CSU impact on California

By Charles B. Reed
CSU Chancellor

Many of us who work in and around California State University campuses know that the CSU has a major impact on the citizens and communities of California. A comprehensive new study of the impact of the CSU confirms that belief. According to the study, the CSU system and its 23 campuses have a dramatic and unparalleled impact on the economic, social, intellectual and cultural life of all of California.

The report found that for every $1 the state invests in the California State University system ($3.09 billion in 2002/03), CSU-related expenditures generate $4.41 in spending.

If the enhanced earnings of the CSU's 1.7 million alumni in California are factored in, the total annual spending impact rises from $4.41 to $17 for each $1 invested. The combined total annual economic impact of CSU expenditures, the enhanced earnings of its graduates, and the ripple effect of both has a $53 billion impact, supports 527,000 jobs, and creates $3.11 billion in tax revenue-more than is provided to the CSU in direct annual state support. In fact, the CSU more than pays for itself.

What makes the CSU so effective is that its product - higher education - is itself a critical engine for the state's economy. The CSU provides the majority of the skilled professionals for the state's critical knowledge-based industries such as agriculture, engineering, business, technology, media, and computer science. The CSU graduates more students in these fields than all other California universities and colleges combined.

And just as importantly, the CSU is a leader in educating the increasingly diverse population of the state. More than half of all undergraduate degrees granted to Latino, African American and Native American students in California were awarded by the CSU.

The CSU also improves local communities and residents' quality of life. CSU students contribute 35 million hours a year to community service activities ranging from preschool reading programs to public art preservation to health education and literacy projects.

This new report gives us a great deal of concrete information about the CSU's role in the economic and social development of the state of California . These results are something that we can all be proud to share with our neighbors, friends, and colleagues around the state. I encourage you to read more about the report and learn how you can help spread these important messages at www.calstate.edu.

Thank you again for all that you do for the California State University.