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Morgan State University Economic and Social Impact Study FINAL REPORT
as indirectly from income, sales and business taxes generated by graduate spending. Each year, $21.9 million in state income taxes are paid directly by Morgan alumni, $6.8 million in state income tax is generated through the induced impacts. In addition, $3.7 million is generated in state sales tax, and $1.7 million is generated in state business taxes, totaling $34.1 million in state tax revenue impact. Furthermore, $5.4 million in direct and induced income taxes are paid to the City of Baltimore each year (see Table 6.4). In other words, there is almost $40 million more in local and state tax revenues because of the aggregate wage premium enjoyed by Morgan alumni living and working in Baltimore and Maryland.
TABLE 6.4 – ESTIMATED ANNUAL TAX REVENUE IMPACT FROM MORGAN AGGREGATE WAGE PREMIUM TO THE CITY OF BALTIMORE AND THE STATE OF MARYLAND GOVERNMENT (IN $M) Tax Type
City of Baltimore
State of Maryland
Income Tax ($M)
$5.4
$28.720
Sales & Use Tax ($M)
N/A
$3.7
Business Tax ($M)
N/A
$1.7
Total Tax Revenue ($M)
$5.4
$34.1
Source: Morgan State University (2018), Econsult Solutions (2018), IMPLAN (2015), Maryland State CAFR (2016), City of Baltimore CAFR (2017)
6.6
WHY THIS MATTERS
Morgan produces, proportionally, more technical graduates than the national average. 16.9 percent of Morgan alumni are employed in the STEM fields, versus 11.1 percent for all Maryland schools.
As noted at the outset of this section, Morgan’s primary contribution to the local and state economy is by educating and credentialing students. Because of the care it takes to be inclusive and accessible in enrolling students, and then comprehensive in supporting them through graduation, this contribution is particularly significant. To a greater degree than most schools, Morgan is helping students that might not otherwise access a college education. Upon graduation, the education and credential students received at Morgan allows them to
This includes $21.9 million in direct personal income taxes paid by Morgan alumni and an additional $6.8 million in indirect and induced taxes. . 20
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