Education and healthcare are major sectors in New York State’s economy. The Bureau of Economic Analysis estimates 20% of all jobs and 15% of total income statewide are generated by these two sectors.
CGR recently concluded our economic impact analysis of New York State’s independent colleges and universities sector, the eighth in an annual series. The sector’s 100+ private, not-for-profit higher education institutions are spread across the state, and collectively contribute approximately $88.8 billion to New York’s economy. Our study breaks this impact into three categories.
The first category is institutional impact, including spending on instruction, research, construction and salaries. In 2017, it totaled $64.5 billion.
The second category is student and visitor impact, capturing spending by students (e.g. at local stores and restaurants) and the many visitors attracted by colleges and universities (e.g. parents and conference / sporting event attendees). In 2017, the spending of these two groups totaled an estimated $4.8 billion across the state.
Lastly, our study examined the impact of academic medical centers, of which there are nine in New York State. We measure their impact by specialized patient revenue, and benefits from their residents and fellows. This impact totals $19.6 billion.
These schools’ spending spurs on other benefits, of course. Over 415,000 jobs and $2.2 billion in income and sales tax are generated by these schools’ economic activity each year. The independent college and university sector is but one segment of the “Eds and Meds” industry in New York State, but a significant and vital one at that.
|Top 10 NYS Independent School
(total impact in billions)
|New York University
|Weill Cornell Medical College
|Icahn School of Medicine at Mount Sinai
|University of Rochester
|New York Medical College
|Albany Medical College
Governor Andrew Cuomo, channeling the presidential campaign positions of Bernie Sanders and Hillary Clinton, has proposed eliminating college tuition for all families with income below $125,000. I was a tenured SUNY college professor in a former life—shouldn’t I be cheering Governor Cuomo’s call for free tuition for the children of nearly three-quarters of New York’s families?
But I’m not. Let me try to explain. Read more »
Higher education is a major contributor to our region’s prosperity. Home to 18 colleges and universities, total employment in the sector rose steadily during the recession and totaled nearly 35,000 last year, up 16% since 2007.
Yet Rochester higher ed stands out for more than just job and payroll totals. The community is home to a number of distinctive institutions that set the region apart. One of these, the National Technical Institute for the Deaf (NTID) at the Rochester Institute for Technology, may be better recognized outside Rochester than inside. NTID is the world’s first and largest technological college for students who are deaf or hard of hearing. Established by Congress in 1965, the first students entered in 1968.
A recent CGR study of NTID concluded that the Institute is responsible for more than 1,000 jobs, both direct and spillover, and over $50 million in labor income. Moreover, due to its national scope and reputation, it captured $84 million in outside funding (75% federal) over the 2006-11 period. NTID has done its part to strengthen higher ed in Rochester, boosting enrollment by 24% from 2007. Read more »
In 1940, fewer than one in twenty Americans had a college degree. Now it’s better than one in four. Fueled by a flood of American soldiers returning from WWII’s European and Pacific theaters, the GI Bill sparked an explosion in college enrollment that continues to this day.
Higher education boosts productivity and pay. The earnings gap between those with and those without a college degree is dramatic. According to the Census, individuals 25 or older with bachelor’s degrees earned nearly $22,000 per year (80%) more than those with only a high school diploma.
But what does college cost?
College pricing rivals health care in opacity—most students receive some form of “aid.” Just as in buying a car, few pay the “manufacturer’s suggested retail price.” Bloomberg Businessweek reports that 94% of students in NYS private colleges & universities receive some form of financial aid. Even in public colleges, two-thirds receive aid (in addition to the outright state support to the institution).
The College Board conducts an annual survey and reports that published tuition grew 52% from 96-97 to 11-12 while tuition net of aid (including federal tax credits) rose 22% over the period, suggesting that colleges and universities are increasing the “sticker price” at the same time that aid is also rising. Using the College Board’s figures on net tuition and fees, students beginning four year degrees in 2011 will pay an average of $52,000 in tuition over four years in private schools and about $10,000 in public schools. Many pay more and many pay less, of course. Consider, too, the cost of room and board—another $35-40,000—and foregone earnings. Read more »