Of that $2.1 billion in revenue, only 16.9 percent came from state appropriations, according to an eight-page report presented Monday to the U.'s trustees.
"We're talking about a big impact with money flowing to the state's treasury that wouldn't be there if not for the research universities," said U. economist Jan Crispin Little, senior analyst for the report. "The universities are both providers of professional educational services and sources that attract new money to the state."
In fact, for every tax dollar the state invests in the U. and USU, the two research schools generate $5 from outside Utah.
That's a message Presidents Michael Young of the U. and Kermit Hall of USU hope legislators notice when they convene their 2005 general session next month.
The slice of money from the state has "direct and indirect benefits across the state," Young said earlier this year when Gov. Olene Walker deemed the two research universities "engines of Utah's economy."
Now, with the state's budget rebounding from several lean years, the schools say it is time to invest the seed money that will enable them to help fuel economic development across Utah.
"It's important that the state provide a core amount of money that frees up the two universities to carry on their educational mission," Little said. "That contribution allows them to attract other dollars to the state."
All universities contribute to Utah's educational and economic infrastructure, she said. But research schools capture more out-of-state money and create spin-off companies, which pay taxes and provide even more jobs.
Little called Monday's report a "conservative" look at research-related revenue and spending at both research universities in fiscal year 2003.
Titled "Rolling Resources Into Utah: The Economic Impact of the University of Utah and Utah State University," the report noted that about 30 percent, about $620 million, came from patient services provided by the U.'s hospitals and clinics.
The federal government contributed 15.5 percent and sales of goods and services accounted for 13.2 percent. The remainder of the total - including student tuition and fees - came from other sources.
Rep. Bradley Johnson, R-AuroraÂ, said Monday he had not seen the report. Still, he did not take issue with its overall premise: that research universities are a good investment for taxpayers.
"They contribute much to our economy and quality of life," said Johnson, who is stepping down in January from his leadership role on the Higher Education Appropriations Subcommittee.
Salt Lake City attorney and U. trustee Randy Dryer also touted the schools' statewide impact.
"The universities generate new money from outside the state and create jobs that otherwise wouldn't be here."
sykes@sltrib.com
