Cal Poly brings $469 million to the economy

June 16, 2010

Cal Poly San Luis Obispo brings an estimated $469 million annually to the local economy through campus expenditures and off-campus student spending, according to a recently released report from the California State University System Office of the Chancellor.

In addition, Cal Poly sustains over 5,000 jobs in the region and nearly 8,500 jobs statewide.

From the standpoint of local and state tax revenue, the campus generates tax revenue of approximately $29.6 million per year at the local level and $61 million at the state level.

“For each $1 invested by the state, the CSU generates $5.43 for California’s economy annually,” according to the reports executive summary.

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If they are making so much money and providing so much to the economy why are all of them crying poverty?

I guess i had better enroll at Cal Poly so I can get educated on their deficit lifestyle.

This is one of the most misleading “BS” stories of the year. They claim that the University produces $30 million in local tax revenue means that the City would only be a little over $20 short to balance their annual budget. The remainder of community would surely make that mark with property tax, useage fees, fines, and of course paring tickets. Yet, the City is not able to meet that mark and balance the budget without service cuts.

My mathematics skills are fuzzy, but it sounds like a perpetual motion machine:

Each $5.43 generated by Cal Poly gets taxed at, say, 21%, which returns $1 to the state coffers. That, in turn, generates $5.43 of economic boost, which then creates $1 more of tax liability. And on.

Out of this zero-input machine, we also get a bunch of college graduates, who will go earn money and create tax liabilities. When they pay those tax liabilities, we can invest them in higher education, which will generate more economic boosts, which will generate more taxes to boost the economy even more.

What am I missing?