Oppose Budget Cuts to Florida Atlantic University and the State University System of Florida

Budget cuts to Florida Atlantic University and the State University System are short-sighted and will have long-term detrimental effects to both higher education and the economy. Florida Atlantic University has an estimated economic impact of $4 billion annually in its six-county service region. Economists estimated that the universities and related businesses are responsible directly and indirectly for about 771,000 jobs in the state, or 7.9 percent of the state's work force.

1. Cutting FAU's budget will hurt not only the students, faculty and staff directly, but also the community at large..."Florida Atlantic University has an estimated economic impact of $4 billion annually in its six-county service region, according to a recently released sponsored project report to the Board of Governors of the State University System of Florida. The study was led by Alan W. Hodges, Ph.D., at the University of Florida, and Julie Harrington, Ph.D., at Florida State University.

To put it into perspective, the $4 billion economic impact is the equivalent impact of 10 Super Bowls, 15 Oasis of the Seas cruises or seven Fort Lauderdale boat shows. The report also states that FAU has had a positive direct or indirect impact on 59,000 full-time and part-time jobs across the service region. According to the study, present value over a 30-year period of a bachelor’s degree from a state university in Florida is $550,000, while a graduate degree is worth $1.87 million."

In terms of percentage of gross national product, the economic impact resulting from an SUS-earned degree is comparable to the economic impact of all defense spending in Florida — 7.25 percent and 7.5 percent, respectively," Harrington said.”

“The study found that the 11 public universities had a nearly $52 billion value-added economic impact on the state's economy during the 2009-2010 fiscal year, which ended in June 2010. That represents a little more than 7.25 percent of the state's total economic activity and includes regional multiplier effects produced by government and household spending by those who work for, attend or conduct business related to the State University System.

The economists estimated that the universities and related businesses are responsible directly and indirectly for about 771,000 jobs in the state, or 7.9 percent of the state's work force.

The study did not include spending on college sports events, nor did it include spending by university technology "spinoff" companies.”

Since 2008, state spending on education has dropped by 24 percent.

2. Budget cuts to FAU and the State University System will affect the long-term development of industries and jobs and the earning potential of Florida's residents for years to come. If well-educated workers are unavailable companies won't be attracted to Florida. If Florida doesn't have well-paying jobs the individual earning power of Florida residents will be affected. This in turn will affect their spending power and Florida’s overall economy.

“A new economic study suggests that having a degree from one of Florida's 11 state universities can be a financial lifesaver — equivalent to more than $1 million in a worker's lifetime earnings.

Using data from the state's Department of Education, the study found these average annual earnings for Florida high school and university graduates in fiscal year 2009-2010 who were employed in Florida that year:

those with a high school diploma, $20,924;
those with a bachelor's degree, $36,520;
those with a master's degree, $58,698;
those with a doctorate, $66,743, and
professionals, such as physicians or attorneys, $70,716.

The salary gap between college degree holders and those with high school diplomas was not unexpected, but the results were substantive nonetheless, Harrington said.

The Board of Governors of the State University System (SUS) requested the economic study to update earlier figures, said Julie Harrington, director of Florida State University's Center for Economic Forecasting and Analysis. The team included economists from FSU and the University of Florida.”

Sources:
http://www.fred.ifas.ufl.edu/economic-impact-analysis/pdf/SUS-of-Florida-FY-2009-10.pdf
https://fauf.fau.edu/wordpress/?p=3648
http://www.fsu.edu/news/2012/02/14/bog.study/
http://www.nytimes.com/2012/02/20/us/florida-set-for-new-cut-in-spending-on-colleges.html?_r=1&hp
http://www.fau.edu/mediarelations/releases0212/021222.php