Brandman News

Sacramento Region Threatened by State Budget Cuts

April 13, 2011 by Social Team

Budget Cuts Increases Value Of Education

SACRAMENTO, Calif. (April 13, 2011) – A state budget that makes $25 billion in cuts will drastically impact the Sacramento region—especially the $9.6 billion education industry in six counties.

“The education industry is critical to our region’s economic prosperity,” said Matthew Mahood, Sacramento Metro Chamber President & CEO. “Not only for the work the sector does to educate our residents—but also for the huge injection of dollars into the region. Education institutions employ thousands of people who make consumer purchases throughout the region.”

A newly released Education Industry Cluster Economic Impact Report, commissioned by the Sacramento Metro Chamber, analyzes everything from elementary schools and universities to private technical colleges. The report pegs the impact on the economy at $9.6 billion—generated by $5.1 billion in direct impacts, $3.1 billion in employee spending and $1.4 billion in industry purchases. The study analyzed data from 2008.

Between 2004 and 2008, the education sector stood out as one of the region’s leading industries in terms of growth, racking up double-digit advances in terms of dollar value contributed to the economy. The annual dollar impact grew by 19.2 percent.

In fact, payroll for the education cluster employees totaled $4.2 billion in 2008. The largest sector, of course, is public education whose institutions employ 79,000 people in the region. Private sector schools account for 19,000 jobs.

“Brandman University is honored to partner with the Sacramento Metro Chamber on the Economic Impact Report 2010. Today’s students may access higher education directly after high school or might start or return to college after beginning a career or family.  It is imperative that a region provide a variety of educational opportunities.  The Chamber’s report illustrates that Sacramento Metro has successfully built the infrastructure to provide its residents many quality alternatives.  Brandman University, with three campuses and 800 students in the Sacramento area, is proud to be part of the solution,” said Gary Brahm, chancellor, Brandman University.

“The report demonstrates the positive economic impact that education has all around in our region,” Mahood said. “Our region is known for its innovation driven by our institutions of higher education. It’s what keeps us competitive with other regions across the nation—and world. Strong schools mean a skilled workforce—and that’s something that business must have to create jobs. Our schools have an impact that ripples through the generations. These proposed massive cuts in the state’s education spending will be likewise: all around, everywhere and down through the generations. It’s very concerning.”

To download a copy of the complete report, visit


Founded in 1895, the Sacramento Metro Chamber is the largest, oldest and most prominent voice of business in Northern California. The Metro Chamber represents more than 2,000 of the premier businesses and business organizations employing nearly 180,000 workers in the six-county Sacramento region. For 116 years, the Metro Chamber has served as the region’s leading proponent of regional cooperation and is a primary advocate on issues affecting business, job growth, business prosperity and the quality of life. With more than 100 free networking events a year, the Metro Chamber offers the best venues for making new business connections. Visit us at


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