Report: New Jersey Independent Higher Education Contributes $3.5 Billion to State’s Economy

Trenton, NJ — New Jersey’s nonprofit independent colleges and universities on May 9 released a report that details the $3.5 billion impact the sector makes on the state’s economy.
 
Prepared by Appleseed, the report demonstrates that New Jersey’s non-profit independent colleges and universities are awarding degrees in the state’s most sought-after fields, including STEM, education and nursing, at a higher rate than public institutions — despite a state investment of only $2,302 per independent college student vs. $11,460 invested in each public college student.
 
At an event marking the economic impact report’s release, Eugene J. Cornacchia, Saint Peter’s University President and Chair of the Board of Directors for the Association of Independent Colleges and Universities in New Jersey (AICUNJ), emphasized that independent education is a smart investment in New Jersey and its residents. 

​“The report demonstrates that the education of future leaders and the workforce necessary to keep the state moving forward, as well as the over $3.5 billion economic impact, is accomplished with very little taxpayer investment,” Cornacchia said.
 
Highlights from the new report illustrate the sector’s importance:
 
Overall Impact
 

• More than $3.5 billion in overall economic impact to state

 

• $35 in economic impact to the state for every $1 of state funding

 
Employment – Over 33,000 direct and indirect jobs
 

• Nearly 18,500 faculty, administrators and support staff with payroll of $1.1 billion; 74% are full-time employees

 

• More than 4,500 jobs supported by purchasing and construction

 

• More than 10,000 jobs supported by spending by employees, contractors and vendors

 
Workforce – Preparing 21st Century Workforce
 
In New Jersey, independent colleges and universities confer:
 

• Nearly one-quarter of bachelor’s degrees

 

• 37% of advanced degrees

 

• 32% of STEM degrees

 

• 26% of education degrees

 

• 31% of nursing degrees

 
Investment of $1 Billion in Construction and Spending
 

• Nearly $400 million in new construction and renovation, which supported nearly 1,000 full-time jobs

 

• Nearly $600 million spent on goods and services, which supported over 3,600 full-time jobs

 
Research and Discovery (R&D) — $1.9 Billion in Research Over Five Years
 

• Attraction of research funding from federal government, corporations and non-profits generates significant economic impact

 

• Clear majority of funds—98.9%—came from outside sources in 2015

 

• Entrepreneurial tools help students, faculty and alumni turn research into new products, new businesses and new jobs

 
Affordability and Accessibility
 

• $400 million in institutional financial aid to state residents allows more New Jersey students to stay in state for higher education

 

• Over 20,000 minority students attend independent colleges and universities

 

• All AICUNJ members participate in serving veterans through the Yellow Ribbon Program

 
Community Engagement
 

• Deeply engaged in the communities in which they operate through service programs and research that addresses hunger, autism, homelessness and other important issues

 

• Over 322,000 hours of community service performed by nearly 3,700 students

 

• Nearly 300,000 alumni continue to live and work in New Jersey after graduation

 
A number of presidents from the 14 member institutions were expected to be joined at the event by representatives from the New Jersey Chamber of Commerce, New Jersey Alliance for Action, Choose New Jersey, Innovation New Jersey, and the Capital Region Minority Chamber of Commerce.