November 27, 2012
Written by Dailey Fuller
The assessment revealed that for every dollar the state of Texas invests in the Texas Tech University System, the state’s economy sees more than $16 returned.
The Texas Tech University System generated a combined economic impact of $7.37 billion for the state of Texas in 2011, according to an updated report of the system and its component institutions’ influence on business activity.
The assessment also revealed that for every dollar the state of Texas invests in the Texas Tech University System, the state’s economy sees more than $16 returned.
“The economic impact of the Texas Tech University System on the state of Texas is a direct reflection of the great progress made in achieving our strategic goals,” said Chancellor Kent Hance. “We ensure that our efforts address the needs of Texans in an efficient and responsible manner, and this report shows how successful the Texas Tech University System has been in maximizing the state’s return on investment.”
The report notes that significant growth throughout the system has been a major factor in its economic impact. Formally adopted in 2009, the system-wide strategic plan, Leading the Way: 2020, outlines priorities and goals for each of the Texas Tech University System’s component institutions for the next decade. As a result of this plan, total student enrollment has increased nearly 10 percent from 2009 to 2011. Total research conducted throughout the system topped $200 million for the first time in 2011, an increase of 62 percent since 2009.
“Our growing research enterprise has substantially contributed to the Texas Tech University System’s statewide economic impact,” said Jodey Arrington, vice chancellor for the Office of Research, Commercialization and Federal Relations. “Increasing public and private research funding for our universities means investing in more space and equipment, attracting the best and brightest faculty and students from across the globe, and bringing new technologies to market.”
The study assesses the economic impact of the system’s central administration and its three component institutions – Texas Tech University, Angelo State University and Texas Tech University Health Sciences Center. The study was commissioned by the Office of the Chancellor and prepared by Bradley Ewing, principal with the Ph.D. Resources Group, LLC. Ewing, a professor in Rawls College of Business, used an input-output model to do the study.
“The analysis utilized a conservative methodology devised after reviewing other industry and peer studies conducted,” Ewing said. “There are several factors that go into determining an accurate multiplier and associated impacts, and it was important to use as much tangible information as possible and not rely on speculation.”
The model analyzes several factors such as annual operating budgets, research expenditures and student enrollment to provide estimates on the economic impacts on the entire state, as well as the multiple counties in which the Texas Tech University System operates. The survey also includes an estimate of the workforce contribution of alumni, as well as the impact of system, employee, visitor and student spending.
The Texas Tech University System is one of the top public university systems in the state of Texas, consisting of three component institutions and operating at 12 academic sites and centers. Headquartered in Lubbock, Texas, the TTU System has an annual operating budget of $1.4 billion and approximately 18,000 employees focused on advancing higher education, health care, research and outreach.
In 2011, total enrollment exceeded 43,500 students and total research expenditures topped $200 million for the first time in the TTU System’s history. Whether it’s contributing billions of dollars annually in economic impact or being the only system in Texas to have a general academic institution, law school and health-related institution on the same campus, the TTU System continues to prove that anything is possible.