UMass Donahue Institute

The University of Massachusetts System offers invaluable educational opportunities in a wide array of disciplines and engages in important research activities recognized throughout the world. The general public tends to understand UMass’s role in these key areas, but is often unaware that the institution is also a major contributor to the statewide economy. UMass not only makes a direct contribution to the Massachusetts economy through the spending and jobs supported by its academic, administration, and construction activities, but also generates a “ripple effect” that leads to an even larger impact in the economy as a result of demand on suppliers of goods and services as well as employee spending. 

The purpose of this report is to perform an objective analysis to quantify the economic contributions of the University of Massachusetts System and its five campuses on the Commonwealth’s economy. The results of the economic contributions analysis for fiscal year (FY) 2022 indicate that: 

• The UMass System generated $8.3 billion in economic activity in FY2022. The UMass System (across all campuses) is a key economic driver in the Commonwealth, directly or indirectly affecting every person in the state. In FY2022, the University of Massachusetts contributed $8.3 billion in economic activity to the Massachusetts economy. This includes the contributions of the local operating expenditures of the University, one-time major construction expenditures, the spending of the University’s faculty and staff, and students. Much of the UMass spending flows beyond the campuses to a variety of suppliers of goods and services, generating significant benefits for the Massachusetts economy. 
• FY2022 included significant construction at UMass campuses. Construction spending at the UMass campuses in FY2022 was valued at about $450 million. Construction projects were financed through University expenditures, the UMass Building Authority and the Commonwealth’s Division of Capital Asset Management and Maintenance (DCAMM). Unlike other campus activities such as payroll expenditures, construction on the campuses can spike or fall from year-to-year and thus either amplify or diminish its overall effect on the Massachusetts economy depending on the cycle. The new and renovated facilities, however, continue to play important roles after they are constructed by contributing to the University’s competitive position to attract students, employees, and researchers. Benefits to UMass are long-term from new or renovated academic buildings, laboratories, athletic facilities, and other key infrastructure such as heating plants and parking garages. 
• State investment in UMass leverages significantly greater economic activity. In FY2022, the state’s $880 million investment in the UMass System helped leverage and support $8.3 billion in economic activity in Massachusetts, an amount nine times greater than the state’s investment. 
• UMass employee payroll recirculates through the Massachusetts economy causing positive economic effects. A notable share of UMass spending also makes its way to employees in the form of salaries and wages, which is then circulated into the Massachusetts economy through FY2022, the University employed 16,477 full- and part-time faculty and staff (excluding student employees). 
• UMass generates additional jobs beyond the campuses. The spending of the University, its employees and students helped to support an additional 39,497 jobs in the Commonwealth throughout FY2022. Including faculty and staff, the University supported a total of 55,974 jobs in the Commonwealth. 
• UMass student off-campus spending further supports the Massachusetts economy. In FY2022, UMass System student enrollment was 64,789 (FTE equivalent students) and these students directly spent a substantial amount of money off-campus in the economy, which, in turn, generated additional economic activity. Seventy-five percent of enrolled students are in-state. 
• Each of the five University campuses generated substantial economic contributions for Massachusetts in FY2022. By campus, contributions ranged from $2.9 billion for Amherst and $2.2 billion for the Medical School, to $1.2 billion, $1.2 billion and $618 million for the Boston, Lowell and Dartmouth campuses, respectively.