Calling it an “affirmation of the role of Fresno State,” Fresno State President Saúl Jiménez-Sandoval said the nearly $1 billion in local impact created by the university shows the symbiosis between it and the region.

“For generations, our university has been committed to advancing both the intellectual as well as the economic prosperity of our region. They go hand in hand,” Jiménez-Sandoval said. “And today, we have concrete data to demonstrate just how impactful our presence is.”

An economic report from the university’s Craig School of Business found an annual average of $954 million in business sales and $391 in worker income generated by Fresno State and its auxiliary activities.

The report comes as Jiménez-Sandoval has to deal with budget cuts at the state level. He wants to identify revenue streams to make up for reduced revenue from the California State University system.

That money directly affects Fresno, Madera, Kings, and Tulare counties, said report author Antonio Avalos, chair of the university’s economics department. But he said economic impact studies often forget about the people behind the numbers.

“We don’t want to forget that behind $1 billion, behind $49 million in taxes, we’re talking about people, we’re talking about families in the Valley,” Avalos said. “Some of which are making a huge effort to send their kids to school or the students here are actually making a huge effort themselves because they have to work sometimes two jobs, taking care of loved ones, they have to commute. It’s not just about the numbers. It’s about the effort.”

For Every 10% Increase in Bachelor’s Degrees, Local Income Averages Increase $17,000: Study

Tuition and grant money earned by the university goes back out into local and state economies.

“As the university spends money through students, offices, auxiliaries, they produce what we call a multiplier effect, which basically means that for every dollar that we spend, we generate a few more cents because people are spending and respending their money,” Avalos said.

The economic report would be the fifth since 1997. But comparing them to one another is difficult with inflation and as the study area has changed, Avalos said. Regardless, he expects there has been some modest growth in economic impact.

While education is the most obvious industry impacted, Avalos said, spending from the 11,000 people directly or indirectly employed because of Fresno State spread throughout the economy, such as at grocery stores who then hire more people to meet demand.

After an enrollment dip following the COVID-19 pandemic, Fresno State in 2024 had the biggest freshman enrollment in its history, according to the university.

With 80% of students staying in town, creating an educated workforce has other impacts as well. For every dollar a student spends on tuition, graduates earn an 8.21% return on earnings in the student’s lifetime, according to the study.

“Over a typical 40-year work career, this means the $1 you invest in your Fresno State education could grow to around $23,” said Julie Olson-Buchanan, dean of the Craig School of Business.

For every 10% increase in the number of bachelor’s degrees in an area, average median income goes up $17,500, Olson-Buchanan said.

“As we consider some of the challenges our community faces, such as the high percentage of our community living in poverty — nearly double the rate of California and the United States — this study underscores the importance of higher education,” she said.

Fresno State Accreditation Coming Next Year

In 2025, Fresno State will undergo the reaccreditation process with the Western Senior College and University Commission. Fresno State will be submitting the economic report along with other evidence of its teaching curricula and methods, said Douglas Fraleigh, executive committee chair of the WECUC reaccreditation committee.

Instead of going through the normal accreditation process, Fresno State can this time choose a theme to demonstrate the work it does in the community.

The theme for the university will be “flagship of the Central Valley,” Fraleigh said.

“Many of our students come from the Central Valley and many of our students stay in the Central Valley after graduation to have their careers, to start their families, and to be leaders and members of their community,” he said. “There’s really a symbiotic relationship between the Central Valley and Fresno State.”

Jiménez-Sandoval Looking for Revenue Options

With what was in June a $45 billion California budget deficit, the need for cuts trickled down to Fresno State, said Jiménez-Sandoval. He had to cut 5% last year. While the 2024-25 budget didn’t need cuts, the future is less certain.

Budget deficits impact the CSU system more than other public higher education systems, he said.

Community colleges can put bond initiatives on local ballots, and with their research fields, the University of California system can more easily secure grants than CSUs, he said.

Jiménez-Sandoval said he has been looking at alternative revenue streams to make up gaps. He is looking at industry partnerships and at federal government funding. Three years ago, grant writing was only $40 million. The university now has more than $78 million in grants.

“We are on a trajectory of really thinking about ‘how do I safeguard Fresno State as much as possible from the economic downturns that inevitably come to the state of California,'” he said.