number of undergraduate students from Alabama, and set a record for graduate school enrollment, which has since been surpassed, in the fall of 2020.

  • Despite the effects of COVID-19, UA had no furloughs or cuts.

Reach Ken Roberts at ken.roberts@tuscaloosanews.com.

This article originally appeared on The Tuscaloosa News: University of Alabama added nearly $3 billion to state's economy