Economic-impact study: regent universities' activity equals about $18 billion and supports tens of thousands of jobs

Lightcast senior director Hannah Ruffridge told the Iowa Board of Regents on Feb. 26 that a conservative economic-impact analysis of the three Regent universities for fiscal 2023–24 shows an estimated total impact of about $18 billion, equivalent to roughly 7.7% of Iowa’s gross state product and support for an estimated 215,000 jobs.

Ruffridge described the methodology (operation, construction, research and visitor spending impacts, an alternative-use adjustment, and investment analysis perspectives for students, taxpayers and society). She said the study measured distinct impacts including university operations, research, health-care spending, economic development from spin-offs, visitor and student spending, outreach/extension, volunteerism and alumni earnings. Lightcast reported a large alumni effect and an aggregated present-year impact totaling about $18 billion in added income to Iowa in FY2023–24.

On returns, Lightcast estimated a 4.5 benefit–cost ratio for students in that fiscal cohort (students could expect an estimated $4.50 return for each $1 invested in that year of education, as measured over their working lifetimes) and about a 2.4 benefit–cost ratio for taxpayers, among other social-return calculations. Ruffridge said Lightcast uses a conservative methodology and that the largest single component of total economic impact is the alumni earnings effect.

Regents asked methodological and presentation questions; Ruffridge said Lightcast routinely performs such studies for higher-education systems and the study would be shared with legislators and stakeholders.

What’s next: The board will distribute the study to stakeholders including the legislature; staff indicated this is a regular update of the system’s measured statewide economic contribution.