Working for California: The Impact of the California State University Updated: January 10, 2005 Ted Egan, Ph.D. ICF Consulting.
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Working for California: The Impact of the California State University Updated: January 10, 2005 Ted Egan, Ph.D. ICF Consulting Introducing ICF Consulting ■ Based in Washington, formed in 1969 ■ Over 1,000 consultants around the world ■ Public and private sector focus ■ Economic Development Practice: Economic and socio-economic impacts Regional economic strategies involving universities Institutional design: research institutes, technology commercialization, incubators and technology parks 2 Overview of the CSU’s Impact Prosperous Regional Economies and State Economy Competitive Knowledge-Based Industries Operational and Alumni Spending Educated Professional Workforce Advanced Technology Quality of Life Strong Public University System 3 The Magnitude of CSU's Economic Impact on California and Its Regions Impact Calculation Considers: ■ Operational, Capital, and Auxiliary Expenditures ■ Student Expenditures ■ Community Service Learning Contribution ■ Impact of CSU Alumni Earnings 4 Economic Impact vs. State Investment ■ CSU-related expenditures create over $13 billion annually in economic impact and support more than 207,000 jobs in California $4.41 in spending is generated annually for every dollar the state invests in CSU ■ Higher alumni earnings raises the impact to $53 billion annually, supporting 527,000 jobs in the state CSU alumni and CSU expenditures generate more than $17 in spending for every dollar the state invests in CSU 5 CSU and California’s Workforce ■ Education for California’s Key Industries ■ Teacher Education and Other Service Occupations ■ California’s Changing Population 6 State Income is Highly Correlated With University Education Across the U.S. State Median Household Income by Bachelors Degree Attainment Rate, All U.S. States $60,000 University educational attainment is highly correlated with the income of everyone in a state. California Median Household Income (1999) $50,000 $40,000 $30,000 R2 = 0.63 $20,000 $10,000 $0 0% 5% 10% 15% 20% 25% % of the Adult Population w ith Bachelors Degree or Higher (2000) 30% 35% More educated workers means more fast-growing, higher paying knowledgebased jobs, which means more growth and more benefit for the entire state. Source: US Census 7 CSU Programs Serve the Industries that Drive California’s Economy… California’s economic drivers are mainly knowledge-based industries that thrive in the state because of the quality of its skilled workforce: Electronics & Information Technology Media & Cultural Industries Agriculture, Food & Wine Life Sciences Tourism Engineering Services Apparel Aerospace Transportation Services 8 …And CSU Awards The Most Degrees in Fields These Industries Rely On CSU Bachelor's Degrees as Percent of All Public and Private University Bachelor's Degrees Awarded in California, Critical Fields 2001-2002 65% 52% Business Agricultural Business & Engineering 52% Communications 51% Other Engineering 45% 44% Computer & Electronic Engineering Life Sciences Source: California Post-Secondary Education Commission 9 CSU is also the Largest Producer of California Graduates in Education and Other Service Occupations CSU Bachelor's Degrees as Percent of All Public and Private University Bachelor's Degrees Awarded in California, Service Fields 2001-2002 87% 89% Education* Criminal Justice 87% Social Work 82% Public Administration Source: California Post-Secondary Education Commission *CIP Codes 10 California’s Population is Becoming More Diverse… California Population by Race, 1990 & 2000 100% 90% 80% Hispanic Percent of Total 70% Other/2 or more races, non-Hispanic Asian/Pacific Islander, non-Hispanic 60% African American, non-Hispanic 50% White, Non-Hispanic 40% 30% 20% 10% 0% 1990 Source: US Census Latinos, Asians, and other races are becoming an increasingly large share of California’s population. 2000 Immigration is continuing to fuel growth in the state, creating challenges to ensure access to educational opportunity is maintained. 11 …And CSU Continues to Ensure Access to Higher Education CSU Share of All Public and Private University Bachelor Degree Recipients in California, by Ethnicity, 2001-2002 58% 53% 52% 45% 39% Asian/Pacific Islander African American Latino Native American White/Caucasian Source: California Post-Secondary Education Commission 12 CSU and Innovation in California ■ Research investment is growing rapidly at CSU campuses, now ranging from $8 million to over $100 million annually ■ CSU is playing a growing role in preparing and supporting “risk takers” and innovators in every region ■ Long a supporter of small business, CSU campuses are expanding their focus on entrepreneurship, technology transfer, and business incubation 13 Quality of Life and Community Contributions ■ Volunteerism: More than 185,000 students performed nearly 30 million hours of community service in 2002 ■ Arts: More than 1.2 million Californians attend art, culture, and lecture events on CSU campuses every year ■ Recreation: CSU athletic events draw more than 1.9 million spectators annually ■ Libraries and Media: CSU libraries, radio, and television stations provide vital information access to California’s communities 14 CSU IS Working For California ■ California reaps a four-fold benefit from every dollar the state invests in the CSU. ■ CSU sustains more than 200,000 jobs in California. ■ A majority of the state’s Latino and African-American university graduates earned their degrees from CSU. ■ CSU ensures California’s future prosperity by ensuring its knowledge-based industries have the skilled employees they need. ■ Communities, governments, and industries find CSU to be a valuable partner and a critical asset for California. Investing in CSU is Investing in California 15