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Economic Impact Report (FY2019)

Economic Impact Report

Economic Impact Report

University of Guam Economic Impact Report for FY2019

AN INVESTMENT IN GUAM’S FUTURE

Through its mission of Ina, Deskubre, Setbe (to enlighten, to discover, and to serve) the University of Guam not only impacts the lives of its students and the communities it serves through academics, research, and service, but it also builds Guam’s economy.

In FY2019, UOG received just $27.4 million from its government of Guam budget appropriation but provided a major impact to Guam’s economy through creating jobs, generating incomes and spending, buying locally, and generating tax dollars. 

An investment in the University of Guam is an investment in Guam’s future.

Infograph that says UOG contributed 1 of every $17 in Guam's economy

UOG CONTRIBUTED $1 OF EVERY $17 IN GUAM’S ECONOMY

UOG boosted Guam’s economy, measured by nominal Gross Domestic Product (GDP), by $349 million. This translates to:

  • 5.91% of the $5.92 billion measure of Guam’s economy in 2018 (the latest data available);
  • 4.06 times UOG’s total expenditure of $86 million; and
  • 12.72 times the $27.4 million budget appropriated to UOG by the Guam Legislature.
Infograph that says UOG created 1 in every 15 jobs on Guam

UOG CREATED 1 IN EVERY 15 JOBS ON GUAM

UOG created a total of 4,191 jobs (FTE) comprised of:

  • 849 direct employees, i.e., employees by UOG (those in the Staffing Pattern and work-study students) and related units (RCUOG, UOGEF, GERF/KPRG and AmeriCorps);
  • 206 indirect employees, i.e., employees that UOG suppliers/vendors were able to employ because of their business with UOG;
  • 3,136 induced employees from the following sources:
    • 570 jobs created when direct jobholders, i.e., employees of UOG and related units spent their incomes;
    • 103 jobs created when indirect jobholders, i.e., employees by UOG on-island suppliers/vendors spent their incomes;
    • 240 jobs created when UOG on-island suppliers/vendors spent their incomes; and
    • 2,223 when UOG graduates spent their higher incomes, which resulted from their UOG degree.

The 4,191 jobs created by UOG make up 6.5% of the approximately 65,000 employees on Guam.
Infograph that says UOG generated 13% of GovGuam tax revenues

UOG GENERATED $1 OF EVERY $8 OF GOVGUAM TAX REVENUES

UOG generated $78.55 million of GovGuam taxes in the form of income taxes ($52.4 million), Medicare taxes ($10.1 million), and Gross Receipts Taxes ($16 million). In FY2019, this $78.55 million:

  • was $51.15 million more than the $27.4 million budget appropriated by the Guam Legislature;

     

  • accounts for 12.63% of all GovGuam tax revenues received in FY2019; and

     

  • represented a 187% return on Guam taxpayers’ money.

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Dr. Claret Ruane

 

Dr. Maria Claret M. Ruane is a tenured professor of economics at the University of Guam within the School of Business & Public Administration. She holds bachelor's and master's degrees in economics from San Jose State University (Calif.) and a doctorate in economics from the University of California, Riverside. 

She has previously served as the resident development economist for the University of Guam Pacific Center for Economic Initiatives (PCEI) and also as the resident development economist and research contributor/supervisor for the UOG Regional Center for Public Policy (RCPP).

She has 29 years of experience in international macroeconomic development and is trained in quantitative approach to analyze available data and, when necessary, design methodologies to address limitations in data.

Dr. Ruane has written several socio-economic studies at regional, national, and
international levels, including:

  • RCPP’s "Guam Economic Report" for 2018 and 2019

  • “Factors that Explain Corruption in the 50 States of the United States of America: A Regression Analysis,” published in the double-blind, peer-reviewed, internationally circulated journal Asia Pacific Business and Economics Research Perspectives

  • A 20-equation simulation model to analyze the effect of development aid on a recipient economy.  

Her other work includes the generation and analysis of much-needed economic and business indicators and analysis in Guam, including:

  • consumer and business confidence survey

  • corruption perception

  • buying local behavior

  • local spending multiplier

  • effect of exchange rate changes on tourist arrivals to Guam

  • local farmer and village residents surveys in the context of the One Village-One Product approach to Guam’s economic development.

She believes that research is a search for the truth and aims at developing local capacity in Guam to produce ethical, relevant, and impactful economic research and analysis.