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SUNY Economic Impact Studies: Three Perspectives

SUNY Economic Impact Studies: Three Perspectives. Julie Chiarito, SUNY New Paltz Carol Runge, Cayuga Community College Kathryn Foster, University at Buffalo Regional Institute. SUNY AIRPO Niagara Falls, NY June 9 th , 2011. Three Models. SUNY New Paltz : Original Design; 2008-09 Data

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SUNY Economic Impact Studies: Three Perspectives

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  1. SUNY Economic Impact Studies:Three Perspectives Julie Chiarito, SUNY New Paltz Carol Runge, Cayuga Community College Kathryn Foster, University at Buffalo Regional Institute SUNY AIRPO Niagara Falls, NY June 9th, 2011

  2. Three Models • SUNY New Paltz: Original Design; 2008-09 Data • Cayuga Community College: Contracted with EMSI, Inc., Fall 2008 • State University of New York: Study conducted by the University at Buffalo Regional Institute and Rockefeller Institute of Government, University at Albany

  3. State University of New York at New Paltz Economic Impact Study

  4. New Paltz Total Economic Impact 2008-2009 Study completed every 3 years starting in 2004 (2002-2003 fiscal year) The College, employees, students and visitors spent $184.8 million in the Hudson Valley and $207.5 million in NYS in the 2008-09 academic year. SUNY New Paltz generated $338.0 million in overall economic activity and 3,331 jobs in the Hudson Valley, and $398.6 million and 3,981 jobs in NYS annually. Measures New York State impact only, expenditures of any type occurring outside of NYS are not part of the analysis.

  5. Measuring Impact

  6. The Economic Multiplier Multiplier used for Indirect Impact: RIMS II input-output multipliers show how local demand shocks affect total gross output, value added, earnings, and employment in the region. https://www.bea.gov/regional/rims Cost - $275 per region (one for NYS, one for Hudson Valley)

  7. Salary Impact and Employment 3rd‐largest employer in Ulster County • 1,738 people full and part time • • 1,794 student workers  • • $67.5 Million Payroll (College + ) includes salaries paid out of • state • Where did we get these data: • Annual gross salary (State, IFR, DIFR, SUTRA ,CWS, Students) from PayServ queries plus data received from Auxiliary services, Student Association, Foundation, and Research Foundation • Full and part time workers based on Payroll 17 IPEDS reporting (State, IFR, DIFR, • SUTRA) plus data received from auxiliary services, Student Association, Foundation, • and Research Foundation. Student workers were by far the hardest to track. Student • workers include college workers, bookstore, student association, auxiliary services, • food service, and research foundation.

  8. Direct College Spending • $53.7 million on goods and services (excluding wages) in NYS • Supplies & Services • State University Construction Fund • Construction • Large-scale maintenance and renovation • Where did we get these data: • Financial Reports by Vendor from SUNY Legacy System (includes State, DIFR, IFR, and SUTRA) • Construction fund spending from System office • Auxiliary services (including bookstore and food service) from CAS • Student association, Foundation, and Research foundation

  9. Student Spending $101.3 million excluding tuition and fees • Where did we get these data: • Fall 2008 enrollment (Undergraduate / Graduate, on-campus versus off-campus) • Used enrollment to calculate: • Room • Board • Books & Supplies • Transportation

  10. Visitor Spending $3.9 million including both day and overnight visitors • Where did we get these data: • Spring 2010 student visitor survey conducted by IR & CCREO • Ulster County Department of Tourism provided estimated total visitor spending in 2008. Used these data to calculate cost per day visitor and cost per overnight • visitor • Limited by amount of data available on campus visitors. The visitor spending excludes • Commencement guests, orientations, open house visitors, athletic and arts events visitors as there was not enough information on who attended these events, or the length of their stay

  11. Alumni Impact 51,500+ working age New Paltz alumni age 65 or younger Generated $921.6M in value-added earnings (above what they would earn with just a high school diploma) • Where did we get these data: • Alumni Office data on number and age of alumni with Bachelors degrees • Assumes all alumni under the age of 65 were working and does not take in account unemployment or under-employment • The value added for having a Bachelor degree equals the average annual earnings for a Bachelor degree minus the average annual earnings of a high school degree. The value added for having a Master degree equals the average annual earnings for a Master degree minus the average annual earnings of a Bachelor degree. (Dept of Labor) • Value-added earnings not included in economic impact of SUNY New Paltz • as not all Alumni are part of NYS. Some limitations exist in the data for current • addresses.

  12. Volunteerism and Service 79% of College’s personnel volunteered their time, 100 hours on average • Where did we get these data: • Civic Engagement survey conducted in Spring 2010 by Center for Research, Regional Education and Outreach (CRREO)

  13. Some Limitations and Challenges • Labor intensive! Manual coding of expenditures for type of RIMS II expense, • approximately 10,000 lines of data. • Dependent on others to provide much of the data unless have access to SUNY legacy or PayServ reports for state expenditures • College spending based on July 1 – June 30 fiscal year. CAS spending based on April 1 – March 31 fiscal year. This created some difficulty for CAS in providing expenses for our fiscal year • Time consuming! Started in February – March timeframe. Final report done mid-summer • The impact of the college’s knowledge and expertise, services and cultural offerings on the lives of the community members, which cannot be easily quantified, can not be calculated.

  14. Cayuga Community College A Dynamic Environment +24.5% Enrollment Increase (2005-06 to 2010-11) 4,800 Students, 20th among 30 CCs in FTE Two Campuses: Auburn, Cayuga County and Fulton, Oswego County, Online (23%) Long-term Challenges: NYS HS Students, -27.2% between 2008-2019; 52nd among 62 NY counties

  15. Motivation to Fund Socio-Economic Impact Study New Leadership 1) Identified need for evidence to support value of Cayuga CC. 2) Perception of Cayuga CC sponsorship. 3) Guide and support future strategic decisions on program and resource allocation. 4) Value of independent assessment: Selected Economic Modeling Specialists, Inc. (EMSI, Inc.) Price = $10,000

  16. Model Inputs Financial/Economic: Similar to SUNY New Paltz Student Data: Headcount, Current and Historical Residence (During and After Attendance) Demographics: Age, Race/Ethnicity, Entry Level of Education Achievements (Graduation, Transfer, Credit Hours Earned)

  17. Regional Analysis Direct income of faculty and staff ($18.2 Million) Adjusted for monies from County that could have been utilized for other purposes. Student spending ($223,000) Spending attributed to students outside region. Higher income of students still active in workforce ($249 Million) Labor income (681,900 net Credit Hours x +$152/CHE) + Non-Labor Income (+productivity, property values and investments) Total Regional Impact: $267.8 Million

  18. Investment Analysis OVERARCHING GOAL: Net Present Value of Benefits and Costs Taxpayer Perspective Broad: Added income and avoided social costs Savings: Medical, Crime, and Unemployment Social Science Research: Studies that correlate levels of education to: -- Absenteeism, tobacco and alcohol use --Incarceration rate probabilities --Welfare probabilities and reduction Narrow: Limit overall public benefits to those that specifically accrue to state and local government.

  19. Investment Analysis STUDENT PERSPECTIVE Benefits - $199.7 Million Increased earnings ($36,900 / year, +37.7% to someone with HS diploma) Lifetime increased earnings --Income at students’ career midpoint --Assumes workforce age to be 24-65 Costs - $27.9 Million Tuition, fees and opportunity cost of time (adjusted for partial employment) State and local government funding Benefit/Cost Ratio = 7.2 ($199.8/$27.9)

  20. Conclusion Assumptions merit investigation; Factors included within models vary Review economic impact study methodology closely Cayuga CC enriches the lives of students, increases students’ income, reduces demand for social services, and contributes to the growth of the economy.

  21. Presentation to the SUNY Association for Institutional Research and Planning (AIRPO) The Economic Impacts of the State University of New York Kathryn A. Foster, Director, UB Regional Institute June 9, 2011

  22. 64 campuses

  23. Data Sources SUNY and the SUNY Research Foundation Survey of campus directors of institutional analysis and alumni relations National databases, including the American Community Survey and the Integrated Post-Secondary Data System (IPEDS) of the National Center for Education Statistics

  24. 2,132,600 463,800 4% 4% Students 92% …elsewhere in U.S. …elsewhere in world Who originated from… …within NYS 83,000 Employees 1,585,000 Alumni …who live in New York State

  25. $10.3 billion SUNY attracts… in revenues SUNYand affiliates (students , visitors)spend… $13.6 billion in expenditures generating and supporting… $19.8 billion These dollars circulate… in economic impact 173,000 jobs in NYS $460 million in taxes

  26. $19.8 B $5.10 = SUNY’s return on state investment $3.9 B return on investment for every dollar of state funding NYS appropriations

  27. 1.6 million SUNY alumni in NYS… Degree-requiring jobs in NYS …have credentials to fill 40% of all degree-requiring jobs in NYS… …even though SUNY generates only 30% of all degrees granted in NYS.

  28. In one year (2008-09): 78,800 SUNY grads 35,000 bachelor’s degrees 10,300 master’s degrees 2,500 doctoral/ professional degrees ...plus 2,800 vocational or post-grad certificates 31,000 associate’s degrees

  29. 20% of all businesses in NYS are within 1 mile of a SUNY

  30. Compared to the rest of their counties, these nine SUNY Impact Communities are… …younger …more diverse …more educated …more walkable And have lower… …housing vacancy rates …out of county commuting

  31. $604 million $2.1 billion $683 million $1.1 billion $3.7 billion SUNY and New York’s Regional Economies $2.1 billion $2.0 billion $1.3 billion 10 regions: …6 with nearly $2 billion or more economic impact from their SUNYs $3.9 billion $1.9 billion

  32. Capital District 219,000 SUNY students, alumni and employees

  33. 44,200 Capital District students attended a Capital District SUNY school. Where these students originated... 68% from within this region 26% 2% 4% from elsewhere in NYS from elsewhere in U.S. from elsewhere in world DIVERSITY Top 5 Countries: #1 China #2 S. Korea #3 Czech Rep. #4 Greece #5 India 24% Minority students Permanent home address of SUNY students by ZIP code, 2010 21% Students from a low-income ZIP code (20%+ children live below the poverty line) 18% Non-traditional students (age 30+)

  34. Capital District 166,000 SUNY alumni live in the Capital District. 103,000 63,000 …graduated from a SUNY in this region and stayed in this region. …graduated from a SUNY elsewhere in NYS and now live in this region.

  35. Capital District SUNY alumni hold degrees to fill Capital District workforce needs across industries. Capital District Social Services Tech. Trades Business & Finance Education Art Law & Public Service 30% 40% 50% 60% 70% 80% 90% 100% Communications & Media Computer & Mathematics Hospitality & Service Agric. Science, Engineering & Environmental Health

  36. Questions?? Julie Chiarito (chiaritj@newpaltz.edu) Financial Analyst, SUNY New Paltz – Institutional Research & Planning http://www.newpaltz.edu/makinganimpact/ Carol Runge (runge@cayuga-cc.edu) Director, Institutional Research and Planning, Cayuga Community College Kathryn Foster(kafoster@buffalo.edu) Director, University at Buffalo Regional Institute Sharon Ana Entress (entress@buffalo.edu) Senior Policy Associate, University at Buffalo Regional Institute Web:  http://regional-institute.buffalo.edu

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