independent higher education as an economic engine: the latest action research

Independent Higher Educationas an Economic Engine:

The Latest Action ResearchCommission on Independent

Colleges and Universities

Terri Standish-KuonVice President, Communications and Administration

December 4, 2002

1

Overview• Role of colleges

and universities– Education– Research– Economic benefit

of these dual missions

• The general public appreciates the connection– The economy and

education are top concerns

– Higher education related to economic development and quality of life

2

Role of colleges and universities

• Mission: education and research

• In the process of fulfilling these dual missions, Independent Sector campuses make a profound and sizable contribution to the economic well-being of New York State

3

The education mission

• Students can study anything in New York State — in a wide range of settings

• The Independent Sector includes: long-time leaders in women's education; the nation's largest group of private engineering schools and programs (15); more private medical schools than any other state (8); two dental colleges; 13 law schools; the greatest concentration of historically-religious institutions in the United States; plus nationally-recognized liberal arts colleges and research universities

4

Importance of higher education

• Businesses locate where talented, highly-educated, people live

• Higher education relates to income -- and thus to personal income tax revenues

5

New York’s higher education enterprise is unique

• Private colleges and universities in New York State compose the nation’s largest Independent Sector– Collectively, these

campuses are the State’s leading source of bachelor’s and graduate degrees

6

Independent campuses provide higher education access

• 426,000 students, most in baccalaureate and graduate programs– 290,000 New Yorkers

7

The Independent Sector produces in high-need disciplines

• Example: In 2000, two in three baccalaureate degree nurses in New York State — 2,906 nurses in all — graduated from an Independent Sector college or university

8

The research mission

• Colleges and universities bring federal and private dollars into the state through grants, awards, and research funding

9

World-recognized brainpower

• Top-notch minds work and study in New York State– 132 Independent

Sector faculty and alumni have won Nobel prizes

• 38% of the world’s total in economics

• 26% in medicine• 21% in physics

10

Universities attract federal funds• Higher education

institutions attracted nearly half of the federal R&D funds that came to New York State in 2000 (approximately $1.5 billion)

11

Investments in high technology/ biotechnology infrastructure

12

Additional capital investments

13

A foundation for technological competitiveness in world markets

14

Additional investment inresearch infrastructure

15

Economic effects

• Employ 131,000 individuals -- from teaching faculty to administrative staff to maintenance crew and cafeteria workers

• The sector encourages tourism, bringing families of students and other visitors to communities

16

Additional benefits

• Independent campuses promote entrepreneurship and business development, through dedicated centers and partnerships with area companies

• The Independent Sector helps stabilize communities

17

Collectively, independent campuses are major employers

• Employ 131,000 New Yorkers

• $6 billion payroll

• Generate $40.2 billion annually in economic activity

18

Higher education is a regional economic engine

• In the five boroughs of New York City– 185,000 students

– 65,165 employees• $3.2B in salaries

• In Central New York– 54,000 students

– 19,900 employees• $735M in salaries

19

Sharing knowledge

• New York’s independent campuses sponsor 500 research centers and institutes available to businesses and industry

• Searchable database: www.cicu.org– Click on “Experts Search” to find contact

information for academic researchers and program directors

• By keyword, location, and industry cluster

20

The general public links higher education and the economy

• Poll conducted in October 2002 for CICU by Zogby International– margin of error, ± 3.2%– sample: 1,007 adults

• 334 in New York City (five boroughs)

• 337 in Nassau, Suffolk, Westchester, and Rockland

• 335 in Upstate (remaining counties)

• Regional samples are individually valid; the statewide totals were calculated using appropriate weights to reflect the distribution of the state's population

21

It’s the economy - and education

• What is the single most important issue facing New York State today?

Most Important IssueOverall %

Jobs/economy 35Education/schools 20Taxes 13Terrorism 6State budget/spending 4Health care/prescription drug costs 3Crime/drugs/violence 3Environment 2Businesses and people leaving the state 1Welfare/child care 1Social Security/elderly 1Politics/government 1Utility rates 0Other 6Not sure 5

22

Leading issues: the economy and education

Most Important IssueNYC % Suburbs % Upstate %

Jobs/economy 35 29 41Education/schools 29 19 12Taxes 6 17 16Terrorism 6 8 4Crime/drugs/violence 3 2 2State budget/spending 3 5 5Environment 3 1 1Health care/prescription drug costs 2 5 3Welfare/child care 1 1 1Social Security/elderly 1 1 1Politics/government 1 0 1Businesses and people leaving the state 0 0 2Utility rates -- -- 0*Other 6 7 5Not sure 5 7 8

23

Colleges and universitiesanchor communities

• Is there a college of university in your local community?

Local Colleges Overall %Yes 88No 11

Local Colleges NYC % Suburbs % Upstate %

Yes 89 90 89No 9 9 11

24

Higher education important to the local economy

• How important is the college or university to your local economy, very important, somewhat important or not important?

Importance to Local EconomyOverall %

Very important 51Somewhat important 31Not important 14Not sure 4

25

Economic importance greatest Upstate

Importance to Local EconomyNYC % Suburbs % Upstate %

Very important 52 36 61Somewhat important 29 33 32Not important 14 24 5Not sure 5 8 2

26

Colleges and universities contribute to quality of life

• Please rate how the college or university contributes to the quality of life in your community, excellent, good, fair or poor, in each of the following areas:

Impact of Local Colleges on Quality of Life

Positive* Negative*An educated workforce 68 24The arts 63 28Technology 59 31Jobs 57 34K-to-12 education 49 35Community service 49 38Tourism 33 52(*Positive combines excellent and good; negative combines fair and poor)

Overall %

27

Colleges and universities matter to communities across the state

Impact of Local Colleges on Quality of Life

Pos* Neg* Pos* Neg* Pos* Neg*An educated workforce 69 24 61 24 70 26The arts 60 30 58 28 68 27Technology 56 34 55 29 66 29Jobs 54 35 52 36 64 31Community service 53 34 43 39 52 40K-to-12 education 51 35 45 36 48 39Tourism 31 50 25 57 40 52(*Positive combines excellent and good; negative combines fair and poor)

Upstate %Suburbs %NYC %

28

Summary• Role of colleges

and universities– Education– Research– Economic benefit

of these dual missions

• The general public appreciates the connection– The economy and

education are top concerns

– Higher education related to economic development and quality of life