Hewlett-Packard Co.’s entry into the Sacramento region 25 years ago changed the area’s economic structure. The economy previously centered on state government, agriculture, food processing and rail transportation.

Today, the region has entered the technology era. The shift has created unanticipated demands on the work force and on higher-education institutions. Universities and colleges have responded vigorously by supporting the work force with engineers, scientists, technicians and assembly workers.

Higher education is a key to the Sacramento region’s economic vitality. It also is a significant employer, an economic engine like any other firm or industry. Colleges and universities in the region create an impact of about $3.2 billion annually and support 75,400 employees with annual compensations exceeding $1.5 billion.

California State University, Sacramento, alone contributes more than $743 million and nearly 16,000 jobs.

Beyond the economic impact is the value that an educated work force brings to the region, not only as a factor in business attraction, startups and retention but also as a contributor to the region’s leadership, entrepreneurial skills and efficiency in all aspects of business and government.

The region’s work force increasingly requires advanced degrees. Approximately 32 percent of all occupations in the region require some higher-education degree or certificate and the percentage is expected to increase by 28 percent by 2006. In fact, it is estimated that 85 percent of all jobs nationwide soon will require an undergraduate degree.

CSUS has always played a significant role in serving the needs of the region by providing a range of colleges and programs that produce highly trained and skilled employees for regional and national employers. Its current enrolment approaches 29,000 and it will have more than 5,000 graduates in 2004.

About two-thirds of students come from the Sacramento region, and more than 78,000 graduates remain in the area to participate in its workforce and leadership.

One of every 26 residents in the region is a CSUS graduate. The university’s faculty and research centers help provide leadership and knowledge. And its information technology initiative emphasizes the campus’ responsibility to provide a well-educated work force in a high tech arena.

At CSUS, faculty and staff members are moving vigorously into the future with a new campus plan that will add residence apartments for 5,000 students, a performing arts center, a space-science center, an arena and wellness center and high-rise classroom buildings. Additional facilities at other sites in the region also are being considered.

The business world has become very competitive, and the Sacramento region’s future depends on an excellent work force and continuing support for higher-education facilities. The region cannot attract new jobs on the basis of low-cost housing and industrial space, uncontested freeways or government subsidies, but it can excel by offering a superior work force backed by an educational system second to none.

Alexander Gonzalez is president of California State University, Sacramento.