UW-Madison has roughly a $4.7 billion impact on Wisconsin's economy and accounts for 2.7 percent of Wisconsin's gross state product, according to a study released Wednesday by NorthStar Economics, Inc.
NorthStar conducted a similar study last fall analyzing the impact of the UW System. That study found the whole system has a $9.5 billion impact on the state.
The current study assessing UW-Madison looks at the university's impact in four areas-economic contribution, jobs, tax revenue and return on investment-in light of the economic trends in Wisconsin over the past century.
\The state is a slow growth state and that is a major long-term problem,"" NorthStar President David J. Ward said. ""We have to know where we're going in all of this.""
Ward said Wisconsin has moved away from its roots as a primarily agricultural and manufacturing state, but has failed to attract more technologically based fields to the state, which would benefit the state in the long term. Ward pointed to Minnesota as a state which has been more successful in this area.
""They have these high scale jobs and they're attracting those people,"" he said.
Nonetheless, Ward said the results look promising for UW-Madison, with few costs to the state in order to see over $4 billion in return.
""There are costs, but they go both ways,"" he said. ""The benefits that come out of [the university]-for example, college educated people smoke less, they wear seat belts... Sure, there are costs, but there are social benefits.""
The study found that students see a direct return on their tuition investment at UW-Madison in the form of increased pay over those with lower levels of education.
""The students will see that money back in about three years,"" according to Dennis Winters, vice president and director of research at NorthStar.
Winters also pinpointed the indirect benefits of the university.
""Our businesses are better at what they do because of the research that's going on at the university,"" he said.
However, some say the university's success could be in jeopardy, as the Legislature is in the process of determining its share of cuts in next year's budget. According to state Sen. Sheila Harsdorf, R-River Falls, who is chair of the Higher Education and Tourism Committee and a member of the Joint Finance Committee, the Legislature has a challenge before it, but education must remain a top priority.
""I am a believer that the university is a component of our engine that drives economic development,"" she said. ""As we look at getting our economy back on track, [the university plays] a role in helping [to] grow our economy.\
