CCSU - Economic Impact, 2007-2008
TOTAL ECONOMIC IMPACT
Central's impact on Connecticut's economy is extensive and diverse, ranging from its expenditures and student labor circulating through the economy and creating multiples of impact, to the rich effects of preparing and graduating of a highly educated workforce whose degrees represent value added to personal lives and the state's economy.
ESTIMATED ECONOMIC IMPACT
CCSU's annual estimated economic impact from expenditures (operating, capital, student spending) and student labor during the past year totaled $581.3 million*, a strong, clear measure of the University's role in enhancing the state's economy.
In 2008, CCSU granted 2,294 degrees, clearly aimed at preparing people for careers, as well as enhancing their collective intellectual and career growth. That number includes 1,677 bachelor’s degrees and post baccalaureate degrees, 616 master’s degrees and Sixth-Year Certificates, and 1 doctoral degree.
There are approximately 40,000 Central graduates, ages 65 and younger, living in Connecticut. On an annual basis, college graduates in Connecticut earn more than $22,000 above what they would have earned with only a high school degree. Assuming that 80% of Central gratuates are in the state's workforce, a Central education generates more than $700 million in value-added annual earnings, and these dollars circulate throughout the state's economy providing revenue for Connecticut and its many businesses. Perhaps as impressive, CCSU graduates have exceptional success in finding jobs and starting careers. Within one year of graduation, over 77% are employed.
CCSU's total annual operating expense for Fiscal Year 2008 was $198.9 million. These expenses directly support the University's mission-providing payroll benefits, educational equipment, library supplies, professional resources, repair and maintenance facilities, and other essential goods and services-and create an estimated economic impact of $423.66 million.
BUILDING FOR THE FUTURE
Marked progress has been made on CCSU's major campus revitalization program. In recent years several important, student-centered projects were completed, providing updated and upgraded facilities with state-of-the-art instructional equipment. These facilities enable CCSU to educate a largely state-based workforce that will continue to produce benefits for Connecticut well into the 21st century. (The annual average is determined by using the last five year total capital expenditures of $126.6 million and the standard economic multiplier of 2.13.
Work continues in making CCSU's campus welcoming, supportive, and sustainable. Recent total capital expenditures average $6.4 million annually, creating an economic impact of $13.7 million in FY 2008.
CCSU has played a vital part in New Britain's educational and cultural life since its inception in 1849. But we do not have "free rent" in the city. The University's land and buildings are owned by the State of Connecticut, which makes an annual Payment in Lieu of Taxes (PILOT) grant to New Britain. For fiscal year 2008, that payment was $4,032,898.
Our students contribute to the region's economy, too. More than 12,000 students are on the CCSU campus on a daily basis. Their estimated annual spending of $58 million (in addition to tuition, fees and room and board) generates an estimated economic impact of $123.5 million in the region.
STUDENT COOPERATIVE PROGRAMS
Co-op programs provide CCSU students with valuable work-related experience, as well as opportunities to make connections with potential employers. During the 2007-08 academic year, 217 CCSU students worked for 47 employers and earned $3,545,433.** The impressive figure represents another sharply focused indicator of how much and how well Central students contribute to businesses across the state. It is also noteworthy that nearly two thirds of them are offered full-time employment by the firms and agencies with which they work.
Connecticut businesses also rely on a wide range of internship programs and opportunities involving Central students. In a typical year CCSU interns provide nearly 435,000 hours of work, both paid and unpaid to area businesses, schools agencies and industries. Based on an average wage of $14.00, those hours readily translate into roughly $6.1 million in "free labor."
EMPLOYEE STATE AND FEDERAL REVENUE IMPACT
With more than 1,700-full and part-time employees CCSU is New Britain's third largest employer. The University also employs almost 900 students. In the past year, $3.6 million in state and $11.5 million in federal income taxes were withheld.
* Economic impact determined using a standard and customary multiplier coefficient of 2.13.
** Total earnings computed as follows: 217 students x 26 weeks x 40 hours per week x avg. hourly salary of $15.71