As an institution of higher learning, Cal State Long Beach isn’t usually viewed from a business perspective, but in fact, the university has a major economic impact on the Southern California region and, in particular, the city of Long Beach.

CSULB’s Office of Economic Research (OER) released a report earlier this year that shows the university generated an annual economic impact of $1.034 billion in the Southern California area during the 2003-04 fiscal year, the most current numbers available. In addition, between the campus and its auxiliaries, some 8,162 individuals are employed as faculty, staff or student assistants, making CSULB the city’s third largest employer.

“This is the first time a report has been done specifically outlining the economic impact of Cal State Long Beach on the city of Long Beach and the Southern California region,” said CSULB President Robert C. Maxson. “The results of the study prove how vital the university is, both as an employer and in generating revenues for the local and regional economies.”

Maxson also noted that CSULB’s economic impact easily justifies the support the state’s taxpayers give to the university. In fact, for every state dollar invested in CSULB, the university generates another $4.33 in economic activity, a better than four-fold return on every dollar. In federal, state and local taxes alone, the university and its employees directly generate $64.8 million.

Prepared by Economics Professors Lisa Grobar and Joe Magaddino, the report explains that the university’s direct impacts are measured by its expenditures on goods, services, salaries and benefits. The presence of the university also leads to indirect expenditures in the region, as suppliers to the campus spend on payroll and materials, and employees and pensioners spend their incomes in the local economy. Furthermore, the economic impact of student expenditures and the subsequent “multiplier” effects of all these factors are considerable.

“Put in other terms, Cal State Long Beach’s economic activities generate $2.8 million daily in the region’s economy,” Magaddino noted. “But the employment impact of the university is equally as significant. While the campus itself accounts for 8,162 jobs, university and student expenditures support an additional 9,060 indirect jobs within the region. That’s a total of 17,222 jobs.

”The report indicates that university expenditures, both direct and indirect, account for $614.9 million, while student expenditures add up to $419.3 million, yielding the total economic impact of $1.034 billion.

The community understands that the university is important,” said Magaddino, chair of the CSULB Econ“omics Department and director of the OER. “They oftentimes don’t think of a university as a business or industry, but the reality is this is a big business, and as a big business, it has a pretty large impact on the region. So, even as economists who do these studies frequently, we’re a little bit surprised at how large some of the numbers are.

”The CSULB report generally mirrored a comprehensive study completed last November on behalf of the California State University system and its 23 campuses—the nation’s largest public university. That report showed that the immediate impact of CSU-related expenditures creates $13.6 billion annually in economic activity in California and supports 207,000 jobs statewide. Additionally, some $760 million in taxes is generated for the state’s coffers.

“Californians undervalue the vital importance of the CSU system and its campuses, so this report is a key way to identify the critical role of the California State University,” said CSU Chancellor Charles B. Reed. “The CSU directly or indirectly impacts everyone in the state, and we add value to everyone’s lives. If it weren’t for the CSU, California simply would not enjoy the level of success that it has today.

”The study emphasized how the CSU, through its campuses, enhances the knowledge base of its citizens and allows more high-end jobs to be created and performed in California. It noted the increased earning capability of the CSU’s more than two million alumni and how CSU programs directly serve the knowledge-based industries that drive the state’s economy by increasing its skilled workforce.

Half of all bachelor’s degrees and a third of all master’s degrees granted in the state are conferred by the CSU. Among bachelor’s degree-holders, CSU graduates account for 65 percent of California’s business degrees, 52 percent in agricultural business and agricultural engineering, 52 percent in communications and 45 percent in computer and electronic engineering.

Even more impressive, however, is the percentage of bachelor’s degrees awarded in training the professionals needed to keep the state running, including teachers and education-related staff (87 percent), criminal justice workers (89 percent), social workers (87 percent) and public administrators (82 percent).

Moreover, CSU campuses, including CSULB, are partners in their communities, enriching the social and cultural life of the surrounding regions through a host of public programs. Campuses also engage in research and partnership projects, community service efforts and volunteerism.