(College Station)—Texas A&M University and other members of The Texas A&M University System based in Brazos County had a record $2.7 billion overall economic impact on the county during calendar year 2006, according to an in-house study.
"As the anchor communities of Brazos County, Bryan and College Station are an ideal ‘home base' for the A&M System's flagship university, Texas A&M, as well as its seven state agencies and System Offices," said Michael D. McKinney, M.D., chancellor of the A&M System.
"We are proud to be a part of this thriving community and to play an important role in its success economically and as a desirable place to live, work and play. I believe we will continue to see positive, well-planned growth here as the A&M System expands to serve the educational and service needs of our state," McKinney said.
"Bryan-College Station and Texas A&M together create a ‘win-win' for our community,'" said Eddie J. Davis, interim president of Texas A&M. "The growth of Texas A&M is good for the community and the community's growth is good for the university."
The $2.7 billion overall economic impact is an increase of $185.7 million from 2005, and includes a multiplier effect used in economic studies.
The multiplier effect assumes that money spent in a community is re-circulated several times, therefore adding value beyond its original amount. The number of times that dollars are spent and re-spent before leaving the community becomes the driver that multiplies the effect of the A&M System, officials noted. Continued economic growth in Bryan-College Station, they added, means residents are more frequently finding goods and services locally.
Before incorporating the multiplier effect, the study estimated the direct economic impact of the A&M System on Brazos County in 2006 at a record $1.1 billion, an increase of $74.3 million.
The study measured the economic impact of Texas A&M University, as well as key aspects of A&M System members based in College Station, including the System Offices, the A&M System Health Science Center, and the System's seven state agencies: Texas Agricultural Experiment Station (TAES), Texas Engineering Experiment Station (TEES), Texas Cooperative Extension (TCE), Texas Forest Service (TFS), Texas Engineering Extension Service (TEEX), Texas Transportation Institute (TTI) and Texas Veterinary Medical Diagnostic Laboratory (TVMDL).
Texas A&M is now well into its Faculty Reinvestment Program to enhance the learning process by, among other benefits, improving the teacher-to-student ratio. Davis said approximately 100 additional faculty members have been hired within the past year, bringing the new faculty hires under the program up to 358. The goal is to hire 447 new tenured or tenure-track faculty by 2008. Outstanding faculty attract graduate students to the university, which in fall 2006 numbered 8,291, a new record.
Research expenditures supporting the work of faculty, students and staff also play a key role in boosting the economy locally and beyond. In 2006, research conducted by the university and the College Station-based A&M System agencies and Health Science Center, as reported to the National Science Foundation, totaled $569 million, an increase of $16.1 million.
The local economic impact of the university's students, a record 45,380 for fall 2006, was estimated at $240.3 million, an increase from last year of 945 students and almost $12 million. Major student expenditures include food and housing, clothing, school supplies and recreation.
In 2006, more than 1.1 million visitors attended Texas A&M athletic and entertainment events, commencement exercises, the George Bush Presidential Library complex and continuing education programs of the university. An additional 253,000 students attended, bringing the total attendance to campus and related events to almost 1.4 million people, an increase of more than 84,000.
These campus visitors, including prospective students and their families, contributed more than $103 million to the county, a gain from a year ago of $10.2 million, the study showed. Visitor expenditures include ticket sales, food, lodging and gasoline.
The report estimated the average annual payroll for the more than 21,400 employees of Texas A&M (including student workers) and College Station-based A&M System employees at more than $724.7 million, an increase of $52.2 million over 2005. Average total A&M System employment in the county increased last year by about 240 people.
Payroll directly affects the local economy through purchases made by employees and their families and also increases the deposit base in local financial institutions.
"By providing more than 21,000 jobs, there is little doubt that the A&M System is the engine that drives our local economy," said Royce Hickman, president/CEO of the Bryan/College Station Chamber of Commerce. "From a community standpoint, I am pleased to see the positive growth since the previous measurement study. We're proud and appreciative of the positive impact the System has on our economy."
Construction costs on A&M System facilities in Brazos County totaled more than $46 million in 2006, an increase of almost $20 million. Davis noted that the full impact of Texas A&M's $300 million building program, now under way and among the most extensive in the country, has yet to be fully felt locally. Ground was broken last year for a $95 million interdisciplinary life sciences building, two new physics buildings totaling $57 million, and the Texas Institute for Genomic Medicine, a joint program of the university, A&M Health Science Center and Lexicon Genetics.
Other campus projects in various stages of planning include an Emerging Technologies and Economic Development building, an addition to the Veterinary Medicine Research Tower, an expansion of the Laboratory Animal Resources and Research Building and a new indoor athletic practice facility.
"We are excited about the growth and emerging research activity taking place at System facilities that are driving these local building projects," said Vergel Gay, managing director of facilities planning and construction for the A&M System. "We look forward to continued work with the university, health science center and agencies to provide them with excellent facilities that will be assets to their programs as well as to the local economy."
University officials pointed out the study was designed to highlight economic activity resulting from activities conducted in Brazos County by the A&M System. The report does not purport to be sum total of the activities' full impact. Also, they note, the sum of the different categories they listed does not equal the direct impact figure because some of the inclusive activities involve expenditures that are made initially outside the county or are included in other categories. 