Study: Local colleges, universities generated regional impact of $1.3 billion in 2018

Ten private colleges and universities in Northeast generated a regional economic impact of nearly $1.3 billion and produced more than 11,500 jobs in 2018, according to a study released by the Association of Independent Colleges & Universities of Pennsylvania.

BY DENISE ALLABAUGH, STAFF WRITER / PUBLI SHED: OCTOBER 27, 20 19

AICUP worked with Parker Philips Inc., a nationally recognized consulting firm specializing in economic impact analysis, on the study that shows the 10 colleges and universities also contributed more than $60 million in state and local taxes.

“Economic impact is an objective way to measure the significance of an organization in the regional economy,” said Nichole Parker, co-founder and president of Parker Philips. “It is a tool that policymakers can use to inform their decisions and (take) an objective look at the value of investing in an institution or entity. AICUP schools clearly make a major contribution to their local, state and regional economies in the short and long term.”

Schools in the study included , Geisinger Commonwealth School of Medicine, , , King’s College, , , , the and .

The study showed the 10 colleges and universities paid more than $238 million in salaries and more than $81 million of employee benefits.

Statewide, more than 90 independent nonprofit schools create or sustain almost 200,000 jobs in Pennsylvania every year in addition to generating an annual economic impact of $24 billion for the state’s economy, according to the study. The colleges and universities create both direct jobs and indirect jobs such as supply and equipment vendors and contractors. Jobs also are created in the community at hotels, restaurants and retail stores to support faculty, staff, students and visitors.

University of Scranton The University of Scranton had the largest economic impact of the 10 colleges and universities in the region: $330 million and 2,568 jobs. The university also generates about $16.5 million in tax revenues annually for the state and local governments, according to the AICUP study.

University spokesman Stan Zygmunt also pointed to a broader community impact report the university completed with the Institute for Public Policy and Economic Development in 2018, which details other ways the school impacts the region. Among the highlights of that report: 2,113 University of Scranton students from the J.A. Panuska College of Professional Studies completed 28,693 service hours in the 2017-18 academic year, most of which took place in Northeast Pennsylvania. Student, physician and nurse volunteers in the Leahy Clinic provide free health care services to Lackawanna County’s uninsured residents and that included 1,023 patients in 2017.

On average, each student spends $36 per month dining out downtown. The University of Scranton Small Business Development Center provided 908 consulting hours to 139 clients in Scranton in 2017 with a total of more than 12,000 hours in the last 38 years.

“The University of Scranton is proud to serve as an anchor institution in the City of Scranton, creating jobs, retaining and attracting talent, fostering innovation, and generating significant economic activity as part of a broad recovery and development effort,” University of Scranton Director of Community and Government Relations Julie Schumacher Cohen said in an emailed statement. “We are also proud of the ways in which our students, faculty and staff work with area agencies on service programs addressing such issues as health disparities, poverty and food insecurity, in addition to the numerous educational programs offered by the university for K-12 students at area schools.”

Wilkes University Wilkes University came in second for economic impact in the AICUP study, producing more than 2,300 jobs and $250 million in economic impact in 2018.

The study considered the university’s direct spending on operations, wages and benefits and capital projects. It also measured the effect of student and visitor spending and the effect of increased household income.

“This study just confirms that Wilkes University is a force for good in our region and throughout the commonwealth,” said interim President Paul S. Adams. “Supporting our community is a critical component of the university’s strategic plan. We are pleased to continue this progress and grow our economic impact year over year.” Wilkes University generates nearly $11.36 million in tax revenues annually, said Wilkes University spokeswoman Gabrielle D’Amico.

Additionally, Wilkes University provides a variety of services to the community in economic, social and cultural development. This includes the exhibitions at the Sordoni Art Gallery, services provided by centers supported by Wilkes including the Small Business Development Center and the Allan P. Kirby Center for Free Enterprise and Entrepreneurship and free lectures and events hosted at the university each year.

Misericordia University Misericordia University’s economic impact was estimated to be $130.9 million and 1,268 jobs in 2018.

The university also generates about $6.1 million in tax revenues annually for the state and local governments, according to the study.

Private colleges are among the top 25 employers in 30 of Pennsylvania’s 67 counties, said Thomas J. Botzman, university president. The Dallas Twp. school is responsible for 22% of the jobs in the Back Mountain, he added.

“That enviable record is mirrored across many of the communities that host a private college,” he said.

Botzman said Misericordia University also takes “great pride” in educating the largest number of health care providers in Northeast Pennsylvania, with seven distinct health care majors and a number of additional academic options.

“We are delighted to be a driver of prosperity here in Pennsylvania, but perhaps more important to us is our impact on the prosperity of our students,” Botzman said. “Our students benefit from excellent on-time graduation and retention rates and are professionally prepared to do well in their chosen careers.”

Geisinger Commonwealth School of Medicine The economic impact of Geisinger Commonwealth School of Medicine was estimated to be $62.2 million and 462 jobs in 2018. The study concluded that the school generates about $2.8 million in tax revenues annually for the state and local governments.

Elizabeth Zygmunt, spokeswoman for the Geisinger Commonwealth School of Medicine, said the school is an anchor institution in Scranton whose students participate in large-scale volunteer projects, including Colleges Building Community, which last month packaged 25,000 meals for needy families in the Scranton School District.

The school is part of the overall Geisinger system, which has invested close to a quarter of a billion dollars in Scranton alone, she said.

Other colleges The economic impact of Marywood University was estimated to be $192.6 million and 1,582 jobs in 2018. For King’s College in Wilkes-Barre, the economic impact was estimated to be $125.1 million and 1,206 jobs, according to the AICUP study.

Marywood University generates approximately $8.2 million in tax revenue annually for state and local governments and King’s College, about $6 million, according to the study.

The economic impact of Lackawanna College was estimated to be $89.9 million and 839 jobs. Johnson College’s economic impact was estimated to be $22.7 million and 236 jobs, according to the AICUP study. Lackawanna College generates about $4.1 million in tax revenues annually and Johnson College, about $1.1 million, according to the study.

Keystone College’s students and employees contribute approximately $16 million to the local and state economy each year, according to a report provided by college spokesman Fran Calpin.

During the last 10 years, Keystone College’s total economic impact has been more than $150 million, according to the report.

The college, founded in 1868, has about 200 full-time and about 200 part-time employees, including adjunct instructors. The college’s employees have an approximate take home pay of about $9 million, most of which is spent in the local community, the report showed.

The economic impact of Clarks Summit University was estimated to be $27.2 million and 296 jobs in 2018, according to the AICUP study, and generates about $1.2 million in tax revenues annually for state and local governments.