Chapman’s Economic Clout in O.C. Revealed : Impact: The university contributed $46 million to the county’s economy in 1990-91, according to a new study.

Chapman University may have only 1,500 undergraduate students and 400 or so professors and employees, but their combined economic muscle contributes nearly $46 million to Orange County’s economy, according to a new study released this week.

The university’s Center for Economic Research reported that the total effect of salaries, campus expenditures, student spending and other factors generated $45.9 million in the year ending last May 31. That’s up from $35 million in 1987, according to a similar study by the center.

UC Irvine, by way of comparison, generated about $820 million for the county’s economy and was Orange County’s third largest employer in the 1988-89 academic year, according to a UCI report issued in late 1989, the most recent available. Cal State Fullerton, which employs 2,400 faculty and staff and has about 25,000 full and part-time students, figures that it contributes about $220 million to $330 million to the county annually in operating expenses alone, university spokesman Jerry Keating said.

Both UCI and Chapman use similar methods in computing their economic clout, and in large part, universities do this to emphasize their value as so-called non-polluting industries.

“We do this study basically because it’s important that people realize our impact in providing not only educational services, but also our contribution to the economy,” said center director Esmael Adibi. “People never think of educational institutions having an impact like a business, but we do.”

During the past school year, Chapman spent $31 million in salaries, benefits, equipment, supplies and other items. Through a complex set of calculations, including assessing the percentage of employees living and spending their paychecks in the county, the study estimates the ripple effect of Chapman’s total expenditures at $40.7 million.

To arrive at the final impact figure of $45.9 million, the study adds $4.35 million as the estimated ripple effect of Chapman undergraduate student spending in the county, about $391,000 in sales taxes paid to local governments, plus an estimated $529,000 that would otherwise be spent by taxpayers to educate Chapman’s students at California’s public institutions.

Chapman launched its first analysis of the college’s impact on the local economy several years ago at a time when the campus was considering moving out of Orange, perhaps out of the county altogether. It was a period when residents, the city and the campus were at odds over construction plans and campus growth.

While the center has arrived at a figure that fairly assesses the campus’s economic impact on the county, Adibi conceded that comparisons with private industry are tough because educational institutions have very different missions.

“Nevertheless, our economic impact cannot be underestimated,” Adibi said. “There is also a qualitative factor: the kind of services we offer such as dances, music, exhibitions. It’s very hard to measure the impact of that kind of thing. In addition to all that, we are producing a skilled labor force for the businesses of Orange County.”