ALBANY, N.Y. (Dec. 3, 2024) – The Commission on Independent Colleges and Universities (CICU) has produced an economic impact study to highlight the benefits that independent, non-profit colleges and universities bring to New York State.
The study, released today, reveals that in fiscal year 2022-23 independent colleges and universities in New York State contributed an estimated $97 billion to the state’s economy and supported more than 407,000 jobs.
New York State’s independent sector of higher education is the largest in the country. These institutions enroll 44 percent of the 1.1 million students enrolled in postsecondary education in the state and award 60 percent of bachelor’s and graduate degrees. Independent colleges and universities are major employers, purchasers of goods and services, and builders. Many of these institutions are also the primary employers in the communities in which they reside.
“Private non-profit colleges and universities in New York State serve as powerful economic engines, contributing significantly to the state’s overall prosperity. Their impact extends beyond direct spending to encompass job creation, research advancements, community impact, and the development of a highly skilled workforce. By investing in higher education, New York State not only strengthens its economy but also positions itself for future growth and innovation,” said CICU President Lola W. Brabham.
The report shows total economic impact in three areas:
- Institutional Impact: $70 billion – spending on research, construction, instruction, technology, salaries, and other operating expenses.
- Student and Visitor Impact: $5 billion – discretionary spending by students at local restaurants, retail outlets and other businesses.
- Academic Medical Center (AMC) Impact: $22 billion – a portion of patient revenue, spillover effects, and the estimated benefits of medical residents.
The Independent Sector supported 407,000 direct and spillover jobs in 2022-23, generating a payroll impact of $33 billion. This includes 196,000 direct, on-campus faculty, staff, and graduate assistant positions.
In addition to jobs, the tax benefit to New York State and its communities cannot be discounted. Employees of private, nonprofit colleges and universities and others whose employment depends upon these institutions contributed more than $2 billion in state personal income tax revenue, as well as state and local sales tax revenue.
The Independent Sector is educating the next generation of leaders and innovators. The analysis in the report shows that nearly 80 percent of New York State’s college and university R&D spending is made by independent, nonprofit institutions ($6.5 billion of $8.3 billion). More than 700 new patents were issued to these institutions, which represents 86 percent of all patents issued to higher education institutions in New York. Through ongoing research and innovation, 53 new startup companies originated on these campuses.
CICU’s Economic Impact study highlights the strength of New York’s Independent Sector of higher education and the need for New York State to invest in the sector’s colleges and universities to keep the state thriving. You can download the report at cicu.org/economic-impact.
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