Economic & Service Impact Report

Economic & Service Impact Report January 2015 Anand Shetty, Ph.D., Chair & Professor of Finance John Manley, Ph.D., Professor of Finance

Foreword Since its founding in 1940, Iona College has made an impact on the lives of more than 40,000 students by fostering their talents and setting them on a path to move the world. Iona has a global impact through our students, faculty and alumni. In our 75 years in New Rochelle, Iona College, as the city’s second-largest private employer and a significant service provider, has also made an impact on the city and local region. In the spirit of the Christian Brothers and the legacy of Blessed Edmund Rice, the Iona College Community has a mission of service and making a positive impact.

This report was commissioned to quantify the economic impact Iona has as a member of the City of New Rochelle and the local region. This project, a component of Iona’s ongoing strategic plan, would not have been possible without the hard work of professors Anand Shetty, Ph.D., and John Manley, Ph.D., as well as members of the strategic plan subcommittee tasked with expanding community partnerships. I extend my sincere thanks and appreciation to them for their dedication to this study.

Clearly, Iona has a positive impact on the region in many ways; at the same time, our community positively affects Iona. New Rochelle, Westchester County, and the larger New York City metro area are the ideal location for a college of our type. In January 2014, the College announced a campus master plan with a large component dedicated to developing and enhancing North Avenue in partnership with the City of New Rochelle. Additionally, Iona was selected as a participant in Start-Up NY, a program which will help start, expand or relocate qualified businesses to tax-free zones in New York State, further supporting the economic development of the region.

Over the recent years, the College has worked to expand numerous academic and cultural programs that are offered to students and even the local community. These include introduction of a new cyber security concentration in the computer science program, development of a Center for Health Care Analytics as well as the Institute for Thomas Paine Studies, and acquisition of the Thanhouser film archives.

The vitality of Iona College has also been recognized in the last few years by Payscale with its ROI (return on investment) ranking of the College as 87th among more than 1,300 colleges and universities reviewed. Payscale has also ranked our Hagan School of Business among the top 50 in graduates’ salary potential. In mid 2014, Moody’s upgraded the College’s credit, making Iona one of only nine colleges and universities nationally to be elevated. Later in the year, Standard & Poor’s followed suit. This recognition will have a long-term effect on Iona’s success, and thus a positive impact on our neighboring communities.

The results of this new economic and service impact study are an indicator of Iona’s commitment to reaching beyond the walls of our classrooms and the immediate boundaries of our physical campus. As Iona College embarks on our next 75 years as a part of and a major influence in the region, we will continue to explore and develop partnerships that not only will benefit the College, but the region at large.

Joseph E. Nyre, Ph.D. President, Iona College

Contents Introduction 5 »» Iona as an incubator of economic activity »» The scope of Iona’s impact on the local and regional economies •• •• •• ••

Output Income Employment Tax revenue for local state government

»» Drivers of economic impact Background of Iona College 5 »» Brief history »» Schools, accreditations and national ranking Methodology 6 »» Economic impact is estimated using the multipliers derived from the RIMS II Input-Output model developed by the Bureau of Economic Analysis, Department of Commerce »» Drivers of economic impact •• •• •• •• ••

Core spending of the College Employee spending Student spending - discretionary and nondiscretionary Spending by visitors - families, attendance at sponsored activities Volunteer activity

»» Estimation of direct, indirect and induced impacts on output, income and employment Data and Estimation

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»» Sources of data »» Direct Spending Data •• •• •• ••

Institutional spending Employee spending Student spending Visitor spending

»» Value of volunteer time »» Estimation of Impacts using RIMS II multipliers constructed for the region Other Economic Benefits

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Conclusion 16 Exhibits 19

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Highlights In the year 2012-2013, Iona College contributed $66,752,645 in spending directly to the economy of the Region (Westchester County/Bronx) and $46,157,747 in spending directly to the economy of New Rochelle, excluding capital expenditures. »» The Economic Impact on the Region attributed to Iona College: •• The total estimated impact on output in the Region is $117,457,954.

•• The total estimated impact on employment in the Region is 2,129, including 1,325 employees of the College. »» The Economic Impact on New Rochelle attributed to Iona College •• The total estimated impact on output in New Rochelle is $81,219,172.

•• The total estimated impact on employment in New Rochelle is 1,882, including 1,325 employees of the College.

Direct Spending of Iona College Institution

Employee

Student

Visitor

Service

Total

Region: Westchester & the Bronx

$10,380,301

$26,777,185

$25,389,900

$3,826,134

$ 379,125

$66,752,645

City of New Rochelle

$ 6,341,211

$10,221,377

$25,389,900

$3,826,134

$ 379,125

$46,157,747

Total Economic Impact Output

Earnings

Employment

Value added

Region

$117,457,954

$30,185,546

2,129

$68,915,430

New Rochelle

$81,219,172

$20,872,533

1,882

$47,653,258

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INTRODUCTION Economic Impact of Iona College This economic impact study was commissioned by the Office of the President as part of goal 5.3 of the strategic plan charge for the academic year 2012-13. The purpose of the study is to assess the contribution of Iona College to its surrounding community in terms of income generation, employment and GDP. For this study, the City of New Rochelle is defined as the immediate community and Westchester County and the Bronx are defined as the wider community herein referred to as the ‘Region.’ The presence of a major employer and service provider, such as Iona College, has significant effects on surrounding communities. Iona serves as an incubator of economic activity through its direct purchases of goods and services, as well as the spending by its employees, students and visitors. Besides its day-to-day economic interactions with the region through its spending, Iona plays a vital role by contributing an educated workforce to the region and to the nation at large. This workforce, through its spending, makes further contributions to the community in terms of income, employment and tax revenue to local and state governments, which is often referred to as the forward-linkage effect. This study does not include the impact of Iona College’s additional operations in Orange County and New York City, nor does it include the impact of capital expenditures.

There is a common misconception about the tax-free status of a not-for-profit (NFP) institution such as Iona College. It is often believed that NFPs do not contribute to local governments by generating tax revenues, while receiving the benefits of municipal services. On the contrary, colleges do generate state and local tax revenues (D’Allegro and Paff, 2010). Local governments receive increased revenues as a result of (1) the additional taxes paid on higher earnings of college graduates who remain in the area, (2) the income taxes paid by college employees, (3) the sales taxes generated by student, faculty, staff and visitors of the college when they make purchases in the local areas and (4) taxes paid by vendors and/or suppliers to the college. Other possible sources include tax revenues generated by taxable uses/tenants of college facilities and the real estate, property and school taxes paid by resident college employees and graduates who decide to stay in the region.

Background of Iona College Iona College is located in New Rochelle, N.Y., 20 miles north of Midtown Manhattan in Westchester County.

It was founded by the Congregation of Christian Brothers in 1940 and has been in operation continuously since then. The College occupies 45 acres (0.18km2) on North Avenue. New Rochelle has six bordering towns: Pelham, Pelham Manor, Eastchester, Scarsdale, Mamaroneck, and Larchmont; and New Rochelle is the second most populated city in Westchester Country and seventh largest in New York State (US Census Data).

The College has two schools, School of Arts & Science and School of Business, and offers both undergraduate and master’s degree programs at both schools.

The College also operates a Graduate Center in Pearl River, Rockland County, N.Y., and a remote campus in New York City.

The College is ranked 74th among “Regional Universities North” 5

by U.S. News and World Report and has been ranked 87th for ROI among 1,300 colleges and universities by Payscale in 2014. Iona’s ROI is also ranked 10th among colleges and universities in New York State and ninth among institutions with a religious affiliation. Iona’s School of Business has been rated 46th by Payscale for graduates’ salary potential— and one of America’s Best Business Schools and one of the Northeast’s Best 25 Undergraduate Business Schools, as well as a top MBA business program by Business Week Magazine.

Iona is included in the Princeton Review’s 2010 listing of the nation’s 286 Green College and University Campuses.

Over its 75 year history, Iona has educated men and women who have become national leaders in business, government, science, medicine, education and the arts.

For ROI, Iona is ranked

by Payscale in its top 7%—87th among 1,300 colleges and universities nationally—and Hagan School of Business is 46th among business schools for graduates’ salary potential.

Measurement of economic impact is motivated by both the mission and goals of Iona College. Inspired by the legacy of Blessed Edmund Rice and the Christian Brothers, which embodies opportunity, justice, and the liberating power of education, Iona College’s purpose is to foster intellectual inquiry, community engagement and an appreciation for diversity. In the tradition of American Catholic Higher Education, Iona College commits its energies and resources to the development of graduates recognized for their ethics, creativity and problem-solving abilities; their independent and adaptable thinking; their joy in lifelong learning; and their enduring integration of mind, body and spirit. Iona College is a teaching institution with a strong commitment to service and research. Accredited programs of the College include Mass Communication by ACEJMC (Accrediting Council on Education in Journalism and Mass Communications), Hagan School of Business by AACSB (American Association of Collegiate School of Business), Education by NCAT/CAEP (National Council for Accreditation of Teacher Education/Council for the Accreditation of Educator Preparation), Marriage and Family Therapy by AAMFT (American Association for Marriage and Family Therapy), Computer Science by ABET (Accreditation Board for Engineering and Technology), Chemistry by ACS (American Chemical Society) and the Samuel Rudin Academic Resource Center by CRLA (College Reading and Learning Association).

Methodology In the past, the economic impact analysis has been approached using econometric models, targeted surveys, and input-output models. Econometric studies have problems with regard to measurement of intangible capital that universities create and, while targeted surveys can be useful for providing good snapshots, they do not provide results that are comparable to other studies (Drucker and Goldstein 2007). Traditionally, impact studies of academic institutions have focused largely on the effects of direct spending and investment activities using the input-output modeling approach. The estimates generated through this approach cover both the direct and indirect impacts of university spending on 6

income and employment in a given region; these estimates have recently been extended to include the induced effects.

The advantage of the input-output approach is that it allows for the use of observable economic transactions to estimate the university’s economic impact. This approach was influenced by the model developed by Caffrey and Isaacs for the American Council of Education (1971), which is now popularly known as the ACE model. Several variants of the Caffrey and Isaacs’s model have evolved since then.

The total estimated impact on output in the Region is $117,457,954.

Based upon his experience applying the ACE Model for the Research and Planning Committee for Community Colleges in New Jersey in 1983, G. Jeremiah Ryan developed a modified approach for the College Outcomes Evaluation Program for Community Colleges in New Jersey in 1985 (Ryan, 1985). In 1989, the College Outcomes Evaluation Program of New Jersey Department of Higher Education formalized this approach by producing a Procedures Manual to be used by New Jersey institutions. This became known as the Ryan-New Jersey (RNJ) Model. Then in 1992, G. Jeremiah Ryan and Patricia Malgieri wrote an explanation of the model as a second edition of the method for the National Council for Resource Development. The multipliers developed by the RNJ model have been used by a number of institutions in recent studies (Montclair State, 2007). During the same period of time, the Bureau of Economic Analysis (BEA) of the Department of Commerce developed its own input-output analysis tools. But, where the ACE and RNJ require large amounts of data to be collected and multipliers to be determined, the BEA provides the regional multipliers derived from its Regional Input-Output Modeling System II (RIMS II) using the industry-wide data banks collected and maintained for the Department of Commerce. According to empirical tests, “the estimates based on RIMS II are similar in magnitude to the estimates based on relatively expensive surveys.” (S. Brucker et. al. 1990.)

This study uses the input-output modeling approach to assess the economic impact of Iona College on both New Rochelle and the Region. Measurable economic impact of a college is generally thought of as originating from five sources: the institution, its employees, its students, visitors to the campus and volunteer services of its staff and students. Instead of calculating the income, output and employment multipliers ourselves for the model, we use the multipliers generated by the RIMS II model, specifically for our region. The RIMS II model estimates economic impacts using relatively stable patterns in the flow of goods and services within the economy with proper adjustment to reflect the regional differences and influences.

The RIMS II is a backward linkage model and offers two sets of multipliers: final-demand multipliers and direct-effect multipliers. Final-demand multipliers are provided for output, earnings, employment and value added. Direct-effect multipliers are provided for earnings and employment only. Both final-demand and direct-effect multipliers provide an estimate of the total impact across all industries in the region.

Users of either of these multipliers can choose type I or type II multipliers. The difference between the two types is that the type I accounts for direct and indirect impact of a final demand change whereas the type II accounts for direct, indirect and induced effects of a final demand

In 2014, Iona secured use of building space from Holy Family Parish of New Rochelle to create the newly expanded Speech, Language & Hearing Clinic.

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change. The direct impact refers to the effect of initial spending (purchases of supplies, services and labor) by the institution; the indirect impact refers to the subsequent rounds of changes in spending between industries (business to business purchases) that result from the College’s interaction with its suppliers. The induced effect relates to the impact of the spending of employees of the institution and employees of the suppliers to the institution on the subsequent rounds of spending. The total impact to the region is the sum of the direct, indirect and induced effects. The RIMS multipliers capture this total impact. This study uses the final-demand type II multipliers for estimating the economic impact.

Concept illustration of a new residence hall/mixed-use commercial facility.

Data and Estimation This study identifies various sources of direct spending. These sources include the institution, employees of the institution (faculty, staff and administration), the students, the visitors who are drawn to the College for various reasons throughout the year, and the volunteer services generated by the College. This study does not incorporate the effects of capital expenditures by the College. The key impact indicators for the College are, therefore, institutional spending as captured with operating expenses (purchase of goods and services), employee spending (expenses incurred while in the area), student spending (which includes housing, room and board, and miscellaneous expenses), visitor spending (incurred when attending campus activities), and the value of volunteer services. Housing has become a much more important issue at Iona College over the past 20 years as Iona has transitioned away from a commuter college to a more residential environment, with 1,372 undergraduate students now living on-campus and 964 undergraduate students living off-campus, together representing over 73% of the undergraduate population.

Various offices on campus provided the data on spending. The data collection was facilitated through the cooperation of the Office of the Treasurer, the Office of Institutional Effectiveness and Planning, the Fine and Performing Arts Department, the Office of Conference Service Management, the Office of Alumni Relations, and the Office of Career Development. Data collected includes enrollment data, employment data and salaries, faculty and staff spending, and vendor payments by the College. Total operating expenditures include employee and student worker salaries and benefits, supplies and services, and utilities. Spending by non-resident students, as well as non-resident faculty and staff, were parsed from the available data. To ascertain the economic impact, it is necessary to estimate the non-resident spending while at work at Iona College. Student spending is often split between discretionary and non-discretionary, with the former being snacks, personal care items, entertainment, technology and other personal choice items and the latter being primarily tuition, room and board charges, rent and possibly books or class materials. Visitors to Iona College include all those attending various activities and events sponsored by the departments, clubs, organizations, Schools and/or College, such as performances, conferences, open houses, athletic events, and/or summer camps. Finally, volunteerism is alive and well on the Iona campus, with 23.4% of the student body involved with sponsored activities. The value of volunteer services is estimated using the number of students participating, the value of student time, and the number of hours spent.

Direct Spending

multipliers

8

Total Economic Impact

The direct expenditures of the various sources are aggregated, and the type II multipliers are applied to determine the total impact, representing the sum of the direct, indirect, and induced effects on New Rochelle’s and the Region’s output, earnings, employment and value added.

Iona College’s Direct Economic Spending on the Region and New Rochelle 2012-2013 SOURCES Direct Spending by Institution INSTITUTION

SPENDING

Direct Spending by Employees

Iona College

Total Direct Spending

Direct Spending by Students Direct Spending by Visitors Direct Value Provided through Volunteerism

Table 1: Direct Spending Attributed to Iona College (Summary Statement) Institution

Employee

Student

Visitor

Service

Total

Region: Westchester & the Bronx

$10,380,301

$26,777,185

$25,389,900

$3,826,134

$379,125

$66,752,645

City of New Rochelle

$ 6,341,211

$10,221,377

$25,389,900

$3,826,134

$379,125

$46,157,747

Institutional Direct Spending: Operating Expenditures of the College The operating expenditure data for the fiscal year 2012-2013 is obtained from the College’s operating budget and audited financial statement as provided by the Office of the Treasurer. This includes the data on accounts payable and employee salary. The accounts payable data covers spending on goods and services only, and does not include capital expenditures. The amount spent on the supplies in the Region is $10,380,301 and in New Rochelle is $6,341,211. See Table 2 below for details.

Table 2: Direct Institutional Spending Institution: Iona College Supplies & services

Total

New Rochelle

Westchester & the Bronx

New York State

Other than New York State

$ 35,186,166

$ 6,341,211

$ 10,380,301

$ 19,231,186

$ 15,954,980

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Employee Spending: Iona College employed a total of 1,325 people during the year 2012-13, which breaks down to 573 full-time workers, 290 part-time workers and 462 student workers. Of the total, 708 (53%) lived within the Region and 207 (16%) were residents of New Rochelle. Of the total of 573 full-time workers, 148 (26%) were residents of New Rochelle.

Iona College paid a total of $43,430,398 in gross salary to its full-time and part-time employees, including student employees. To determine the employee spending, other approaches require the salaries need to be adjusted for savings and taxes. The RIMS II multipliers have built-in adjustments for taxes and savings. Therefore, there is no need to make the adjustment to determine the disposable income before applying the multipliers to determine the impacts. See Table 3 for the details.

Table 3: Direct Spending by Iona College Employees Total

New Rochelle

Westchester & the Bronx

New York State

Other than New York State

1,325

207

708

1,095

230

$ 43,430,398

$ 10,221,377

$ 26,777,185

$ 36,631,295

$ 6,799,103

Number of employees (Residents) Wages & Salaries: Gross

Student Spending: When an impact study is narrowly focused on a small town or city, there is an issue of import substitution which the impact study may have to address (Blackwell, 2002). The import substitution impact is the effect related to students who would have attended an out-of-area institution had they not chosen to attend this institution. Forty-five percent of the student population is from the Region and this study argues that the likelihood of these students attending an out-of-area school is small due to the presence of many institutions within the Region. Therefore, this study ignores the substitution effect.

Table 4: Student Distribution Native Resident Undergraduates Graduates Student body

Number Westchester Bronx Region 3,191 702 3,893

New Rochelle

NYS

Non-NYS Resident

851

394

1245

132

2,400

791

(27%)

(12%)

(39%)

(4%)

(75%)

(25%)

316

92

408

91

606

96

(45%)

(13%)

(58%)

(13%)

(86%)

(14%)

1,167

486

1,653

223

3,006

887

(30%)

(12%)

(42%)

(6%)

(77%)

(23%)

For determining the student spending in the Region and in New Rochelle, students are classified into those who live in on-campus facilities, off-campus facilities and at home. Their spending is divided into (1) books and supplies, (2) board, (3) rooms, (4) transportation and (5) other (personal needs or wants). Table 4 provides the data on student distribution; Table 5 provides the number of students in each classification and the annual spending per student.

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Table 5: Per-Student Spending Data 2012-2013 Students

Estimated Annual Expenses Number

Books & Supplies

Resident (On-campus)

1,372

$1,500

Resident (Off-campus)

964

$1,500

$3,250

Commuters (Living at home)

855

$1,500

$2,000

Commuter

611

$1,5003

$3,000

Off-Campus

91

$1,500

Undergraduates

Room

Transportation

Other (Personal)

Total Spent

$12,7881

$600

$1,250

$3,350

$ 3,250

$600

$1,250

$9,850

$1,100

$1,250

$5,850

$1,650

$2,100

$8,250

$1,800

$2,100

$13,800

Board

2

Graduates $8,400

3

4

1

Room and Board: not included in student spending since received by College.

2

Resident (Off-campus) is the same category as Commuter (not living at home).

3

Average cost from among 18-24-27-36 credit programs.

4

This figure is both Room and Board and is included since not received by College.

Table 6 below presents total student spending using the data from Tables 4 and 5.

Table 6: Student Spending - Totals Residents (On-campus)

Residents (Off-campus)

Commuters (Living at home)

$2,058,000

$1,446,000

$1,282,500

Board

$3,133,000

$1,710,000

Room

$3,133,000

-----

Undergraduate Books & supplies

Transportation

$823,200

$578,400

$940,500

Other (personal)

$1,715,000

$1,205,000

$1,068,750

Undergraduate Total

$ 4,596,200

$ 9,495,400

$ 5,001,750

$136,500

$916,500

Graduate Books & supplies Board

$1,833,000

Room

$764,400

Transportation

$163,800

$1,008,150

Other (personal)

$191,100

$1,283,100

Graduate Total

$1,255,800

$5,040,750

$ 10,751,200

$ 10,042,500

Classification Totals

$ 4,596,200

Student Spending GRAND TOTAL

$ 25,389,900

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Visitor Spending: Estimation of visitor spending is generally difficult because of the lack of information on how much each visitor spends on an average. Visitors to the College are connected with admissions, sports and other campus-sponsored activities. The numbers for these are readily available, but not for how many are day-visitors or overnight-visitors. Other university impact studies have used spending numbers supplied by a state tourist office. This study looked at the tourist spending data available for New York City (www.nycgo.com/article/ nycstatistic) and for the State of New Jersey (http://cdn.visitnj.org), as this data for New York State was not available. Average spending by visitor in NYC was $700.18 in 2012 and for New Jersey was $440.36. New York City is significantly more expensive to visit than most of the surrounding tri-state area, as such, we use the New Jersey figure. Since these numbers include a 20%-80% split between foreign and domestic visitors, we reduce the spending to $352.29 (80% of $440.36) to reflect domestic visitor spending. This average figure also includes both day-trippers and over-nighters. Since most of Iona’s visitors are expected to be day-visitors and a recent 2013 Stockton Survey (Tyrell and Posner, 2013) reports that day-visitors usually comprise only onethird of visitors to a region, an average spending of $117 (33.3% of $352.29) is used in this study. We make these adjustments to avoid the risk of overestimating the visitor contribution to spending. See Table 7, Panel A for the number of visitors to the campus and Table 7, Panel B for the spending data.

Table 7: Visitors and Visitor Spending Panel A: Visitors Events

H.S. Students

Guests

Total

Admission

1,715

2,573

4,288

Orientation

900

1,575

2,475

Career development

199

199

Sponsored activities

4,570

4,570

21,170*

21,170

30,087

32,702

Athletics Total

2,615

Panel B: Visitor Spending Pennsylvania estimate

Estimate for the region

$100**

$117***

$3,270,200

$3,826,134

Spending per visitor Total spending

*70% of Athletic ticket sales are assumed to be to visitors to the campus, rather than to those who are currently associated with the campus (students, faculty staff etc.): 30243 * .7 = 21170. **Association for Institutional Research, N 117 Summer 2010: used for a review of the economic impact for five State Colleges in Berks County. ***90% of Athletic tickets are sold to people who live within 10-20 miles of the New Rochelle campus.

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Value of Volunteer Service The Institute for Higher Education Policy (1998) reports increased charitable giving and community service as one of the public social benefits that accrue to communities supported by higher education institutions. To estimate the value of volunteer service, some aspects of the Bellevue Community College’s Community Impact Report (2001) methodology are used. It recognizes that the value of a higher education institution to its surrounding community goes beyond the traditional spending impact and it should include the value of volunteers and community service activities. The estimation of this value is based on three elements: (1) percent of students performing community service, (2) number of hours volunteered and (3) value of the volunteered time. We use the data published by the Corporation for National and Community Service (CNCS) for the proportion of students performing community service and it was roughly 23.4% for New York State in 2006 (www.nationalservice.org). Hours worked data comes from Volunteering in America (www.volunteeringinamerica.gov/ny) and the estimate is 24.7 hours per resident in 2012 in New York State. For the value of the time spent, the number used varies among the impact studies from minimum wage to estimates provided by Independent Sector (www.independentsector.org). The number provided by the Independent Sector for New York State is $26.45 for the year 2013. We take a conservative approach by using the average of $26.45 and the New York State minimum wage of $7.25. See Table 8 for details.

Table 8: Volunteer Service and Value of Time Volunteered

Number of students

Students volunteering: 23.4% of Student body

Hours contributed: 24.7 hours per person

Value of the volunteer time at the rate of $26.45 an hour

Value of the volunteer time at the rate of $7.25 an hour

Average Value

3893

911

22,500

$595,125

$163,125*

$379,125

*New York State raised the minimum wage to $8.00 per hour on January 1, 2014.

Top: First-year students conducted a shoreline cleanup of local lakes as part of Iona in Mission: Go New Ro. Bottom:Local schoolkids visit campus for a Halloween gathering.

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$16.85

Total Economic Impact Attributable to Iona College The Panel A of Table 9 below summarizes total direct spending attributed to Iona College from all sources and the Panel B provides the economic impact of these on output, earnings, employment and value added.

Table 9: Total Economic Impact Panel A: Direct Spending Region: Westchester & the Bronx City of New Rochelle

Institution

Employee

Student

Visitor

Service

Total

$10,380,301

$26,777,185

$25,389,900

$3,826,134

$379,125

$66,752,645

$ 6,341,211

$10,221,377

$25,389,900

$3,826,134

$379,125

$46,157,747

Panel B: Total Economic Impact Region:

Total Direct Spending attributed to Iona College

$66,752,645

New Rochelle: $46,157,747 Output

Earnings

Employment

Value added

1.7596

0.4522

12.0573

1.0324

Region

$117,457,954

$30,185,546

804

$68,915,430

New Rochelle

$81,219,172

$20,872,533

557

$47,653,258

RIMS II multiplier Total Economic Impact

Other recent impact studies have used multipliers associated with different versions of the RNJ or similar models. Higher education impact studies in our Mid-Atlantic region have used multipliers ranging from 1.78 to 3.1, reflecting differences in geographic location or related demographics. The Commission of Independent Colleges and Universities (2008) has recommended a blanket multiplier of 2.5 whereas the Community College of Philadelphia (2007) has used a local multiplier of 1.78 and a state multiplier of 2.14. These multipliers do not make a distinction between impact on output, earnings, employment and value added as the RIMS II does. The RIMS II multipliers provided by the Bureau of Economic Analysis are based on the input-output data specific to the industries in the impact area of Westchester Country and the Bronx.

IONA COLLEGE COMMUNITY PROJECT

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OTHER ECONOMIC BENEFITS Educational institutions also generate another form of impact through human capital development. This is not included in the traditional impact calculations and it has also been a thorny issue. Bluestone (1993) has argued that impact studies should account for the contribution of the graduates to the skill base of the region and the benefits of their higher incomes earned because of the education. Measurement of human capital impact is problematic, and there is a risk of overestimating the impacts.

This study does not attempt to measure this.

Moreover, such impacts are classified as forward linkage impacts and the RIMS II multipliers do not measure them.

Among other things, impact studies also do not seem to quantify the value of benefits an institution provides to the community on the educational, social and cultural fronts. Iona College provides many of these benefits to the local region. Below is a partial listing of the many opportunities that the College provides.

Improved health Greater participation in government Donation/availability of facilities Libraries Research output Collaboration with businesses External grant acquisition bringing additional revenues and heightened awareness to the area

Increased and encouraged volunteerism Increased and encouraged charitable giving Cultural and Educational activities Outreach programs Entrepreneurial activities Workforce education

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CONCLUSION The goal of an impact study is to estimate the gain in economic activity within a region due to the presence of an enterprise or an institution. Iona College has had and will continue to have a significant impact on the economic and social environment of New Rochelle and the surrounding region. This report, using the RIMS II multipliers, designed for institutions of higher education, estimates the economic impact of Iona College in a number of fronts – output, earnings, employment, and value added – on the economy of New Rochelle and that of the wider region of Westchester County and the Bronx. The output multiplier effect shows that total output (sales) of the Region is expected to increase by $117,457,954, including Iona’s purchases of $66,752,645. The value added portion of the output is $68,915,430, while the earnings portion of the value added is $30,185,546. The respective numbers for New Rochelle are $81,219,172 (output), $47,653,258 (value added) and $20,872,533 (earnings). On the employment side, in addition to the 1,325 employees of Iona College, the institution is expected to support the creation of another 804 jobs for the Region and 557 jobs in New Rochelle.

This study attempts to provide a conservative and a comprehensive estimate of the economic impact by extending the spending of the institution, the employees and the students to include the spending by visitors and the value of volunteer service. As Iona College continues to develop towards a residential campus, this impact will grow as students will be attracted from areas other than what currently remains a closely knit region from which we draw students.

It is often shown that the earnings power of a college degree exceeds that of a high school degree by three to four times; and as technology improves, so does productivity and salaries of the graduates. Volunteerism, political awareness and social involvement are all greater among those who receive a college degree than others in the population. There is no reason to believe that Iona College’s impact is local only; a natural extension would be to look into the neighboring counties, the Greater New York City area, New York State or the Tri-State area.

It is apparent from the results that Iona College provides economic value to all areas it serves.

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References Bellevue Community College (2000). Community Impact Report, Fall 2000. Bellevue, WA. Blackwell, M., S. Cobb and D. Weinbert (2002). Economic Impact of Educational Institutions: issues and methodologies, Economic Development Quarterly, v. 16, p. 88-95.

Bluestone, B. (1993). UMASS/Boston: An Economic Impact Analysis, Boston, MA: John W. McCormack Institute of Public Affairs, the University of Massachusetts.

Brucker, S., S. Hastings, and W. Latham (1990). Variation of Estimated Impacts from five Regional Input-Output Models, International Regional Science Review.

Caffrey, John and Herbert Isaacs (1971). Estimating the Impact of a College or University on the Local Economy, American Council on Higher Education: ACE Model.

Carroll, Michael and Bruce Smith (2006). Estimating the Economic Impact of Universities: The Case of Bowling Green State University, The Industrial Geographer, v. 3 issue 2, p. 1-12.

D’Allegro, Mary-Lou and Lolita Paff (2010). Estimating the Economic Impact of Higher Education: A Case Study of the Five Colleges in Berks County, Pennsylvania, Association for Institutional Research, number 117, Summer.

Drucker, Joshua and Harvey Goldstein (2007). Assessing the Regional Economic Development Impact of Universities: A review of current approaches, International Regional Science Review, v. 30, n. 1, p. 20-46.

Institute for Higher Education Policy (1998). Reaping the Benefits: Defining the public and private value of going to college, the new millennium project on higher education costs, pricing, and productivity, Washington, DC: Ford Foundation. (ERIC Document Reproduction Service No. ED420256).

Johnson, Steven, Gurvinder Khaneja and Elizabeth Keagy (2005). Estimated Short-term Economic Impact of Montclair State University on the State of New Jersey, Office of Institutional Research, Montclair State University, August.

Montclair State University (2007). Estimated Short-term Economic Impact of Montclair State University of the State of New Jersey, Office of Institutional Research, February 2007.

Nagowski, Matthew (2006). Assessing the Economic Impact of Higher Education Institutions in New England, Federal Reserve Bank of Boston, memorandum February 22.

Regional Multipliers: A User Handbook for the Regional Input-Output Modeling System (RIMSII), U.S. Department of Commerce, Bureau of Economic Analysis (Washington, DC: USGPO, 2012).

RIMS II Economic Impact Model, U.S. Bureau of Economic Analysis (BEA), Department of Commerce, 2012.

Ryan, Jeremiah G. (1985). A Shortcut to Estimating Economic Impact, Community/Junior College Quarterly of Research and Practice, Vol. 9, Issue 3.

Tyrrel, Brian and Israel Posner (2013). Tourism Promotion Survey: New Jersey Visitor Profile Study, Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism, The Richard Stockton College of New Jersey, (http://intraweb.stockton.edu/eyos/business/content/ docs/LIGHT/FINALHosp_tour_surveybroch%202013.pdf )

Web Sites for Reference About.com http://jobsearch.about.com/b/2013/12/27/new-york-minimum-wage-increases-2014.htm Chronicle of Higher Education www.chronicle.com/section/Home/5 Commission of Independent Colleges and Universities (2008) www.aicup.org/Research/EconomicImpactReport/tabid/426/Default.aspx Corporation of National and Community Service www.nationalservice.gov

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Council for Aid on Education (CAE): Private Giving To Institutions www.cae.org/ Economic Impact of Tourism on New York www.governor.ny.gov/assets/documents/tourism/nys-tourism-impact-2012-v1.0.pdf Independent Sector https://www.independentsector.org/ Iona College: News www.iona.edu/About/News-Events/News/Iona-Climbs-to-87-in-National-ROI-Ranking.aspx Niche http://colleges.niche.com/iona-college/rankings/#academics http://colleges.niche.com/iona-college/printrankings/ http://colleges.niche.com/iona-college/rankings/#academics#ixzz314RinSZ3 NYC & Co.: NYCGO Economic Impact of NYC Tourism www.nyc.gov/html/om/pdf/2012/nyc_economic_impact_charts_through_2015.pdf PayScale www.payscale.com/college-roi/full-list Community College of Philadelphia (2007) http://path.ccp.edu/vpfin-pl/ir/ir_reports/ir_report_162.pdf The Princeton Review www.princetonreview.com/college-rankings.aspx Post Secondary Education Opportunities www.postsecondary.org/ Spending Habits Data: American Demographics www.demographicreports.com/ Stockton Report http://intraweb.stockton.edu/eyos/extaffairs/content/docs/pressrel/StocktonVisitorSurvey2014PressRelease.pdf University Business www.universitybusiness.com/ U.S. Census Bureau www.census.gov/ U.S. Census Bureau: American Community Survey (ACS) www.census.gov/acs/www/ U.S. Census Bureau: FactFinder http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml U.S. News and World Review http://colleges.usnews.rankingsandreviews.com/best-colleges/search?name=Iona+College&enrollment-min=0&enrollment-max=14000&tuition-min=5000&tuition-max=50000 http://colleges.usnews.rankingsandreviews.com/best-colleges/iona-college-2737

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Exhibit 1. Source of Student Spending Data

http://nces.ed.gov/ipeds/datacenter/InstitutionProfile.aspx?unitId=acb4acb4aeac Cost of attendance for full-time, first-time, degree/certificate-seeking undergraduates: Academic year 2012-13 Published tuition and required fees Books and supplies On-campus room and board On-campus other expenses Off-campus (not with family) room and board Off-campus (not with family) other expenses Off-campus (with family) other expenses

$31,540 $1,500 $12,788 $1,850 $6,500 $1,850 $4,350

Exhibit 2. Source of Athletic Ticket Sales Data 2012-13

Athletics (Games and Matches) Event

Total

Total home game attendance

30,243

“What was the total home attendance of ticketed intercollegiate sporting events featuring your school during the 2012-13 academic year?”

Source: The Princeton Review Data Set & Iona Athletics

Exhibit 3. Minimum Wage Data New York State Department of Labor www.labor.ny.gov/stats/minimum_wage.asp July 24, 2009 December 31, 2013*

Minimum wage increased from $7.15 to $7.25 Minimum wage increased from $7.25 to $8.00

*The state’s minimum wage is scheduled to increase to $8.75 per hour on December 31, 2014, and to $9.00 on December 31, 2015.

Exhibit 4. Restaurants Participating in the Iona Meal Plan Over $2.6 million dollars annually are spent at these establishments.

A No. 1 AJ’s Burgers Al Forno Applebee’s Avenue

B&A Deli Beechmont Chicken Joe’s Gemelli Iron Pizza Kitchen

McDonalds North Avenue Café North River Deli Posto 22 Red Mango 19

Rocbody Café Ruby Red Smokehouse Stirlicious Subway

Sung Hing

Accreditations ACEJMC Accrediting Council on Education in Journalism & Mass Communication – ACEJMC (Department of Mass Communication, Iona College)

AACSB Association to Advance Collegiate Schools of Business - AACSB International (The Hagan School of Business, Iona College)

CSWE Council on Social Work Education (Department of Social Work, Iona College)

NCATE/CAEP National Council for Accreditation of Teacher Education/Council for the Accreditation of Educator Preparation

AAMFT The Commission on Accreditation for Marriage and Family Therapy Education (COAMFTE), the accrediting body of the American Association for Marriage and Family Therapy (Department of Marriage and Family Therapy, Iona College)

CRLA College Reading and Learning Association - CRLA (Samuel Rudin Academic Resource Center, Iona College) ACS The American Chemical Society – ACS (Bachelor of Science in Chemistry, Iona College) ABET Computing Accreditation Commission of ABET (Accreditation Board for Engineering and Technology) (Bachelor of Science in Computer Science, Iona College) NASP National Association of School Psychologists – NASP

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