UA’s Impact on State, Local Economies Sets Records – UA News Center

University of Alabama Economic Impact Report: 2023-2024 Analysis and Alignment with Sustainable Development Goals

The University of Alabama (UA) has released its 2023-2024 economic impact report, detailing record contributions to the state of Alabama and the Tuscaloosa metropolitan area. This report analyzes these findings through the lens of the United Nations Sustainable Development Goals (SDGs), highlighting the university’s role in fostering economic prosperity, quality education, and community resilience.

Contribution to SDG 8: Decent Work and Economic Growth

The university serves as a primary economic engine for Alabama, directly contributing to SDG 8 by promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The report, conducted by the Center for Business and Economic Research, quantifies this impact with record-high figures.

Statewide Economic and Fiscal Impact

• Total Economic Impact: A record $3.4 billion on the state of Alabama.
• Job Creation: The university’s operations supported 15,238 jobs across the state.
• Fiscal Contribution: Generated $164.8 million in state income and sales taxes.
• Auxiliary Economic Activity: The university’s seven home football games contributed an additional $235 million to the state economy.

Local Economic Stimulation (Tuscaloosa Metro Area)

At the local level, the university’s impact is fundamental to building a prosperous community, aligning with the targets of SDG 8.

• Total Economic Impact: A record $2.354 billion on the Tuscaloosa metro area economy.
• Local Job Support: A total of 13,989 local jobs were supported.
• Local Tax Revenue: Generated $50.0 million in local sales taxes.
• Event-Based Impact: Home football games accounted for $160.1 million of the local economic impact.

Advancing SDG 4: Quality Education and Human Capital Development

UA’s core mission directly addresses SDG 4, which aims to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. The economic value of a UA degree demonstrates a significant return on investment for both the public and private sectors.

Public and Private Return on Investment

The investment in education at UA yields substantial, measurable returns that foster long-term economic sustainability and individual prosperity.

1. State Investment Return: For every dollar appropriated by the state, the university generated a $14.80 impact. The state is projected to realize a 10.4% annual rate of return on its investment.
2. Future Tax Revenue: The 2023-2024 graduating class is projected to contribute an additional $1.090 billion in state income and sales taxes over their careers, a direct result of their UA education.
3. Student Investment Return: Graduates realize significant personal economic benefits, with annual rates of return on their educational investment ranging from 6.7% to 11.5% over a high school diploma, depending on the degree level.

Workforce Development and Talent Retention

By attracting students from across the nation, the university enhances Alabama’s human capital. A significant number of out-of-state graduates choose to remain in Alabama, contributing their skills to the state’s workforce and economy, further supporting the objectives of SDG 4 and SDG 8.

Fostering Innovation and Sustainable Communities (SDG 9 & SDG 11)

Beyond direct economic output, the university’s activities in research and community engagement contribute to building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation (SDG 9), while making cities and human settlements inclusive, safe, resilient, and sustainable (SDG 11).

Research and Innovation Ecosystem

With over 30 research centers, UA is a leader in advancing discovery and knowledge. This commitment to research and creative inquiry is crucial for developing innovative solutions that drive economic diversification and sustainable industrial practices, directly aligning with the targets of SDG 9.

Strengthening Local Communities

The university’s substantial economic footprint in the Tuscaloosa metro area is a direct contribution to SDG 11. By creating jobs, generating tax revenue, and acting as a hub for cultural and economic activity, UA strengthens the community’s economic resilience and enhances its overall sustainability.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 4: Quality Education
  • The article is centered on The University of Alabama, a higher education institution. It mentions the provision of “over 200 degree programs” and highlights the value of a UA degree, which directly relates to providing quality tertiary education.
• SDG 8: Decent Work and Economic Growth
  • This is the most prominent SDG in the article. The text explicitly details the university’s role as an “economic driver,” its “$3.4 billion economic impact on the state,” and its direct contribution to job creation (“15,238 jobs”).
• SDG 9: Industry, Innovation, and Infrastructure
  • The article notes that UA “advances discovery, creative inquiry and knowledge through more than 30 research centers.” This focus on research and innovation is a key component of SDG 9. The university itself acts as a critical infrastructure for research and development.
• SDG 11: Sustainable Cities and Communities
  • The report details the university’s specific impact on the “Tuscaloosa metro area economy,” including a “$2.354 billion impact,” the creation of “13,989 jobs,” and the generation of “$50.0 million in local sales taxes.” This demonstrates the university’s role in fostering local economic growth and making the community more resilient.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 4: Quality Education
   • Target 4.3: Ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university. The article’s focus on the university’s programs and the value of its degrees directly supports the goal of providing quality tertiary education.
   • Target 4.4: Substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship. The article emphasizes that UA “prepares the workforce” and that a degree provides a high “return on investment,” indicating that graduates acquire skills relevant for employment.
2. Under SDG 8: Decent Work and Economic Growth
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The university’s role in research and development, as mentioned through its “30 research centers,” contributes to innovation and technological upgrading within the state’s economy.
   • Target 8.5: By 2030, achieve full and productive employment and decent work for all. The article directly addresses this by quantifying the university’s impact on job creation, stating it supported “15,238 jobs” in the state.
3. Under SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors… and substantially increase the number of researchers. The article’s statement that UA “advances discovery, creative inquiry and knowledge through more than 30 research centers” aligns directly with the goal of enhancing scientific research.
4. Under SDG 11: Sustainable Cities and Communities
   • Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning. The economic impact report itself serves as a tool for regional development planning, and the university’s significant economic contribution (“$2.354 billion impact on the Tuscaloosa metro area”) strengthens the local economy.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 4 (Quality Education)
   • Indicator (Proxy): The article provides a clear financial indicator for the value of education: “A degree from the University provides real annual rates of return that range from 6.7% to 11.5% for the 2023-2024 graduating class.” This measures the economic benefit and quality of the education received.
2. For SDG 8 (Decent Work and Economic Growth)
   • Indicator: The article provides direct quantitative data related to economic growth and employment. Specific indicators mentioned are:
     • Total economic impact: “$3.4 billion economic impact on the state.”
     • Total jobs supported: “15,238 jobs” statewide and “13,989 jobs” locally.
     • Increased tax revenue from graduates: “graduating class will pay $1.090 billion more in state income and sales taxes over their careers.”
3. For SDG 9 (Industry, Innovation, and Infrastructure)
   • Indicator (Proxy): While not a standard UN indicator, the article provides a measure of research infrastructure and capacity: “more than 30 research centers.” This serves as a proxy for the university’s commitment to and capacity for innovation.
4. For SDG 11 (Sustainable Cities and Communities)
   • Indicator: The article provides specific financial data to measure the positive economic impact on a local community:
     • Local economic impact: “$2.354 billion impact on the Tuscaloosa metro area economy.”
     • Local tax revenue generated: “$50.0 million in local sales taxes.”

4. Summary Table of SDGs, Targets, and Indicators

Source: news.ua.edu