NEW YORK, Aug. 26, 2024 /PRNewswire/ — A staggering $3.2 billion. That was The City College of New York’s economic impact on 10 counties in the New York region in fiscal year 2021-22, according to the latest study by labor analytics firm Lightcast. The figure almost doubles the FY 2017-18 tally of $1.9 billion numerated by Lightcast (formerly EMSI) four years ago.
The study measures the economic impact of The City College — the founding college of the largest urban university system in the United States — on the business community and the benefits it generates in return for the investments made by its key stakeholder groups: students, taxpayers, and society. Lightcast focuses on what it terms the “CCNY Service Region,” 10 counties comprising of the Bronx, Kings, Nassau, New York, Putnam, Queens, Richmond, Rockland, Suffolk and Westchester.
“CCNY promotes economic growth in the CCNY Service Region through its direct expenditures and the resulting expenditures of visitors, students, and regional businesses. The college serves as an employer and buyer of goods and services for its day-to-day, construction, and research operations,” said Lightcast. “The college’s reputation and activities attract visitors and students from outside the CCNY Service Region, whose expenditures benefit regional vendors. In addition, CCNY is a primary source of higher education to the CCNY Service Region residents and a supplier of trained workers to regional industries, enhancing overall productivity in the regional workforce.”
Lightcast calculated the impacts created in the region by CCNY in FY 2021-22, when it served 17,491 students, as follows:
- $365.8 million – operations spending impact;
- $46.7 million – research spending impact;
- $62.4 million – visitor spending impact;
- $36.7 million – student spending impact; and
- $2.7 billion – alumni impact.
This adds up to $3.2 billion or equivalent to 25,121 jobs supported by CCNY, which was founded in 1847 and is the oldest institution in the City University of New York (CUNY) system.
In addition, total taxpayer benefits amount to $757.5 million, the present value sum of the added tax revenue and public sector savings. For every dollar of public money invested in CCNY, taxpayers will receive $1.70 in return over the course of students’ working lives. The average annual rate of return for taxpayers is 3.0%.
From the social perspective, New York invested $797.1 million to support CCNY in FY 2021-22,. In turn, the New York economy will grow by $6.5 billion, over the course of students’ working lives. Society will also benefit from $270.0 million of public and private sector savings. Overall, for every dollar invested in CCNY in FY 2021-22, people in New York will receive $8.50 in return, for as long as CCNY’s FY 2021-22 students remain active in the state workforce.
And for students pursuing an education at CCNY, it’s a win-win proposition from an investment standpoint. In return for their investment, students will receive a cumulative present value of $1.7 billion in increased earnings over their working lives. This translates to a return of $8.30 in higher future earnings for every dollar students invest in their education. Students’ average annual rate of return is 23.2%, according to the Lightcast study.
“This study helps to quantify the impact that we know City College and CUNY have on our regional economy — from the millions of dollars raised and spent by our faculty for high-impact research to the billions in added income that is generated by City College grads,” said CUNY Chancellor Félix V. Matos Rodríguez. “Every dollar invested in City College is returned to the public more than eight times over. When we say that CUNY’s 25 colleges and professional schools play a vital role in lifting New York, these are some of the impacts we are talking about.”
“The modern context of higher education demands that places like City College more deeply concern ourselves with our impact on society,” said CCNY President Vincent G. Boudreau. “The Lightcast Economic Impact Study has given an empirically grounded and verifiable account of our contributions to economic development. This study demonstrates unequivocally that the mission animating the founding of the Free Academy in 1847 is alive and well at today’s City College.”
“CCNY provides students with the education, training, and skills they need to have fulfilling and prosperous careers,” said Lightcast. “Furthermore, CCNY is a place for students to meet new people, increase their self-confidence, and promote their overall health and well-being.”
Lightcast sums up that its study demonstrates:
“That CCNY creates value from multiple perspectives. The college benefits regional businesses by increasing consumer spending in the region and supplying a steady flow of qualified, trained workers to the workforce. CCNY enriches the lives of students by raising their lifetime earnings and helping them achieve their individual potential. The college benefits state and local taxpayers through increased tax receipts and a reduced demand for government-supported social services. Finally, CCNY benefits society as a whole in New York by creating a more prosperous economy and generating a variety of savings through the improved lifestyles of students.”
The firm used data for the study from several sources. These include FY 2021-22 academic and financial reports from CCNY, the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, outputs of Lightcast’s Multi-Regional Social Accounting Matrix model, and a variety of studies and surveys relating education to social behavior. The study applies a conservative methodology and follows standard practice using only the most recognized indicators of economic impact and investment effectiveness.
Click here to access the entire report.
About Lightcast
Lightcast provides colleges and universities with labor market data that help create better outcomes for students, businesses, and
communities. Its data, which covers more than 99% of the U.S. workforce, is compiled from a wide variety of government sources, job postings, and online profiles and résumés. Hundreds of institutions use Lightcast to align programs with regional needs, drive enrollment, connect students with in-demand careers, track their alumni’s employment outcomes, and demonstrate their institution’s economic impact on their region. For more information, visit lightcast.io/solutions/education.
Contact: Jay Mwamba, CCNY, [email protected], Tel: 917.892.0374
SOURCE City College of New York, Office of Institutional Advancement and Communications
