GALVESTON, Texas - The University of Texas Medical Branch at Galveston in 2006 provided a large financial boost to Galveston Island, generating more than $232 million for the island's economy, according to a new report.
The report, commissioned by UTMB and conducted by the Center for Economic Education at the University of Houston-Clear Lake, determined that UTMB pumped $232,768,505 into the Galveston Island economy in fiscal year 2006.
In total, the study determined that UTMB generated $350,448,897 toward the Galveston County economy. That amount included the $232 million for the island. In addition, the university contributed more than $567 million in Houston and surrounding counties, nearly $620 million to the economy of Southeast Texas and more than $1 billion in business volume statewide.
The financial impact numbers are derived from an economic model that measures how money flows from an institution into a local economy. The model incorporates multiplier factors to capture the ripple effect of money spent by UTMB in the community as well as individual purchases made by people who work at UTMB.
Robert F. Hodgin, director of the Center for Economic Education, said that UTMB's impact on Galveston Island and Galveston County is significant, translating to approximately 15 percent of gross sales on the island and 7 percent of gross sales throughout the county.
UTMB is "a viable and integral part of the island and county economies in which it conducts business, without which everyday life would be noticeably less active," Hodgin said.
The university's direct and indirect impact on employment was noteworthy as well, he said. Nearly 22,000 Galveston County jobs - almost 21,000 of those on the island - are attributable to UTMB's presence, Hodgin said.
Lyda Ann Thomas, mayor of Galveston, praised UTMB, calling it an "institution that has withstood the test of time, providing health care to generations and assuming the role as Galveston and Galveston County's largest employer. One cannot put a dollar figure large enough to do justice to UTMB's impact on Galveston or its economy."
Dr. David L. Callender, president of UTMB, said that "these results further substantiate the strong and productive relationship that exists between UTMB and the communities it serves.
"We will continue to work to expand the impact of the university's world-class faculty and staff, drawing on the excellent partnerships we have with Galveston Island, Galveston County and numerous communities throughout Southeast Texas," Callender said.