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Introduction
Texas A&M University–Texarkana (A&M–Texarkana), established in 1971, has today grown to serve 2,515 credit and 190 non-credit students. The university is led by Dr. Emily F. Cutrer, President. The university’s service region, for the purpose of this report, is referred to as the Texarkana Service Region and consists of Bowie, Camp, Cass, Marion, Morris, and Titus Counties in Texas and Little River, Miller, and Sevier Counties in Arkansas.
While A&M–Texarkana affects the region in a variety of ways, many of them difficult to quantify, this study is concerned with considering its economic benefits. The university naturally helps students achieve their individual potential and develop the knowledge, skills, and abilities they need to have fulfilling and prosperous careers. However, A&M–Texarkana impacts the Texarkana Service Region beyond influencing the lives of students. The university’s program offerings supply employers with workers to make their businesses more productive. The university, its day-to-day operations, its construction activities, and the expenditures of its visitors and students support the regional economy through the output and employment generated by regional vendors. The benefits created by the university extend as far as the state treasury in terms of the increased tax receipts and decreased public sector costs generated by students across the state.
This report assesses the impact of A&M–Texarkana as a whole on the regional economy and the benefits generated by the university for students, taxpayers, and society. The approach is twofold. We begin with an economic impact analysis of the university on the Texarkana Service Region economy. To derive results, we rely on a specialized Multi-Regional Social Accounting Matrix (MR-SAM) model to calculate the added income created in the Texarkana Service Region economy as a result of increased consumer spending and the added knowledge, skills, and abilities of students. Results of the economic impact analysis are broken out according to the following impacts: 1) impact of the university’s day-to-day operations, 2) impact of the university’s construction spending, 3) impact of visitor
spending, 4) impact of student spending, and 5) impact of alumni who are still employed in the Texarkana Service Region workforce.
The second component of the study measures the benefits generated by A&M–Texarkana for the following stakeholder groups: students, taxpayers, and society. For students, we perform an investment analysis to determine how the money spent by students on their education performs as an investment over time. The students’ investment in this case consists of their out-of-pocket expenses, the cost of interest incurred on student loans, and the opportunity cost of attending the university as opposed to working. In return for these investments, students receive a lifetime of higher earnings. For taxpayers, the study measures the benefits to state taxpayers in the form of increased tax revenues and public sector savings stemming from a reduced demand for social services. Finally, for society, the study assesses how the students’ higher earnings and improved quality of life create benefits throughout Texas as a whole.
The study uses a wide array of data that are based on several sources, including the FY 2018-19 academic and financial reports from A&M–Texarkana; industry and employment data from the Bureau of Labor Statistics and Census Bureau; outputs of Emsi’s impact model and MR-SAM model; and a variety of published materials relating education to social behavior.
CHAPTER 1:
Profile of Texas A&M University–Texarkana and the economy
TEXAS A&M UNIVERSITY TEXARKANA (A&M–Texarkana) is a comprehensive regional university that provides students with academically challenging, engaging, and rewarding educational experiences through quality teaching, scholarships, student support services, co-curricular programming, research, and service. Through the personal attention of its faculty and staff, students are afforded the opportunity to acquire the knowledge, abilities, and skills to become leaders in their chosen profession and to prepare for the opportunities of serving in a global environment. In FY 2018-19 A&M–Texarkana enrolled more than 2,700 students.
A&M–Texarkana was established in 1971. In its original form, it was named East Texas State University at Texarkana, and operated in close partnership with the town’s community college. After many years of growth, in 1996, along with the rest of the East Texas State system, the university became part of the Texas A&M University system. In 2010, it moved to a new campus, and since then it has continued to aggressively pursue new growth and the development of new facilities to better serve its students.
A&M–Texarkana is uniquely located at the intersection of four states—Texas, Oklahoma, Arkansas, and Louisiana. As a result, the university offers in-state tuition not only to Texans, but also to residents of Oklahoma and Arkansas, and to students from Louisiana parishes that border Texas. Wherever they come from, A&M–Texarkana students enroll in a wide variety of undergraduate and graduate programs. A&M–Texarkana’s central academic structures are its College of Business, Engineering, and Technology, and the College of Arts, Sciences, and Education, in which it offers dozens of different degrees. Some of its more notable programs include its 14 graduate programs, such as Accounting, Counseling, and Nursing.
Beyond for-credit programs A&M–Texarkana also supports its region and community through a variety of other programs. For example, the University’s Office of Extended Education and Community Development (EECD) partners with the community to offer certifications, trainings, and business and industry support at little or no cost. Areas covered range from legal education to industrial safety training. A&M–Texarkana also hosts the ongoing Program for Learning and Community Engagement (PLACE) which provides lectures and other educational opportunities to engage the community with the university’s academics. A&M–Texarkana students are afforded the opportunity to acquire the knowledge, abilities, and skills to become leaders in their chosen profession and to prepare for the opportunities of serving in a global environment.
