Virginia receives $1.39 in state tax revenue for every dollar it invests in public higher education, says a study by a business coalition that is campaigning for increased support for colleges and universities.
The Virginia Business Higher Education Council will present the report today at a summit on economic competitiveness and higher education. The summit, at the Greater Richmond Convention Center, will include remarks by both gubernatorial candidates and Gov. Timothy M. Kaine.
The council, which is sponsoring the event, commissioned the study to show that the state gets far more out of higher education than it puts in.
The council in June injected the issue into the political campaign with the release of a poll showing overwhelming public support for its cause.
It said its new study is the first comprehensive analysis of the economic impact of the state's public higher education system of 15 four-year institutions, a junior college and 23 community colleges.
The Weldon Cooper Center for Public Service at the University of Virginia conducted the study, which is based on 2007 economic data.
It says that expenditures associated with the public higher education system in fiscal 2007 reached $9.46 billion, including payroll and the purchase of goods and services. Among other findings:
- Higher education annually contributes 6.2 percent of Virginia's gross domestic product, or about $24 billion. Every dollar the state spends generates $13.31 in GDP.
- $2.5 billion in annual tax revenues are generated for the state.
- 144,550 jobs are created by higher education operations.
- The medical centers at U.Va. and Virginia Commonwealth University together account for 27,311 jobs and $190 million in state revenue.
The report comes as the higher-education system faces state budget cuts totaling $196 million for the current fiscal year, although federal stimulus funds are expected to offset part of that reduction.
The business council says state support for Virginia students at four-year schools has dropped by about 40 percent since 2000.
The council, whose chairman is W. Heywood Fralin, chief executive officer of Medical Facilities of America Inc. of Roanoke, is campaigning to promote economic growth through investment in higher education. Its Grow By Degrees initiative seeks to increase by 70,000 the number of two-, four-year and graduate degrees awarded to state students over the next 10 years.
According to the economic-impact report, those additional degrees would mean $1.9 billion in new tax revenues for the state and $16 billion in increased personal income for Virginians.
The report will be released at the daylong Virginia Summit on Economic Competitiveness & Higher Education. Democratic gubernatorial candidate R. Creigh Deeds will address the group, followed by Republican opponent Bob McDonnell.
An afternoon panel session will include former Virginia Govs. Gerald L. Baliles and George Allen, and former Govs. Robert L. Ehrlich of Maryland and Michael F. Easley of North Carolina.
Contact Karin Kapsidelis at (804) 649-6119 or kkapsidelis@timesdispatch.com.
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