A new economic impact study shows that Texas State University is a powerful engine for economic growth, generating nearly $8 billion in economic impact throughout the state of Texas for the fiscal year spanning 2023-2024.
The independent economic impact and investment analysis conducted by Lightcast found that TXST had a total economic impact on the state of $7.7 billion, while simultaneously adding $3.2 billion to the Central Texas economy during the same period.
TXST’s total impact supported the equivalent of 75,000 jobs statewide and 32,500 regional jobs in Central Texas, using the jobs-to-sales ratios specific to each industry in the state. In addition, those 75,000 statewide jobs span a wide range of industry. For example, among non-education industry sectors, the activities of TXST and its alumni in the Professional & Technical Services industry sector added $906.6 million in income in FY 2023-24. If the university did not exist, these impacts would not have been generated in Texas.
“This study confirms that TXST is a powerful driver of opportunity and economic vitality, not just for San Marcos and Hays County, but across the entire state of Texas,” said President Kelly Damphousse. “Our nearly $8 billion statewide impact reflects our commitment to expanding access to higher education, strengthening the workforce, and advancing research that fuels innovation and business growth."
"What makes me especially proud is that our students saw the greatest return—earning nearly $7 in future earnings for every dollar they invested in a TXST degree. That is our mission: to strengthen the future of our students and, in turn, the future of Texas, of our country, and, increasingly, the world around us.”
Focusing more closely on the Central Texas region, the university’s influence on the regional economy is even more pronounced. TXST alumni contributed an impressive $1.9 billion to Central Texas—an economic boost comparable to hosting five Super Bowls. Beyond alumni, TXST’s annual operations spending pumped $553 million into the Central Texas economy while student spending directly contributed an additional $291 million.
Other areas contributed significantly as well:
- Research spending - Research activities, which facilitate new knowledge creation in Texas through inventions, patent applications and licenses, generated more than $171 million for the Texas economy in FY 2023-24.
- Spin-off companies – Buoyed by a TXST research environment that fosters innovation and entrepre¬neurship, the university has seen increasing numbers of spin-off companies launched in recent years. In FY 2023-24 alone, TXST spin-off companies added $210.6 million to the Texas economy.
- Construction spending – Capital projects to both add new facilities as well as maintain existing ones to meet TXST’s growing educational demands generated a short-term infusion of spending and jobs in the state economy of $95 million for FY 2023-24.
- Visitor spending - Out-of-state visitors attracted to TXST for academic, cultural, environmental and athletics activities contributed to the economy through spending at hotels, restaurants, gas stations and other businesses. All together, these transitory guests contributed approximately $4.2 million to the Texas economy.
TXST’s most profound and long-term economic impact, however, is on the students who earn their degrees from the university. For every dollar students invest in TXST in the form of tuition, fees, out-of-pocket expenses and forgone time, they will receive a cumulative value of $6.80 in higher future earnings. Annually, the students’ investment in TXST has an average annual internal rate of return of 23.0%, which is impressive compared to the U.S. stock market’s 30-year average rate of return of 10%.
TXST students will enjoy higher future earnings that continue to grow throughout their working lives. For example, the average TXST bachelor’s degree graduate from FY 2023-24 will see annual earnings that are $36,600 higher than those of a person with only a high school diploma. Over a working lifetime, the benefits of a bachelor’s degree over a high school diploma will amount to $1.6 million in higher earnings per graduate. The value of the cumulative higher future earnings of all FY 2023-24 TXST students will receive over their working careers totals $3.4 billion.
Likewise, Texas taxpayers enjoy a similar return on their investment as TXST generates more in tax revenue than it receives. Taxpayer costs are $251.2 million, equal to the amount of state government funding TXST received in FY 2023-24. Total taxpayer benefits, in comparison, amount to $1.1 billion—the value of added tax revenue and public sector savings from the increased income potential of those earning TXST degrees who are subsequently less likely to rely on public services. This interaction yields a benefit-cost ratio of 4.5, meaning that for every dollar of public money invested in TXST in FY 2023-24, taxpayers will receive a cumulative present value of $4.50 over the course of the students’ working lives.
The full economic impact report is available at https://www.president.txst.edu/economic-impact.html.