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Last updated: Monday, Feb. 6, 3:17 a.m.
News

University system gives Maine economy a boost

By Rhiannon Sawtelle
Posted on Sept. 17, 2007, at 12:00 a.m.

In a meeting last Monday, the University of Maine System Board of Trustees presented good news for the economy of Maine. Using the standard model to calculate economic impact, Vice Chancellor of the Board, James Breece, announced that in 2006, UMS generated $1.5 billion back into Maine’s economy, almost an eight-to-one ratio. For every dollar invested into the University System, $8.10 was generated in economic activity.

“To put it in context, that amount [$1.5 billion] is greater than the record-high worldwide [net] sales that retailer L.L. Bean experienced in 2005,” UMS Chancellor Richard Pattenaude noted in his press release Monday.

This amount is 3.3 percent of Maine’s entire gross domestic product for the past year.

Last year alone, the seven universities, 10 centers and system-wide services of the system provided nearly 13,000 part- and full-time jobs with almost 5,000 student employees. This provided $375 million in income and benefits.

In addition, 7,711 additional non-university jobs are stimulated by the University System through economic activity. These are statewide jobs providing another $241 million in income and benefits.

Students and visitors spent $170.2 million on transportation, food, recreation and other activities off-campus as well.

This does not include the impact of the 110,000 alumni of the University System that continue to live in Maine. Their education and benefits from the system also affect the state’s civic and economic concerns.

Sources of revenue to the University System include $184.7 million in state appropriation, $181.9 million in student tuition and fees (excluding scholarships and waivers), $134.1 million in research grants and contracts and $99.1 million in room and board and endowment income.

With a total of $599.8 million in income, the University of Maine System manages to output a total of $1.5 billion a year.

“That’s impressive, given that the amount reflects only the University System’s direct expenditures,” said Pattenaude in his press release.

The entire report presented by Dr. Breece can be found at http://www.maine.edu/EconomicImpact2007.

This entry was posted on Monday, September 17th, 2007, 12:00 am. You can follow any responses to this article through the RSS feed.

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