Binghamton University report highlights campus’ contributions to local, regional economy
Binghamton University faculty, staff, students and visitors spent more than $400 million in the 2004-05 fiscal year, providing an economic impact of about $700 million in Broome County and $894.5 million in New York State.
That’s according to a new report from the University’s Office of Institutional Research and Planning, which also found that:
• For every dollar the state invests in the University, about $8 is returned to Greater Binghamton and New York State.
• The presence of the University supports 11,900 full-time jobs in New York State, nearly 10,000 of which are in Broome County.
• The University spent $44.3 million on construction projects in 2004-05, resulting in an economic impact of nearly $100 million for the state.
• Volunteer services provided by students are valued at millions of dollars annually.
“This report demonstrates the many ways in which Binghamton University is a driving force for the Southern Tier,” President Lois B. DeFleur said. “Our students, faculty and staff are absolutely vital to the economic well-being of our region and New York State.”
Research analyst Daniel Jardine worked on the report, which uses a widely accepted modeling system developed by the U.S. Commerce Department to estimate the “ripple effect” the University has on the local and state economies. He noted the University’s impact on the local and state economies has grown steadily in each of the last four years for a change of about 12 percent from 2000- 01 to 2004-05.
Jardine said the report offers a better understanding for what an economic powerhouse the University really is.
What would the local economy look like if the University weren’t here?” he asked. “Consider that the University supports one in 10 jobs in Broome.”
The University spent $317.9 million on wages and salaries, goods and services and construction in 2004-05. As a result, an additional $222.6 million of economic activity was generated locally. The total impact of Binghamton University spending on the county economy was $540.5 million, while the total impact on the state was $689.8 million.
“New initiatives such as the Binghamton University Education and Community Development Center and the Linux Technology Center also help us contribute in new ways,” DeFleur added. “The bottom line is that money invested in the University is money well spent.”
The University also stimulates economic activity through spending by students and visitors. Binghamton’s nearly 14,000 undergraduate and graduate students spent about $74.4 million in Greater Binghamton in 2004-05, resulting in 1,785 Broome County jobs and an impact on the local economy of $126.5 million. The impact on New York could be estimated at $161.5 million. The report also estimates the economic effect of the nearly 75,000 annual campus visitors. It takes into account people who come for events such as graduation and homecoming, campus tours, family weekend and athletic contests and looks at their likely spending on hotels, food, entertainment and shopping.
By this model, visitors spent nearly $20 million in 2004-05 for a total New York State impact of about $43.2 million.
In addition, the report offers a conservative look at the contributions of Binghamton’s alumni. The nearly 51,000 Binghamton graduates of working age who live in New York State likely pay at least $80.4 million in state income tax and another $49.9 million in sales tax.