Economic Impact - Tarleton State University

Tarleton is breaking records in enrollment, scholarship, research, athletics, philanthropy and engagement — the areas that count — cementing its position alongside America’s great public institutions. We’re turbocharging economic growth and transforming the national fabric of higher education.

Our estimated annual impact of $1.2 BILLION for the region and $2 BILLION total in added income for the state defines Tarleton as a catalyst for growth and prosperity. It reflects our commitment to high-quality education for anyone seeking a university degree. It is a remarkable return on the investment of our students, local and state residents, and Texas.

An independent study by the global research firm Lightcast (formerly Emsi) confirms that a Tarleton education propels economic vitality. If we educate students in Texas, they will stay in Texas, and Texas will continue to prosper. We’ve always known that, and now we’re being recognized for it.

The information highlighted here illustrates our economic importance and demonstrates that Tarleton creates value from multiple perspectives. We’re not just growing a university, we’re growing the communities we serve. As Tarleton thrives, so does our hometown, our region and our state.

We call it the Tarleton effect.

Tarleton’s Economic Impact (FY 2020-2021)

Top Industry Impacts (Job Supported)

	Government & Education: 3,490 Jobs
	Arts, Entertainment & Recreation: 3,231 Jobs
	Health Care & Social Assistance: 2,619 Jobs
	Other Services (except Public Administration): 2,403 Jobs
	Retail Trade: 2,052 Jobs

Impact by the Numbers

Students Engineering Forward Together 2624

$2 Billion Economic Impact

Tarleton added $2 Billion in income to the Texas economy in FY 202021, equal to the sum of the operations, research and construction spending impacts; the start-up company impact; the visitor and student spending impacts; the volunteerism impact; and the alumni impact.

$1.2 Million Earnings Increase

On average, our bachelor’s degree graduates earn an undiscounted $1.2 Million more than high school graduates over their working lives in Texas. And the lifetime benefits of the Tarleton master’s degree over a high school diploma are $1.9 million over the course of their careers.

$1.7 Billion Alumni Impact

As a result of their education, Tarleton Texans receive higher earnings and increase the productivity of the businesses that employ them. Alumni generated $1.7 Billion in added income for the state economy in FY 2020-21, equivalent to supporting almost 24,000 jobs.

“Tarleton provides students with the education, training,

and skills they need to have fulfilling and prosperous careers.”

– Lightcast Economic Impact Study

Investing in the Lone Star State

Operations Spending Impact

Tarleton adds economic value to Texas as an employer of state residents and a buyer of goods and services. The net impact of Tarleton’s operations spending added $99.3 Million in income to the state economy in FY 2020-21, equivalent to supporting 988 jobs.

Research Spending Impact

Tarleton spent $11.9 Million on payroll to support research activities in FY 2020-21. This plus $5.8 million in other research spending created a net total of $19.9 Million in added income for the Texas economy in the analysis year, equivalent to supporting 249 jobs.

Construction Spending Impact

Tarleton invests in construction to maintain facilities, create additional capacities, and meet its growing educational demands. This generates a short-term infusion of spending and jobs. Tarleton’s net construction spending in FY 2020-21 was $6.4 Million and does not include current and future projects.

Start-up Company Impact

Tarleton’s exceptional environment fosters innovation and entrepreneurship, as evidenced by the number of university start-up companies created to license and commercialize university technology or knowledge. In FY 2020-21 Tarleton start-ups generated $104.7 Million for the Texas economy.

Visitor Spending Impact

Visitors from outside the state and region attend commencements, athletic events and other university activities. Off-campus expenditures for out-of-state visitors generated a net impact of $4 Million in added income for Texas, and out-of-region visitor spending added about $44.5 Million to the regional economy.

Student Spending Impact

Around 3% of students came from outside the state in FY 2020-21, and 42% originated from outside the region. Spending by out-of-state students generated $34.4 Million in added income for the Texas economy, and expenditures by out-of-region students generated $90 Million for the regional economy.

Tarleton’s Return on Investment

This analysis presented here considers Tarleton as an investment from the perspectives of students, taxpayers, and society in Texas.

Student Perspective

In return for their investment, Tarleton students receive a stream of higher future earnings that continue to grow throughout their careers. For example, Tarleton bachelor’s degree graduates on average earn an undiscounted $1.2 Million more than high school graduates over their working lives in Texas. The lifetime benefits of the Tarleton master’s degree over a high school diploma are $1.9 Million for graduates while they’re in the workforce, and $668,000 more than they would make with a bachelor’s degree.

Put simply, Tarleton graduates will receive $7 in higher future earnings for every dollar they allocate to their education — an average 23.2% annual return on their investment. That’s more than double the U.S. stock market’s 30-year average of 10.5%.

Taxpayer Perspective

Tarleton generates more in tax revenue than it takes. These benefits to taxpayers consist primarily of taxes that the state and local government collect from the added revenue in Texas. As Tarleton students earn more, they make higher tax payments throughout their working lives. These students’ employers also will make higher tax payments as they increase their output and purchases of goods and services.

For every dollar of public money invested in Tarleton in FY 2020-21, taxpayers will receive $4.10 in return over the course of students’ working lives. The average annual internal rate of return for taxpayers is 9.4%, which compares favorably to other long-term investments in the public and private sectors.

Social Perspective

Society as a whole in Texas benefits from Tarleton’s presence in two major ways. Primarily, the university increases the state’s economic base. This is attributed to the added income from students’ increased lifetime earnings (added student income) and increased business output (added business income), which raise economic prosperity in Texas. Benefits also consist of the savings generated by the improved lifestyles of Tarleton students.

For every dollar invested in Tarleton in FY 2020-21, people in Texas will receive $19 in added income and social savings for as long as the university’s FY 2020-21 students remain in the state workforce.

Tarleton’s Rate of Return

Tarleton is a strong investment for all three stakeholder groups—students, taxpayers and society. Students receive a great rate of return for their investments in a Tarleton education. At the same time, taxpayers’ investment in Tarleton returns more to government budgets than it costs and creates a wide range of social benefits throughout Texas.

* The rate of return is not reported for the social perspective because the beneficiaries are not necessarily the same as the original investors.

The Tarleton Effect