i For this analysis, we chose to adopt what is called the "likely substitution" rule, meaning that we employ two decision rules when deciding which expenditures to include. First, expenditures are included if it is assumed that they would be expended outside the boundaries of the University, but within New York State. Second, we include such expenditures if it is reasonable to argue that such expenditures would not easily be substituted by other expenditures. See: John W. Siegfried, Allen R. Sniderman and Peter McHenry, "The economic impact of colleges and universities," Change, March/April, 2008, pp. 25-29.
ii FIA Survey, FY 2009-1
iii Disposable income equals the total salaries, wages, and fringe benefits minus an estimate of funds not returned to the area in the form of unspent fringe benefits and taxes. We estimate that New York State residents receive 81.8% in disposable income after taxes. See B. Adebeyo, “A study of the economic impact of Central Missouri State University on the local/state economies,” 2006. In addition, we estimate that 85.8% if state and federal taxes are returned in some form to residents of New York State. See The Economic Impact of Michigan State University, Anderson Economic Group, LLC, May 2, 2008. http://www.AndersonEconomicGroup.com, downloaded on January 17, 2009, p, 23; Appendix B-1, B-2.
iv SUNY Construction Fund (SUCF) report sent to Binghamton University’s Office of Institutional Research & Assessment, December 2010; Dormitory Authority of the State of New York (DASNY) report sent to Office of Institutional Research & Assessment, December 2010.
v Visitor expenditures are calculated by contacting various offices on campus and asking them for estimates of how many visitors attended events and conferences on campus. We then calculate the percentage of those we feel came far enough out of town to require a hotel room (usually no more than 10-15%). As is our practice, we use lower bound estimates.
vi See “An analysis of Binghamton University’s off-campus and non-permanent population: Model choice and economic impact, July 2009,” Brenden McGovern, lead author, Binghamton University Geography Department.
vii Total number of students is lower than total enrollment because we estimate that 3,200 students live outside Broome and Tioga counties. We use 10 months of residency to account for 4 weeks per month, which accounts for approximately 40 weeks of residency per year for undergraduate students.
viii We estimate that approximately 3,200 students live outside of Broome and Tioga counties. We assume that 90% of these students live in New York State (few out of state students live in rural Pennsylvania and pay out of state tuition) but outside these two counties. We then estimate that 30% of these students are graduate students and 70% are undergraduates. We then multiply the appropriate living expensed shown in Table 3, and then, assuming conservatively that 50% of the total is not measurable, take only 50% of the total. We then include these calculations to estimate the economic output and jobs created for New York State only.
ix RIMS II multipliers downloaded from the Bureau of Economic Analysis and are available from the Office of Institutional Research and Assessment. See also Zoe O. Ambargis and Rebecca Bess, “RIMS II workshop,”
x Direct expenditure data is taken from IPEDS form F1A for the time period of July 1, 2009 to June 30, 2010.
xi The Bureau of Economic Analysis estimates the impact of spending outside the Binghamton University area based on separate multipliers for the Binghamton Metropolitan Statistical Area (Binghamton MSA), which includes Broome and Tioga counties, and for New York State. These multipliers can be used to estimate an overall economic impact, including spending that occurs beyond a core economic area (in this case, spending within the geographic confines of Binghamton University). Such calculations also estimate the economic effects in both directions—the positive impact and the negative impact (what would happen in such spending were to suddenly disappear). For the Binghamton MSA, the “colleges, universities, and junior colleges” sub-item multiplier (under the general category “educational services”) is 1.6175, meaning that for every one dollar in direct and indirect spending associated with Binghamton University, the Binghamton MSA incurs an additional economic impact, in the form of dollars of economic output, of $0.6175. In addition, the RIMS II multiplier for New York State for educational services is 2.206, meaning that every dollar of direct and indirect spending associated with the university produces an additional $1.206 of economic output.
xii The average retirement income for the Broome County, New York region ($14,698) represents a lower-bound estimate reported by the U.S. Census Bureau, http://factfinder.census.gov.
xiii The economic multiplier used for this study does not differentiate between part- and full-time jobs.
xiv Alumni information was provided by Binghamton University Alumni Office. Zip code information on alumni was provided to the Office of Institutional Research and Assessment on February 15, 2011, which was then used to determine location of alumni residence. Information is alumni self-report only. Alumni zip code data merged in a database provided by SAS©.
xv Regions are taken from the New York State Visitor’s Network website, at http:/www.visitnewyorkstate.net. Downloaded February 17, 2011.
xvi See “Binghamton University Economic Impact Analysis, 2008-09,” Office of Institutional Research and Assessment, Binghamton University. We adopt a conservative estimate of alumni earnings by multiplying the total number of identified Binghamton University alumni by 85%, assuming that 10% are not working, and 5% are unemployed. We then take this number (36,225) and multiply it by a conservative estimate of average earnings ($36,225) per employed alumnus. This number is then multiplied by 3.2% average state (and other) taxes as a percentage of income and 2% in average state income taxes as a percentage of state income.
xvii The Office of Institutional Research and Assessment obtained the zip code information of all Binghamton alumni, and then created a file that enabled the office of plot zip codes on US and New York maps using SAS ©.
xviii In order to produce this table, we accessed the student record system available at the Office of Institutional Research and Assessment, and took tallies of students registered for clinical and practicum courses. We also consulted the latest results (2008) of the National Survey of Student Engagement to obtain an estimate of how many students engaged in volunteer service during their time of enrollment at Binghamton University.
xix In determining spending for the above categories, we took the total disposable income for all employees, as reported in the worksheet "expenditures," cell 13. We assume that most employees spend their disposable income in Broome and Tioga counties; percentages in the table are based on the Bureau of Labor Statistics Consumer Expenditure Survey (http//www.bls.gov/cex). The latest survey collection period was in 2008. Other universities have also used this survey; see Stanford University's economic impact study available in Binghamton University's Office of Institutional Research and Assessment. The mean income for employees in Broome County in $56,828.
xx See the U.S. Department of Education’s College Navigator© site at http://nces.ed.gov/collegenavigator for information on how to compare one institution’s data to other institutions’.
xxi See Binghamton University’s IPEDS Data Feedback Report supplied by the U.S. Department of Education (Sept. 2010), available from the Office of Institutional Research and Assessment.
The Economic Impact of Binghamton University (.pdf, 537kb)