TAMIU Economic Impact Analysis FY 2024

FY 2024 ECONOMIC IMPACT ANALYSIS

REPORT CONTENTS 2 3 Acknowledgements 4 Executive Summary 6 Introduction 7 Texas A&M International University and the Webb County Economy 12 TAMIU Economic Impact on Webb County 19 Conclusion 7 TAMIU Employees 8 TAMIU Revenues 8 TAMIU Expenses 9 TAMIU Students 10 Webb County Economy 11 Webb County Education 13 Operations Spending Impact 14 Student Spending Impact 15 TAMIU Alumni Impact 16 Capital Expenditures Impact 17 TAMIU Total Economic Impact

3 ACKNOWLEDGEMENTS We would like to thank our fellow Texas A&M International University (TAMIU) staff members for their valuable contributions to this study. We are grateful to University President Dr. Pablo Arenaz † and Interim President Juan Castillo for entrusting the Texas Center with this report. Special thanks to Fred Juarez, Associate Vice-President for Finance and Administration, for providing timely data on the University’s financial composition; Juan Gilberto García, Jr., Vice President of Enrollment Management, for supplying data on the University’s student population and expenses; and Ociel Vazquez, Associate Director of Financial Aid, for his help with TAMIU student financial aid data. We also appreciate Rosanne Palacios, Vice President for Institutional Advancement, and Elizabeth Smith, Development Officer, for providing alumni data and information. Finally, we thank Steve Harmon, Director of Public Relations, Marketing, and Information Services, for reviewing and editing this report. RESEARCH & ANALYSIS Daniel Covarrubias, Ph.D. REPORT DEVELOPMENT Heleodoro Lozano

4 Texas A&M International University (TAMIU) generates substantial economic value for Webb County through its operations, student spending, and the long-term impact of its alumni. In fiscal year 2024 (FY24), TAMIU disbursed $77 million in payroll and benefits to 1,778 full and part-time employees, including faculty. The University spent an additional $26 million on operational expenses, including facilities, supplies, and professional services. This institutional spending creates significant multiplier effects throughout Webb County’s business sectors. The study finds that TAMIU’s direct spending on payroll, benefits, and operations, combined with student expenditures, generated $183 million in additional Gross Regional Product (GRP) for Webb County’s economy. This economic activity is equivalent to creating approximately 2,400 new jobs. Furthermore, TAMIU’s alumni-generated human capital and capital expenditures produced ancillary impacts of $191 million, equivalent to creating over 3,900 jobs. Together, these impacts represent 3.3% of Webb County’s total GRP. EXECUTIVE SUMMARY TAMIU Generated $374 Million in GRP and nearly 6,300 Jobs for the Webb County Economy in 2024

5 In FY24, TAMIU disbursed $103 million in payroll, benefits, and operating expenses to fund its day-to-day activities. This institutional spending generated an estimated $176 million in additional income for Webb County, equivalent to creating 2,257 new jobs. Operations spending impact 70% of TAMIU’s enrollment consists of full-time students, the majority of whom are Webb County residents who would likely leave the region without the University’s presence.TAMIU attracts students who relocate to Webb County specifically for their education. The spending on living expenses by both retained local students and relocated students contributes significantly to the local economy. In FY24, student spending generated $6 million in added income for Webb County, supporting 104 jobs in the region. Student spending impact Through their education, TAMIU graduates have developed enhanced skills and qualifications, increasing their productivity in the workforce. Today, thousands of these alumni contribute to Webb County’s economy as skilled professionals across various sectors. In FY24, TAMIU alumni working in Webb County generated $186 million in additional income for the region’s economy, equivalent to supporting 3,885 jobs. Alumni impact TAMIU regularly invests in construction and renovation projects to maintain and improve its facilities. While these construction projects create significant economic activity, their temporary nature requires a different analytical approach. To account for the variable timing of these investments, this analysis uses a ten-year average of capital expenditures. Based on this methodology, TAMIU’s construction spending generated $5.5 million in added income for Webb County’s economy in FY24, supporting 46 jobs. Capital Expenditures impact

6 INTRODUCTION The Texas Center for Border Economic and Enterprise Development has prepared this report to assess Texas A&M International University’s (TAMIU) impact on the Webb County economy. Universities are vital community assets that generate significant economic and social value at local, regional, and state levels. TAMIU creates value through multiple channels: enhancing student employability, facilitating research and innovation, and equipping students with skills for prosperous careers. As an international university at the Gateway to México, TAMIU serves South Texas as the cultural and intellectual hub of a vibrant multilingual and multicultural community. A proud member of The Texas A&M University System, TAMIU provides nearly 9,000 students with high-quality, affordable education built on a strong foundation in the arts and sciences. The University’s international agenda promotes global understanding across all disciplines while actively recruiting local Hispanic and economically disadvantaged students. TAMIU’s impact on student success continues to earn national recognition across multiple dimensions. The University’s commitment to being accessible, affordable, and exceptional is reflected in its numerous rankings: 8th among Texas’s Top Ten Universities in WalletHub’s 2025 College & University Rankings (the only regional A&M System campus to achieve this distinction)1, 5th nationally for “Best Bang for the Buck” among Southern Colleges in Washington Monthly’s 2024 College Guide2, and 4th for Best Value in Texas by Niche3, where it also earned an A- grade and ranked 5th among Top Public Universities in the State. The University’s academic excellence is particularly evident in its graduate programs, with its online MBA in International Business program ranked 1st nationally, its Online RN to BSN Program ranking 2nd in Texas, and its top-ranking status for twelve-degree programs from Intelligent.com across its various colleges4.

7 This study quantifies TAMIU’s economic contribution to Webb County using IMPLAN Input/Output (I-O) modeling. IMPLAN combines comprehensive economic databases with sophisticated modeling software to estimate both direct and indirect economic effects. The model calculates impacts through industry-specific multipliers, local purchase coefficients, and other economic relationships, providing a detailed picture of the University’s economic footprint in the region. TEXAS A&M INTERNATIONAL UNIVERSITY and The Webb County Economy As Webb County’s largest higher education provider, Texas A&M International University (TAMIU) significantly influences the regional economy. This study provides a comprehensive assessment of TAMIU’s economic impact by analyzing how spending by the University, its employees, students, and alumni generates additional economic activity throughout Webb County. The analysis draws on data from multiple sources for Fiscal Year 2024. This includes institutional data from TAMIU leadership (Vice Presidents of Finance and Administration, Institutional Advancement, Enrollment Management, and Academic Affairs), as well as external data from the Texas Higher Education Coordination Board (THECB), the U.S. Census, and IMPLAN economic modeling data. This section establishes the foundational context of TAMIU’s relationship with Webb County through key institutional data that underlies our analysis. TAMIU EMPLOYEES In FY24, Texas A&M International University served as a major employer in Webb County, with a total workforce of 1,778 individuals. This includes 687 full-time staff members, 779 part-time personnel, and 312 faculty members, as shown in Table 1.1. The entire workforce resided within Webb County, contributing directly to the local economy through their spending and participation in the community. TABLE 1.1: Employee Data, FY 2024 Source: TAMIU Staff & Administrators 687 Part-Time Employees 779 Faculty 312 Total Employees 1,778 1 https://wallethub.com/edu/e/college-rankings/40750 2 https://washingtonmonthly.com/2024-college-guide/best-bang-for-the-buck-rankings-south/ 3 https://www.niche.com/colleges/texas-a-and-m-international-university/ 4 https://www.intelligent.com

8 TAMIU REVENUES In FY24, Texas A&M International University generated total revenues of $181 million, as shown in Table 2.1. Government funding from local, state, and federal sources represented the largest share at 55% of total revenue. Student tuition and fees accounted for 20%, while the remaining 25% was derived from diverse sources, including research contracts and grants, private donations, investment income, auxiliary services, and other institutional services. TAMIU EXPENSES In FY24, TAMIU’s expenses totaled $156.9 million. The University’s payroll, including salaries, wages, and benefits, amounted to $76.8 million, representing 49% of total expenses as shown in Table 3.1. The remaining $80.1 million supported other institutional needs, including capital costs, operations and maintenance, and student scholarships. TABLE 2.1: Annual Revenues, FY 2024 Source: TAMIU Salary & Wages $58,429,332 Benefits $18,402,343 Utilities $2,598,938 Scholarships $16,413,982 Operations & Maintenance $20,016,957 Equipment (Capitalized) $3,451,743 Other Operating Expenses $12,276,831 Debt Service $13,776,051 Depreciations & Amortization $11,632,769 Total Expenses $156,998,946 Source: TAMIU State Appropriations $60,536,731 Tuition & Fees $36,170,895 Contracts & Grants $11,573,063 Student Financial Assitance (Federal & State) $38,411,157 Gifts $3,327,985 Sales & Services $1,695,487 Investment Income $27,000,374 Other Operating Income $2,352,431 Total Revenues $181,068,123 TABLE 3.1: Expenses, FY 2024

9 TAMIU STUDENTS In FY24, Texas A&M International University served 9,515 unduplicated students across spring, summer, and fall semesters, according to the Office of Institutional Research, Assessment, and Planning.The student enrollment distribution for Fall 2024 is shown in Table 4.1. The student body had an average age of 23 years, and women represented 62% of enrollments, while men accounted for 38% (Figure 1). TABLE 4.1: Student Enrollment, Fall 2024 Source: TAMIU Undergraduate 7,165 Graduate 1,747 Doctoral 33 Total Students 8,945 Source: TAMIU FIGURE 1: TAMIU Student Distribution by Age and Gender Fall 2024 40-49 < 18 18-19 35-39 22-24 25-29 30-34 20-21 50-64 65+ 500 1,000 1,500 2,000 2,500 Female Students Male Students 59% 60% 59% 64% 70% 74% 73% 59% 75% 67% Student’s Age Student Count The University’s ethnic composition was 94.3% of students identifying as minorities (including Black, Hispanic, Asian/Pacific, American Indian, and Hawaiian) and 5.7% as white. 62% of all TAMIU students are female, Fall 2024

10 THE WEBB COUNTY ECONOMY Webb County, TAMIU’s primary service region, is the largest county in South Texas and the sixth largest in the State of Texas, with Laredo as its county seat. Per the U.S census 2023 estimate, the county’s population was 269,148, with a distinctive demographic profile: 94.9% of residents identify as Hispanic, making it the county with the highest proportion of Hispanic residents among U.S. counties with populations over 100,000 and the second-highest proportion among all counties in the continental United States. As shown in Table 5.1, the county’s economic activity, measured by gross regional product (GRP), reached $11.4 billion. This figure represents the difference between the county’s total output of $22.1 billion and its intermediary inputs of $10.7 billion. TABLE 5.1: Webb County GRP, FY 2022 Source: IMPLAN Total Output $22,191,494,330 Total Intermediate Inputs $10,765,411,482 Total GRP $11,426,082,848 As detailed in Table 5.2, Webb County supports a workforce of 143,601 people across various sectors. Among non-government industries, the Transportation/Warehouse sector leads employment, providing over 23,500 jobs and representing 16.4% of the country’s total workforce. This study uses GRP as the primary metric to assess TAMIU’s economic impact on Webb County.

11 THE WEBB COUNTY ECONOMY TABLE 5.2: 2022 Employment Distribution Source: IMPLAN Government 22,262 Transportation / Warehouse 23,558 Health Care / Social Assistance 17,637 Retail Trade 13,163 Other Industries 66,981 Total Employment 143,601 FIGURE 2: Webb County Employment Count & Income Generation by Major Industries 2022 Government 50% Income Generation Employment Count 22,262 10% 20% 30% 40% Transportation / Warehouse Health Care / Social Assistance Retail Trade All Other Industries 23,558 17,637 13,163 66,981 $1,792,545,336 $1,380,876,568 $755,415,003 $458,824,484 $2,641,487,193 Source: IMPLAN WEBB COUNTY EDUCATION Educational attainment significantly influences earning potential in Webb County, as shown in Table 5.3. The data reveals a substantial economic advantage for those who pursue higher education: individuals with a bachelor’s degree earn an average annual income of $52,125, representing a $24,036 or 86% premium over those with only a high school diploma. TABLE 5.3: Earnings by Education Level Less than high school graduate $28,541 High school graduate (includes equivalency) $28,089 Some college or associate’s degree $37,786 Bachelor’s degree $52,125 Graduate or professional degree $65,320 Avg. Population 25+ years $36,604 Figure 2 illustrates the relationship between employment levels and labor income across Webb County’s industries, showing how different sectors contribute to the region’s economic vitality. Source: U.S. Census

12 IMPACT ON WEBB COUNTY Texas A&M International University generates substantial economic value for Webb County through multiple channels. As a major employer and consumer of goods and services, the University attracts funds that would not otherwise enter the local economy. This impact is amplified through its role as the region’s primary higher education provider, preparing students to become productive citizens and skilled professionals for regional industries. The University’s economic influence extends beyond its direct spending. When TAMIU employees spend their wages on local goods and services, this creates additional economic activity (indirect and induced), known as the multiplier effect. TAMIU ECONOMIC This impact is generated by TAMIU’s direct spending on capital projects, operations, payroll, and benefits. Direct Effect Impact These impacts are created through increased demand for goods and services from industries that support TAMIU, its students, and visitors. Indirect Effect Impact This impact results from increased household spending as TAMIU employees, students, and suppliers spend their earnings on local goods and services. Induced Effect Impact This effect occurs as local businesses and their employees in turn spend money within Webb County, creating successive waves of economic impact. The University’s capital investments in facilities and infrastructure generate economic value, strengthening the regional economy.

13 ECONOMIC IMPACT As a major regional employer and purchaser of goods and services, TAMIU generates substantial economic value for Webb County. The University’s workforce of 1,778 full-time and part-time employees in FY24, including faculty and staff (Table 1.1), represents a significant source of stable employment and income for county residents. The total payroll at TAMIU was $76.8 million, primarily spent in Webb County on mortgage and rent payments, heatlhcare, groceries, entertainment, and other household expenses. In addition, the University spent $38.3 million on day-to-day expenses related to facilities, supplies, and professional services, $16.4 million in scholarships, and $25.4 million in other expenses. OPERATIONS SPENDING IMPACT TAMIU’s operational activities generated substantial economic benefits for Webb County in FY24. The University’s spending on payroll, benefits, and operations created $176.5 million in added income for the local economy, as detailed in Table 6.1. This total comprises $102.9 million in direct economic impact from University spending, complemented by $73.6 million in indirect and induced effects as this money circulated through the local economy. TABLE 6.1: TAMIU Operations Spending Impact Source: IMPLAN IMPACT EMPLOYMENT LABOR INCOME VALUE ADDED OUTPUT Direct 1,778 $76,831,674 $76,831,674 $102,899,312 Indirect 132 $4,563,057 $8,216,989 $23,049,599 Induced 347 $13,433,692 $26,288,898 $50,589,914 Total IMPACT 2,257 $94,828,423 $111,337,561 $176,538,825 To put this impact in perspective, the $176.5 million in added income supports 2,257 jobs and represents 1.5% of Webb County’s total Gross Regional Product (GRP).

14 STUDENT SPENDING IMPACT The spending by students represents a significant economic force in Webb County. In FY24, TAMIU served 9,515 students, with 70% (6,661) attending full-time and 30% part-time. Our analysis focuses on student spending, which can be directly attributed to TAMIU’s presence in the region. We estimate that 35% of full-time students (2,331) would have left Webb County to pursue education elsewhere if TAMIU did not exist. Additionally, 262 students moved to Webb County from other states and countries specifically to attend TAMIU. Together these 2,593 students contribute to the local economy through their daily expenses. In Table 7.1, we estimate the average annual student spending at $2,961 per student. This total comprises personal expenses of $2,206 and average transportation costs of $755 for students living on and off campus. TABLE 7.1: TAMIU Student Spending per Semester Source: TAMIU STUDENT EXPENSES RESIDENT ONCAMPUS RESIDENT AT HOME WITH PARENT NON-RESIDENT ON-CAMPUS Tuition & Fees $9,496 $9,496 $23,930 Books, Course Materials, Supplies & Equipment $1,270 $1,270 $1,270 Living Expenses $10,826 $6,520 $10,826 Transportation $516 $994 $516 Miscellaneous Personal Expenses $2,206 $2,206 $2,206 TOTAL EXPENSES $24,314 $20,486 $38,748 Our analysis excludes room and board expenses since these are either captured in TAMIU’s operational impact (for on-campus students) or minimized because many off-campus students live with family.The total off-campus spending by these students generated $7.6 million in sales for Webb County businesses. Table 7.2 details how this spending created $6.4 million in added income for the Webb County economy, supporting 104 jobs.

15 TABLE 7.2: TAMIU Student Spending Impact IMPACT EMPLOYMENT LABOR INCOME VALUE ADDED OUTPUT Direct 87 $1,148,167 $1,937,649 $3,762,065 Indirect 10 $414,386 $670,693 $1,738,920 Induced 7 $258,171 $505,295 $972,340 Total IMPACT 104 $1,820,724 $3,113,637 $6,473,325 Source: IMPLAN TAMIU ALUMNI IMPACT Beyond its operational, capital, and student spending impacts, TAMIU creates substantial economic value through its alumni. These graduates represent significant human capital – the knowledge, creativity, imagination, and entrepreneurship that drive economic growth. Their TAMIU education has enhanced their productivity and earning potential in the workforce. The economic impact of TAMIU alumni stems from both their increased earnings and the associated employeradded non-labor income. According to the University's Vice President for Institutional Advancement (VPIA), TAMIU has 31,229 identified alumni, with 20,568 residing in Webb County. Of these local alumni, 19,081 earned undergraduate degrees, 4,834 earned graduate degrees, and 3,378 earned both undergraduate and graduate degrees. Currently, 3,958 alumni are actively employed in the Webb County workforce. U.S. Census Bureau data shows that TAMIU degrees significantly boost earning potential in Webb County. While workers with a high school education earn approximately $28,089 annually, TAMIU undergraduate alumni earn an average of $52,125, and graduate alumni earn $65,320. This represents an average salary premium of $30,634 for TAMIU graduates. The professional distribution of TAMIU's workforce-active alumni in Webb County spans several key sectors: Accounting and Finance (798), Business (1,500), Arts (215), Nursing (627), Education (1,460), and Engineering (160).

16 Using this distribution data alongside IMPLAN's regional overview and the North American Industry Classification System (NAICS), we mapped graduates to their likely employment sectors within Webb County. Our analysis shows that TAMIU alumni generated $185.8 million in added income for Webb County's economy in FY24, supporting 3,885 jobs. This calculation considers both the direct impact of alumni earnings and the broader economic effects as this income circulates through the local economy. TABLE 8.1: TAMIU Alumni Impact Source: IMPLAN IMPACT EMPLOYMENT LABOR INCOME VALUE ADDED OUTPUT Direct 3,300 $36,889,552 $49,065,116 $102,767,432 Indirect 369 $13,131,026 $21,517,511 $51,558,282 Induced 216 $8,367,708 $16,382,570 $31,521,966 Total IMPACT 3,885 $58,388,286 $86,965,197 $185,847,680 TAMIU CAPITAL EXPENDITURES TAMIU's ongoing investment in campus infrastructure is vital in maintaining its position as the region's leading higher education institution. While capital projects create significant economic activity, their temporary nature requires a distinct analytical approach. To account for the variable timing of construction investments, our analysis uses a ten-year average of capital expenditures, which amounts to approximately $3.5 million annually. Through the multiplier effect, these direct expenditures generate $5.5 million in added income for Webb County's economy, supporting 46 jobs, as shown in Table 9.1. Like the alumni impact, we classify capital expenditure effects as ancillary impacts in TAMIU's total economic contribution. Presented separately for analytical clarity, these construction impacts represent an important component of the University's overall economic influence on Webb County.

17 TABLE 9.1: TAMIU Capital Expenses Impact Source: IMPLAN IMPACT EMPLOYMENT LABOR INCOME VALUE ADDED OUTPUT Direct 34 $1,651,483 $1,848,136 $3,400,000 Indirect 4 $212,203 $378,291 $907,361 Induced 8 $320,769 $628,410 $1,208,901 Total IMPACT 46 $2,184,455 $2,854,837 $5,516,262 TAMIU TOTAL IMPACT The comprehensive economic impact of TAMIU on Webb County falls into two distinct categories: Total Operations and Student Impact and Total Ancillary Impact. The first encompasses the University's core economic activities: annual spending on payroll, benefits, operations, and student expenditures, along with their induced effects, as detailed in Table 10.1. TABLE 10.1: TAMIU Total Operations and Student Impact Source: IMPLAN IMPACT EMPLOYMENT LABOR INCOME VALUE ADDED OUTPUT Direct 1,865 $77,979,841 $78,769,323 $106,661,377 Indirect 143 $4,977,443 $8,887,682 $24,788,519 Induced 353 $13,691,863 $26,794,194 $51,562,254 Total IMPACT 2,361 $96,649,147 $114,451,199 $183,012,150 TAMIU’s continuing investments in its campus infrastructure generated $5.5 million of additional income and 46 jobs to the Webb County Economy in 2024 TAMIU CAPITAL EXPENDITURES

18 The second, presented in Table 10.2, captures the ancillary impacts of alumni contributions and capital expenditures. TABLE 10.2: TAMIU Total Ancillary Impact Source: IMPLAN IMPACT EMPLOYMENT LABOR INCOME VALUE ADDED OUTPUT Direct 3,334 $38,541,035 $50,913,252 $106,167,432 Indirect 373 $13,343,230 $21,895,802 $52,465,643 Induced 224 $8,688,476 $17,010,980 $32,730,866 Total IMPACT 3,931 $60,572,741 $89,820,035 $191,363,941 Finally, in Table 10.3, these combined impacts show $374.3 million generated in added value for Webb County's economy in FY24. TABLE 10.3: TAMIU Total Economic Impact Source: IMPLAN IMPACT EMPLOYMENT LABOR INCOME VALUE ADDED OUTPUT Direct 5,198 $116,520,876 $129,682,575 $212,828,809 Indirect 516 $18,320,672 $30,783,484 $77,254,163 Induced 578 $22,380,339 $43,805,174 $84,293,121 Total IMPACT 6,292 $157,221,887 $204,271,233 $374,376,093 This contribution represents 3.3% of the county's total Gross Regional Product, placing TAMIU among the top 2 percent of its industry sectors. The University's economic footprint supported nearly 6,300 jobs, demonstrating its role as a cornerstone of regional economic vitality. TAMIU TOTAL IMPACT TAMIU contributed 3.3% of the total Webb County GRP in 2024

19 CONCLUSION This study demonstrates TAMIU's multifaceted economic value to Webb County. The University strengthens local businesses through increased regional spending and provides a steady pipeline of skilled graduates who enhance the region's human capital. Beyond these direct economic impacts, TAMIU transforms individual lives by increasing graduates' lifetime earnings and creates broader societal benefits through a more prosperous regional economy. The University's positive economic impact manifests through two key mechanisms: the multiplier effect and return on investment (ROI). The multiplier effect quantifies how TAMIU's spending ripples through the Webb County economy. With a total multiplier of 1.76, every dollar invested in and by TAMIU generates an additional 76 cents in regional economic activity. The employment multiplier of 1.21 indicates that each TAMIU position supports an additional onefifth of a job in the broader economy. As a result, TAMIU's core activities support one out of every 61 jobs in Webb County. When including ancillary impacts, this rises to one out of every 23 jobs in the county. TAMIU also demonstrates strong fiscal efficiency through its return on investment. Against state appropriations of $60.5 million in FY24, the University generated $183 million in economic output from operations and student expenses alone, representing an ROI of 3.0. When including ancillary impacts from alumni and capital expenditures, this ROI increases to 6.2, underlining TAMIU's role as a powerful driver of regional economic growth.

FY 2024 ECONOMIC IMPACT ANALYSIS texascenter.tamiu.edu /txamiu.tc

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