Economic Impact Brochure - University of Miami

u n i v e r s i t y o f m i a m iD r i v i n g C o m m u n i t y P r o g r e s se c o n o m i c i m pa c t r e p o rt

Th e U n i v e r s i t y o f M i a m i :ALocalImpactof$4.5BillionAs a premier research institution, the University focusesnot only on programs and activities that contribute tointellectual advancement but also those endeavors thatgenerate economic development.U n i v e r s i t y o f M i a m i E c o n o m i c I m p a c tM i a m i - D a d e C o u n t y■ $4.5 billion in total economic impact■ $2 billion in labor income■ 42,100 employment positions■ $2.6 billion in gross county product (the county’s estimated GDP)■ $108 million in state and local government fiscal revenues($50 million to local taxing jurisdictions)C i t y o f C o r a l G a b l e s■ $1.23 billion in total economic impact■ $579 million in labor income to workers within the city■ 11,256 employment positions■ $754 million in gross city product (Coral Gables’s estimated GDP)■ $33 million in revenues to state and local governments(approximately $14 million to local taxing jurisdictions)The remarkable development of the University of Miami into one of thenation’s top research universities mirrors South Florida’s emergence as athriving global marketplace. The University has long been one of thecommunity’s pioneering institutions, having opened its doors just 30 yearsafter the founding of the City of Miami and only one year after CoralGables was incorporated.The history of dynamic synergy between the University and its communityhas been abundantly evident in several dimensions—but perhapsnowhere is it more apparent than in the economic impact the Universityhas on Miami-Dade County.The University of Miami is one of the three largest private employersin Miami-Dade County and the sixth largest employer overall, with a totaleconomic impact of $4.5 billion. It is a powerful catalyst for economicdevelopment in the county and in Coral Gables in particular—it is the city’slargest economic enterprise and is responsible for a large percentage ofits workforce and a significant share of its labor income. The Universityhas a total economic impact of $1.23 billion on the Coral Gables economy,and approximately 40 percent of its payroll is paid to employees living inthe city. UM supports 11,256 jobs and $579 million in labor income toemployees in the city.In 2007 the University provided employment for 11,700 persons on allits campuses—with 90 percent residing in Miami-Dade County—who werecompensated a total of $875 million. The total employment impact, however, as a result ofoperations, capital expenditures, and spending by students and visitors, is approximately42,000 jobs. More than 70,000 visitors attended University-sponsored academic events andspent an estimated $71 million, and UM students from outside the area spent an estimated$236 million in the local economy. Overall, the University and its out-of-town students andguests injected almost $2 billion into the county’s economy in 2007. The University’s totaloperating and capital cash outlays in FY 2007 were budgeted at $1.6 billion.

from No. 54 the previous year. Thiscontinues the steady upward trendthat reflects the University’s acceleratingprogress—it has moved up 14spots from five years ago. Studentquality has been steadily improving,with the University now admittingthe most outstanding undergraduatesin its history. The mean SATscore has increased 92 points, fromA M a j o r S o u t h F l o r i d a P r e s e n c e■ ■ ■ ■As South Florida’s number one intellectual resource—as well as an internationallyR e a c h i n g O u t t o t h e C o m m u n i t yThe University’s schools and colleges are engaged in activities that reachout to assist the South Florida community, contributing to the vitalityand well-being of its citizenry.prominent research institution—the University of Miami’s multifaceted and knowledgebasedoperations generate growing levels of added-value jobs for South Florida whileincreasing the supply of highly trained college graduates.The University’s 12 colleges andschools offer 115 bachelor’s, 114master’s, 51 doctoral, and two professionalareas of study, and itsThe University is well known for itsleading-edge research in oceanographyand many other disciplines.nationally ranked centers of excellencecontribute to the advancementof knowledge and theeconomic development of theregion and the state. Renownedprograms include the Leonard M.Miller School of Medicine, which isinternationally recognized as an outstandingacademic, research, andclinical medical center dedicated tocutting-edge advances in life sciences.The Rosenstiel School ofMarine and Atmospheric Science isone of the leading oceanographicresearch and education institutionsin the nation. The University hassteadily risen in rankings fornational research institutions, withtop-rated programs in other diversefields including law, philosophy,music, business, and psychology,among others.Research and sponsored program expendituresexceeded a record $274 million in FY 2007.In recent years the Universityhas been rising in the prestigious“America’s Best Colleges” rankingsissued by U.S. News & World Report.In 2007 it moved up to No. 52 in theNational Universities category, upUM students can choose from a vastspectrum of outstanding programsin 12 schools and colleges.1183 to 1275, and 67 percent of newfreshmen now admitted graduatedin the top 10 percent of their highschool class, compared with 45 percentin 2000.The University’s dynamic researchenterprise, which embraces a vastrange of disciplines, generates appliedinnovations and breakthroughs innumerous fields while contributingto humanity’s intellectual capital.Research and sponsored programexpenditures exceeded a record$274 million in FY 2007. The Universityworks with established companies,start-up firms, entrepreneurs, consultants,and investors to translateexceptional research discoveries intocommercial products and services.■ The Center for Autism and Related Disabilities, a program conductedby the Department of Psychology in conjunction with Nova SoutheasternUniversity, provides clinical, outreach, and support services to nearly4,000 individuals with autism and other developmental disabilities. Thedepartment’s Linda Ray Center provides services to help at-risk childrenborn into families afflicted by drug or alcohol abuse.■ The School of Architecture’s Center for Urban and Community Designhas been involved in a number of community development projects,designing affordable homes for first-time homeowners in CoconutGrove and spearheading the revitalization of the West Coconut Groveneighborhood. The center is planning to work with organizations inother underserved communities to develop environmentally responsibleneighborhoods.■ The Department of Biology partners with Miami Dade College ontwo outreach programs that help underrepresented populations enterthe biosciences. Supported by grants from the Howard Hughes MedicalInstitute and the National Institutes of Health, the programs furnishscholarships and research opportunities to fledgling scientists who transferto UM if they successfully complete the programs. Some students inthe programs have gone on to pursue doctoral-level studies.2 u n i v e r s i t y o f m i a m i e c o n o m i c i m pa c t r e p o rtu n i v e r s i t y o f m i a m i e c o n o m i c i m pa c t r e p o rt 3

esearch universities in South Florida.The University’s strength is furtherreflected in one of its most vitalproducts—its outstanding alumni,many of whom have distinguishedthemselves in their chosen professions,including business, law, mediaand entertainment, sports, and publicservice. As such, the institution is aleading exporter of knowledge-basedS u p p o rt i n g S o u t h F l o r i d a’s E c o n o m i c V i ta l i t yS t u d e n t s D e d i c a t e d t o S e r v i c eThe University enhances the traditional academic experience for its students■ ■ ■ ■As a premier research institution, the University focuses not only on programsthrough inspiring programs that enable them to develop leadership andcivic engagement. Such community service opportunities include:and activities that contribute to intellectual advancement but also those endeavors that■STRIVE (Serving Together Reaching Integrity, Values and Engagement)generate economic development.UM’s academic programs contribute businesses and retain existingto the economy and cater to market-ones. They help gener-The Miller School of Medicine is avital component of South Florida’shealth care system.is an on-campus housing community in which students enrich personalgrowth by participating in dozens of volunteer activities. More than 40other student clubs and organizations offer volunteer opportunities, andthe University’s Butler Center for Volunteer Service and Leadership Developmentis a liaison to over 450 community partners.place demand by efficiently prepar-ate additional production,ing students for knowledge-basedincome, and employmentservices through alumni who work in■The Mitchell Wolfson, Sr., DOCS Program enables student volunteerscareers in growing sectors of thethroughout the economy viaand contribute to the local, national,from the Miller School of Medicine to provide health care, under the super-The influential economic development roleplayed by the University underscores thesignificant benefit of having a top researchuniversity in South Florida.and international economies.Beyond its measurable economicimpact, the University provides significantintangible benefits. With a studentpopulation from throughoutthe United States and 114 othercountries, the University supportsvision of faculty physicians, at community health fairs and weekly clinics.■ H.O.P.E. (Helping Others through Pro Bono Efforts) is a School of Lawprogram that offers opportunities for law students, faculty, staff, andalumni to participate in community outreach and legal advocacy projects.■ The UM Area Health Education Center Program links UM’s resourcesglobal, regional, and local economies,inter-industry linkages andThe School of Law is among the many academicMiami-Dade’s role as the businesswith medically underserved communities in South Florida. Faculty/studentsuch as health services, law, and busi-consumer spending of laborunits known for their renowned faculty and grad-center of the Americas. Its presenceteams from medical, nursing, and allied health programs spend 175,000ness. These are fields in which Miami-income. This magnifies theuates who have risen to the pinnacle of their fields.promotes Miami-Dade’s reputationhours yearly training and providing health care to recently arrived immi-Dade County, and Coral Gableseconomic and educationalas a world-class metropolis with agrants, migrant workers, homeless families, and isolated populations.specifically, enjoy a competitiveimpact of the University whileinfluential economic developmentvibrant business climate that supportsadvantage.supporting the state’s economicrole played by the University under-global finance and commerce and■ Through Students and Tutors Achieving Reading Success, graduateUM’s programs are also a posi-development strategy to create ascores the significant benefit ofhosts high-tech industries in a varietystudent teachers tutor struggling readers in schools located in some oftive force to attract new high-wageknowledge-based economy. Thehaving one of the nation’s topof product areas.Miami-Dade County’s most disadvantaged communities.4 u n i v e r s i t y o f m i a m i e c o n o m i c i m pa c t r e p o rtu n i v e r s i t y o f m i a m i e c o n o m i c i m pa c t r e p o rt 5

B u i l d i n g f o r t h e F u t u r e■ ■ ■ ■To accelerate its development as a top research university that will fuel SouthFlorida’s progress, the University is engaged in its most ambitious construction program todate, with nearly $1.5 billion in current and planned projects.The University’s construction activityover the past five years alone hasgenerated a considerable economicimpact in Miami-Dade County:$1.8 billion in economic output from2002 to 2006; $825 million in compensationto Miami-Dade workers;and average annual employment for3,770 workers.A key element of the evolutionof the Coral Gables campus is theroom and research facilities, residencebuildings, and structures to enhancethe student life experience. In addition,a renovated and expandedWhitten University Center and a newStudent Activities Center will be theheart of campus life. The Robert andJudi Prokop Newman Alumni Centernational rankings. In the past year,three long-awaited facilities openedon the campus: the M. ChristineSchwartz Center for Nursing andHealth Studies, the School of Communication’sInternational Building,and University Village, a residentialcomplex that houses 800 students.On the Miller School of Medicinecampus—the heart of the Universityof Miami/Jackson MemorialMedical Center, one of the nation’slargest and most vibrant academicmedical centers—advanced newfacilities are being developed thatare the nexus of South Florida’sThe Robert and Judi Prokop NewmanAlumni Center will be a home forthe extended UM family.G o i n g G r e e nTo help ensure a sound environmental future, the University has introduceda host of “green” initiatives. Launched in 2005, Green U is makingUM a community leader in the acquisition of environmentally responsibleproducts and the practice of ecologically sound maintenance and operationsprocedures. New University facilities are incorporating a host offeatures to promote conservation and energy efficiency.The University has become a signatory to the Talloires Declaration ofthe Association of University Leaders for a Sustainable Future, which commitsinstitutions to sustainability and environmental literacy in teachingand practice, and the American College and University Presidents ClimateCommitment, which provides a framework and support for colleges tobecome climate neutral. Students are involved in environmental organizationsthat address issues such as global warming and mount local effortsto promote sustainability and awareness.The University’s construction activity over thepast five years alone has generated a considerableeconomic impact in Miami-Dade County.growth as one of the world’s greatbioscience research and developmentcenters. No other institutionin the region is moving at such ain 2008, which will significantlyincrease the Miller School’s wet lab,basic science space, housing hundredsof scientists who will collaborate withthe laboratory to patients.To expand the pioneeringresearch across the University andespecially at the Miller School ofdynamic pace with the resourcesphysicians on disease-based research.Medicine, the planned state-of-the-University of Miami Campus Areawill provide the extended UM familyand vision for elevating SouthThe building’s complementary facility,art,1.4 million-square-foot Life Sci-Development Plan (UMCAD), which isa place to call their own. These newFlorida into the ranks of the nation’sthe 15-story Clinical Research Build-ence Park will be developed as aenabling the University to move for-projects will enhance academic pro-elite medical research communities.ing, opened in late 2006 and is nowhub of research innovation thatThe Clinical Research Building isward on construction initiatives thatgrams, strengthen the vibrant resi-Construction is continuing onoccupied by 800 scientists and supportembraces scientific collaborationa center for work that is speedingwill add nearly one million square feetdential and student life experience,the 188,000-square-foot Biomedicalstaff who are engaged in cutting-between academia and industry andresearch from laboratory to bedside.of new space. Projects include class-and help raise the institution’sResearch Building, scheduled to openedge work to speed research frompromotes economic development.6 u n i v e r s i t y o f m i a m i e c o n o m i c i m pa c t r e p o rtu n i v e r s i t y o f m i a m i e c o n o m i c i m pa c t r e p o rt 7

Pa rt n e r s i n E n h a n c i n g Q u a l i t y o f L i f e■ ■ ■ ■Beyond its enormous economic impact, the University of Miami enriches theoverall quality of life in South Florida in areas encompassing everything from health care andcommunity revitalization to the arts and athletics.The Miller School of Medicine is anessential element of the area’s healthcare system, with its 800 physiciansconducting more than one millionpatient visits annually. The school’spioneering research and biomedicalbreakthroughs enable its patients toreceive the latest innovations in clinicalcare. The University’s purchase ofCedars Medical Center, the 560-bedhospital across the street from theMiller School, is dramatically expandingthe University’s patient careenterprise. Renamed the Universityof Miami Hospital, it is SouthFlorida’s first university hospital andis serving patients from the regionand beyond. The school’s continuingpartnership with the Miami-DadeCounty Public Health Trust ensuresthat the finest medical care is madeUM employees raised an impressive $1.13 millionfor the United Way of Miami-Dade in 2007-08.available to all, regardless of financialmeans, at Jackson Memorial Hospital.The development of the MillerSchool’s campus has been part of aninitiative to transform the Civic Centerarea, which was renamed the MiamiHealth District. In 2004 the City ofMiami and the University forged TheMiami Partnership, an effort to revitalizethe area, and the Miller Schoolheld a charrette in fall 2007 to helpThe University’s theatre productionsare one dimension of vibrant culturalofferings presented year-round.forward this process. The effort willresult in new housing, offices, restaurants,and retail shops in the district.As a leading community partner,the University supports otherorganizations—such as the AmericanRed Cross, The Children’s Trust,and Big Brothers Big Sisters—thatstrengthen the social fabric. Forexample, UM employees raised animpressive $1.13 million for theUnited Way of Miami-Dade in2007-08, making it the largest suchcampaign in the University’s history.The University is also one ofSouth Florida’s prime destinationsfor the finest in arts and culture,presenting exceptional programsat its Coral Gables campus in music,fine arts, theatre, and film, as wellas a myriad of lectures and otherevents that entertain, educate, andenlighten. Every year the Universityoffers hundreds of cultural programsthat are distinguished by extensivevariety, impressive virtuosity, firstclassvenues, and notable value.The University has also beenlong celebrated for its outstandingintercollegiate athletic programs.The Hurricanes have enjoyedtremendous success, winning morethan 20 national championshipswhile UM athletes have earned morethan 55 individual titles. In fall 2007,after carefully assessing availableoptions, the University announcedplans to move the Hurricanes footballprogram from the Orange Bowlto Dolphin Stadium at the start ofthe 2008 season. Dolphin Stadium isone of the premier sports venues inthe country, which will afford ourstudent-athletes and fans a muchbetter quality game-day experience.R e a l i z i n g O u r F u t u r e■ ■ ■ ■The University is now in the process of finalizingthe strategic plan that will be the blueprint for its next generationof investment and growth as a leading research university.The phenomenal success of Momentum: The Campaign for theUniversity of Miami has energized progress throughout theinstitution and is the foundation for realizing its future ambitions.After four years of record fundraising,the campaign concluded at theend of 2007 with a total of $1.4 billion.This tops the $1.25 billion goalset in 2006 when the original $1 billiongoal was reached 18 monthsahead of schedule and demonstratesthe community’s abiding belief inthe importance of the University.As the University of Miami continuesits dynamic rise as a global researchThe University has more than 15,000 university, it will remain one of thestudents from throughout the United prime organizations strengtheningStates and 114 foreign countries. the South Florida community.8 u n i v e r s i t y o f m i a m i e c o n o m i c i m pa c t r e p o rtu n i v e r s i t y o f m i a m i e c o n o m i c i m pa c t r e p o rt 9

About the Economic Impact StudyThe University of Miami commissionedThe Washington Economics Group to conduct anindependent study of the economic impact that theUniversity has on Miami-Dade County and CoralGables. The company collaborated with Universityof Miami Senior Vice President for Business andFinance and Chief Financial Officer Joe Natoli inpreparing this report. The analysis was based oninformation from the University of Miami’sfiscal year ending May 31, 2007.If you have questions regarding this report,please call 305-284-6100.© Copyright 2008, University of Miami.www.miami.edu