CSUN Expenditures Generate $1.9 Billion in Output Across the State

Based on estimates of total CSUN (university, student, visitor, and faculty/staff) spending during the 2013/2014 academic year, Beacon Economics finds that CSUN generated $1.9 billion in output, $1.0 billion in value added, and $677.6 million in labor income across the state of California.

Of the $1.9 billion in output generated statewide, CSUN spending generated $1.6 billion in economic output in Los Angeles County alone (denoted in 2015 dollars). Of this total, $956.7 million represents direct spending for goods and services by CSUN, CSUN students, CSUN commencement visitors, and CSUN faculty/staff, while $596.6 million represents secondary spending by firms supplying CSUN. The secondary spending also represents local business affiliates that took in direct spending by CSUN students, visitors, and faculty/staff—these are individuals who received an increase in income as a result of CSUN-related expenditures and/or firms that received an increase in revenues as a result of the increase in income. Of the $596.6 million in secondary spending, $292.6 million comes from indirect effects, while $304.0 million comes from induced effects. Industries that received the largest increase in economic activity as a result of CSUN spending are detailed in the Appendix of this study.

Approximately $1.3 billion in output was generated locally, which accounts for approximately 82% of all county-wide impacts (direct, indirect, and induced) originating from the initial spending activity by CSUN. Because CSUN is strategically located within a highly urbanized region able to support its demand, a significant majority of the economic impacts occur within the boundaries of the Northridge area. This indicates that the local area can adequately accommodate increased demand for goods and services by CSUN, its students, visitors, and faculty/staff.

Subtracting out the intermediate input costs (goods and services purchased in the process of generating revenues) to CSUN and their suppliers from this entire output yields the total value added to the Los Angeles County economy as a result of all CSUN-related expenditures. Based on that calculation, these expenditures added $886.0 million in value to the economy in 2015 dollars, of which $562.0 million comes from CSUN alone while the remaining $324.0 million comes from other Los Angeles County businesses and workers.

Much of the value is in the form of labor income. CSUN-related expenditures, denoted in 2015 dollars, generated an estimated $588.6 million in income for Los Angeles County workers. Of this total, $403.4 million was paid to CSUN employees, $88.4 million was generated indirectly, and $96.8 million was generated through induced effects. As the Los Angeles County economy continues to build following the recession, CSUN-related expenditures are providing a crucial source of income for thousands of residents throughout the County. Moreover, as discussed below, the jobs being supported are relatively high paying, which should lead to further stimulus as a result of increased spending.

Figure 4- County Impact of CSUN Expenditures on Output

Figure 5- State Impact of CSUN Expenditures on Output

Figure 6- Aggregate Breakdown of Impacts on Output