WHEN OFFICIALS AT HARRISBURG UNIVERSITY of Science and Technology (Pa.) commissioned an economic impact study in 2001, they admit that at the time there wasn't much impact to report.
Harrisburg was starting from scratch, hoping to build a bricks-and mortar university from the ground up. But like any struggling startup, the school needed an infusion of cash-and a reason for grantors and legislators to open their pocketbooks.
With the help of Kaludis Consulting, a Washington, D.C.-based national consulting firm that has worked with hundreds of other schools on economic impact studies and financial strategy projects, Harrisburg U was able to offer more than just a vision of a brand-new school to grant-making organizations and government agencies. It had numbers that showcased the kind of economic vitality the new institution could bring to the community-new jobs, increased housing needs, and demand for retail and entertainment. In the university's first few years, the economic impact was estimated to be more than $14 million a year; a decade after starting up, the formulas predicted that Harrisburg U would pump nearly $45 million annually into the local economy.
The institution offered an array of benefits to the community, but boiling down its effect to dollars and cents likely helped cement its appeal to those throwing their financial support behind the school. Over the course of the university's existence, it's received more than $60 million in funding from local, state, and federal agencies to help construct buildings and pay for operating costs.
"The economic impact study was part of the supporting documentation and justification for why we thought grants should be awarded," says Eric Darr, provost and executive vice president at Harrisburg. "I'd say it's been effective." Considering that Darr puts the cost of the study at about $50,000, it's a remarkable return on investment-though he's quick to point out that it was just one of many different measures used to help secure funding.
'We would like to be able to grow as necessary. But we also want to be good neighbors.' -Victoria Mullen, Marist College
Harrisburg U was in a unique position when commissioning its economic impact study six years ago, but now that the school is up and running, officials have used the study as support for a successful tax-exempt bond offering. A future study, which Darr expects they'll likely do in a few more years, will offer more up-to-date numbers to help in winning continued support.
Startups aren't the only institutions of higher ed benefiting from economic impact studies. By now, college and university leaders are used to talking about the positive effect they can have on a community by educating students, providing cultural opportunities, and offering space and services for community groups. But in recent years, there's also been a push to look at an IHE's value in economic terms. Such impact studies can give credence to a push for funding, rally support for new development, and help build and maintain town-gown relations.
While few would argue that a school's economic impact is its most important contribution to a community, such numbers can be an important addition to the mix of assets an IHE brings to its community.
Building a Case
Leaders at Marist College (N.Y.), located in Poughkeepsie on the edge of Route 9, a well-traveled thoroughfare between Albany and New York City, found this to be true when an impact study was commissioned partly in response to negative local reactions to recent expansions. With a few buildings and parking areas bumped to the other side of the highway, some town residents began to grumble, particularly about traffic tie-ups.
Marist's director of institutional research and planning, Victoria Mullen, was asked to do an economic impact study, in part with the hope that its results would help dampen the frustration. "We wanted to provide information so people could see that waiting for students to cross the road, for example, is a minor inconvenience when we're bringing money, jobs, employment, and an educated workforce to the community," says Mullen. "We wanted them to see that there were a lot of benefits to having a college."
