UNIVERSITY OF IOWA

ECONOMIC IMPACT STUDY

Executive Summary

$6.0 billion
generated in
economic
impact

51,818 jobs
supported in
the state of
Iowa

$486.9 in state
and local
government
revenue
generated

An Economic Force in Iowa

Statewide expenditures by the University of Iowa all the University’s operations on the state of Iowa
and related constituencies totaled $2.6 billion in in FY 2008-09 was $6.0 billion ($2.6 billion direct
fiscal year 2008-09. The University affected impact and $3.4 billion indirect).
business volume in Iowa in two ways:
One out of of every $30 in the Iowa
1. Direct expenditures for goods and services by
economy is supported by the University
the University, its employees, students, and
of Iowa.
visitors. This supported local businesses, which
in turn employed local individuals to sell the
Economic Impact of UI (FY 2008-09)
goods and provide the services that University
constituencies needed.

2. Induced or indirect spending within the state of

Iowa. The businesses and individuals that
received direct expenditures re-spent this $6.0 B
money within the state, thus creating the need
for even more jobs. $3.4 B
$2.6 B
As a result of expenditures on goods and services
by the University, the overall economic impact of Direct Indirect Total

1
 Growing Jobs + Government Revenue
ECONOMIC IMPACT OF THE UNIVERSITY OF IOWA Executive Summary

Creating and Sustaining Jobs Strong Return on Investment

The University of Iowa is one of the top
employers in the state of Iowa.
Both directly and indirectly, the University of Iowa
supported 51,818 jobs in the state of Iowa. More
than one out of 30 jobs in the state is attributable
to the University of Iowa.
The University directly employed 20,727 full-time
faculty, staff and students during FY 2008-09.
With $6.0 billion in direct and indirect impact, an
additional 31,091 indirect local jobs were created.
Employment Impact in FTEs (FY 2008-09)
51,818
for the State
As a unit of state government, it is true that the
University of Iowa does not pay state taxes as a
private company does, e.g., corporate income tax. 
However, employees at public universities pay
income tax, sales tax and other local taxes such as
real estate property taxes.  These are examples of
how the University directly contributes taxes to the
state. 
The presence of the University and its
spending also generates significant indirect taxes
paid by companies who receive payments from the
University.  State and local government revenues
attributable to the presence of the University of
Iowa totaled $486.9 million in FY 2008-09 ($192.9
million directly paid or directly generated).  $294.0
million in state and local tax revenue is generated
indirectly. 

For every $1 in state funding

31,091 appropriated to the University of Iowa,
20,727 $1.28 in tax revenue is returned to state
and local governments.

Direct Indirect Total

More than Each $1

one in every invested in
30 jobs in the University
the state is of Iowa
supported returns
by the $15.81 to the
University of state of Iowa.
Iowa.