For the purpose of this study, the Los Angeles region was defined as Los Angeles and Orange Counties. There are five CSU campuses in this region: CSU Northridge, CSU Dominguez Hills, CSU Los Angeles, CSU Fullerton, and CSU Long Beach. In addition, the CSU Chancellor’s Office is located in the region and has a substantial economic impact on its own.
As a group, these CSU campuses and the Chancellor’s Office have a direct impact of over $2.6 billion, including:
This direct impact of the CSU campuses and Chancellor’s Office creates a total spending impact of nearly $4.4 billion on the Los Angeles regional economy. This impact sustains more than 39,000 jobs in the region, and generates close to $252 million in tax revenue. The Los Angeles region campuses generated a positive return on investment, meaning that for every dollar the campuses spend, $1.70 is generated in the regional economy. Moreover, $13.3 billion of the earnings by alumni from Los Angeles area campuses is attributable to their CSU degrees.
In addition to the regional impact that CSU Northridge, CSU Dominguez Hills, CSU Los Angeles, CSU Fullerton, CSU Long Beach and the Chancellor’s Office have on the Los Angeles region, there are statewide impacts associated with leakages from spending beyond the immediate region. Statewide, Los Angeles campuses create a total spending impact of $4.5 billion, support nearly 40,000 jobs, and generate $271 million in tax revenue for state and local governments. Moreover, when the enhanced earning power of Los Angeles CSU alumni is considered, the campuses produce a combined total direct annual impact of $15.9 billion for the state economy, which creates a total spending impact of $21.3 billion. This level of economic activity supports more than 145,500 jobs annually in the state and generates $1.5 billion in annual tax revenue for the state and local governments.
In 2008-09, state appropriations totaled nearly $968 million to Los Angeles campuses, and for every dollar invested, $4.53 in regional and $4.66 in statewide spending is generated. When the impact of the enhanced earnings of Los Angeles region CSU graduates is included, the ratio rises to more than $22 in total spending impact for every dollar the state invests.