Gainesville has dodged the worst of the economic downturn so far, aided by the stability that Shands and UF provide, according to Jenny DuRant, a chamber of commerce spokeswoman.
"We've been fairly insulated by the education and healthcare industries," she said.
UF and Shands, the top two employers in Gainesville, have a combined workforce of 27,000, according to the chamber's Web site.
In addition, UF and Sante Fe Community College have 60,000 students who spend money in the community.
"There are other businesses in Gainesville, but comparatively they are much smaller," said Stan Geberer, an associate of Fishkind & Associates, a financial consulting firm.
Connie Aguilera, owner of Simply Gorgeous gift shop, agrees that these institutions protect the local economy.
"There are the universities and the hospitals and then everything else spins off of that," she said.
But Aguilera still feels the downturn.
She stocks her shelves more carefully, only getting items she knows will sell and she works the sales desk when she wouldn't have previously.
But the relative protection afforded by local institutions comes with a downside, said Steve Orlando, a UF spokesman.
"It's kind of like putting all your eggs in one basket," he said.
Government-funded institutions provide economic stability, until state budget cuts put that stability in jeopardy, he said.
Officials at UF believe these relatively mild effects on the local economy could get worse if budget cuts continue.
"Our local economy may be insulated," said Ed Poppell, UF vice president for finance and administration, "But we are not immune."
The Florida legislature will meet in two weeks and begin its annual 60-day session. Based on fiscal projections, the legislature will pass a new state budget during the session
"That may be when it really comes home to roost," he said.
While Poppell expects budget cuts, he is optimistic about what the recent $782 billion stimulus package could mean for UF, he said.
"It's a lot of money overall, but when you start plugging every little hole it's used up quickly," he said.
Because of the effect that budget cuts could have on UF and Shands, the Chamber has also focused on expanding high-tech industries in Gainesville, DuRant said.
This effort is led by Gainesville Technology Enterprise Center, which has assisted companies such as Escape Media Group, which runs the music sharing Web site Grooveshark.
High-tech industry is generally cleaner than other industries, said Larry Kenny, a UF economics professor.
One of its drawbacks, however, is that many other cities are competing for the same type of business, particularly Orlando, he said.
UF is also making an effort to aid local businesses.
On March 2, the Heart of Florida Regional Summit will be held at UF. The program is meant to aid local business in surviving the tough economy, Orlando said.
