Report: University adds $1.2B to state economy
By Katie Ellis
Binghamton University's overall economic impact is approximately $965 million annually for Broome and Tioga counties alone, and $1.2 billion for New York state, according to the University's most recent report, released in late October.
"'The Economic Impact Report of Binghamton University, FY 2011' clearly outlines the crucial role the University plays in building the economies of the Southern Tier region and New York state," said Binghamton University President Harvey Stenger. "As we implement our NYSUNY 2020 plan, approved in August by Gov. Andrew Cuomo and with the support of SUNY Chancellor Nancy Zimpher, Sen. Thomas Libous and Assemblywoman Donna Lupardo, we fully expect our economic impact to continue to rise as we increase both student enrollment and faculty and staff hiring."
The report, compiled by the University's Office of Institutional Research and Assessment, uses standard formulas to assess the impact of the University's economic output and also looks at the impact it has on jobs, human capital and return on investment.
Based on fiscal year 2011 — the most recent numbers available — Binghamton University accounts for an estimated 12 percent of the gross domestic product of Broome and Tioga counties through its direct and indirect expenditures, including salaries, goods and services, capital outlays, and student and visitor spending, which total over $622 million. When applied to the Binghamton Metropolitan Area regional multiplier, this $622 million grows to $965 million in total annual economic impact for the region.
Business and industry partnerships and the University's involvement with the Regional Economic Development Council are also key to its ability to contribute to the economy.
Initiatives such as the Center of Excellence in Small Scale Systems Integration and Packaging; the Center for Advanced Microelectronics Manufacturing in partnership with Endicott Interconnect, Cornell University and the Flex Tech Alliance; and the proposed Southern Tier High Technology Incubator that has received priority support from the Regional Economic Development Council help the University provide stability to the region and an added boost to the regional and state economies.
In terms of jobs, Binghamton University employs nearly 5,000 faculty, staff and student workers, and supports an additional 5,500 full- and part-time jobs in Broome and Tioga counties, and 225 full- and part-time jobs beyond the region, for a total of 11,000 jobs in New York state.
The report also tallies the number of Binghamton University alumni who reside in New York state and continue to contribute to its economic health. Fifty-seven percent of all Binghamton University alumni remain in the state — more than 12,600 of them in the Southern Tier — providing a sustained impact on the regional and state economies.
For taxpayers, the return on investment is great; for every $1 the state contributes to Binghamton University, more than $8 in additional economic output is returned to the state.