While Princeton University recently released an economic analysis report detailing the university’s contributions to the greater Princeton area and Mercer County (see story page 31, Rutgers University was also documenting its favorable impact on the state economy. Earlier this month Rutgers released its report extolling how the university’s presence benefits the entire state. The following overview was released by the Rutgers media department.
Further proof that Rutgers is one of the state’s most valuable economic resources: The amount of state and local tax revenue paid each year by Rutgers graduates across New Jersey is greater than the university’s total annual budget.
In 2007, for example, Rutgers alumni living in New Jersey paid an estimated $1.765 billion in state and local taxes, based on state tax and home ownership statistics. In comparison, the university’s total operating budget for 2007-08 was $1.748 billion — $17 million less. Contributions to the state and local tax base by Rutgers alumni are among the many powerful pieces of information contained in “Solutions From Rutgers,” the university’s 2009 economic impact report released on Tuesday, May 12.
The report, based largely on state and federal data, details the many ways — both large and small — that Rutgers benefits New Jersey residents and enhances the state’s economic health. The report shows that Rutgers and its faculty, staff, students, and visitors channel $3.8 billion in direct and indirect spending into the state economy — more than six times the state’s $595.3 million investment in the university.
Reviewing the report, university president Richard L. McCormick said it is easy to see why SmartMoney magazine recently concluded that a Rutgers degree ranks sixth in the nation in overall value. “Armed with a Rutgers degree, most of our graduates choose to remain in New Jersey, where they become productive members of the state’s workforce and informed citizens who proudly contribute their talents and energies to seek solutions to the many challenges that we face,” McCormick said.
Rutgers’ more than 200,000 alumni living in the state earned an estimated $10.6 billion in 2007. These alumni paid an estimated $969 million in local property taxes, $624 million in state income taxes and $172 million in state sales taxes that year. Other key information contained in the report:
* In 2008 Rutgers received $691.5 million in revenue from outside the state. This includes more than $270 million in external research funding and more than $215 million on tuition, fees and living expenses by out-of-state students.
* Also in 2008 the university received $8.4 million in royalty income from patents and licenses secured by Rutgers researchers. That is nearly double the amount of royalty revenue the university received in 2004.
* Over the next three years the university will invest $500 million in more than 20 capital construction projects on the Camden, Newark, and New Brunswick campuses. These projects will create more than 5,000 construction industry jobs through 2011.
* Rutgers has opened several new structures in recent years that have boosted the university’s host communities. These include the new Rutgers School of Law building in Camden, the new College of Nursing facility in New Brunswick, and University Square at Rutgers-Newark — the first residence hall built on the Newark campus in nearly two decades.
* The New Jersey Small Business Development Centers, headquartered at Rutgers-Newark, have been helping small businesses across the state succeed for 30 years. In 2008 the center helped clients create and retain more than 12,000 jobs.
* The Rutgers-Camden Technology Campus has mentored more than 60 companies. In-state companies that have “graduated” from this incubator have more than 160 employees and an annual payroll that exceeds $8 million.
* Since 2001 Rutgers’ award-winning Food Innovation Center in Bridgeton has assisted more than 1,000 companies and entrepreneurs in each of the state’s 21 counties. By 2015 the center is projected to create more than 1,000 new jobs.
* Launched this past fall, Rutgers Against Hunger, a statewide initiative that aims to increase awareness of hunger and encourage community service, has collected nearly nine tons of food for New Jersey food banks.
The report also spotlights the hundreds of students from Camden, Newark, New Brunswick, and Piscataway participating in the Rutgers Future Scholars Program. Each year 200 eighth-graders — 50 from each of the university’s host communities — are selected for the program based on economic need and academic promise. The university provides opportunities for educational growth, social development, personal enrichment, and economic support. Those students who successfully complete the five-year program and are admitted to Rutgers will attend the university tuition- and fee-free.
The full economic impact report is available online at go.rutgers.edu/impact.