Economic impact report 2013
For more than 100 years, Loyola University New Orleans has remained committed to acting as a catalyst for positive social change and community service in New Orleans while we educate students in the Jesuit tradition. Our efforts in these areas—community service and higher education—have, besides their innate qualities, a significant positive effect on the Greater New Orleans and Louisiana economies. These efforts work in tandem—a healthy economy supports a healthy community, and the same is true of the inverse. As a major employer with major expenditures to local companies, a magnet that attracts a highly skilled workforce and student body to the city, a university that graduates ethical leaders, and an institution committed to social justice, Loyola contributes substantially to the economy and community of our beloved hometown, New Orleans.
OUR ECONOMY, OUR COMMUNITY ECONOMIC AND COMMUNITY IMPACT REPORT Dear colleagues, $191.1 MILLION Economic Impact $103.3 MILLION For more than 100 years, Loyola University New Orleans has remained committed to acting as a catalyst for positive social change and community service in New Orleans while we educate students in the Jesuit tradition. Our efforts in these areas—community service and higher education—have, besides their innate qualities, a significant positive effect on the Greater New Orleans and Louisiana economies. These efforts work in tandem—a healthy economy supports a healthy community, and the same is true of the inverse. As a major employer with major expenditures to local companies, a magnet that attracts a highly skilled workforce and student body to the city, a university that graduates ethical leaders, and an institution committed to social justice, Loyola contributes substantially to the economy and community of our beloved hometown, New Orleans. to local businesses I am pleased to share with you this report on Loyola University’s economic impact this fiscal year and some of our programs that benefit the New Orleans community we hold dear. $391,718 With prayers and best wishes, Kevin Wm. Wildes, S.J., Ph.D., President $70.9 MILLION to faculty/staff/contractors service learning projects $16.5 MILLION spent by out-of-state students $191.1 MILLION: Loyola’s 2012 – 2013 Economic Impact Loyola adds substantial $103.3 million economic value to New Expenditures to local businesses, including those related to several large-scale construction projects Orleans by employing its residents, attracting talent to $70.9 million Employment of Loyola faculty and staff, as well as outside contractors the city, educating students to enter its workforce, and directly injecting money into its $16.5 million Impact of out-of-state students who spend money in our community markets. In the 2012 – 13 fiscal year, Loyola’s economic impact amounted to $191.1 million. $391,718 Service learning projects that provide student support for local organizations $57 MILLION: Construction + Capital Improvements $46.3 MILLION: Operational Expenditures Loyola is in the process of reshaping our physical campuses, which resulted in $57 million spent on construction and capital improvement projects this year. Daily operations and expenditures from Loyolaâ€”such as utilities, insurance, debt service, and miscellaneous office costsâ€” totaled $46.3 million this fiscal year. A large portion of this was paid to local companies that employ residents of Greater New Orleans. $34.2M: renovations to Monroe Hall (ongoing) $9.4M: renovations to Cabra Residence Hall (complete) $5.5M: renovations to Buddig Residence Hall (complete) $3.5M: acquisition and improvements to Veritas Hall (ongoing) $4.4M: other construction and capital improvement costs OUR COMMUNITY, OUR PARTNERS The Economic Benefits of Service and Social Justice Loyola’s interactions with the broader community shape the city’s civic, social, cultural, spiritual, and intellectual lives. These activities also enrich the city’s professional capacity and stimulate its vibrant economic life. Many community-focused programs and projects executed by Loyola faculty, staff, and students provide important economic benefits as they strengthen our community partners and enact our Jesuit commitment to social justice. For Service and Social Justice Community Partners in Economic Growth The Wage Claim Clinic in the College of Law’s Workplace Justice Project advocates on behalf of local wage theft victims to reclaim their earnings through legal actions implemented by our law students, under supervision of Loyola law faculty. Loyola has hosted the Louisiana Small Business Development Center (Greater New Orleans Region), operated in partnership with Delgado Community College and Xavier University, for more than 25 years. The LSBDC (GNOR) offers consulting, training, and resources to empower small-business owners and entrepreneurs in the region. In the 2012 – 2013 fiscal year, the Wage Claim Clinic sent demand letters on behalf of 70 individual workers, requesting $207,580 in stolen wages. In that year, through litigation and pre-trial litigation settlements or payments, the clinic recovered $53,052 for them. The Office of Service Learning connects Loyola to partner agencies throughout New Orleans and staffs them with students who supplement their academic work with related service. In 2012 – 2013, 602 Loyola students documented 20,265 service learning hours, an average of 33.7 hours per student. This is approximately equal to 10.5 annual fulltime equivalent jobs and, according to national community service agencies, $391,718 of in-kind value to the agencies for which the students work. These agencies are, by and large, nonprofit organizations that serve some of New Orleans’ poorest and most vulnerable populations, making students’ contributions an invaluable amount of support. Last year, the LSBDC (GNOR) worked with 948 clients to help generate $8.6 million in capital infusion and to create 194 new jobs in the region. Its efforts earned it the U.S. Small Business Administration’s 2013 SBDC Excellence and Innovation Award. The Shawn M. Donnelley Center for Nonprofit Communications consists of a small staff and pool of student volunteers who work with local nonprofit agencies to help them develop communications strategies. The services provide crucial support for nonprofits with limited budgets and resources as well as invaluable real-world learning experiences for Loyola students. The center’s staff and volunteers dedicated approximately 1,000 hours to the center’s mission last year through workshops, events, and one-on-one service. An Outstanding Cultural Resource New Orleans is among the most culturally rich cities in the country, and Loyola University New Orleans boasts the top fine and performing arts program of any Jesuit university in the United States. Accordingly, as a community resource, Loyola is one of the most important venues for public cultural events in the city, providing more than 100 events each year, the majority of which are free and open to the public. The College of Music and Fine Arts’ signature Montage Series of performing arts and exhibitions forms the foundation of high-caliber cultural events at Loyola. This annual monthslong series invites artists and musicians from around the world and from a variety of genres and disciplines— from graphic design to ballet, opera to theatre—to perform for the New Orleans public. The series includes performances and presentations from some of New Orleans’ finest local talent and Loyola faculty and students. Loyola regularly hosts visiting writers, intellectuals, politicians, and other speakers of note for free public engagements. In celebration of Loyola’s centennial in 2012 – 2013, the university hosted the Presidential Centennial Guest Series, which featured Archbishop Gregory Michael Aymond (the 14th and current archbishop of New Orleans), prominent news analyst Cokie Roberts, nine-time Grammy award-winner Wynton Marsalis, and New York Times bestselling author Nicholas Carr. New Orleans is the birthplace of jazz, the most important art form indigenous to the United States. Loyola works to cultivate this rich heritage by offering summer jazz camps to youth from throughout the region. The Loyola Summer Jazz Band Camp and the Louis “Satchmo” Armstrong Summer Jazz Camp engage young musicians in masterclasses, private lessons, and performances on Loyola’s campus that nurture students’ talent and instill in them this living tradition. The Center for the Study of New Orleans hosts annual events that celebrate and analyze New Orleans’ cultural milieu. In 2012, the center hosted Beats of the Street: The Brass Band Tradition in New Orleans, a daylong series of events that included musical performances, documentary film screenings, panel discussions, and presentations about the history of brass bands in the city. A Major Job Creator A Magnet for Talent OUT-OF-STATE STUDENTS STIMULATE LOCAL ECONOMY $16.5 MILLION Estimated spending by out-of-state students Loyola is a major educator of the local population as well as a magnet that draws talent to the city. Approximately 2,366 of Loyola’s 5,082 students came to the university—and New Orleans— from outside the state of Louisiana. Students who come to Loyola from out of state often become valuable members of the local workforce. They also contribute considerably to the local economy through consumption spending. Out-of-state students spent an estimated $16.5 million in 2012 – 2013, with $6.7 million of that going toward rent and other housing expenses. This spending stimulates the local economy and allows for continued job creation in the city. 2,748 TOTAL JOBS Loyola is a major employer in New Orleans, providing direct employment to highly skilled full- and part-time faculty and staff, as well as to construction workers and a variety of contractors who work on campus in dining and vending services, the bookstore, and facilities maintenance. Loyola attracts many of its talented faculty and staff from outside the region—including the nation’s best graduate schools and universities—dramatically enriching the caliber of the city’s workforce. 1,153 DIRECT LOYOLA EMPLOYEES 85 PT 612 staff 527 Full-time 1,153 full-time and part-time faculty and staff 330 Full-time 541 faculty 211 Parttime 1,400 construction employees (300 FT equivalent jobs) 195 full-time and part-time contract employees (146 FT equivalent jobs) Loyola paid an estimated $51.1 million after-tax payroll of and provided an estimated $13.9 million in fringe benefits to its employees during the year. Loyola employees spent an estimated $41.7 million of their earnings, with an estimated $9.4 million reserved in savings or other investments. 2,748 PEOPLE “PUT TO WORK” 1,153 Loyola employees Campus partner organizations paid approximately $3.8 million in salaries and benefits. Loyola’s employment activities generated approximately $2.1 million in state and local tax revenue. The labor-intensive nature of higher education means Loyola invests far more capital in its employees—who in turn invest their earnings in the regional economy—than companies of similar size in other sectors that spend large portions of their budgets on equipment and supplies from outside the area. 1,400 construction employees 195 campus service employees Operations and Expenditures: $103.3 million $46.3 MILLION TOTAL OPERATING EXPENSES $3.8 MILLION Utilities expense $2.6 MILLION Debt service expense $2.9 MILLION Insurance premiums $57 MILLION CONSTRUCTION/ CAPITAL IMPROVEMENT SPENDING $28.4 MILLION Normal operating budget $19.1 MILLION Miscellaneous expense $17.9 MILLION Grant or restricted accounts Economic and Community Impact at a Glance Loyola University had a $191.1 million economic impact on the Greater New Orleans region in fiscal year 2012 – 2013, making our impact approximately $515 million since 2010. Our physical campus is undergoing a historic transformation, which generated $57 million in impact related to construction last year, primarily benefitting local builders and architects. The College of Law’s Wage Claim Clinic recovered for its clients $53,052 in stolen wages as a result of law student-led legal actions. Loyola students documented 20,265 service learning hours, equal to 10.5 full-time jobs and $391,718 of in-kind value to our partner agencies. Loyola employees spent an estimated $41.7 million of their earnings in the city. Loyola is a major employer in a The College of Music and Fine city of small businesses. It put Arts’ signature Montage Series of 2,748 people to work last year as faculty, staff, contract, and construction employees. performing arts and exhibitions offered more than 100 public cultural events, from opera to jazz to ballet. Loyola paid $51.1 million after-tax payroll and provided $13.9 million in fringe benefits to its Loyola hosted 104 employees during the year. Summer Jazz Camp. local schoolchildren for the annual Loyola Summer Jazz Band Camp and the Louis “Satchmo” Armstrong