The University contributed $1.6 billion of income to the District’s economy in the 2020 fiscal year, according to a report released in February.
The report states expenses from research, students, construction and alumni generated 1.2 percent of the District’s total gross regional product. The University increased the economic value of the District with 12,694 supported jobs and investments in local goods and services, according to the report.
The University contributed $872.9 million in income to the District from employee payroll and payments for operations like facilities and professional services, according to the report. In FY 2020, GW employed 5,379 faculty and staff whose combined payroll totaled $901.9 million, adjusted down for payroll funding the University received from “district sources,” the report states.
The Medical Faculty Associates, a nonprofit medical practice organization that is separate but dependent on the University, contributed $299.9 million of income to the District, according to the report.
“GW benefits society as a whole in Washington, D.C. by creating a more prosperous economy and generating a variety of savings through the improved lifestyles of GW D.C.-based alumni,” the study states.
Student expenses like food and transportation contributed $73.5 million of income to the District’s economy, according to the study. Attendee expenses from Commencement and athletic events, like food and lodging, contributed an estimated additional $3.2 million of income to the city.
“The University’s reputation and activities attract visitors and students from outside Washington, D.C., whose expenditures benefit the District’s vendors,” the study states.
The report also says GW graduates receive an 11.4 percent average annual return on their investment into a GW education.
“Over a working lifetime, the benefits of the bachelor’s degree over a high school diploma will amount to an undiscounted value of $2.7 million in higher earnings per GW graduate who remains in the District,” the report states. “The present value of the cumulative higher future earnings that GW’s FY 2020 students will receive over their working careers is $3.0 billion.”
The report also states the District will receive about $114.3 million in value based on alumni who pay taxes and save their money in D.C. after leaving GW, while also providing other services to the community like public mental health treatment and job training.
“The results of this study demonstrate that GW creates value from multiple perspectives,” the report states. “The University benefits the District’s businesses by increasing consumer spending in the District and supplying a steady flow of qualified, trained workers to the workforce.”
