Economic Impact of the University of New Orleans 2014-15 Prepared for By The University of New Orleans June 2016 Economic Impact Analysis The University of New Orleans - 2014: 2015 Acknowledgments This report was prepared by Maria J. Ortiz, Project Manager, and Heidi Charters, Research Analyst in the Division of Business and Economic Research (DBER) at The University of New Orleans (UNO). Thanks and recognition is given to Karen Brakel, Project and Budget Coordinator, and to John A. Williams, Ph.D, Dean of the College of Business Administration and Director of the Hospitality Research Center, for their valuable support and assistance. Thanks and recognition is given to Rosine PEMA SANGA and Reese Templet, Student Research Assistants, for their valuable assistance in preparing this report. Special appreciation also goes to staff at UNO for taking the time to provide the necessary data to complete this project: David Armstrong, Troy Bacino, Michael Brauninger, Ambera Brown, Allen Burrell, Debra Carr, Brett Cassell, Heather Cassell, Warren Davis, Deborah Hadaway, Lauri Henry, Jan Hooks, Ann Lockridge, Pamela Meyer, Mallory Moore, David Muscarello, and Cynthia Vanaman. Their input was of great value and the report could not have been done without their cooperation. UNO Division of Business and Economic Research 2 Economic Impact Analysis The University of New Orleans - 2014: 2015 Executive Summary  In the 2014-2015 fiscal year, The University of New Orleans generated a total economic impact of $470.1 million for the New Orleans Metropolitan Statistical Area. This impact is comprised of $285.3 million in direct expenditures and $185.2 million in secondary expenditures.  The University’s total economic impact is comprised of $97.2 million from UNO’s daily operations, $25.1 million from non-resident students, $4.9 million from visitors, and $343.3 million originated from alumni expenditures.  During the same fiscal year, total direct earnings that stayed within the New Orleans area represent nearly $39.6 million, while total direct employment represented 1,115 individuals who worked in different positions at the University.  Direct spending by UNO and its community also resulted in the creation or support of about 6,500 full-and part-time secondary jobs. These jobs were projected to create a total of $127.9 million in additional secondary earnings for residents of the New Orleans area.  The University also generated a total of $12.7 million in tax revenue for state and local governments. Of that total, roughly $9.0 million went to the State of Louisiana, and $3.7 million was claimed by local governments in the New Orleans area.  During the same fiscal year, the University educated more than 9,200 students, and awarded a total of 1,910 degrees.  By the end of the 2014-2015 fiscal year, UNO had awarded a total of 85,270 degrees since it first opened.  During the same year, a total of 7,136, or 77%, of the 9,234 students enrolled in UNO were New Orleans Area residents. Residents of other Louisiana parishes accounted for 898 students or 10% of the total enrollment. Total enrollment in UNO accounts for nearly 26% of all 4-year colleges in the area, representing the largest public institution in New Orleans. UNO Division of Business and Economic Research 3 Economic Impact Analysis The University of New Orleans - 2014: 2015 Introduction The University of New Orleans (UNO) opened in New Orleans in 1958, and has remained an important asset for the metro area ever since. The 57th academic year was completed during the 2015 Spring semester. From a purely economic view, UNO is a major business in the New Orleans metropolitan area. With 1,115 employees, if it were a private employer, it would make it into the top ten largest employers list. The presence of a major research and degree granting university also plays a very important role in the city of New Orleans, and in the state of Louisiana as a whole. The purpose of this report is to estimate the total economic impact generated by The University of New Orleans in the New Orleans Metropolitan area economy during the fiscal year 2014-2015. This economic impact is comprised by total spending, total income, total employment, and total state and local tax revenues. Methodology The study seeks to measure the economic impact on the 8-parish New Orleans Metropolitan Statistical Area (NOMSA) if The University of New Orleans did not exist. All data presented in this study was collected through secondary sources to the center. Therefore, the information contained in this report is based primarily on data provided by The University of New Orleans, along with other external factors available to the center. In an effort to produce valid results, DBER applied its best judgment at every step of the economic impact analysis based on the data provided. In some cases, due to constraints in data availability, DBER used assumptions contained in prior studies or external reports. Total spending is comprised by an analysis of the direct and secondary spending generated by the University. The analysis of direct spending was categorized into six mutually exclusive groups:       Wages and salaries Other operational spending Capital spending Non-resident student spending Spending by out-of-town visitors to the University Alumni spending UNO Division of Business and Economic Research 4 Economic Impact Analysis The University of New Orleans - 2014: 2015 Multiple factors were included to estimate the proportion of the University’s expenditure components that was spent within the NOMSA. Additionally, a calculation was done to estimate a minimum of spending by non-resident students, out-of-town visitors, and alumni. In all of these cases, care was made to maintain estimates on a conservative level. The resulting total spending can be viewed as the minimum economic impact of The University of New Orleans on the NOMSA. Each of the spending categories are analyzed in detail in the economic impact section. It is important to note that due to time constraints, this study does not contain the spending impact of the UNO Foundation, the UNO Research and Technology Park, the UNO Kiefer Lakefront Arena, The University of New Orleans Federal Credit Union, or other full external grants which deserve further detailed studies of their own. The addition of those components can only increase the already significant value of UNO to the New Orleans area economy. UNO Division of Business and Economic Research 5 Economic Impact Analysis The University of New Orleans - 2014: 2015 Section I: Economic Impact Annual Budget Table 1 contains the 2014-2015 Fiscal Year budget. During that year, UNO had a budget of $168.9 million. Funds for the University’s budget come from many sources, such as tuition, paid both locally and from out of state, as well as State of Louisiana taxes. The origin of these of funds was not considered in this analysis, but rather, the spending of these sources. The information contained in this budget was included for comparison purposes only, and it is not part of the economic impact analysis. Table 1: The University of New Orleans Budget, Fiscal Year 2014-2015 Category Budget Student tuition and fees State and government appropriation Gifts, grants and contracts Sales and services of auxiliary enterprises Endowment income Sales and services of educational departments Other sources Investment Income $76,931,852 $31,643,424 $39,002,366 $14,670,324 ($202,540) $157,101 $6,675,766 $25,224 Total $168,878,293 Figure 1: The University of New Orleans Budget, Fiscal Year 2014-2015 50% 46% 40% 30% 23% 19% 20% 9% 10% 0% 4% 0% 0% 0% -10% Student tuition & fees State & gov. Gifts, grants, approp. contracts Sales and srvcs. of auxiliary enterprises UNO Division of Business and Economic Research Endowment income Sales & srvcs. of edu. depts. Other sources Investment Income 6 Economic Impact Analysis The University of New Orleans - 2014: 2015 Direct Spending In order to assess the economic impact of The University of New Orleans, only those expenditures that stimulate local economic activity will be considered. For example, relevant expenditures include payroll expense, purchases and contractual services, and capital expenditures that took place within the metro area. Other applicable spending include non-resident student expenditures and money spent by out-of-town visitors to the University. Spending that left the NOMSA was not included in the analysis as that economic activity would accrue to other geographic areas. Wages and Salaries The University’s spending on salaries, including faculty and staff, was analyzed independently from other expenditures. During the fiscal year 2014-2015, UNO had 1,115 employees for which the University spent a total of $61.3 million in payroll. Salaries of graduate and undergraduate students were excluded from this analysis since student spending impact was calculated separately. The share of faculty and staff salary and wages that was spent in the New Orleans was estimated by examining the location of employee residence and general spending patterns. Residence was determined based on a current list of individual home addresses for all UNO employees. Only those employees who reside in the NOMSA were included in the analysis. Average spending patterns for UNO employees were obtained from the U.S. BEA for the state of Louisiana. In this analysis, only disposable income was included; that is, the income remaining after deduction of taxes and other mandatory charges, available to be spent or saved. Finally, it was assumed that the vast majority of the disposable income of employees who reside in the area was spent within the New Orleans metro area. The analysis determined that a total of $39.6 million was spent by faculty and staff in the New Orleans metro area during the fiscal year 2014-2015. The final spending by faculty and staff represents approximately 65% of the wages and salaries paid by UNO. UNO Division of Business and Economic Research 7 Economic Impact Analysis The University of New Orleans - 2014: 2015 Other Operational Spending Other operational spending includes expenditures on goods and services that are vital for the University’s daily operations. This includes expenditures for supplies, equipment, utilities, maintenance, insurance, library books, media, food, and other spending derived from operational activities. During the fiscal year 2014-2015, approximately $26.7 million was spent by the University. Some goods and services are purchased locally, but many are ordered from out of the area. The proportion of dollars that is spent inside the New Orleans metropolitan statistical area was estimated by examining the location of vendors. A partial list of vendors, including their mailing addresses and contract amount, was analyzed to determine the origin of each vendor. The remaining vendors were analyzed based on historical data and other economic indicators. Only the dollars spent locally were included, which was estimated to be $16.0 million. The total amount spent within the area represents nearly 60% of the initial amount paid by the University. Capital Spending Capital spending comprises construction and renovations that took place at the University’s campus during the fiscal year 2014-2015. About $1.8 million was spent on capital activities during that fiscal year. Similar to operational activities, only the dollars spent locally were included in this analysis. The origin of the contractors was determined based on the same methodology to that of operational spending. In that fiscal year, at total of $1.5 million was attributed to capital spending within the New Orleans metro area. The total amount spent within New Orleans represents about 80% of the initial expenditure. It is important to note that the analysis of capital spending is based on one fiscal year; therefore, it does not represent a large amount of construction activity as no new structures were built during 2014-2015 or in the recent past. If an average of several years were included, the amount contributed to the local economy via capital expenditure would most likely be larger. Just including the one year represents a conservative baseline estimate of economic activity due to capital spending. Also note that funds for capital expenditures often originate directly from the State of Louisiana and are not part of the UNO budget. UNO Division of Business and Economic Research 8 Economic Impact Analysis The University of New Orleans - 2014: 2015 Non-Resident Student Spending This section contains an analysis of spending from students who were non-residents of the New Orleans area when they first applied to UNO. Spending of students who were local residents was not factored into the assessment of the economic impact attributable to UNO, since these funds may have been spent within the local economy in the absence of this particular school. In Fall 2014, there were 9,234 students enrolled at UNO. Of the total enrollment, 77% came from the 8-parish metropolitan area. Of the remaining students, 10% were from parts of Louisiana outside the New Orleans Metro, 7% were from other states within the U.S., and 6% were internationals (Table 2 and Figure 2). According to the UNO Enrollment Services department, the average amount spent by a student who is not living with their parents on items such as housing, groceries, and books is about $12,700 per year per student. Some students purchase meal plans and pay rent for on-campus housing to the University. An adjustment was made to remove these items that were already accounted for in previous sections. Based on the number of non-resident students enrolled and their annual spending, adjusted for housing and meal plans, non-resident student spending represented nearly $15.4 million. Spending by students from outside the metro area accounted for a strong stimulus to the New Orleans economy during the fiscal year 2014-2015. Table 2. Students Place of Residence Residence Louisiana - NOMSA Louisiana - Outside NOMSA U.S. - Outside Louisiana Internationals Total Figure 2: Students Place of Residence Students Fall 2014 LA NOMSA 77% 7,136 898 644 556 9,234 UNO Division of Business and Economic Research Int'ls 6% U.S. Outside LA 7% LA Outside NOMSA 10% 9 Economic Impact Analysis The University of New Orleans - 2014: 2015 Spending by Visitors to the University A university attracts out-of-town visitors who would have otherwise not traveled to the city in the absence of a particular school. Visitors could include parents, prospective students, athletes, alumni, professors, and other people interested on the activities at the school. Due to time limitations, this analysis includes only a portion of the visitors who came to the University during the fiscal year 2014-2015. The visiting groups analyzed include athletic teams, friends and family who visited the commencement ceremonies, and a small portion of business visitors including professors or grant representatives. The number of athletic teams visiting the area was based on the number of games, among all sports offered by UNO, for which the opponent team came from outside the New Orleans area. The nature of their stay was estimated based on the distance each opponent team had to travel. The number of team members per sport was based on the current size of each UNO’s athletic team. Visitors to the two commencement ceremonies were based on the arena capacity, along with residency from enrollment statistics. The nature of their stay was based on their origin. That is, international visitors were expected to stay longer than residents of the State of Louisiana. The number of business visitors was estimated using data from the College of Business Administration and conservatively extrapolated to the remainder of the University. The amount of visitor’s expenditures was calculated using spending data from visitor survey results available to the center. It was estimated that visitors to the University spent at least $2.7 million in the New Orleans metropolitan area in fiscal year 2014-2015. No attempt was made to estimate visitors to students over the academic year or a full study of out of town visitors to university or athletic events. Thus, the dollar value of visitation provided here is only a baseline; there is certainly much more. UNO Division of Business and Economic Research 10 Economic Impact Analysis The University of New Orleans - 2014: 2015 Table 3 includes the total direct spending generated by UNO and its activities during the fiscal year 2014-2015. Wages and salaries accounted for the largest fraction at $39.6 million (Figure 3). Spending on goods and services and non-resident student expenditures represented the next largest categories at $16.0 million and $15.4 million, respectively. Visitor spending was $2.7 million, while capital expenditures represented the lowest category at $1.5 million. In total, UNO generated a total of $75.2 million in direct spending. It is important to note that alumni spending is not yet included in this analysis. A detailed analysis on alumni spending is presented in the following section. Table 3: University of New Orleans Direct Spending Category Direct Spending Wages and Salaries Goods and Services Capital Expenditures Non-Resident Student Spending Visitor Spending $39,642,141 $15,986,217 $1,462,031 $15,378,453 $2,707,179 Total Spending $75,176,021 Figure 3: University of New Orleans Direct Spending Wages and Salaries 53% NonResident Students 20% Visitors 4% UNO Division of Business and Economic Research Goods and Services 21% Capital 2% 11 Economic Impact Analysis The University of New Orleans - 2014: 2015 Alumni spending One of the most interesting impacts of The University of New Orleans is that of its alumni. Alumni spending was analyzed separately from other categories since that group is so prevalent that it obscures trends of other groups. In addition, alumni spending presents results of a longitudinal analysis; that is, students who have graduated from UNO over the years. The economic analysis of alumni was based on the number of students who graduated from UNO along with their spending. Spending was derived from Census and BEA data. According to the U.S. Census Department, in the New Orleans Metropolitan Statistical Area during 2014, a person with a Bachelor’s degree averaged an income of $19,254 more per year than a person with a high school degree. Additionally, a person with a graduate or professional degree averaged an additional $15,211 on top of the Bachelor’s degree. The spending of this additional income was based on the same methodology to that of payroll expenditures. The average spending patterns were obtained from the U.S. BEA for the state of Louisiana. In this analysis, only the proportion of disposable income was included. In addition, it was also assumed that the vast majority of the marginal disposable income of employees who reside in the area was spent within the New Orleans metro area. The number of alumni was determined from UNO statistics along with enrollment trends in the NOMSA. According to the UNO alumni database, currently there are approximately 69,000 living alumni. At the time of the study, there were 42,000 alumni (61%) residing in the 8-parish area, while a total of 68% lived within Louisiana. As expected, a very large amount of UNO alumni decided to stay in the New Orleans area after graduation (Figure 4). The final economic impact analysis of alumni includes only those people who reside in the New Orleans area. Alumni who left the city are excluded from the analysis since their economic activity is benefiting other areas in the country. Figure 4: Alumni Place of Residence LA - NOMSA 61% Outside LA 32% LA - Outside NOMSA 7% UNO Division of Business and Economic Research 12 Economic Impact Analysis The University of New Orleans - 2014: 2015 The center completed an additional analysis to include only those alumni that would have not pursued a higher education degree in NOMSA in the absence of UNO. During Fall 2014, UNO accommodated 9,234, or 26%, of the 35,078 students at 4-year higher education institutions in the New Orleans MSA. During the same period, UNO’s tuition was about $7,400 per year, while a weighted average of the tuition paid at other institutions during the same year was $34,000. There are only two very small institutions in New Orleans with tuition anywhere close to the same range of affordability as UNO. If UNO did not exist, the New Orleans area would not have enough capacity for its students to be educated. Furthermore, even if the capacity was rapidly adjusted by the market, some large portion of UNO students could not afford the higher tuition at other local private institutions. As a result, spending on education would not exist or would go out of town or state to other universities. One can only conclude that if UNO was not here then the number of educated people with degrees would be much smaller in New Orleans. This can only hurt the N.O. economy. The analysis to determine the loss of students only accounted for NOMSA residents and capacity in other local schools. Students who came from other areas in Louisiana or from out of state were not included since they are assumed to have other school prospects. The estimates of the proportion of UNO alumni who would not have obtained a degree, along with the portion of the marginal increase of income, leads to an impressive primary spending of $210.1 million within the New Orleans MSA during the fiscal year 2014-2015. Adding this to the direct spending of the current University community leads to a total direct spending of $285.3 million (Table 4). It is important to note that in the five years leading up to the study’s window, an average of 1,828 students graduated from UNO, and 82% of these recent graduates stayed in the New Orleans metropolitan area. Therefore, in the upcoming years, it is expected that approximately 1,500 additional UNO graduates will join the ranks of local alumni each year. This will result in an approximately $3.0 million of additional annual primary spending in the region. Table 4: Alumni Direct Spending Category UNO Activities Spending Direct Spending $75,176,021 Alumni spending $210,145,595 Total $285,321,617 UNO Division of Business and Economic Research 13 Economic Impact Analysis The University of New Orleans - 2014: 2015 Secondary Spending Secondary spending, or the ripple effect, was based on the indirect and induced spending generated from the direct spending. For every new dollar of direct spending, additional dollars of secondary spending are generated in the economy. Secondary spending was calculated as a proportion of direct spending using multipliers provided by the United States Department of Commerce, Bureau of Economic Analysis (BEA). The 2013 BEA Regional Input-Output Modeling System (RIMS II) values for the New Orleans metro area were used in this analysis. These multipliers are specific to each industry in a given area, and those used in this report are the corresponding multipliers to the industries in the New Orleans metro area represented by each expenditure category. Total Economic Impact Table 5 contains the total direct and secondary impact of each of the spending categories analyzed throughout this study. Similar to direct spending, the results of UNO’s regular activities are presented separately from alumni activity. UNO activities created a total of $75.2 million in direct spending, resulting in $52.0 million in secondary spending. Alumni activity had a total primary spending of $210.1 million, while its secondary activity accounted for $133.2 million. Table 5: University of New Orleans Direct and Secondary Spending Direct Spending Secondary Spending Total Spending $39,642,141 $15,986,217 $1,462,031 $15,378,453 $2,707,179 $75,176,021 $25,118,410 $13,806,359 $1,214,363 $9,744,234 $2,163,871 $52,047,236 $64,760,550 $29,792,576 $2,676,394 $25,122,687 $4,871,050 $127,223,258 Alumni Spending $210,145,595 $133,154,342 $343,299,938 Total $285,321,617 $185,201,579 $470,523,196 Category Wages and Salaries Goods and Services Capital Expenditures Non-Resident Student Spending Visitor Spending UNO Activities Spending UNO Division of Business and Economic Research 14 Economic Impact Analysis The University of New Orleans - 2014: 2015 The total impact attributed to the University is the sum of the total direct and secondary spending for all economic activity generated by UNO. The University created a total of $285.3 million for direct or primary spending. Based on the primary spending, UNO generated another $185.2 million in secondary spending. Thus, the total economic impact associated with The University of New Orleans during the fiscal year 2014-2015, was $470.5 million. Figure 5 shows the proportion of each expense category from total spending, excluding alumni activity. The largest category was for wages and salaries at $64.8 million, followed by goods and services at $29.8 million. Figure 6 presents the proportion of the University’s total spending, originated from regular activities, compared to the impact of alumni spending. Figure 5: Total Spending - UNO Activities Only 60% 50.9% 50% 40% 30% 23.4% 19.7% 20% 10% 3.8% 2.1% 0% Wages and Salaries Goods and Services Capital Expenditures Non-Resident Student Spending Visitor Spending Figure 6: Total Spending - UNO Activities and Alumni Spending 80% 73.0% 60% 40% 27.0% 20% 0% UNO Activities Spending UNO Division of Business and Economic Research Alumni Spending 15 Economic Impact Analysis The University of New Orleans - 2014: 2015 Section II: Earnings and Employment Earnings Direct Earnings Earnings are another major component of the economic benefits that UNO generates for residents of the New Orleans area. There are two types of earnings estimated in this report. First, the direct earnings or income of individuals employed directly by the University. This data, which was measured using information provided by University staff, is part of the direct economic impact computed in Section I of this report. Total direct earnings that stayed within the NOMSA represent nearly $39.6 million. Secondary Earnings Direct spending generated by UNO within the New Orleans area, including wages and salaries, also generates new earnings in the economy. As the University spends money in the local economy it creates jobs, thus creating additional income for residents of the New Orleans area. For each industry impacted by direct spending, the 2013 BEA RIMS II Multipliers were used to estimate the earnings created by UNO. DBER calculated these additional earnings, and presented detailed figures in Table 6. UNO and other individuals associated with the University generated about $127.9 million in earnings for New Orleans area residents during the fiscal year 2014-2015. Of that total, $35.6 million were generated by direct activities related to UNO, while earnings created by alumni accounted for $92.4 million. Employment Direct Employment The University of New Orleans is a major employer for residents in the New Orleans metro area. As mentioned earlier in the report, if UNO were a private employer, it would make it into the top ten largest employers list. During the fiscal year 2014-2015, the total direct employment at UNO represented 1,115 individuals who worked in different positions to support its teaching and daily operations. UNO Division of Business and Economic Research 16 Economic Impact Analysis The University of New Orleans - 2014: 2015 Secondary Employment Direct spending generated by UNO within the New Orleans area is also responsible for the creation or support of full-and part-time jobs in the economy. When these funds flow freely in the economy, they create or support jobs in various sectors of the economy. For example, when UNO buys items like paper or landscaping supplies from local companies, these suppliers have to employ people in order to meet the needs of UNO. This is an example of secondary employment. For each industry impacted by this direct spending, the respective 2013 BEA RIMS II Multipliers for employment were used to estimate the spin-off jobs. UNO and other individuals associated with the University supported or created a total of 6,500 jobs in the New Orleans area during Fiscal Year 2014-2015. Of that total, about 1,900 jobs were created by UNO and its activities, while nearly 4,600 jobs were originated from alumni spending. It is important to mention that some of these are not new jobs necessarily, but rather existing jobs which are supported by the spending of UNO and additional alumni expenditures (Table 6). Table 6: Total Earnings and Employment generated by UNO Category Total Earnings Jobs Wages and Salaries Goods and Services Capital Expenditures Non-Resident Student Spending Visitor Spending UNO Activities Spending $17,423,065 $9,181,587 $795,637 $6,758,964 $1,416,536 $35,575,789 874 521 32 339 96 1,863 Alumni Spending $92,360,813 4,635 $127,936,603 6,498 Total UNO Division of Business and Economic Research 17 Economic Impact Analysis The University of New Orleans - 2014: 2015 Section III: Taxes Although UNO does not pay local or state taxes, the activities generated by the University’s operations create taxes in the economy. Tax revenues presented in this analysis include only taxes paid or created by activities originated by UNO during the fiscal year 2014-2015. Taxes paid directly by businesses (i.e. hotels, restaurants) are not included. As a result of spending and employment in the New Orleans area created by UNO, tax revenues are generated for state and local governments. There are two types of tax revenues estimated in this report. The first is direct revenue for state and local governments. Direct revenue is the tax revenue that residents or visitors pay to state and local governments directly. Examples include hotel/motel taxes paid on hotel rooms, and state and local sales taxes paid on retail purchases, including food and drinks. The direct tax revenue in this analysis is measured by current income, hotel, sales, and gambling taxes. The income taxes paid by UNO to the state are the taxes that originate from wages and salaries. Similar to previous analysis, it includes only the taxes from NOMSA residents, including that of students. Indirect taxes are the taxes paid on revenue generated by direct spending. That revenue results in salaries and wages of jobs supported by direct spending. On those salaries, the recipients pay state income taxes. In addition, the recipients buy goods and services and pay taxes that correspond to those transactions. The retail sales tax applies to the purchase of most of those goods and services. However, other items are not taxable under the retail sales tax, but are taxable under various other taxes. Examples of these are taxes for gasoline, insurance premiums, and beer. These are referred to as excise taxes. The assumption used to estimate the revenue from these indirect taxes is that the recipient of newly created income is no different from the average Louisiana consumer. Therefore, the proportion of secondary income that is paid as taxes is equivalent to the average values for the state as a whole. The indirect taxes for state and local governments in this analysis are measured by income, sales, excise, and business taxes. UNO Division of Business and Economic Research 18 Economic Impact Analysis The University of New Orleans - 2014: 2015 During the fiscal year 2014-2015, UNO and other individuals associated with the University contributed a total of $12.7 million in state and local taxes. Out of that total, $9.0 million was collected by the state, while $3.7 million was claimed by local governments of the New Orleans area. Just over half of the tax revenues collected by state and local governments were originated from indirect revenues due to the fact that the University is tax exempt. Detailed figures are presented in Table 7. Table 7: State and Local Tax Revenue Government and Tax State Tax Local Tax Direct Tax Revenue Wages and Salaries Goods and Services Capital Expenditures Non-Resident Student Spending Visitor Spending $826,342 $175,918 $149,308 $144,730 $132,322 UNO Activities Spending Alumni Spending Total Direct Taxes $1,151,567 $2,403,907 $3,555,475 $277,052 $1,977,724 $2,254,775 Indirect Tax Revenue Income Tax Sales Tax Excise Tax Business Tax Total Indirect Taxes $1,802,709 $1,913,775 $1,435,199 $279,596 $5,431,279 $1,467,085 $1,467,085 Total $8,986,754 $3,721,861 UNO Division of Business and Economic Research 19 Economic Impact Analysis The University of New Orleans - 2014: 2015 Section IV: Other Indicators The last section on this report includes other measurements of activity generated by UNO. These indicators are not part of the overall economic impact analysis; however, they present other social benefits generated by UNO within the New Orleans metropolitan area. UNO Degrees The University of New Orleans educates more college graduates than any other public university in the Greater New Orleans Area. In 2014-2015, UNO graduates were awarded a total of 1,910 degrees. By the end of the 2014-2015 fiscal year, UNO had awarded a total of 85,270 degrees since it first opened (Table 8). While the vast majority of degrees granted by UNO are at the Bachelor’s level (71%), the University also educates a significant proportion of Master level students (27%). A small, but relevant, proportion of Doctorate degrees (2%) has been awarded by UNO over the years (Figure 7). Table 8: Historical UNO Degrees Degree Figure 7: Historical UNO Degrees UNO History through 20142015 Doctorate Master Bachelor Associate 1,559 23,267 60,291 153 Total 85,270 Bachelor 71% Master 27% Doctorate 2% UNO Division of Business and Economic Research Associate 0% 20 Economic Impact Analysis The University of New Orleans - 2014: 2015 Students Residence Even though the economic activity of NOMSA students is not part of the overall analysis, the social benefits of UNO are of special importance to the local economy. During Fall 2014, a total of 7,136, or 77%, of the 9,234 students enrolled in UNO were New Orleans Area residents. Residents of other Louisiana parishes accounted for 898 students or 10% of the total enrollment (Table 9). Within the metropolitan area, the largest group of students were from Orleans Parish (33%). About 29% of them came from Jefferson Parish, while 8% came from St. Tammany Parish. A smaller proportion, between 1% and 4%, of students were residents from each of the other 5 parishes in the metropolitan area (Figure 8). Table 9: Students Place of Residence Parish of Residence Jefferson Orleans Plaquemines St. Bernard St. Charles St. James St. John the Baptist St. Tammany Figure 8: Students Place of Residence Fall 2014 Enrollment Jefferson 29% 2,699 3,010 110 247 236 11 77 746 Total NOMSA Other LA parishes Out of State 7,136 898 1,200 Total 9,234 Out of State 13% Other LA parishes 10% St. John 1% UNO Division of Business and Economic Research St. Charles 2% Orleans 33% St. Tamm. 8% St. James 0% Plaq. St. Bern. 1% 3% 21 Economic Impact Analysis The University of New Orleans - 2014: 2015 Students Origin The origin or ethnicity of UNO students also represent an important social benefit to the local area. Of the 9,234 students enrolled in the fall of 2014, nearly 44%, or 4,066 students, were classified as belonging to a minority (Table 10). The most represented minorities include African-American (15%), followed by Hispanic (9%). Another 7% of students are from Asian origins. “Other” origin is comprised of those students who were not willing to disclose their race or ethnicity, and of those students who are non-resident aliens (internationals). See Figure 9 below. Table 10: Students Origin Parish of Residence Figure 9: Students Origin Fall 2014 Enrollment African-American Hispanic Asian Native American or Alaskan Natives Two or more races Other Non-Minority 1,375 840 657 Total 9,234 33 289 872 5,168 UNO Division of Business and Economic Research NonMinority 56% AfricanAmerican 15% Other 10% Two or more races 3% Asian 7% Hispanic 9% Native American 0% 22 Economic Impact Analysis The University of New Orleans - 2014: 2015 NOMSA Enrollment Enrollment for all higher education institutions within the New Orleans Metropolitan Area are presented in Table 11. During Fall 2014, a total of 35,078 students were enrolled in 4-year colleges in the area. As mentioned earlier in the report, enrollment in UNO accounts for nearly 26% of all 4-year colleges in the area, representing the largest public institution in New Orleans. Tulane accounts for nearly 39% of all enrollment, while Loyola comprises 13% of the entire market. On aggregate, public higher education institutions account for only 34% of the total enrollment in the New Orleans area. It is important to note that Tulane and Loyola’s enrollment numbers include medical and law schools which are not directly comparable to UNO. Table 11: NOMSA Enrollment Institution Figure 10: NOMSA Enrollment Fall 2014 Enrollment 13% 9% 7% Tulane UNO Loyola Xavier SUNO Dillard Holy Cross Total 13,531 9,234 4,496 2,976 2,543 1,200 1,098 35,078 UNO Division of Business and Economic Research 3% 3% Tulane 39% UNO Xavier Holy Cross UNO 26% Tulane SUNO Loyola Dillard 23 Economic Impact Analysis The University of New Orleans - 2014: 2015 Educational Attainment Figure 11 includes the percentage of population 25 years or older who attended higher education institutions for 4 or more years. It is interesting to see that from the time UNO opened, the percentage of population, both in the U.S. and New Orleans, with 4+ year degrees has climbed at a steep rate. During 2014, the rate of population with a 4+ year degrees was 29%, while the U.S. accounted for 30%. These two indicators were at 6% each during 1950. Without UNO supplying education to local people, New Orleans would have not been able to keep up with the national trend of college education. One could even argue that New Orleans would certainly have suffered economically. The advantage to a local economy of college-educated populace is enormous, both in human capital and in sheer economics. Figure 11: Educational Attainment 35% 30% 28% 30% 24% 25% 20% 20% 16% 29% 27% 23% 19% 17% 15% 11% 11% 10% 6% 6% 8% 8% 5% 0% 1950 1960 1970 United States 1980 1990 2000 2010* 2014* New Orleans Metro Area Source: U.S. Census: 1950-2000 Decennial Census, 2010 and 2014 ACS. UNO Division of Business and Economic Research 24 Economic Impact Analysis The University of New Orleans - 2014: 2015 Conclusion In the 2014-2015 fiscal year, The University of New Orleans made a valuable contribution to the New Orleans metro area economy. In that year, the University educated 9,200 students, awarded a total of 1,910 degrees, and generated a total economic impact of $470.1 million. This impact is comprised of $285.3 million in direct expenditures and $185.2 million in secondary expenditures. During the same fiscal year, total direct earnings that stayed within the New Orleans area represent nearly $39.6 million, while total direct employment represented 1,115 individuals who worked in different positions at the University. Direct spending by UNO and its community also resulted in the creation or support of about 6,500 full-and part-time secondary jobs. These jobs were projected to create a total of $127.9 million in additional secondary earnings for residents of the New Orleans area. The University also generated a total of $12.7 million in tax revenue for state and local governments. Of that total, roughly $9.0 million went to the State of Louisiana, and $3.7 million was claimed by local governments in the New Orleans area. UNO Division of Business and Economic Research 25