UC Irvine Added $820 Million to County Economy, Study Says

UC Irvine added $820 million to the Orange County economy in fiscal 1988-89 and was the county’s third-largest employer, according to a December report released by the university’s financial planning office.

The amount is equivalent to supporting 16,400 households with an average family income of $49,916, the report said.

One of nine UC campuses, UCI created 7,600 new jobs in the county from July 1, 1988, to June 30, 1989. It reportedly has about 16,000 students and 8,500 staff and faculty members, with about 600 tenured instructors and 3,500 part-time students on its payroll. UCI also operates a major research and medical center.

The two other major employers in the county are Hughes Aircraft Co. and Rockwell International Corp.

Of the $820-million economic impact, $338 million was attributed to spending by the university, its faculty, staff and students, which creates an additional impact worth $482 million as the spending is passed on to Orange County businesses and individuals, the study said.

The economic impact is based on financial records from last fiscal year. Analysts hired by the university used the “economic multiplier” theory to estimate the recycling effects of direct spending on the county by businesses and individuals. Factors used in this theory were obtained from the Southern California Assn. of Governments.

During the fiscal year, UCI faculty and staff members were paid $236 million in salary and wages. About 82% of that--$194 million--was paid to employees who live in the county.

In non-wage expenses, the university paid $158 million to vendors for goods and services. About 23%--$37 million--was sent to businesses with county addresses. UCI paid $72 million in building costs, of which at least half went into the county’s economy, the report said.

The university’s students also contributed to the economy, spending about $71 million on housing, food, school supplies, transportation and personal expenses.

Student spending also brought money from outside Orange County. About 33% of UCI students are from Los Angeles County, 20% are from other California communities, about 4% are from outside of California and about 3% come from other countries.

Like the students, the university brings in outside money. For fiscal 1988-89, UCI received about 32% of its money--$165 million--from the state and acquired 10% of its money--$53 million--through federal research contracts and grants.

UCI has an annual operating budget of $350 million. By comparison, Cal State Fullerton has 9,000 more students than UCI as of fall, 1989, but has an annual operating budget that is $242 million less.

“They don’t do too much research, they’re more a university of direct instructions,” said Roy Dormaier, assistant executive vice chancellor and the chancellor’s chief financial adviser.

“We also have a medical school that takes a lot of money to operate,” he said. “The two universities are apples and oranges. It would be really difficult to compare the two.”

Dormaier added that about half of UCI’s budget goes to the university’s medical center.