October 27, 2024 – Fresno State is a powerful engine of prosperity for the San Joaquin Valley, generating close to $1 billion dollars of annual economic activity, according to a new economic impact report produced by the Craig School of Business.

Among the key findings in the report – economic activity by Fresno State and its auxiliaries generates an annual average of $954 million in business sales and $391 million in worker income, while supporting nearly 11,000 jobs. University-related activities generate over $49 million in annual tax revenue for the State of California and the San Joaquin Valley counties of Fresno, Madera, Kings and Tulare.

The report also found that Fresno State is a profitable investment for California taxpayers — the annual rate of return on state support for the university equals 6.23%.

“We're deeply proud that Fresno State is a catalyst for economic growth in our region — our educational mission is foundational for even greater long-term success,” said Fresno State President Saúl Jiménez-Sandoval. “From increasing the earning power and social mobility of our students to educating the innovators, knowledge workers and business creators of the future, Fresno State is the keystone to uplifting the lives of everyone in the Valley. This report confirms the transformational power of Fresno State.”

The economic impact report, conducted by Dr. Antonio Avalos, chair of the Economics Department, researched the total effect of university spending and employment on San Joaquin Valley business sales, worker income, job creation and tax revenue. The study was based on average data from the 2021-22 and 2022-23 fiscal years. Student spending was also included as part of the economic activity of the university.

The report measured not just immediate economic impact, but also the ripple effects caused by Fresno State’s economic activity. When the university pays salaries to its employees, these employees spend their earnings at local businesses, adding to the Valley’s business earnings and supporting more local jobs, and workers from these local businesses in turn create more economic activity. University purchases from local vendors create the same ripple effects. Fresno State is at the center of a dense ecosystem of economic activity that nourishes the entire Valley.

“By measuring the ripple effects of a university’s economic impact, which capture business sales and job creation beyond the campus, institutions and policymakers can make informed decisions, justify investments and better understand the broader economic and social benefits of higher education,” Avalos said.

Fresno State’s large impact on the regional economy is in part because of the sheer size of the university. With more than 25,000 students and about 2,400 faculty and staff, the Fresno State community represents 1.5% of the inhabitants of the San Joaquin Valley — the equivalent of a city the size of Dinuba or Corcoran.

But the economic impact of Fresno State goes far beyond its spending power. As the Valley’s leading public university, Fresno State provides a long-term lift to the regional economy. Avalos cites U.S. Census Bureau data showing that every 10% increase in the number of bachelor’s degrees produces an increase of more than $17,500 in state median income. Better education also produces better social outcomes in terms of health, general wellbeing and community involvement.

For students, a Fresno State education means a lifetime of higher earnings — the equivalent of an investment paying 8.21% annual interest.

By the numbers: Fresno State’s economic impact

(All data are based on  the annual average of fiscal years 2021-22 and 2022-23.)

• The total combined impact of all economic activities by Fresno State, its auxiliaries and its students produced $954 million in business sales, $391 million in labor income and 10,931 jobs.

• Fresno State directly spent an annual average of $190.2 million on capital expenditures, producing $311.4 million in business sales, $133.6 million in labor income and 3,556 jobs.

• $134.6 million earned and spent by Fresno State employees produced $122.6 million in business sales, $147.4 million in labor income and 5,344 jobs.

• $401.7 million spent by Fresno State students produced $519.9 million in business sales, $109.9 in labor income and 2,031 jobs.

• Fresno State and its auxiliaries account for 1.2% of total employment in the San Joaquin Valley.

• University-related activities generate over $49 million in annual tax revenue for the State of California and the San Joaquin Valley counties of Fresno, Madera, Kings and Tulare.

• A bank would need to pay an annual interest rate of 8.21% to equal the rate of return a Fresno State graduate can anticipate in lifetime higher earnings.

• The annual rate of return to the investments made by California taxpayers in educating Fresno State students equals 6.23%.

Source: Fresno State