To watch the Rutgers report’s accompanying video, click here.
The economic snapshot notes that for every $1 of state funds received by Rutgers, the university returned nearly $7 in economic activity in Fiscal Year 2016.
The 20-page report — “Rutgers Grows the Garden State” — is produced by the economic advisory service at the Edward J. Bloustein School of Planning and Public Policy.
“In our research,” Barchi said, “our outreach and the education we provide to people across the state and across the life span, Rutgers is producing results that support jobs and make life better in the Garden State.”
The university is New Jersey’s third largest nongovernmental employer, directly employing more than 26,000 faculty and staff, indirectly supporting nearly 32,000 additional jobs in the state and generating $4.3 billion in annual compensation.
Rutgers also hires New Jersey companies to construct new buildings and renovate existing ones, and is in the midst of its greatest building expansion in more than 50 years.
“Rutgers is certainly one of the more powerful economic engines moving the state’s economy forward,” said James Hughes, dean of the Bloustein School.
“Rutgers is instrumental in creating the high-technology, information-based industries of the future for New Jersey, and the highly skilled workers that are necessary to staff them,” Hughes continued.
Some of the economic-impact report’s highlights show:
- Rutgers spends $658 million annually to support research and development, more than all other public and private New Jersey colleges and universities combined, according to the National Science Foundation.
- Rutgers research generates $31.5 million in royalty income from patents and licenses, and leads to jobs, creation of new businesses and innovations that improve lives.
- Rutgers construction and renovation projects of $1.14 billion supported nearly 12,000 short-term construction jobs and generated an additional $1.2 billion in economic activity over a five-year period from 2012-2016.
- Incomes taxes from salaries paid to employees of Rutgers and to employees of companies with which Rutgers does business, and other state and property tax revenue related to Rutgers spending, yielded $798.2 million in state and local taxes.
- Rutgers spent $610.2 million in direct payments to New Jersey businesses in every county to buy goods, services and supplies — from food to lab equipment to energy-efficient lighting — throughout the year.
According to Will Irving, coauthor of the economic impact report and a Bloustein School project manager, “Our analysis finds that, as a major employer that spends more than $600 million with New Jersey businesses annually, Rutgers creates a significant economic ripple effect throughout the state.”
“This report highlights the jobs, new businesses, tax revenues and many other valuable contributions that Rutgers provides to New Jersey and which are often overlooked,” Irving added.
Meanwhile, Rutgers devoted $684 million to helping people with their health care needs, providing outstanding patient care, in addition to 350 clinical trials and the latest technology and treatments.
Rutgers Health — the university’s patient care organization that employs more than 1,300 health care professionals — handled 2.1 million patient visits to all locations in FY 2016.
Rutgers Health also provided $12.6 million in low-cost and no-cost, high-quality health care services to low-income patients, particularly those who live in traditionally underserved areas.
“Health care has been an economic driver of the state and national economy over the last decade, and Rutgers is helping make New Jersey a much more significant player in the health care field,” Hughes said.
New Jersey also is home to 280,000 Rutgers alumni, many of whom are employed in New Jersey, pay taxes, and buy houses and goods.
Every year, Rutgers educates 69,000 students at its locations in New Brunswick, Newark and Camden and provides continuing education for another 50,000.