UI Office of Strategic Communication news release
The University of Iowa continues to play a significant role in the state’s economy, with activities of the university and its students supporting 123,637 jobs — or 1 in every 18 — across Iowa in a yearlong period.
In fiscal year 2023–24, the UI generated $9.8 billion in added income for Iowa, representing about 4.2% of the total gross state product. The figures were central to a study conducted by international consulting firm Lightcast and presented to the Iowa Board of Regents at its February meeting.
“These results indicate that the UI is an attractive investment to students with rates of return that exceed alternative investment opportunities,” the report says. “At the same time, the presence of the university expands the state economy and creates a wide range of positive social benefits that accrue to taxpayers and society in general within Iowa.”
Combined, the UI, Iowa State University, and the University of Northern Iowa added $18 billion in income to the state of Iowa — about 7.7% of the total gross state product — in fiscal year 2023–24, according to the study. The activities of all three institutions support more than 214,000 jobs, or 1 in every 10 jobs across the state.
The report details the UI’s overall economic impact in fiscal year 2023–24:
- Alumni impact: $4.3 billion
- UI Health Care spending impact: $2.5 billion
- Operations spending impact: $1.4 billion
- Economic development impact: $824.1 million
- Research spending impact: $457.8 million
- Construction spending impact: $211.8 million
- Student spending impact: $90.9 million
- Visitor spending impact: $85.9 million
- Volunteerism impact: $3 million
The study also highlights long-term benefits for students and taxpayers.
UI students who attended the university in fiscal year 2023–24 were projected to gain a combined $3 billion in additional earnings — an average return of $4.40 for every dollar they invest in their education.
Higher lifetime earnings for graduates and increased business income will generate $849.3 million in additional tax revenue for the state, along with $23.2 million in public savings due to reduced demand for government-funded services, the study says. Overall, taxpayers receive $3.30 in return for every dollar invested in the UI in fiscal year 2024–24.
The study also says the Iowa economy will grow by $10.2 billion over the course of the working lives of the students who attended the UI in fiscal year 2023–24.
The data in the study is based on several sources, including academic and financial reports from the UI, industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs of Lightcast’s Multi-Regional Social Accounting Matrix model, and a variety of studies and surveys relating education to social behavior. Since 2000, Lightcast has completed more than 3,000 economic impact studies for educational institutions in three countries.