The University of California, Santa Cruz, the largest employer in Santa Cruz County, brings in a substantial amount of money from outside county borders, most of which is spent in the county. The economic multiplier is a calculation used by economists to measure not just the actual dollars spent, but the value of those dollars when they are spent again. In essence, the economic multiplier shows the ripple effect of each dollar spent in an economy.
Purchases made by university employees play a major role in the economic vitality of the community.
The campus also uses outside funding to purchase local goods and services.