Destination University Economic Impact Report

A Report of the Economic Impact
of the Creation of a Destination
University as Part of the Conversion of
the University of Houston Victoria
from a TwoYear Upper Level
Institution to a FourYear Resident
Campus
April 21, 2010
Prepared for:
Victoria Economic Development Corporation
700 N. Main Street, Suite 104
Victoria, Texas 77901
Prepared by:
Impact DataSource
4709 Cap Rock Drive
Austin, Texas 78735
(512) 892‐0205
Fax (512) 892‐2569
www.impactdatasource.com
Table of Contents
Executive Summary ......................................................................................................... 3
The Report:
Introduction .................................................................................................................. 8

Description of the University ………………………………….....................................................8
Construction of the Initial Expansion Campus …………………………………...........................10
Types of Impacts that the University's Expanded Operations as a ............................... 12
Four‐Year Resident Campus will Provide
Direct Impact of the Operations of the Expanded University …………………………………... 13
The Direct, Indirect and Induced Economic Impact of the …………………………………......... 16
Operations of the Expanded University
Taxable Spending Expected in the Region ………………………………….................................16
Spending on Motel Rooms …………………………………........................................................
p g 20
Residential and Commercial Property to be Added to Local Tax Rolls ......................... 20
Summary of the Economic Impact of the Operations of the Expanded ....................... 22
University
Additional Revenues for Local Taxing Districts and the State .......................................23
Return on Investment in Funding to Construct the Initial Campus .............................. 28
at the University of Houston ‐ Victoria
Socioeconomic Benefits of Higher Education ................................................................ 30
Conclusion ………………………………….................................................................................. 37
Conduct of this Analysis …………………………………............................................................. 38
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Executive Summary
This report presents the results of an economic impact analysis performed by Impact DataSource, an
Austin, Texas economic consulting and research firm. The purpose of the analysis was to determine
the economic impact of the creation of a destination university as part of the conversion of the
University of Houston‐Victoria from a two‐year upper level institution to a four‐year resident campus.
In addition, this report addresses the social benefits to the region through the creation of a more
highly educated workforce. This report represents a snapshot of the first 10 years of the University’s
expanded operation.
The economic impact of the University's expanded operations was projected for ten years, 2015‐2024.
The University
The University of Houston ‐ Victoria currently serves junior, senior and graduate level students. In the
fall 2010, the University will accept freshmen for the first time. This change is due to legislation
being passed and signed by Governor Perry in the most recent legislative session.
Coursework is also offered over the internet through distance education, and at two teaching centers: UHS
Cinco Ranch and UHS Sugar Land. UHV now serves an expanded area of 15 counties, offering 33 Bachelor’s and
Master’s Degree Programs and has 3,658 students in the fall 2009. Of those 3,658 students, 503 are students
taking face‐to‐face classes in Victoria. Since the mid‐1990s, student growth from Victoria County tapered to
about 1.5% annual growth. All new enrollments have been, essentially, from the Katy/Sugar Land area or
through online distance learning offerings.
Planned Expansion
To accommodate projected growth in enrollment to 4,084 in Victoria and total enrollment of 9,360 by
academic year 2019‐20, an estimated 630,000 square foot of space will be needed based on predictions
by the Texas Higher Education Coordinating Board's Space Prediction Model of square footage.
Currently, the University has 169,000 square feet of space.
Economic Impact of the University's Construction Activities
The University's planned $103.5 million construction ($71.5 million for academic classrooms and
offices and $32 million of private funding for 800 beds of student housing will have a significant
economic impact on the economy of Victoria and Victoria County over the nearly two year construction
period.
The University's construction activities will create $157.7 million in direct and indirect economic output or
revenues for businesses in the region, create and support an average of 974 jobs each year over the
construction period and create and support $80.5 million in salaries for workers in the region.
Economic Impact of the University's Expanded Operations over the Ten Years of its Expansion
The direct economic impact of the operations of the University over the ten years of its expansion will be
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$1.05 billion. This will include payments that the University will make for employee, faculty and staff
salaries, purchases of goods and services and other expenditures. The direct spending by the University will
generate another $1.724 billion in indirect sales or economic output in businesses and other organizations
in the region. In total, the economic impact of the operations of the University over ten years of the
expansion will be $2.78 billion.
While the University will employ 933 individuals by 2024, the University’s spending during its
operations will support another 839 jobs in the region. In total, the University's operations over the
ten years of the expansion will support 1,772 jobs in the region.
Similarly, while the salaries of the University’s employees, staff and faculty, along with financial aid available
to students, will total $865 million over ten years, the University’s spending will support another $654
million in salaries for workers in related spin‐off jobs supported in the region. Therefore, total salaries and
financial aid supported by the University's operations over ten years will be $1.5 billion.
This economic output and related jobs and salaries supported by the University will be responsible for
significant retail sales in the region, spending on lodging and residential and commercial property added
to local tax rolls. Some of these economic impacts are shown below.
Summary of the Economic Impact of the University's
Expanded Operations over the Ten Years of the Expansion
Number of direct and indirect jobs to be created 1772
Number of workers moving to the community 467
Number of new residents in the region 1518
Number of new students in public schools in the region
Number of new students in public schools in the region 350
Salaries to be paid to direct and indirect workers $1,519,555,860
Taxable sales in the community $449,342,194
Room nights at local motels 88,210
Lodging sales at local motels $11,158,831
Residential property added to local tax rolls, $86,308,831
including construction of apartments to meet the needs of
off‐campus students and housing for new workers moving
to the region
Commercial property, including retail, added to local tax rolls $21,905,270
in the region
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The economic activity generated by the University will translate into substantial revenues for local taxing
districts and the State of Texas. These additional revenues over ten years are shown below.
Additional Revenues for Local Taxing Districts and
the State of Texas over Ten Years of the Expansion
City of Victoria:
Sales taxes $6,740,133
Property taxes $4,273,193
Hotel occupancy taxes $748,137
Total $11,761,463
Victoria County:
Total $4,523,097
Victoria County Navigation District $202,728
Victoria County Road and Bridge $364,381
Victoria ISD $8,763,027
Victoria College $1,016,291
Victoria County Ground Water District $63,270
Total additional revenues for local taxing districts $26,694,257
State of Texas sales tax collections $28,083,887
Total revenues for the State and local
Total revenues for the State and local $54 778 144
$54,778,144
taxing districts
Return on Investment in Funding to Construct the Initial Campus at University of Houston ‐Victoria
What is the return on investment for the cost of constructing the initial UHV expansion campus?
The return on investment can be measured by comparing the cost of constructing the campus to
the increase in gross area product, salaries, and taxable sales generated from the operations of the
campus, along with the increase in residential property and commercial property added to local tax
rolls by the campus expansion, among others. The earnings of a higher educated workforce in the
the region and their spending would also greatly expand the return on this investment.
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The returns on investment for ten years are shown below.
Ten Year Returns on Initial Investment of Costs to Construct the Initial Campus
Initial investment to construct the campus:
State funds to construct the initial campus $71,580,000
Costs of student housing funded by outside sources $32,000,000
Total initial costs $103,580,000
Increases from the operations of the campus:
Gross area product, in millions of dollars $2,780
Taxable sales in the area, in millions of dollars $435
Personal income including salaries of direct and indirect workers $1,520
and financial aid available to students, in millions of dollars
Value of residential and commercial property added to tax rolls, in millions of dollars $108
Revenues for the state and local taxing districts, in millions of dollars $55
Number of direct and indirect jobs 1,772
Dollar returns for each dollar invested to construct the campus:
Gross area product $39
Taxable sales in the area $6
Personal income including salaries of direct and indirect workers
Personal income including salaries of direct and indirect workers $21
and financial aid available to students
Value of residential and commercial property added to tax rolls $1.51
Revenues for the state and local taxing districts $0.77
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Socioeconomic Benefits of Higher Education
Many studies have been conducted to describe the socioeconomic benefits resulting from higher
education, such as the benefits from UHV. The 1998 study from the Institute for Higher Education
Policy titled "Reaping the Benefits" and the March 2007 Perryman Group "A Tale of Two States—And
One Million Jobs!!, An Analysis of the Economic Benefits of Achieving the Future Goals of the “Closing
the Gaps” Initiative of the Texas Higher Education Coordinating Board" document the most significant
private and public economic and social benefits that result from higher education. The table below
summarizes these types of benefits.
Public Private
Increased Tax Revenues Higher Salaries and Benefits
Greater Productivity Employment
Increased Consumption Higher Savings Levels
Economic
Increased Workforce Flexibility Improved Working Conditions
Decreased Reliance on Government Financial Personal/Professional Mobility
Support
Reduced Crime Rates Improved Health/Life Expectancy
Increased Charitable Giving/Community Service Improved Quality of Life for Offspring
Increased Quality of Civic Life Better Consumer Decision Making
Social
Social Cohesion/Appreciation of Diversity Increased Personal Status
Improved Ability to Adapt and Use Technology More Hobbies, Leisure Activities
Details of this analysis are on the following pages, beginning with an introduction to this study.
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A Report of the Projected Economic Impact of
the University of Houston ‐ Victoria
Introduction
This report presents the results of an economic impact analysis performed by Impact DataSource, an
Austin, Texas economic consulting and research firm. The purpose of the analysis was to determine
the economic impact of the creation of a destination university as part of the conversion of the
University of Houston‐Victoria from a two‐year upper level institution to a four‐year resident campus.
In addition, this report addresses the social benefits to the region through the creation of a more
highly educated workforce. This report represents a snapshot of the first 10 years of the University’s
expanded operation.
Construction of the initial campus is expected to be completed by 2015 ‐‐ a construction period of
about one and three quarters years.
The economic impact of the University's expanded operations was projected for ten years, 2015‐2024.
The analysis focused on determining following the impacts:
• Construction of the required buildings for initial construction,
• The university's increase revenues and spending over the next 10 years,
• Increased enrollment over the next 10 years, and
• Increased faculty required to serve students over the next 10 years
• Increased faculty required to serve students over the next 10 years.
In addition, some of the many socioeconomic benefits of higher education are discussed.
A description of the University and its proposed expansion is next.
Description of the University
About the University
Beginning as an effort by local community leaders in the late 1960s to bring a higher learning institution to
Victoria, legislation was passed in 1971 officially establishing an off‐campus learning center serving junior, senior
and graduate level students. In April of 1983, the University of Houston Victoria Center, as it was then known,
was granted permanent degree granting status in the State of Texas. At the same time, the institution was
renamed as the University of Houston‐Victoria, becoming a separate institution within the UH System’s family of
campuses. Like other area Texas public colleges and universities, UHV operates under the jurisdiction of the
Texas Higher Education Coordinating Board and is accredited through the Southern Association of Colleges and
Schools.
The University of Houston ‐ Victoria currently serves junior, senior and graduate level students. In the
Page 8
fall 2010, the University will accept freshmen for the first time. This change is due to legislation
being passed and signed by Governor Perry in the most recent legislative session.
Coursework is also offered over the internet through distance education, and at two teaching centers: UHS
Cinco Ranch and UHS Sugar Land. UHV now serves an expanded area of 15 counties, offering 33 Bachelor’s and
Master’s Degree Programs and has 3,658 students in the fall 2009. Of those 3,658 students, 503 are students
taking face‐to‐face classes in Victoria. Since the mid‐1990s, student growth from Victoria County tapered to
about 1.5% annual growth. All new enrollments have been, essentially, from the Katy/Sugar Land area or
through online distance learning offerings.
Space Projections
The space required by UHV in Victoria is shown below.
Space Required by UHV in Victoria
2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15
Teaching Space 8,889 23,266 39,576 54,662 68,962 94,554
Library Space 28,922 32,504 36,473 40,410 44,243 49,922
Research Space 2,529 3,480 4,556 5,600 6,584 8,231
Office Space 93,918 112,725 132,760 152,844 172,739 202,441
Support Space 12,083 15,478 19,203 22,816 26,328 31,963
Total Predicted Space 146,342 187,453 232,568 276,331 318,855 387,110
Current Space In Victoria 168,790 168,790 168,790 168,790 168,790 168,790
Current Deficit in Victoria 22,448 (18,663) (63,778) (107,541) (150,065) (218,320)
Estimated Headcount
In Victoria 503 804 1,144 1,473 1,783 2,311
All Locations 3,658 4,140 4,652 5,171 5,689 6,420
2015‐16 2016‐17 2017‐18 2018‐19 2019‐20
Teaching Space 112,190 129,504 146,635 163,322 177,138
Library Space 54,439 58,967 63,555 68,160 72,409
Research Space 9,425 10,598 11,768 12,918 13,908
Office Space 225,117 247,794 270,471 293,100 313,373
Support Space 36,105 40,218 44,319 48,375 51,915
Total Predicted Space 437,277 487,081 536,747 585,876 628,742
Current Space In Victoria 168,790 168,790 168,790 168,790 168,790

Current Deficit in Victoria (268,487) (318,291) (367,957) (417,086) (459,952)
Estimated Headcount
In Victoria 2,686 3,056 3,422 3,780 4,084
All Locations 7,007 7,599 8,198 8,801 9,360
Source: UHV
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All space assumptions shown above were calculated by UHV based on the Texas Higher Education
Coordinating Board's space prediction model of square footage.
Teaching space includes all rooms used for instruction; library space reading/study rooms, stack space,
and associated service areas; research space all non‐class (research) laboratories and service rooms;
office space all offices, conference rooms, and associated service areas; and support space all
data processing/computer rooms, shops, storage, vehicle storage, and associated service areas.
Teaching space was calculated based on number of full time students in Victoria; library space on the
volumes of books, number of full time students served from Victoria, 50% of the number of full time
students served from online, number of faculty, staff space needed, and additional library space
needed; research space on the number of full time students served from Victoria and 50% of the
number of full time students served from online; office space based on total student population
served at all locations (staff serve all students from the Victoria location); and support staff on the
total predicted teaching, library, research, and office space for Victoria.
To accommodate this projected growth an expansion campus is projected A discussion of the
construction of the initial expansion campus is next.
Construction of the Initial Expansion Campus
Size and Costs of the Constructing the Campus and Construction Period
The size and cost of the proposed expansion for the initial campus are shown below.
Size and Cost of the Initial Campus
Total square feet of academic space to be constructed 375,000
(based on 2015 enrollment needs)
Cost of proposed construction:
Academic classrooms and offices $71,580,000
Student housing (800 beds) to be paid for with private funding $32,000,000
Total construction costs $103,580,000
Source: University of Houston ‐ Victoria
Types of Construction Impacts that the Expansion will Provide
The expansion will provide economic impacts from the construction activities. These impacts may be
characterized as direct, indirect and induced.
The direct economic impact during construction will come from the University's spending on construction
and from construction workers and their salaries. From the direct construction spending and the spending
Page 10
of construction workers, indirect and induced benefits or spin‐off benefits will be created and supported in
the region.
Indirect sales, jobs and salaries will be supported in businesses and organizations in the region, such as
lumber companies, concrete companies, subcontractors, etc. that supply goods and services to the firms
constructing the facilities. In addition, induced sales, jobs and salaries will be supported in businesses
or organizations in the region, such as restaurants, gas stations, banks, book stores, grocery stores,
apartment complexes, convenience stores, computer stores, service companies, etc. that supply goods
and services to construction workers and their families and, in turn, to workers in indirect jobs and their
families.
To estimate the indirect and induced economic impact of the construction activities on the Victoria area,
regional economic multipliers were used. Regional economic multipliers for Texas and areas of the
state are included in the US Department of Commerce’s Regional Input‐Output Modeling System (RIMS II).
Three types of regional economic multipliers were used in this analysis:
• An output multiplier,
• An employment multiplier and
• An earnings multiplier.
The multipliers show (1) the estimated sales or output in businesses or organizations in the region for each
dollar of spent on construction by the University, (2) the number of indirect and induced jobs created for
every one direct construction job, and (3) the amount of salaries paid to these workers for every dollar to be
paid to a construction worker.
The following indirect multipliers for construction activities were used in this analysis:
Indirect and Induced
Multipliers Used in this Analysis
For Construction Activities
Output multiplier 0.5232
Employment multiplier 1.0569
Earnings multiplier 0.9453
Economic Impact of Construction Activities
The expansion construction activities will have a substantial economic impact on the economy of
Victoria and Victoria County.
Contractors in the region will work on the project and they will hire workers and pay salaries. Plus, this
activity will create spin‐off or indirect revenues, jobs and salaries in other businesses in the region. In total,
the project's development and construction activities will have the impact on the region's economy
each year, as shown on the following page.
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Economic Impact from the Expansion's Construction Activities
Direct Indirect Total
Economic output or revenues for businesses in the region $103,580,000 $54,193,056 $157,773,056

Average number of construction jobs to be supported each year 474 500 974
Salaries to be paid to construction workers $41,432,000 $39,165,670 $80,597,670
As shown above, the University's construction activities will create $157.7 million in economic output
or revenues for businesses in the region, create and support an average of 974 jobs each year over
the construction period and create and support $80.5 million in salaries for workers in the region.
In addition to the economic impact from the construction activities, the economic activities created
by the expansion of the University operations, along with the permanent jobs that the University will fill,
will also generate substantial economic impacts for the region. These economic impacts are discussed next.
Types of Impacts that the University's Expanded Operations as a Four‐Year Resident Campus
will Provide
Victoria and Victoria County will receive substantial economic benefits from the University's operations as a
four‐year resident campus.
These economic impacts include the following:
•• Expenditures of the University and revenues for businesses and other organizations in the region,
Expenditures of the University and revenues for businesses and other organizations in the region
• Taxable sales at the university,
• Jobs,
• Worker salaries or personal income,
• Local worker and student spending, and
• Visitor spending, and
• New residential and commercial property in the community to be added to local tax rolls.
As with construction impacts, these economic impacts may be characterized as direct, indirect and induced.
The direct economic impact will come from the operations of the University, its employees and staff and
students. From the spending of the University, its employees and staff, and students, indirect and induced
benefits or spin‐off benefits will be supported in the region.
Indirect sales, jobs and salaries will be supported in businesses and organizations in the region, such as air
conditioning service firms, office supply firms, etc. that supply goods and services to the University. In
addition, induced sales, jobs and salaries are supported in businesses or organizations in the region, such
as restaurants, gas stations, banks, book stores, grocery stores, apartment complexes, convenience stores,
computer stores, service companies, etc. that supply goods and services to the University’s employees
and staff and students and their families and, in turn, to workers in indirect jobs and their families.
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The following indirect multipliers for the University's operations were used in this analysis:
Indirect and Induced
Multipliers Used in this Analysis
For Operations of the Expanded
University
Output multiplier 1.6321
Employment multiplier 0.8993
Earnings multiplier 0.7559
The multipliers show (1) the estimated sales or output in businesses or organizations in the region for each
dollar of operating budget at the University, (2) the number of indirect and induced jobs created for every one
direct job at the University and (3) the amount of salaries paid to these workers for every dollar to be paid to
direct job employee of the University and every dollar of financial assistance available to students at the
University.
The economic impact of the University's expanded operations is discussed next.
Direct Impact of the Operations of the Expanded University
The proposed expansion campus expects to open in the third quarter of 2015.
Projected Operating Budget
With the expansion, the University expects to have the following annual operating budget:
The University's Projected Operating Budget
(Shown in Millions of Dollars)
Year 1 2015 $53.1

Year 2 2016 $64.4
Year 3 2017 $75.0
Year 4 2018 $84.9
Year 5 2019 $98.6
Year 6 2020 $109.8
Year 7 2021 $122.4
Year 8 2022 $135.6
Year 9 2023 $149.3
Year 10 2024 $163.2
Total $1,056.3
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Projected Faculty and Staff and Payroll
With the expansion, the University expects to have the following number of faculty and staff:
Number of Faculty and Staff and Payroll
(Shown in Millions of Dollars)
Estimated
Annual
Number of Payroll
Faculty and (In Millions
Staff of Dollars)
Year 1 2015 390 $20.8

Year 2 2016 473 $26.7
Year 3 2017 550 $32.8
Year 4 2018 621 $39.2
Year 5 2019 686 $46.0
Year 6 2020 746 $53.0
Year 7 2021 801 $60.3
Year 8 2022 850 $68.0
Year 9 2023 894 $76.1
Year 10 2024 933 $84.5
Total $507.4
Projected Number of Students Living in Victoria and Victoria County and Enrolled at the University
With the expansion, the University expects to have the following number of students living in Victoria
and Victoria County and enrolled at the University:
Number of Students
Year 1 2015 2,311

Year 2 2016 2,686
Year 3 2017 3,056
Year 4 2018 3,422
Year 5 2019 3,780
Year 6 2020 4,084
Year 7 2021 4,412
Year 8 2022 4,766
Year 9 2023 5,148
Year 10 2024 5,562
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Projected Number of Out‐of‐Town Visitors to the University
With the expansion, the University expects to have the following number of out‐of‐town visitors to the
campus for conferences, sporting events, and other events:
Estimated Number of Out‐of‐Town Visitors to the
Campus
Year 1 2015 6,720

Year 2 2016 8,400
Year 3 2017 10,560
Year 4 2018 12,320
Year 5 2019 14,080
Year 6 2020 19,800
Year 7 2021 22,400
Year 8 2022 24,640
Year 9 2023 27,600
Year 10 2024 29,900
Projected Financial Aid Received by Students
With the expansion, students at the University will receive the following financial aid and revenues from
other sources that the students could spend in the community:
Estimated Student Aid Received by Students (Shown in
Millions of Dollars)
Year 1 2015 $16.9

Year 2 2016 $21.1
Year 3 2017 $25.3
Year 4 2018 $29.5
Year 5 2019 $33.7
Year 6 2020 $37.9
Year 7 2021 $42.1
Year 8 2022 $46.3
Year 9 2023 $50.5
Year 10 2024 $54.7
Total $358.0
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The Direct, Indirect and Induced Economic Impact of the Operations of the Expanded University
As discussed above, the University will have a larger operating budget, more faculty and staff, and larger
payrolls and more financial aid and other resources for students.
These expanded operations will generate the following direct and indirect economic activity in the region
over the ten years of the expansion.
Economic Output, Jobs, and Annual Salaries and Student Financial Aid
Supported by the University Over First Ten Years Following the Expansion
Jobs at the
University
Economic When
Output Expansion Salaries and Student
(Shown in Millions of Dollars) Completed Financial Aid & Resources
Direct $1,056.3 933 $865,400,000

Indirect and induced $1,724 839 $654,155,860
Total $2,780 1772 $1,519,555,860
As shown above, the direct economic impact of the operations of the University over the first ten years
following the expansion will be $1.056 billion. This will include payments that the University will make
for employee, faculty and staff salaries, purchases of goods and services and other expenditures. The
direct spending by the University will generate another $1.724 billion in indirect sales or economic
output in businesses and organizations in the region In total the economic impact of the
output in businesses and organizations in the region. In total, the economic impact of the
operations of the University over the ten years following the expansion will be $2.78 billion.
While the University will employ 933 individuals, the University’s spending during its operations will
support another 839 jobs in the region. In total, the University's operations over the ten years of the
expansion will support 1,772 jobs in the region.
Similarly, while the salaries of the University’s employees, staff and faculty, along with financial aid
available students, will total $865 million over ten years, the University’s spending will support another
$654 million in salaries for workers in related spin‐off jobs supported in the region. Therefore, total
salaries and financial aid supported by the University's operations over first ten years following the
expansion will be $1.5 billion.
Taxable Spending Expected in the Region
The University's construction activities and its expanded operations will generate the taxable spending
in the region on which sales taxes will be collected by the City of Victoria and Victoria County.
Taxable Spending During Construction at the University
During construction, construction workers and workers in indirect and induced jobs will spend an estimated
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30% of their salaries on taxable goods and services. In addition, an estimated 60% of this taxable
spending will be in Victoria.
Therefore, taxable spending in Victoria during the University's construction activities is shown below.
Taxable Spending in Victoria During Construction
Direct and indirect construction salaries $80,597,670
Workers' taxable spending in Victoria $14,507,581
Total taxable spending in Victoria during $14,507,581
construction
Taxable Spending by Workers During the First Ten Years of the University's Expanded Operations
During the first ten years of the University's expanded operations, the University's direct workers
and workers in indirect and induced jobs will spend an estimated 30% of their salaries on taxable goods
and services. In addition, an estimated 80% of this taxable spending will be in Victoria. This estimated
spending subject to the City and County's sales tax is shown below.
Taxable Direct and Indirect Workers' Spending in Victoria
and the Spending of Student Financial Aid and Resources
Student Total
Total Students
Financial Aid Financial Aid and
and Resources and Workers' Workers'
and Direct Indirect Direct and Taxable
Workers' Workers Indirect Spending
Salaries Salaries Salaries in Victoria
Year 1 2015 $37,700,000 $28,497,430 $66,197,430 $15,887,383

Year 2 2016 $47,800,000 $36,132,020 $83,932,020 $20,143,685
Year 3 2017 $58,100,000 $43,917,790 $102,017,790 $24,484,270
Year 4 2018 $68,700,000 $51,930,330 $120,630,330 $28,951,279
Year 5 2019 $79,700,000 $60,245,230 $139,945,230 $33,586,855
Year 6 2020 $90,900,000 $68,711,310 $159,611,310 $38,306,714
Year 7 2021 $102,400,000 $77,404,160 $179,804,160 $43,152,998
Year 8 2022 $114,300,000 $86,399,370 $200,699,370 $48,167,849
Year 9 2023 $126,600,000 $95,696,940 $222,296,940 $53,351,266
Year 10 2024 $139,200,000 $105,221,280 $244,421,280 $58,661,107
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Taxable Spending by Out‐of‐Town Visitors During the University's Operations
During the University's operations, out‐of‐town visitors to the campus will spend money in Victoria eating
out and shopping in the community. This estimated spending subject to the City and County's sales tax is
shown below.
Taxable Spending by Out‐of‐Town Visitors in Victoria
Estimated
Taxable Total
Estimated Spending Taxable
Number of by Each Spending
Out‐of‐ Out‐of‐ Out‐of‐
Town Town Town
Visitors Visitors Visitors
Year 1 2015 6,720 $65 $436,800

Year 2 2016 8,400 $67 $562,380
Year 3 2017 10,560 $69 $728,202
Year 4 2018 12,320 $71 $875,056
Year 5 2019 14,080 $73 $1,030,066
Year 6 2020 19,800 $75 $1,491,986
Year 7 2021 22,400 $78 $1,738,540
Year 8 2022 24,640 $80 $1,969,766
Year 9 2023 27,600 $82 $2,272,586
Year 10 2024 29,900 $85 $2,535,827
Total 176,420 $13,641,207
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Total Taxable Spending
From construction and from the University's first ten years of expanded operations, the following
taxable spending will be generated in Victoria:
Total Taxable Spending in Victoria and Victoria County
From Operations
Sales in the Students and
University's Workers'
Book Store, Spending Out‐of‐Town Total
From Cafeteria, in the Visitors' Taxable
Construction Etc. Area Spending Spending
Initial construction: $14,507,581 $14,507,581
Operations:
Year 1 2015 $2,500,000 $15,887,383 $436,800 $18,824,183
Year 2 2016 $3,600,000 $20,143,685 $562,380 $24,306,065
Year 3 2017 $4,200,000 $24,484,270 $728,202 $29,412,471
Year 4 2018 $4,800,000 $28,951,279 $875,056 $34,626,335
Year 5 2019 $5,400,000 $33,586,855 $1,030,066 $40,016,921
Year 6 2020 $6,000,000 $38,306,714 $1,491,986 $45,798,700
Year 7 2021 $6,600,000 $43,152,998 $1,738,540 $51,491,539
Year 8 2022 $7,200,000 $48,167,849 $1,969,766 $57,337,615
Year 9 2023 $7,800,000 $53,351,266 $2,272,586 $63,423,851
Year 10
Year 10 2024 $8 400 000
$8,400,000 $58 661 107
$58,661,107 $2 535 827
$2,535,827 $69 596 934
$69,596,934
Total $14,507,581 $56,500,000 $364,693,406 $13,641,207 $449,342,194
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Spending on Motel Rooms
During construction and during the University's operations the following amounts will be spent on motel
rooms in Victoria:
Spending on Motel Rooms in Victoria to be Generated by the University
Estimated
Estimated Number
Number of Room Estimated Total
of Room Nights from Nightly Spending on
Nights During Out‐of‐Town Room Motel
Construction* Visitors* Rate Rooms
During Construction 3,889 $100 $194,434
Operations:
Year 1 2015 3,360 $100 $336,000

Year 2 2016 4,200 $103 $432,600
Year 3 2017 5,280 $106 $560,155
Year 4 2018 6,160 $109 $673,120
Year 5 2019 7,040 $113 $792,358
Year 6 2020 9,900 $116 $1,147,681
Year 7 2021 11,200 $119 $1,337,339
Year 8 2022 12,320 $123 $1,515,205
Year 9
Year 9 2023 13,800
13 800 $127 $1 748 143
$1,748,143
Year 10 2024 14,950 $130 $1,950,636
Total 3,889 88,210 $10,687,671
* The estimated number of room nights above assumes double occupancy for motel guests.
Residential and Commercial Property to be Added to Local Tax Rolls
As a result of the University's expansion, new residential property will be constructed for some new direct
and indirect workers who move to the community and for new students. This property will be added to
local tax rolls, along with new commercial property constructed in the region as a result of growth at
the University and new residents.
The expected growth in faculty and staff in the first year will be from 300 to 390.
Overall, over ten years, the University projects that about 443 University employees (70% of the 633
new professional staff and faculty hired during this period) will move to the community to take a job
at the university.
Further, an estimated 40% of new direct and indirect workers may move to Victoria. Also, about 60% of
Page 20
new students not living on campus will be from outside the region.
New residential property will be built for many of these new students or require that new residential property
be built for them. The estimated average taxable value of this new residential property in the first year will
be $160,000 (with some single family and some multi‐family properties being built) with average annual
increases in the value of new residential and commercial property of 3%.
Therefore, the following commercial and residential property will be added to local tax rolls each year:
Value of New Property Added to Local Tax Rolls Each Year
Total
Estimated Value of
Value of Number of Value of New
Retail and New New Residential
Commercial Residential Residential and Cumulative
Property Properties Properties Commercial Value of
to be to be Added to be Added Property New
Added to to Tax to Tax Added to Property
Tax Rolls Rolls Each Rolls Each Tax Rolls on Tax
Each Year Year Year Each Year Rolls
Year 1 2015 $7,033,477 68 $10,939,968 $17,973,445 $17,973,445

Year 2 2016 $1,673,296 63 $10,391,754 $12,065,050 $30,038,495
Year 3 2017 $1,654,080 58 $9,929,759 $11,583,839 $41,622,334
Year 4 2018 $1,652,401 54 $9,430,692 $11,083,093 $52,705,427
Year 5
Year 5 2019 $1 667 699
$1,667,699 49 $8 892 744
$8,892,744 $10 560 443
$10,560,443 $63 265 870
$63,265,870
Year 6 2020 $1,643,446 46 $8,454,948 $10,098,393 $73,364,263
Year 7 2021 $1,636,729 42 $7,982,880 $9,619,609 $82,983,872
Year 8 2022 $1,646,990 37 $7,325,381 $8,972,371 $91,956,243
Year 9 2023 $1,655,013 33 $6,775,230 $8,430,242 $100,386,485
Year 10 2024 $1,642,140 30 $6,185,477 $7,827,616 $108,214,101
Total $21,905,270 481 $86,308,831 $108,214,101
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Summary of the Economic Impact of the Operations of the Expanded University
In summary, the operations of a residential University will have the following economic impact on
Victoria and Victoria County over the ten years of the expansion:
Summary of the Economic Impact of the University's
Expanded Operations over the Ten Years Following the Expansion
Number of new direct and indirect jobs to be created 1772
Number of workers moving to the community 467
Number of new residents in the region 1518
Number of new students in public schools in the region 350
Salaries to be paid to direct and indirect workers $1,519,555,860
Taxable sales in the community $449,342,194
Room nights at local motels 88,210
Lodging sales at local motels $11,158,831
Residential property added to local tax rolls $86,308,831
Commercial property, including retail, added to local tax rolls $21,905,270
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Additional Revenues for the City, County, School District, Area Taxing Districts and the State
The economic impacts of the University's expansion ‐‐ from construction activities and from its
operations ‐‐ translate into additional revenues for the City of Victoria, Victoria County, Victoria
Independent School District, and other taxing districts in the region.
Tax Rates Used in this Analysis
Tax and other rates used to calculate these revenues are shown below.
Tax Rates Used in this Analysis
Sales tax rates:
City of Victoria 1.5%
Victoria County 0.5%
State of Texas 6.25%
Total 8.25%
Property tax rates:
City of Victoria 0.6450
Victoria County Navigation District 0.0306
Victoria County Road and Bridge
Victoria County Road and Bridge 0 0550
0.0550
Victoria County 0.3436
Victoria ISD 1.3227
Victoria College 0.1534
Victoria County Ground Water District 0.00955
City of Victoria hotel occupancy tax rate 7%
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The City of Victoria will receive the following additional revenues from sales, property and hotel occupancy
taxes from the University during construction and over the first ten years of the expansion:
Additional Revenues for the City of Victoria
Hotel
Sales Property Occupancy
Taxes Taxes Taxes Total
During construction $217,614 $13,610 $231,224
Operations:
Year 1 2015 $282,363 $115,929 $23,520 $421,811
Year 2 2016 $364,591 $193,748 $30,282 $588,621
Year 3 2017 $441,187 $268,464 $39,211 $748,862
Year 4 2018 $519,395 $339,950 $47,118 $906,463
Year 5 2019 $600,254 $408,065 $55,465 $1,063,784
Year 6 2020 $686,981 $473,199 $80,338 $1,240,518
Year 7 2021 $772,373 $535,246 $93,614 $1,401,233
Year 8 2022 $860,064 $593,118 $106,064 $1,559,246
Year 9 2023 $951,358 $647,493 $122,370 $1,721,221
Year 10 2024 $1,043,954 $697,981 $136,545 $1,878,479
Total $6,740,133 $4,273,193 $748,137 $11,761,463
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Additional Revenues for Victoria County
Victoria County will receive the following additional revenues from sales and property taxes during
construction and ten years of the expansion from the University:
Additional Revenues for the Victoria County
Sales Property
Taxes Taxes Total
During construction $72,538 $72,538
Operations:
Year 1 2015 $94,121 $61,757 $155,878
Year 2 2016 $121,530 $103,212 $224,743
Year 3 2017 $147,062 $143,014 $290,077
Year 4 2018 $173,132 $181,096 $354,228
Year 5 2019 $200,085 $217,382 $417,466
Year 6 2020 $228,994 $252,080 $481,073
Year 7 2021 $257,458 $285,133 $542,590
Year 8 2022 $286,688 $315,962 $602,650
Year 9 2023 $317,119 $344,928 $662,047
Year 10 2024 $347,985 $371,824 $719,808
Total $2,246,711 $2,276,386 $4,523,097
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Additional Revenues for Other Local Taxing Districts
Other local taxing districts will receive the following property tax collections from additional
residential and commercial property added to local tax rolls over the ten years of the expansion of the
University:
Additional Property Tax Collections by Other Local Taxing Districts
Ground
Navigation Road and Victoria Victoria Water
District Bridge ISD College District Total
Property tax rate $0.0306 $0.055 $1.3227 $0.1534 $0.00955
Year 1 2015 $5,500 $9,885 $237,735 $27,571 $1,716 $282,408

Year 2 2016 $9,192 $16,521 $397,319 $46,079 $2,869 $471,980
Year 3 2017 $12,736 $22,892 $550,539 $63,849 $3,975 $653,991
Year 4 2018 $16,128 $28,988 $697,135 $80,850 $5,033 $828,134
Year 5 2019 $19,359 $34,796 $836,818 $97,050 $6,042 $994,065
Year 6 2020 $22,449 $40,350 $970,389 $112,541 $7,006 $1,152,736
Year 7 2021 $25,393 $45,641 $1,097,628 $127,297 $7,925 $1,303,884
Year 8 2022 $28,139 $50,576 $1,216,305 $141,061 $8,782 $1,444,862
Year 9 2023 $30,718 $55,213 $1,327,812 $153,993 $9,587 $1,577,323
Year 10 2024 $33,114 $59,518 $1,431,348 $166,000 $10,334 $1,700,314
Total $202,728 $364,381 $8,763,027 $1,016,291 $63,270 $10,409,697
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Additional Sales Tax Collections for the State of Texas
The State of Texas will collect the following sales taxes as a result of the University's expansion over the
ten years of its expansion:
Additional Sales Tax Collections for
the State of Texas
During construction $906,724
Operations:
Year 1 2015 $1,176,511

Year 2 2016 $1,519,129
Year 3 2017 $1,838,279
Year 4 2018 $2,164,146
Year 5 2019 $2,501,058
Year 6 2020 $2,862,419
Year 7 2021 $3,218,221
Year 8 2022 $3,583,601
Year 9 2023 $3,963,991
Year 10 2024 $4,349,808
Total $28,083,887
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Total Revenues for All Local Taxing Districts and the State of Texas
In total, local taxing districts and the State of Texas will receive the following revenues from the
University from construction and over the ten years of its expansion:
Additional Revenues for Local Taxing Districts and the State During
Construction and over the First Ten Years of the Expansion
City of Victoria:
Hotel occupancy taxes $748,137
Total $11,761,463
Victoria County:
Total $4,523,097
Victoria County Navigation District $202,728
Victoria County Road and Bridge $364,381
Victoria ISD $8,763,027
Victoria College $1,016,291
Victoria County Ground Water District $63,270
Total additional revenues for local taxing districts $26,694,257
State of Texas sales tax collections $28,083,887
Total revenues for the State and local $54,778,144
taxing districts
Return on Investment in Funding to Construct the Initial Campus at the University of Houston ‐Victoria
What is the return on investment for the initial UHV campus?
The return on investment can be measured by comparing the cost of constructing the campus to
the increase in gross area product generated from the operations of the campus, the increase in
salaries generated by the operations of the campus, the increase in taxable sales generated from
the operations of the campus, the increase in residential property and commercial property added
to local tax rolls by the campus expansion, among others. The earnings of a higher educated area
workforce and their spending would also greatly expand the return on this investment.
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The returns on investment for ten years are shown below.
Ten Year Returns on Initial Investment of Costs to Construct the Initial Campus
Initial investment to construct the campus:
State funds to construct the initial campus $71,580,000
Costs of student housing funded by outside sources $32,000,000
Total initial costs $103,580,000
Increases from the operations of the campus:
Gross area product, in millions of dollars $2,780
Taxable sales in the area, in millions of dollars $435
Personal income including salaries of direct and indirect workers $1,520
and financial aid available to students, in millions of dollars
Value of residential and commercial property added to tax rolls, in millions of dollars $108
Revenues for the state and local taxing districts, in millions of dollars $55
Number of direct and indirect jobs 1,772
Dollar returns for each dollar invested to construct the campus:
Gross area product $39
Taxable sales in the area $6
Personal income including salaries of direct and indirect workers $21
Value of residential and commercial property added to tax rolls $1.51
Revenues for the state and local taxing districts $0.77
A discussion of some to the many socioeconomic impacts of higher education and results of other
studies of the benefits of higher education, such as provided by universities like UHV is next.
Page 29
Socioeconomic Benefits of Higher Education
Many studies have been conducted to describe the socioeconomic benefits resulting from higher
education. The 1998 study from the Institute for Higher Education Policy titled "Reaping the Benefits"
and the March 2007 Perryman Group "A Tale of Two States—And One Million Jobs!!, An Analysis of the
Economic Benefits of Achieving the Future Goals of the “Closing the Gaps” Initiative of the Texas
Higher Education Coordinating Board" document the most significant private and public economic and
social benefits that result from higher education. The table below summarizes these benefits.
Public Private
Increased Tax Revenues Higher Salaries and Benefits
Greater Productivity Employment
Increased Consumption Higher Savings Levels
Economic
Increased Workforce Flexibility Improved Working Conditions
Decreased Reliance on Government Financial Personal/Professional Mobility
Support
Reduced Crime Rates Improved Health/Life Expectancy
Increased Charitable Giving/Community Service Improved Quality of Life for Offspring
Increased Quality of Civic Life Better Consumer Decision Making
Social
Social Cohesion/Appreciation of Diversity Increased Personal Status
Improved Ability to Adapt and Use Technology More Hobbies, Leisure Activities
Some socioeconomic benefits are discussed next.
Individual Benefits of Higher Education

Individual Benefits of Higher Education
From the individual’s perspective, education can lead to notable enhancement in quality of life
through such avenues as a broader world view, better health, greater civic involvement, and other
difficult‐to measure improvements.
In addition to these benefits, the economic gains to individuals are substantial, such as the following:
• There is a clear correlation between education level and income level, with many of the most
financially rewarding occupations requiring college degrees.
• There is also a negative relationship between education level and the likelihood of being unemployed.
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Education and Earnings
As education increases, individual earning potential rises. The average income for Texans, for
example, with bachelor’s degrees was $59,557 in 2009, slightly higher than the national average.
The difference in average earnings between persons with a bachelor’s degree and those with a
high school diploma was $29,519, as shown below.
Average Annual Earnings, Age 25+, by Educational Attainment
$90,000 $83,857
$80,000
$82,491
$70,000
$59,557
$60,000
$58,474
$50,000
$40,000 $37,320
$30,038 $38,174
$30,000
$20,262 $30,777
$20,000
$20,002
$10,000
$0
Less than high school High school graduate or Some college or Bachelor's degree Graduate or
graduate equivalent associates degree professional degree
US Texas
Source: Current Population Survey , US Census 2009
Earnings Gap Likely to Grow
Several trends are contributing to increasing differences in the average earnings of those with various
levels of education.
The shift to a knowledge‐based economy emphasizing technology has increased the educational
requirements of many industries.
A decrease in the relative importance of labor unions and high‐paying manufacturing jobs for those
with low levels of education (partly a consequence of global competition) has further widened the
gap between earnings for those with a high school diploma and those with some form of higher
educations
According to “The Big Payoff: Educational Attainment and Synthetic Estimates of Work‐Life Earnings,”
US Census Bureau, US Department of Commerce, issued July 2002 and “The Value of Higher Education:
Individual and Societal Benefits (With Special Consideration for the State of Arizona),” Arizona State
University, School of Business Productive and Prosperity Project (P3), October 2005:
In the early 1980s, the average earnings of a full‐time male worker between the ages of 35
and 44 with a bachelor’s degree were 38% higher than one with a high school diploma. In the
Page 31
early 2000s, the difference had climbed to 94%.
Education and Unemployment Relationship
Education is also correlated with greater opportunity and the ability to maintain employment.
Nationally, 6.24% of adults age 25 and older with only a high school diploma were unemployed in
2008 compared to only 3% of those with a bachelor’s degree. In Texas, for example, the difference was
slightly less.
Unemployment, Age 25+, by Educational Attainment
12.00%
10.00% 9.58%
8.00%
6.00% 6.24%
6.00%
4.80% 4.71%
3.76%
4.00%
2.99%
2.48%
2.03% 1.94%
2.00%
0.00%
Less than high school
Less than high school High school graduate or
High school graduate or Some college or
Some college or Bachelor's degree
Bachelor's degree Graduate or
Graduate or
US Texas
Source: American Community Surveys , US Census 2008
Societal Benefits of Higher Education
The benefits to society of higher education are undeniable and span a broad spectrum.
They include economic improvements that translate into greater opportunities for all citizens.
With higher education, the Texas workforce is more productive, and the state is more competitive
for future desirable corporate locations and other growth.
In addition, a more educated populace tends to require less social assistance. Lower
unemployment and higher earnings contribute to reducing the need for unemployment benefits
and various social services programs. Higher education levels also translate into lower rates of
incarceration.
Finally, there are other gains from increasing education levels, including enhanced volunteerism,
more active participation in and support of public and philanthropic initiatives, better levels of
Page 32
community health, and a greater pace of discovery and innovation to sustain social and economic progress.
Increased Productivity and Capacity
Increased lifetime earnings of graduates are an indication of their enhanced contribution to the
economy. The additional compensation can only occur as a result of the greater value‐added created
by educated workers.
The improvement in the productivity and capacity of the individuals attending the institutions has
far reaching economic benefits. The National Bureau of Economic Research estimated that a 10%
increase in the average educational level of workers resulted in a 4.9% to 8.5% rise in productivity
in manufacturing and 5.9% to 12.7% productivity improvement in non‐manufacturing industries ‐‐ as
included in "Beyond the Incidence of Training: Evidence from a National Employers Survey", working
Paper No. 5231, National Bureau of Economic Research (Cambridge, Massachusetts), 1995, Appendix D.
Enhanced levels of academic research funding lead to important discoveries which are often
commercialized into products and services that expand output and productivity in fundamental
ways. This process ultimately increases the overall capacity of the economy to meet human needs.
Higher Tax Receipts
With higher earnings, the amount of taxes paid rises. In addition to the effect on income taxes, higher
incomes translate into more spending for various goods and services subject to sales taxes and other
charges. Property tax collections are also enhanced as earnings are spent on housing and other real
charges Property tax collections are also enhanced as earnings are spent on housing and other real
estate assets.
Federal Tax Liability*, Age 25+, by Educational Attainment
$12,000 $11,162
$10,000 $10,685
$8,000 $7,338
$7,411
$6,000
$4,000 $3,488
$2,003
$2,000 $2,941
$436 $1,608
$345
$0
* After tax credits are deducted
US Texas
Source: Current Population Survey , US Census 2009
Page 33
Reduced Social Services Costs
Not only does higher education lead to individual improvement in quality of life, it can also translate
into social and economic gains through the reduction of social services costs and dependency on
government‐provided assistance programs. In every state, a larger percentage of those with just high
school diplomas report receiving public aid than those with bachelor’s degrees, according to "The
Investment Payoff: A 50‐State Analysis of the Public and Private Benefits of Higher Education, Institute
for Higher Education Policy, February 2005.
Research by the Institute for Higher Education Policy suggests that a one percentage point increase in
high school or higher education in the population leads to an approximately 4 percentage point
decrease in welfare dependence and almost 2 percentage point decrease in poverty. The same study,
“Welfare and the Culture of Poverty,” The CATO Journal 16(1), suggests that increased education also
reduces unemployment. These findings are consistent with other academic research as well.
Statistics show that a large proportion of welfare recipients have low education levels, reducing their
ability to find employment and decreasing their earning potential as included in “Testimony of NOW
Legal Defense and Education Fund on “Welfare Reform: Success in Moving Toward Work,” submitted
to the US House 21st Century Competitiveness Subcommittee of the Education and the Workforce
Committee, October 16, 2001.
Public Assistance and Education Level
As education level rises, the percentage of persons receiving public assistance falls.
Percent Receiving Public Assistance, Age 25+, by Educational Attainment
3.50%
3.01%
3.00%
2.50%
2.00%
1.68% 1.59%
1.50% 1.30%
1.06%
1.00% 0.80%
0.46%
0.50% 0.26% 0.32%
0.18%
0.00%
US Texas
Source: American Community Surveys , US Census 2008
Page 34
Incarceration Cost and Education Level
In general, locations with more‐educated populations have lower crime rates.
The chances of being incarcerated are much higher for persons with lower levels of education.
According to one study, “Education Pays 2004: The Benefits of Higher Education for Individuals and
Society,” Trends in Higher Education Series, College Board, Revised Edition 2005, 2% of adults who
had not finished high school were incarcerated, as were 1.2% of those with a high school diploma.
By contrast, only 0.1% of those with college degrees were incarcerated.
Better Health
Health care costs are based on an individual’s attitude about exercise and food as well as their ability
to obtain health insurance and cover medical expenses.
More education and the corresponding likelihood of a better paying job translates into a greater ability
to finance health care expenses. A larger proportion of people with bachelor’s degrees (93%) report
being in excellent, very good, or good health compared to those with just a high school diploma (82%),
according to "The Investment Payoﬀ: A 50‐State Analysis of the Public and Private Benefits of Higher
Education,” Institute for Higher Education Policy, February 2005. Also, see “Mississippi’s Mandate:
Why the Investment in Education Pays off in Mississippi,” Institute for Higher Education Policy, May 2006.
Volunteerism and Citizenship
On the most basic level, education can help instill civic values and acceptable norms for our society
contributing to more activism and social cohesion according to "Mississippi’s Mandate: Why the
Investment in Education Pays off in Mississippi", Institute for Higher Education Policy, May 2006.
Some 38% of Texans with a bachelor’s degree reported volunteering in 2004, compared to 22% of those
with high school diplomas ‐‐ "The Investment Payoff: A 50‐State Analysis of the Public and Private Benefits
of Higher Education, Institute for Higher Education Policy, February 2005
Texans with a bachelor’s degree were also more likely to have voted in the 2000 presidential election
(78% compared to 51% of those with a high school diploma).
More on Closing the Gaps Study
The Texas Higher Education Coordinating Board, which has the responsibility for overseeing many
aspects of college and university policy within the state, has been focused on the educational
challenges of the economic and demographic realities confronting Texas for many years.
In an effort to develop a strategy for dealing with these issues, the THECB undertook a comprehensive
program to address the underlying patterns in college attendance and other relevant issues. As an
outgrowth of this “Closing the Gaps” endeavor, specific goals related to the number of Texans
Page 35
attending college and completing various programs by 2015 were developed. Similar objectives were
established for federal research funding. These targets have subsequently been revised to reflect
more recent patterns.
The “Closing the Gaps” initiative represents both (1) a well‐grounded and realistic assessment of the
importance of improving Texas’ higher education attendance, graduation rates, and research
participation and (2) measurable milestones to achieve the needed outcomes.
As discussed earlier, The March 2007 Perryman Group "A Tale of Two States—And One Million Jobs!!,
An Analysis of the Economic Benefits of Achieving the Future Goals of the “Closing the Gaps” Initiative
of the Texas Higher Education Coordinating Board" documents the benefits of closing the gaps by
providing more funding for higher education in Texas.
Some of the economic and fiscal impacts in that study are discussed below.
Employment
By 2030, if the “Closing the Gaps” objectives are achieved, an additional 1,023,281 Texans will be
employed relative to projected gains under a baseline scenario
Gross State Product
Annual output (gross state product in constant (2006) dollars) could be expected to be some $194.5
billion dollars higher if “Closing the Gaps” goals are met than under baseline conditions Over the
billion dollars higher if “Closing the Gaps” goals are met than under baseline conditions. Over the
entire analysis period (2006‐2030), Texas enjoys cumulative net gains from this initiative of about $1.9
trillion.
Total Expenditures
Annual expenditures (a measure of all dollars changing hands in the economy would be nearly $489.6
billion higher (in constant 2006 dollars) by 2030 with successful implementation of “Closing the Gaps.”
Personal Income
Annual personal income in the state would be almost $122 billion higher by 2030 (in constant 2006
dollars) if the “Closing the Gaps” targets are reached.
Fiscal Impacts of Achieving the Goals of "Closing the Gaps”
The economic benefits associated with a more educated workforce and greater research activity
translate into fiscal gains for the State and local governments as well. This increase stems from gains
in production, income, sales, and other aggregates which stimulate tax collections as well as reduced
Page 36
public assistance social costs associated with the improved outcomes.
By 2030, the net annual fiscal gains arising from achieving the goals of “Closing the Gaps” include
approximately $8.7 billion in State resources and $7.5 billion in local revenues (in constant 2006 dollars).
Over the entire 2006‐2030 period, the State sees an incremental net benefit of more than $85.3 billion,
while local entities receive about $73.5 billion. These amounts are several times as large as the
estimated costs of this initiative.
Over the implementation period through 2015, the cumulative State revenues are approximately equal
to requisite outlays. Beyond that point, the State receives substantially more than is needed to
maintain the patterns established by “Closing the Gaps”(much of the initial spending is for construction
of new facilities for the expanded enrollments). Over the entire 2006‐2030 period, the State
generates about $8.08 in revenues for every $1 in spending.
Social Returns
The social return on public spending is also extremely impressive. In 2015, the annual returns per
dollar of State outlays include $11.92 in total expenditures, $4.77 in gross state product, and $3.02 in
personal income. By 2030, these gains escalate to $46.36 in spending, $18.41 in output, and $11.54 in
income.
In 2015, the annual gains per dollar of cumulative public (State and local) and private spending include
$6.21 in total expenditures, $2.49 in gross state product, and $1.57 in personal income. By 2030, the
annual “payoff” per dollar of cumulative outlays totals $24.15 in total expenditures, $9.60 in gross
state product and $6 01 in personal income
state product, and $6.01 in personal income.
Conclusion
In conclusion, a residential / destination university has the potential to greatly improve the quality of
life throughout the Victoria region. As stated in the report, a greater educated populous will help
reduce per capita social costs related to crime, medical care and general poverty by better preparing
individuals to earn high wages and, therefore, positioning them for greater success.
In addition to the individual benefits, a destination university in Victoria has the potential to bring
tremendous economic benefits to all levels of business and government through increases in
employment opportunities, expanded markets, and increasing tax base. Most notable is the
estimated $1.5 Billion of direct and indirect salaries created over the first 10 years through increased
employment at the University and related spin off activity. The impact to local tax coffers of over
$26 Million will greatly improve the financial position of local governments and help stabilize tax rate
growth while providing new revenues to provide traditional and expanded services.
Finally, a destination campus has the potential to bring thousands of new students to the Victoria
region, some of whom will choose to stay and become part of the educated workforce the area will
need in order to stay competitive in a global environment.
Page 37
A discussion of the conduct of this analysis is next.
Conduct of this Analysis
Impact DataSource conducted this analysis using data, rates and information supplied by the University and
local taxing districts. In addition, Impact DataSource used some estimates and assumptions.
Impact DataSource is a 16 year‐old Austin economic consulting, research and analysis firm. The firm has
conducted over 2,500 economic impact analyses of numerous projects in Texas and 26 other states. In
addition, the firm has developed economic impact analysis computer programs for several clients, including
the New Mexico Economic Development Department.
Some of the economic impact analyses conducted by the firm include those for the following colleges
and universities:
• Weatherford College, Weatherford, Texas,
• Southwestern Baptist Theological Seminary, Fort Worth, Texas,
• North Dakota State University, Fargo, ND,
• Minnesota State University ‐ Moorhead, MN,
• Concordia College, Moorhead, MN,
• Del Mar College, Corpus Christi, Texas
• Texas A&M University ‐ Central Texas, in Killeen Texas,
• Santa Fe College, Santa Fe, New Mexico,
• Navarro College ‐ Midlothian, Texas campus,
• San Angelo State University, San Angelo, Texas,
San Angelo State University San Angelo Texas
• Texas Christian University, Fort Worth, Texas,
• East Williamson County Higher Education Center, Taylor, Texas (a proposed campus housing
facilities and classes for three colleges),
• Belhaven University, Jackson, Mississippi, and
• Texas A&M University, Corpus Christi.
The firm’s principal, Jerry Walker, performed this economic impact analysis. He is an economist and has
Bachelor of Science and Master of Business Administration degrees in accounting and economics from
Nicholls State University, Thibodaux, Louisiana.
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A Report of the Economic Impact

Number of direct and indirect jobs 1,772

Current Space In Victoria 168,790 168,790 168,790 168,790 168,790

Economic output or revenues for businesses in the region $103,580,000 $54,193,056 $157,773,056

Year 1 2015 $53.1

Year 1 2015 390 $20.8

Year 1 2015 2,311

Year 1 2015 6,720

Year 1 2015 $16.9

Direct $1,056.3 933 $865,400,000

Year 1 2015 $37,700,000 $28,497,430 $66,197,430 $15,887,383

Year 1 2015 6,720 $65 $436,800

Total 176,420 $13,641,207

Initial construction: $14,507,581 $14,507,581

Total $14,507,581 $56,500,000 $364,693,406 $13,641,207 $449,342,194

During Construction 3,889 $100 $194,434

Year 1 2015 3,360 $100 $336,000

Total 3,889 88,210 $10,687,671

Year 1 2015 $7,033,477 68 $10,939,968 $17,973,445 $17,973,445

Total $21,905,270 481 $86,308,831 $108,214,101

During construction $217,614 $13,610 $231,224

Total $6,740,133 $4,273,193 $748,137 $11,761,463

During construction $72,538 $72,538

Total $2,246,711 $2,276,386 $4,523,097

Property tax rate $0.0306 $0.055 $1.3227 $0.1534 $0.00955

Year 1 2015 $5,500 $9,885 $237,735 $27,571 $1,716 $282,408

Total $202,728 $364,381 $8,763,027 $1,016,291 $63,270 $10,409,697

Year 1 2015 $1,176,511

Number of direct and indirect jobs 1,772

Individual Benefits of Higher Education

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