Every dollar the state invests in the Auraria campus and its three institutions generates $11 in spending.
That remarkable return on investment was determined in “The Economic and Fiscal Impacts of the Downtown Denver Auraria Campus,” a recent study conducted by Development Research Partners in Littleton. The study was commissioned by the Auraria Foundation and the Downtown Denver Partnership.
The findings of the study were presented to the Auraria Foundation Board and the Auraria Board of Directors in August.
The study found that the Auraria Campus and its three institutions account for more than $1 billion in spending in the state a year, including direct and indirect impacts.
“Clearly, Metro State, along with the other Auraria campus entities, has a significant economic impact on the surrounding downtown Denver community. This study provides the opportunity to quantify that impact and raise awareness of the importance and benefits of the Auraria campus,” said Metro State’s Budget Director Stephanie Moran.
The study included economic impacts, defined as the exchange of dollars between business, organizations and individuals, and fiscal impacts, or state and local tax revenue generated because of the economic activity. Components of the study included the impacts of college operations, college employee spending, student spending, visitor spending and construction activity.
“The typical annual direct impact of campus operations, student spending, and visitor spending in Colorado is nearly $475 million and provides employment for over 7,500 workers,” the study’s executive summary states. “In addition, these spending patterns generate $2.2 million in sales/use tax revenue through the state. As these direct dollars circulate throughout the economy, the direct and indirect economic impact … is just over $1 billion and supports over 14,000 employees.” Isolating the spending to what occurs in the City and County of Denver, the direct impact is $209 million and employment for 2,800 workers, generating $2.3 million in tax revenues for the city.
AHEC and the three institutions received about $95.8 million from the state in FY 0809, the study estimated, for maintenance operations, grants and resident tuition. In return, the campus generated $474.8 million in direct spending — about $5 for every dollar the state put in.
To read the study in its entirety, go to http://www.downtowndenver.com/LinkClick.aspx?fileticket=OaldLeLU0hs%3D&tabid=82&mid=468
