Economic Impact : Driving Community Progress

university of miami Driving Community Progress

e c o n o m i c i m pac t re p o rt

Th e U n i v e r s i t y o f M i a m i :

ALocalImpact of$4.5Billion As a premier research institution, the University focuses not only on programs and activities that contribute to intellectual advancement but also those endeavors that generate economic development.

T

he remarkable development of the University of Miami into one of the nation’s top research universities mirrors South Florida’s emergence as a thriving global marketplace. The University has long been one of the community’s pioneering institutions, having opened its doors just 30 years after the founding of the City of Miami and only one year after Coral Gables was incorporated.

The history of dynamic synergy between the University and its community has been abundantly evident in several dimensions—but perhaps nowhere is it more apparent than in the economic impact the University has on Miami-Dade County.

The University of Miami is one of the three largest private employers in Miami-Dade County and the sixth largest employer overall, with a total

University of Miami Economic Impact

economic impact of $4.5 billion. It is a powerful catalyst for economic

Miami-Dade County

development in the county and in Coral Gables in particular—it is the city’s

■ $4.5 billion in total economic impact

largest economic enterprise and is responsible for a large percentage of

■ $2 billion in labor income

its workforce and a significant share of its labor income. The University

■ 42,100 employment positions

has a total economic impact of $1.23 billion on the Coral Gables economy,

■ $2.6 billion in gross county product (the county’s estimated GDP)

and approximately 40 percent of its payroll is paid to employees living in

■ $108 million in state and local government fiscal revenues ($50 million to local taxing jurisdictions)

the city. UM supports 11,256 jobs and $579 million in labor income to employees in the city.

In 2007 the University provided employment for 11,700 persons on all

City of Coral Gables

its campuses—with 90 percent residing in Miami-Dade County—who were

■ $1.23 billion in total economic impact

compensated a total of $875 million. The total employment impact, however, as a result of

■ $579 million in labor income to workers within the city

operations, capital expenditures, and spending by students and visitors, is approximately

■ 11,256 employment positions

42,000 jobs. More than 70,000 visitors attended University-sponsored academic events and

■ $754 million in gross city product (Coral Gables’s estimated GDP)

spent an estimated $71 million, and UM students from outside the area spent an estimated

■ $33 million in revenues to state and local governments (approximately $14 million to local taxing jurisdictions)

$236 million in the local economy. Overall, the University and its out-of-town students and guests injected almost $2 billion into the county’s economy in 2007. The University’s total operating and capital cash outlays in FY 2007 were budgeted at $1.6 billion.

from No. 54 the previous year. This continues the steady upward trend that reflects the University’s accelerating progress—it has moved up 14 spots from five years ago. Student quality has been steadily improving, with the University now admitting the most outstanding undergraduates in its history. The mean SAT score has increased 92 points, from

Reaching Out to the Community

A Major South Florida Presence The University’s schools and colleges are engaged in activities that reach out to assist the South Florida community, contributing to the vitality ■ ■ ■ ■

As South Florida’s number one intellectual resource—as well as an internationally

and well-being of its citizenry.

prominent research institution—the University of Miami’s multifaceted and knowledgebased operations generate growing levels of added-value jobs for South Florida while

■ The Center for Autism and Related Disabilities, a program conducted

UM students can choose from a vast spectrum of outstanding programs in 12 schools and colleges.

increasing the supply of highly trained college graduates.

by the Department of Psychology in conjunction with Nova Southeastern University, provides clinical, outreach, and support services to nearly 4,000 individuals with autism and other developmental disabilities. The department’s Linda Ray Center provides services to help at-risk children

1183 to 1275, and 67 percent of new

born into families afflicted by drug or alcohol abuse.

The University’s 12 colleges and

nationally ranked centers of excel-

research and education institutions

freshmen now admitted graduated

schools offer 115 bachelor’s, 114

lence contribute to the advance-

in the nation. The University has

in the top 10 percent of their high

■ The School of Architecture’s Center for Urban and Community Design

master’s, 51 doctoral, and two pro-

ment of knowledge and the

steadily risen in rankings for

school class, compared with 45 per-

has been involved in a number of community development projects,

fessional areas of study, and its

economic development of the

national research institutions, with

cent in 2000.

region and the state. Renowned

top-rated programs in other diverse

programs include the Leonard M.

fields including law, philosophy,

enterprise, which embraces a vast

neighborhood. The center is planning to work with organizations in

Miller School of Medicine, which is

music, business, and psychology,

range of disciplines, generates applied

other underserved communities to develop environmentally responsible

internationally recognized as an out-

among others.

innovations and breakthroughs in

neighborhoods.

The University is well known for its leading-edge research in oceanography and many other disciplines.

2

The University’s dynamic research

designing affordable homes for first-time homeowners in Coconut Grove and spearheading the revitalization of the West Coconut Grove

numerous fields while contributing

Research and sponsored program expenditures exceeded a record $274 million in FY 2007.

to humanity’s intellectual capital.

■ The Department of Biology partners with Miami Dade College on

Research and sponsored program

two outreach programs that help underrepresented populations enter

expenditures exceeded a record

the biosciences. Supported by grants from the Howard Hughes Medical

standing academic, research, and

$274 million in FY 2007. The University

Institute and the National Institutes of Health, the programs furnish

In recent years the University

clinical medical center dedicated to

has been rising in the prestigious

works with established companies,

scholarships and research opportunities to fledgling scientists who trans-

cutting-edge advances in life sci-

“America’s Best Colleges” rankings

start-up firms, entrepreneurs, con-

fer to UM if they successfully complete the programs. Some students in

ences. The Rosenstiel School of

issued by U.S. News & World Report.

sultants, and investors to translate

the programs have gone on to pursue doctoral-level studies.

Marine and Atmospheric Science is

In 2007 it moved up to No. 52 in the

exceptional research discoveries into

one of the leading oceanographic

National Universities category, up

commercial products and services.

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 pac t re p o rt

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 pac t re p o rt

3

research universities in South Florida.

The University’s strength is further reflected in one of its most vital products—its outstanding alumni, many of whom have distinguished themselves in their chosen professions, including business, law, media and entertainment, sports, and public service. As such, the institution is a leading exporter of knowledge-based

Students Dedicated to Service

S u p p o r t 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 t a l i t y The University enhances the traditional academic experience for its students through inspiring programs that enable them to develop leadership and ■ ■ ■ ■

As a premier research institution, the University focuses not only on programs

civic 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.

growth by participating in dozens of volunteer activities. More than 40

is an on-campus housing community in which students enrich personal

UM’s academic programs contribute

businesses and retain exist-

The Miller School of Medicine is a vital component of South Florida’s health care system.

opment is a liaison to over 450 community partners.

other student clubs and organizations offer volunteer opportunities, and the University’s Butler Center for Volunteer Service and Leadership Devel-

to the economy and cater to market-

ing ones. They help gener-

place demand by efficiently prepar-

ate additional production,

ing students for knowledge-based

income, and employment

services through alumni who work in

■ The Mitchell Wolfson, Sr., DOCS Program enables student volunteers

careers in growing sectors of the

throughout the economy via

and contribute to the local, national,

from the Miller School of Medicine to provide health care, under the super-

and international economies.

vision of faculty physicians, at community health fairs and weekly clinics.

The influential economic development role played by the University underscores the significant benefit of having a top research university in South Florida. global, regional, and local economies,

inter-industry linkages and

Beyond its measurable economic impact, the University provides signif-

■ H.O.P.E. (Helping Others through Pro Bono Efforts) is a School of Law

icant intangible benefits. With a stu-

program that offers opportunities for law students, faculty, staff, and

dent population from throughout

alumni to participate in community outreach and legal advocacy projects.

the United States and 114 other

The School of Law is among the many academic units known for their renowned faculty and graduates who have risen to the pinnacle of their fields.

countries, the University supports

■ The UM Area Health Education Center Program links UM’s resources

Miami-Dade’s role as the business

with medically underserved communities in South Florida. Faculty/student

such as health services, law, and busi-

consumer spending of labor

ness. These are fields in which Miami-

income. This magnifies the

Dade County, and Coral Gables

economic and educational

specifically, enjoy a competitive

impact of the University while

influential economic development

vibrant business climate that supports

advantage.

supporting the state’s economic

role played by the University under-

global finance and commerce and

■ Through Students and Tutors Achieving Reading Success, graduate

development strategy to create a

scores the significant benefit of

hosts high-tech industries in a variety

student teachers tutor struggling readers in schools located in some of

knowledge-based economy. The

having one of the nation’s top

of product areas.

Miami-Dade County’s most disadvantaged communities.

UM’s programs are also a positive force to attract new high-wage 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 pac t re p o rt

center of the Americas. Its presence

teams from medical, nursing, and allied health programs spend 175,000

promotes Miami-Dade’s reputation

hours yearly training and providing health care to recently arrived immi-

as a world-class metropolis with a

grants, migrant workers, homeless families, and isolated populations.

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 pac t re p o rt

5

national rankings. In the past year, three long-awaited facilities opened on the campus: the M. Christine Schwartz Center for Nursing and Health Studies, the School of Communication’s International Building, and University Village, a residential complex that houses 800 students.

On the Miller School of Medicine campus—the heart of the University of Miami/Jackson Memorial Medical Center, one of the nation’s largest and most vibrant academic

Building for the Future ■ ■ ■ ■

Going Green

medical centers—advanced new facilities are being developed that

To help ensure a sound environmental future, the University has intro-

are the nexus of South Florida’s

duced a host of “green” initiatives. Launched in 2005, Green U is making

To accelerate its development as a top research university that will fuel South

UM a community leader in the acquisition of environmentally responsible products and the practice of ecologically sound maintenance and opera-

Florida’s progress, the University is engaged in its most ambitious construction program to

tions procedures. New University facilities are incorporating a host of features to promote conservation and energy efficiency.

date, with nearly $1.5 billion in current and planned projects.

The University has become a signatory to the Talloires Declaration of the Association of University Leaders for a Sustainable Future, which com-

impact in Miami-Dade County:

room and research facilities, residence

over the past five years alone has

$1.8 billion in economic output from

buildings, and structures to enhance

and practice, and the American College and University Presidents Climate

generated a considerable economic

2002 to 2006; $825 million in com-

the student life experience. In addi-

Commitment, which provides a framework and support for colleges to

pensation to Miami-Dade workers;

tion, a renovated and expanded

become climate neutral. Students are involved in environmental organiza-

and average annual employment for

Whitten University Center and a new

tions that address issues such as global warming and mount local efforts

3,770 workers.

Student Activities Center will be the

The University’s construction activity

A key element of the evolution of the Coral Gables campus is the

The Clinical Research Building is a center for work that is speeding research from laboratory to bedside.

6

heart of campus life. The Robert and Judi Prokop Newman Alumni Center

mits institutions to sustainability and environmental literacy in teaching

The Robert and Judi Prokop Newman Alumni Center will be a home for the extended UM family.

to promote sustainability and awareness.

The University’s construction activity over the past five years alone has generated a considerable economic impact in Miami-Dade County.

dynamic pace with the resources

physicians on disease-based research.

Medicine, the planned state-of-the-

University of Miami Campus Area

will provide the extended UM family

and vision for elevating South

The building’s complementary facility,

art,1.4 million-square-foot Life Sci-

Development Plan (UMCAD), which is

a place to call their own. These new

Florida into the ranks of the nation’s

the 15-story Clinical Research Build-

ence Park will be developed as a

enabling the University to move for-

projects will enhance academic pro-

elite medical research communities.

ing, opened in late 2006 and is now

hub of research innovation that

ward on construction initiatives that

grams, strengthen the vibrant resi-

occupied by 800 scientists and support

embraces scientific collaboration

will add nearly one million square feet

dential and student life experience,

the 188,000-square-foot Biomedical

staff who are engaged in cutting-

between academia and industry and

of new space. Projects include class-

and help raise the institution’s

Research Building, scheduled to open

edge work to speed research from

promotes 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 pac t re p o rt

growth as one of the world’s great

in 2008, which will significantly

bioscience research and develop-

increase the Miller School’s wet lab,

ment centers. No other institution

basic science space, housing hundreds

research across the University and

in the region is moving at such a

of scientists who will collaborate with

especially at the Miller School of

Construction is continuing on

the laboratory to patients.

To expand the pioneering

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 pac t re p o rt

7

As a leading community partner, the University supports other organizations—such as the American Red Cross, The Children’s Trust, and Big Brothers Big Sisters—that strengthen the social fabric. For example, UM employees raised an impressive $1.13 million for the United Way of Miami-Dade in 2007-08, making it the largest such campaign in the University’s history.

The University is also one of South Florida’s prime destinations

Pa r t 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

for the finest in arts and culture,

Realizing Our Future

presenting exceptional programs at its Coral Gables campus in music, ■ ■ ■ ■

Beyond its enormous economic impact, the University of Miami enriches the

fine arts, theatre, and film, as well

■ ■ ■ ■

The University is now in the process of finalizing

as a myriad of lectures and other

overall quality of life in South Florida in areas encompassing everything from health care and

events that entertain, educate, and

community revitalization to the arts and athletics.

offers hundreds of cultural programs

the strategic plan that will be the blueprint for its next genera-

enlighten. Every year the University

tion of investment and growth as a leading research university.

that are distinguished by extensive The Miller School of Medicine is an

is serving patients from the region

variety, impressive virtuosity, firstclass venues, and notable value.

essential element of the area’s health

and beyond. The school’s continuing

care system, with its 800 physicians

partnership with the Miami-Dade

conducting more than one million

County Public Health Trust ensures

long celebrated for its outstanding

patient visits annually. The school’s

that the finest medical care is made

intercollegiate athletic programs.

The University has also been

The phenomenal success of Momentum: The Campaign for the University of Miami has energized progress throughout the institution and is the foundation for realizing its future ambitions.

The Hurricanes have enjoyed

UM employees raised an impressive $1.13 million for the United Way of Miami-Dade in 2007-08.

tremendous success, winning more

After four years of record fundrais-

than 20 national championships

ing, the campaign concluded at the

while UM athletes have earned more

end of 2007 with a total of $1.4 bil-

pioneering research and biomedical

available to all, regardless of financial

than 55 individual titles. In fall 2007,

lion. This tops the $1.25 billion goal

breakthroughs enable its patients to

means, at Jackson Memorial Hospital.

after carefully assessing available

set in 2006 when the original $1 bil-

The development of the Miller

options, the University announced

lion goal was reached 18 months

cal care. The University’s purchase of

School’s campus has been part of an

plans to move the Hurricanes foot-

ahead of schedule and demonstrates

receive the latest innovations in clini-

The University’s theatre productions are one dimension of vibrant cultural offerings presented year-round.

Cedars Medical Center, the 560-bed

initiative to transform the Civic Center

hospital across the street from the

area, which was renamed the Miami

Miller School, is dramatically expand-

Health District. In 2004 the City of

ing the University’s patient care

Miami and the University forged The

enterprise. Renamed the University

Miami Partnership, an effort to revi-

forward this process. The effort will

the country, which will afford our

of Miami Hospital, it is South

talize the area, and the Miller School

result in new housing, offices, restau-

student-athletes and fans a much

Florida’s first university hospital and

held a charrette in fall 2007 to help

rants, and retail shops in the district.

better quality game-day experience.

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 pac t re p o rt

ball program from the Orange Bowl

the community’s abiding belief in

to Dolphin Stadium at the start of

the importance of the University.

the 2008 season. Dolphin Stadium is

As the University of Miami continues

one of the premier sports venues in

its dynamic rise as a global research

The University has more than 15,000 students from throughout the United States and 114 foreign countries.

university, it will remain one of the prime organizations strengthening the South Florida community.

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 pac t re p o rt

9

About the Economic Impact Study The University of Miami commissioned The Washington Economics Group to conduct an independent study of the economic impact that the University has on Miami-Dade County and Coral Gables. The company collaborated with University of Miami Senior Vice President for Business and Finance and Chief Financial Officer Joe Natoli in preparing this report. The analysis was based on information from the University of Miami’s fiscal year ending May 31, 2007.

If you have questions regarding this report, please call 305-284-6100. Š Copyright 2008, University of Miami.

ww w.m iami.edu