When measuring the impact of Binghamton University on the Binghamton Metropolitan Statistical Area (MSA)—which includes Broome and Tioga counties exclusively—we focus on both direct and indirect spending. Direct spending includes those expenditures by the University in the form of (1) salaries, wages, and fringe benefits; (2) operating expenses beyond salaries, wages, and fringe benefits; and (3) expenditures associated with capital costs and outlays.i
University Direct Expenditures
Salaries and wages are reported by the university through a number of methods, most notably through the U.S. Department of Education's Integrated Post-Secondary Data
System (IPEDS) submission process in which the university is required to participate every year.ii The salary and wage figure for Binghamton University was $275.4 million in FY2011. Operating expenses such as purchases of goods and services totaled $123.2 million in FY2011.
With regard to capital costs and outlays, we include funds expended through the State University Construction Fund and the Dormitory Authority of the State of New York. We do not include land purchases and equipment purchases because it is likely that these expenditures involve few funds that flow into the area in the form of labor or local or regional spending. Total costs and outlays for capital projects in FY2011 were $172.4 million.iii
Construction expenditures from Dormitory Authority funded projects accounted for $127.5 million in expenditures. The project to build the "new" Newing College dormitories is an
example of a large dormitory construction project that occurred in FY2011. As is usual practice with construction funding, we subtract a percentage of expenditure that we
estimate would not flow into the area (also known as "leakage"). After subtracting these elements, we estimate the total construction-related expenditures into the local economy and state economy were over $120 million in FY2011.
|Table 1. Binghamton University Direct Expenditures, July 1, 2010 to June 30, 2011|
|Salaries, Wages, and Fringe Benefits||$275,409,422|
|Good and Services||$123,169,539|
|Capital Costs and Outlays||$120,657,097|
|Binghamton University's Direct Spending||$519,236,058|
Student and Visitor Spending
In addition to its direct expenditures, Binghamton University's impact can also be measured through the spending of its students and visitors.
During the course of their academic study, students spend within the Binghamton area, in the form of rent, food, utilities, transportation, and in other ways. In July 2009, Binghamton University's Department of Geography surveyed students regarding their spending behaviors on and off campus.iv We are therefore able to estimate the amount of money students spend while studying at the university, as shown in Table 2 below.
|Table 2. Student Spending|
|On-Campus Undergraduate Students||6,268||$228||10||$14,291,040|
|Off-Campus Undergraduate Students||5,536||$854||10||$47,277,440|
|Off-Campus Graduate Students||3,091||$928||10||$34,421,376|
We therefore estimate total student spending at approximately $96 million during FY2011. This spending had an estimated economic impact of nearly $150 million on the local economy and helped support approximately 1,600 jobs in the local area.
We estimate that more than 225,000 visitors came to campus during FY2011, including parents, prospective students, event attendees, and others. The first kind of visit occurs when prospective students, their parents, and others, come to campus. The second kind of visit is for events, such as athletic, Anderson Center, or graduation events. The third kind of visit occurs when parents and others visit students during the course of the school year.
Using conservative estimates, we estimate that approximately 45,000 "out of area" visits occurred during FY2011. These visits involve staying in local hotels, eating in local restaurants, and spending on other items while in our area. Table 3 illustrates the estimates associated with out-of-area visits directly attributable to Binghamton University.
|Table 3. Visitor Expenditures, July 1, 2010 to June 30, 2011v|
|Total Out of
|Total Spent on
|Admissions Events||19,184||$ 441,230||$599,498||$ 1,040,728|
|Anderson Center Events||3,748||$64,646||$468,450||$533,096|
|Events Center Events||6,025||$34,641||$3,012,255||$3,046,896|
|Conference Center Events||1,200||$27,600||$100,000||$127,600|
|Visits to Students||4,851||$111,573||$1,197,225||$1,308,798|
We estimate that visitor expenditures exceeded $7 million during FY2011.
The University's total impact is estimated to be the total of direct and indirect spending times both regional and New York state multipliers as provided by the United States Bureau of Economic Analysis.vi Total and indirect spending during FY2011 was approximately $622 million.When the $622 million in direct and indirect expenditures are applied to the regional multiplier for the Binghamton Metropolitan Area (which includes Broome and Tioga counties), this becomes approximately $965 million in total impact. For New York state, this becomes over $1.2 billion in overall economic impact.
From a net impact perspective, the $622 million in direct and indirect spending directly attributed to Binghamton University produces an additional $342.3 million in economic impact for Broome and Tioga counties, and an extra $319.8 million for New York state beyond Broome and Tioga counties.viii
However, this only tells part of the story because the University impacts the region and state with regard to jobs and human capital.