Whether it’s bars or science research, motels or the arts, Kansas University drives the Lawrence economy.

“It’s the No. 1 economic engine of Lawrence,” said David Burress, a research economist for KU’s Policy Research Institute.

The tentacles of the university extend far beyond Mount Oread.

The biggest impact, Burress said, was the sheer number of people who live in Lawrence because of the university, whether they’re students, faculty or staff.

KU employs about 1,400 faculty and 3,300 staff members. About 24,400 students enroll at the Lawrence campus each fall.

“You have to have the retail services for those people,” Burress said. “And they have to have a place to live.”

Having that many employees in town also stabilizes the local economy, said Lynn Parman, vice president for economic development at the Lawrence Chamber of Commerce.

“Being in a university community really acts to diversify our economy,” she said. “We don’t necessarily feel the extreme highs and lows.”

She contrasted that with Wichita, where the slump in the airline industry has led to thousands of layoffs.

The Lawrence workforce also is better-educated than that of many other communities. According to the 2000 Census, nearly 43 percent of residents 25 and older had at least a bachelor’s degree — the sixth-highest percentage in the nation.

Fringe benefits

College towns — including Lawrence — typically have more rental property and more bars and restaurants than other communities, Burress said.

“And because professors tend to be more cosmopolitan, they can support more variety in their restaurants,” Burress said.

Parman said having KU in Lawrence added to the cultural options for residents, since KU attracts touring theater, music, dance and art performances and exhibits in addition to local acts.

“The university offers many cultural amenities,” she said. “That leads to a higher quality of life, which helps me attract businesses.”

That economic development was another benefit of being in a university town, Parman said. A recent victory in that area was construction of Serologicals Corporation, an $18 million facility in the works in the East Hills Business Park.

“I’d say life sciences continues to be an area of strength for us,” Parman said. “We continue to market to life science companies. The university also is doing a lot of work with entrepreneurs and start-up companies, which are important, too.”

Burress said the drawbacks from having a university as a town’s major employer are fewer than, say, a manufacturing plant. The jobs are generally better-paying, and universities usually pollute less than other industries.

“It’s the kind of employer you’d like to have,” he said.