Higher Education - The New Hampshire Forum on the Future

Higher Education - The New Hampshire Forum on the Future

Higher
EDUCATION:
THE CORNERSTONE TO
NEW HAMPSHIRE’S PROSPERITY
A Higher Education
Economic Impact Report
2 0 03
A R E P O RT O F
SPONSORED BY
The New Hampshire Forum On Higher Education ■ 1
W
PUBLIC SERVICE OF
NEW HAMPSHIRE is proud
to sponsor Higher Education:
The Cornerstone to New Hampshire’s Prosperity.
This report highlights the significant impact
that New Hampshire’s higher education
institutions have on the state’s economy.
Gary A. Long
President & Chief Operating Officer
Public Service of New Hampshire
Member, NH Forum Board of Governors
EDUCATION AS AN INDUSTRY––
as a significant component of our state’s economic
identity––but indeed it is! If viewed as a business,
New Hampshire Higher Education would be a $1.5
billion corporation, with more than 15,400 employees,
$630 million in payroll, and 64,600 students.
Opportunities for New Hampshire’s future
prosperity depend greatly on the state’s
ability to educate its citizens.
ECONOMIC IMPACT 1991-2002
$3.50
3.01
$3.00
In Billions of Dollars
Opportunities for New Hampshire’s future prosperity
depend greatly on the state’s ability to educate its citizens.
Higher education institutions play an important role in
preparing skilled and knowledgeable employees for a
constantly changing economy. Further, universities and
colleges attract new businesses and industries to the area
by giving employers access to people and resources that
help their businesses prosper.
The importance of the partnership between business,
higher education, and government cannot be underestimated. In 2002 alone, higher education generated more than
$3 billion in our economy, contributed to the creation
of 4,418 new jobs, and increased investments in building
construction and research and development.As a result,
New Hampshire’s higher education institutions contributed
greatly to the economic well-being of the state. Staying
competitive in a quickly changing, global economy requires
our state’s educational institutions, businesses, and
government to collaborate in new and innovative ways.
New Hampshire’s high quality of life is directly related
to the historically strong relationship between business,
education, and government. In the past year, for example,
Public Service of New Hampshire collaborated with the
New Hampshire College & University Council on the Latino
Student Initiative in an effort to attract Hispanic students
to New Hampshire’s colleges and universities. In addition,
PSNH is encouraging young people to enter the engineering
profession at the University of New Hampshire by offering
them scholarships and employment opportunities.
I urge you to read the information in this report and
consider new ways for your organization to partner and
contribute to the economic growth of your community.
Higher education is truly the cornerstone to New
Hampshire’s prosperity because it’s an investment in the
future of our children, our communities, and our state.
Sincerely,
E RARELY THINK OF HIGHER
2.3
$2.50
1.9
$2.00
$1.50
1.4
2.0
1.4
$1.00
$0.50
$0.00
91-92 93-94 95-96 97-98 99-00 01-02
■
Higher education helped to generate more
than $3.01 billion as a result of the initial
expenditure of $1.5 billion, about 6.8% of
New Hampshire’s total gross state product
($44 billion).
■
Higher education economic impact grew
over $1.6 billion (114%) in the last 10 years.
■
Higher education contributed to the creation
of 4,418 new jobs throughout the State of
New Hampshire in 2001-02.
$3.1BMillion
ILLION T
• OTAL
$3.01
TotalH
Higher
IGHER E
Education
DUCATIONEconomic
ECONOMIC
Impact
IMPACT
$ 1 6 9 , 9 3 8 , 4 6 4 C a p i t a l I nve s t m e n t s
4 , 4 1 8 N ew Jo b s C re a t e d
$ 1 5 0 , 9 8 2 , 0 0 0 R & D I nve s t m e n t s
$ 1 , 1 6 0 , 6 1 1 , 0 0 9 R eve n u e s
$ 1 , 1 9 9 , 3 2 3 , 2 5 0 A n n u a l O p e r a t i n g B u d ge t
$ 6 2 8 , 4 5 8 , 5 4 1 S a l a r i e s , Wage s , B e n e f i t s
1 5 , 4 9 4 H i g h e r E d u c a t i o n E m p l oye e s
$ 1 3 7 , 4 5 6 , 0 0 0 S t u d e n t & Fa m i l y S p e n d i n g
1 3 , 0 3 5 D e g re e s Aw a rd e d
$ 6 , 0 8 8 , 7 7 6 Va l u e o f C o m m u n i t y Vo l u n t e e r H o u r s
$138,611,672 Institutional Financial Aid
A $3.01 Billion Industry1
T
Higher Education
oday, New Hampshire enjoys a strong reputation for dedicated and highly-
adds $12 billion dollars
skilled workers. Our state is uniquely positioned to ensure its leadership in
the economic recovery by supporting and leveraging diverse, public and private,
to the earnings of
higher education resources. Every college and university in New Hampshire is
committed to building a pipeline of knowledgeable workers and responsible citizens.
1All institutional data contained in this publication is self-reported as of Fall 2002.The impact per college
or university on the local economy was estimated in accordance with the American Council on Education,
1971, p.44. A very conservative economic multiplier of 2 is applied to direct expenditures (Operating
$1.1 billion + Capital $170 million + Student/Family Spending $137.5 million).
New Hampshire residents
over their lifetime.
WORK-LIFE EARNINGS for Full-Time Year-Round Workers Based on 1997-1999 Work Experience
Doctoral degree
$3.4
Professional degree
$4.4
Master’s degree
$2.5
Bachelor’s degree
$2.1
Associate’s degree
$1.6
Some college
High school graduate
Non high school graduate
$0.0
Source: U.S. Census Bureau current population
surveys, March 1998, 1999, and 2000.
$1.5
$1.2
$1.0
$1.0
$2.0
$3.0
$4.0
$5.0
In Millions of 1999 Dollars
The New Hampshire Forum On Higher Education
B
I
U I L D I N G
N F R A S T R U C T U R E
Capital Investments and Research & Development Exceed $320 Million
Capital Investments
Exceed $169 Million
CAPITAL EXPENDITURES 1991-2002
$180
■
$169
$160
In Millions of Dollars
$140
$137
$120
$102
$100
$60
■ New residence halls, sport
complexes, communications
centers, and major building
renovations exemplify annual
investments in the physical
infrastructure of New
Hampshire institutions.
$100
$83
$80
$76
$40
$20
$0
91-92
93-94
95-96
97-98
4,4182 jobs were created and
$372.3 million in gross state
product was generated as a result
of $169,938,464 million investment in campus capital projects.
99-00
01-02
Academic Year
2Utilizing the regional multiplier
methodology recommended by the
U.S. Department of Commerce
for every $1 million of campus
construction, a total of $2.19 million
of extra gross state product is generated.
Additionally, estimates are that 26 jobs
are created for every $1 million in
construction activity.
Research & Development Investments Exceed $151 Million
■ New Hampshire R&D
expenditures increased 91%
over the last 9 years as compared
to a 52% increase in other
New England states for the
same time period.3
the second quarter of 2000,
New Hampshire secured more
than $290 million in venture
capital, ranking fourth in the
United States in venture capital
invested as a percent of GSP.
■
New Hampshire higher
education institutions are an
important magnet to attract and
grow research and development
and venture capital.
3Source: New England Board of
Higher Education Analysis of NSF
WebCASPAR Database System
$160
•$151
$140
In Millions of Dollars
■ In
RESEARCH & DEVELOPMENT EXPENDITURES AT NEW
HAMPSHIRE DOCTORATE-GRANTING INSTITUTIONS: 1991-2000
• $127
$120
$100
$80
•$79
$99 $102
•$87 • • •$93 •$99
• $108 •
$117
$60
$40
$20
$0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
A Higher Education Economic Impact Report 2003
I
N V E S T M E N T S
Annual Revenues Exceed $1.16 Billion
■ Annual
revenues total $1,160,611,009.
■ Tuition
revenue ($450 million) is the primary
source of institutional operating budgets.
■
Higher education generates significant revenues
from out-of-state dollars.
• 59%4 of students attending New Hampshire
institutions are from out-of-state.
• Large portions of institutional revenues are
generated from other out-of-state sources
(federal grants, contracts, private gifts, and
other grant sources).
■
Institutions experienced a $20 million decline
in investment return in 2001-2002.
4Self-reported
for 1999-2000.
2001 REVENUES AT NEW HAMPSHIRE’S PUBLIC
AND PRIVATE HIGHER EDUCATION INSTITUTIONS
Annual Operating Budgets
Exceed $1.19 Billion
T
he annual operating budgets of
New Hampshire’s higher education
institutions totaled $1,199,323,250 in
2001-2002. Primarily, operating budgets are
expended in New Hampshire with local
businesses and in payroll for New Hampshire
residents. Institutions provided $628,458,541
in salaries, wages, and fringe benefits to 15,494
higher education employees in 2001-2002.
9%
Other
14%
Private
Sources
14%
Federal
Grants/
Contracts
39%
Tuition/Fees
16%
Auxiliary
Expenses
8%
State Appropriations
The New Hampshire Forum On Higher Education
BUILDING COMMUNITY COMMITMENT
STUDENT & FAMILY SPENDING 2001-2002
150
In Millions of Dollars
$129.2m
$137.5m
Student & Family Spending
■
Student and family spending in local communities exceeded
$137.5 million.
120
■
90
82,561 parent visits in 2001-2002 resulted in an economic
impact that exceeded $8.25 million.5
60
■ Students expend an average of $2,000 annually in the local
economy on food, entertainment, and other goods and services.
30
■ 64,600 students in New Hampshire directly spent an estimated
$129.2 in local communities.
$8.25m
0
Parent
Student
5It
Total
is estimated that parents expend, at a minimum, $100 locally per visit.
DEGREES AWARDED 2001-2002
2,841
Associate
Future Workforce
■
64,600 students were enrolled in 2001-2002.
■ 13,035 degrees were awarded in such diverse fields
as engineering, psychology, education, computer
science, and business.
2,720
Graduate/
Professional
7,474
Bachelor
More than 2,900 students participated in
formal internships with area businesses.
42% INCREASE IN HIGHER EDUCATION PARTNERSHIPS
WITH COMMUNITY ORGANIZATIONS OVER THE LAST FIVE YEARS
1,157
Number of Partnerships
1200
972
670,133 Community Volunteer Hours
Valued at $6 Million
Civic Engagement
1000
814
800
■ 1,157 community organizations benefited from partnerships
with higher education institutions.
600
■
579,169 student hours and 90,964 faculty and staff hours
were volunteered, valued at $6 million.6
400
■
147,032 community members attended campus-based
cultural events.
200
■
0
97-98
99-00
01-02
A Higher Education Economic Impact Report 2003
458,016 community spectators attended 1,666 sporting events.
6Value
of community volunteer hours is calculated by using $8 an hour for
students and $16 an hour for faculty and staff.
BUILDING STUDENT INVESTMENTS
Institutional Aid Exceeds $138 Million
P
ostsecondary education is essential for both personal success and the
strength of our economy. Long-term trends suggest that graduates
are more likely to participate in the workforce, are less likely to be
unemployed, enjoy higher earnings, and engage in their communities
and the democratic process. Over a lifetime, this creates dramatically
different prospects for families as well as for our entire state.
“ Since opening our Merrimack,
New Hampshire, campus in 1996,
Fidelity Investments has recognized
the importance of developing
$160.2 million represents 40,524 loans to students and parents,
guaranteed by the New Hampshire Higher Education Assistance
Foundation (NHHEAF), the state-designated guarantor for the Federal
Family Education Loan Program (FFELP) in fiscal year 2002.
strong relationships and partner-
■
part of the NH Forum On Higher
■
$138 million in institutional-funded grants and loans were made to
New Hampshire students in FY 2002.
■
ships within the higher education
community.Working together as
Education, business leaders, elected
$3.1 million in state-funded financial aid grants were made to 4,355
students in FY 2002.
officials, and dedicated education
■
professionals build business-
$2.3 million in scholarships were made to 1,452 students attending
schools in and out of state in 2001 by the New Hampshire Charitable
Foundation.
educational partnerships that will
lead to more effective, accessible,
and affordable ways to transfer
FINANCIAL ASSISTANCE ACADEMIC YEAR 2001-2002
skills and knowledge. In this way
we can ensure that our educational
7%
Non-Federal
Loans
3% Outside Scholarships
.5% State Grants
systems and institutions are
producing the kinds of highlyskilled thinkers and employees
9%
Federal Grants /
Pell Grants
upon which companies like
Fidelity Investments depend.
32%
Institutional
Grants
”
48.5%
Federal
Loans
Dale H. Gilpin,
Vice President & General Manager,
Fidelity Investments & Chairman,
NH Forum On Higher Education
The New Hampshire Forum On Higher Education
THE NEW HAMPSHIRE FORUM ON HIGHER EDUCATION
T
he needs of business, higher education, and government are increasingly
interconnected, and the continued vitality of our evolving economy depends on
our ability to anticipate future needs.Whether it’s specialized workforce training, building
awareness, or creating access to affordable higher education, addressing these needs
requires new levels of collaboration in an economy driven by information.
The New Hampshire Forum On Higher Education is a leading edge partnership of
business, education, and public policy leaders committed to ensuring a workforce of educated and well-trained
citizens to sustain New Hampshire’s economic prosperity.
We invite you to learn more about the Forum and how, together, we can work to address the needs of
New Hampshire’s students and businesses.Together, we can play a positive role in sustaining New Hampshire’s
educational advancement, economic growth, and quality of life.
We would like to express appreciation to NHCUC, NHHEAF Network, and the Postsecondary Education
Commission for their efforts and contributions to this report.
New Hampshire Higher Education Institutions
Antioch New England Graduate School
www.antiochne.edu
Magdalen College
www.magdalen.edu
Plymouth State College
www.plymouth.edu
Chester College of New England
www.chestercollege.edu
McIntosh College
www.mcintoshcollege.edu
Rivier College
www.rivier.edu
Colby-Sawyer College
www.colby-sawyer.edu
New England College
www.nec.edu
Saint Anselm College
www.anselm.edu
College for Lifelong Learning
www.cll.edu
New Hampshire Institute of Art
www.nhia.edu
Southern New Hampshire University
www.snhu.edu
Daniel Webster College
www.dwc.edu
NHCTC Berlin
www.berl.tec.nh.us
Thomas More College of Liberal Arts
www.thomasmorecollege.edu
Dartmouth College
www.dartmouth.edu
NHCTC Claremont
www.claremont.tec.nh.us
University of New Hampshire
www.unh.edu
Franklin Pierce College
www.fpc.edu
NHCTC Laconia
www.laconia.tec.nh.us
Franklin Pierce Law Center
www.fplc.edu
Hesser College
www.hesser.edu
Keene State College
www.keene.edu
Lebanon College
www.lebanoncollege.edu
For more information, contact:
Kelly A. Clark
Executive Director
NHCTC Nashua
New Hampshire Forum
www.nashua.tec.nh.us
On Higher Education
3 Barrell Court
NHCTC Stratham
www.stratham.tec.nh.us
Concord, NH 03301
NH Technical Institute Concord
Phone 603.227.5315
www.nhti.net
Email Kclark@gsmr.org
8 ■ A Higher Education Economic Impact Report 2003
Web www.nhhigheredforum.org
NHCTC Manchester
www.manchester.tec.nh.us