SDSU Generates $5.67B in Economic Activity for San Diego Region

“For 120 years, San Diego State University has been contributing to the economic vitality of the San Diego region.”

San Diego State University is a powerful driver of the state and regional economies, generating $5.67 billion in economic activity, supporting 42,000 jobs and creating $2.01 billion in labor income annually, according to a new economic impact analysis.

SDSU’s activities also generate significant tax revenue streams for state and local governments—approximately $457 million annually.

"For 120 years, San Diego State University has been contributing to the economic vitality of the San Diego region," said SDSU President Sally Roush. "This new report shows that a thriving SDSU is critical to a strong San Diego economy."

The independent analysis was conducted by ICF, an international consulting firm specializing in economic impact studies. As part of the methodology, the analysis measured:

• Direct impacts – spending by the university on operations, plus spending by students
• Indirect impacts – spending by suppliers that support the university
• Induced impacts – spending of earned wages by university employees and alumni in their communities

The report also found that for every dollar California invests in SDSU, the university returns $35.20 to the economy in the form of direct spending, the economic activity of its students and the impacts of its alumni’s higher lifetime earning power.

Direct SDSU-related expenditures for wages and salaries, operations and supplies, and an array of other items related to SDSU’s educational mission totaled roughly $826 million in 2017. This includes $127 million in annual construction and capital expenditures.

University expenditures support a total of 12,800 jobs per year in San Diego and Imperial Counties, as well as over $524 million in labor income and over $1.35 billion in industry activity.

SDSU’s nearly 35,000 students create a total economic impact of more than $226 million in labor income and drive nearly $618 million in industry activity across the region.

Spending by the university, its students and alumni supports a wide variety of industries in San Diego, including retail, real estate, construction, restaurants, education, transportation and healthcare. The economic impact of SDSU’s alumni reaches far beyond their spending, however.

The U.S. Census Bureau estimates that bachelor’s degree holders can expect to earn $1 million more over their lifetimes than workers who have high school diplomas alone. Because university education has a powerful economic impact on individual degree earners, the increased earning power of SDSU graduates is a significant factor in the analysis of SDSU’s economic influence in the region and the state.

Approximately 61 percent of SDSU alumni reside in the San Diego region and 72 percent reside in the state of California. In total, $4.74 billion in incremental wages per year can be attributed to SDSU degree-holders across the state.

The enhanced earning power of SDSU alumni in San Diego supports 23,000 additional jobs and $1.25 billion in additional labor income.

State-wide, the earning power of SDSU alumni supports 27,273 additional jobs, $1.48 billion in additional labor income and $4.35 billion in industry activity. Moreover, SDSU alumni generate $232 million annually in state and local taxes as a result of their increased wages.

The announcement was made at a press conference Nov. 16 at the university's new donor wall. SDSU President Sally Roush, San Diego Mayor Kevin Faulconer, State Senator Toni Atkins, City Councilmember Georgette Gomez, San Diego Regional Chamber of Commerce President and CEO Jerry Sanders and San Diego Regional Economic Development Corporation President and CEO Mark Cafferty were among those who spoke in support of SDSU.

SDSU Economic Impact Analysis PDF (October 2017)

SDSU Economic Impact Handout PDF

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