University of Alaska: Economic Impacts & Public Perceptions - PowerPoint PPT Presentation

University of Alaska: Economic Impacts & Public Perceptions Prepared for: June 3, 2016

McDowell Group  Multidisciplinary research and consulting since 1972  17 professional staff; offices in Juneau & Anchorage  Complete 100+ projects every year for a variety of public and private sector clients  Program evaluations, survey research, economic impact studies, financial feasibility analysis, and other projects

Presentation Outline  Economic Impacts  Methodology  Results  Public Perceptions  Methodology  Results  Executive Interviews  Methodology  Recommendations  Questions

Economic Impact Methodology  Updates previous studies in 1998, 2004, 2007, and 2012  Considers 4 avenues of economic impact  UA employee salaries and benefits  Non-personnel operational and capital expenditures  Student spending  Visitor spending  Analyzes  Direct impacts for FY2015  Indirect and induced impacts

Total Economic Impact of UA System  UA is an economic engine for $390 Alaska million  Generated $1.1 billion in FY15 $740 million Indirect Spending Direct Spending

Employment and Payroll  One of the largest employers in Alaska  7,548 direct jobs  15,740 total jobs  $630 million in annual wages  State-wide employer: Ketchikan to Kotzebue  Peak employment during winter Indirect Impact Direct Total & Induced Employment Impact 8,340 7,400 15,740 Payroll Impact ($ million) $346 $284 $630

Spending on Goods and Services  $122.6 million purchased from Alaska vendors  2,000 businesses and organizations Spending by Location, FY15 $39,000,000 $36,000,000 $34,000,000 $14,000,000 Anchorage Juneau Fairbanks Other

The University as an Investment Revenue ($ millions ) Auxiliary Receipts, $43.5 Other, $55.4  Total Revenue = $789 million UA Receipts,  General fund appropriations $59.2 comprised 48% of revenue State Appropriat  Every $1 invested by the State Federal ions, generates $3 in economic Receipts, $375.2 $122.8 activity [CATEGOR Y NAME], [VALUE]

Survey Methodology Survey Sample and Margin of Error, by region +/- Maximum Region / Community Sample Size (n) Margin of Error Southcentral 250 ±6.3% Anchorage 100 ±10.0 Interior/ Far North 253 ±6.3 Fairbanks (including North Pole) 101 ±10.0 Southeast 252 ±6.3 Juneau 100 ±10.0 Southwest 168 ±8.2 Total 923 ±3.3%

Demographics of Sample  50% male, 48% female Age Distribution  Average of 33 years in Alaska 65+ 23%  42% have children or grandchildren in 55-64 elementary, middle or high school 24%  43% have received or have a family member who 35-54 has received a UA degree, certificate or license 33%  Average household income of $71,900 18-34  13% earning less than $25,000 20%

Importance to Alaska In your opinion, how Very important important is the University of Alaska Important to the State of Neutral Alaska? Not important Not at all important Don’t know Refused 0 20 40 60 80

Impacts of the University of Alaska  Alaskans report significant, positive impacts  UA expenditures are important to local economies  Alaska businesses benefit from a UA-trained workforce  UA keeps Alaskans in-state and at work  UA Arctic research has real-world implications and will help Alaska and the world address climate change

Shaping the Future The University Southwest plays a vital role in shaping Southeast Alaska’s future. Interior/Far North Southcentral Total 0% 20% 40% 60% 80% 100% Strongly Agree Agree Disagree Strongly Disagree Don’t know Refused

Description of the University of Alaska Interior/ Total Southcentral Southeast Southwest Far North Important Important Important Important Important Vital Vital Vital Accessible Vital Most Accurate Terms, Diverse Diverse Diverse Relevant Diverse by region Relevant Relevant Relevant Vital Relevant Accessible Accessible Welcoming Welcoming Welcoming Interior/ Total Southcentral Southeast Southwest Far North Bold Bold Courageous Bold Bold Courageous Courageous Bold Courageous Strategic Least Accurate Terms, Strategic Strategic Inspirational Strategic Courageous by region Distinctive Distinctive Loyal Progressive Inspirational Inspirational Inspirational Strategic Distinctive Excellent

Funding the University of Alaska Strongly Agree Agree Disagree Strongly Disagree Don't Know Refused University of Alaska is a public institution and it is very important that the State invest in the University’s budget. State funding for University of Alaska has been cut for three straight years. These budget cuts will have a very negative impact on Alaska’s economy. 0% 20% 40% 60% 80% 100%

Executive Interview Methodology  23 Alaska leaders  Industry, trade organizations, ANCSA corporations  Many connections with University of Alaska  Conducted in April and May  Themes  University is integral to Alaska’s future  Greater focus on Alaska’s needs and core strengths  University must be more visibly lean and coordinated  Points of pride  Forefront of petroleum engineering, aerospace program, geophysical institute, sports  Workforce development and economic diversification are priorities  State financial support necessary

Recommendations  Narrow strategic scope  Integrate and coordinate campuses  Reduce and control expectations  Demonstrate efficiency with financial resources  Focus on applied research and service  Take cues from past successes  Increase awareness of current successes

Questions?  Full report includes much more!  More questions  Subgroup analysis  Southcentral, Interior/Far North, Southwest, and Southeast  Anchorage, Fairbanks, and Juneau  Demographics: gender, income, education  Alaska Native, rural, urban  Alumni, previous donors, and more