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SHU’S ECONOMIC IMPACT IN CONNECTICUT
SACRED HEART UNIVERSITY SPURS STATE ECONOMY BY $350 MILLION
Sacred Heart University’s economic impact in Connecticut exceeds one-third of a billion dollars, according to the results a study announced February 23, 2009 by the Connecticut Independent College & University Institute for Research & Public Service (cicu-IRPS).
The study found that SHU spent more than $86 million in employee compensation (salary and benefits), capital and operating costs during 2007, the year under analysis. Spending by students and visitors was nearly $8.5 million. These direct costs were matched by an additional $257 million spread throughout Connecticut’s economy and especially in Fairfield County. The study noted that SHU employed the equivalent of more than 900 full-time faculty and staff, with another 84 earning a living in off-shoot businesses. Further, some 3,300 jobs were created in response to the University’s presence.
cicu-IRPS surveyed its member schools and examined U.S. Education Department data and other sources to arrive at an overall $6.2 billion as the annual economic benefit of independent higher education to the state of Connecticut. The study was conducted by the Connecticut Center for Economic Analysis (CCEA).
The impact of Sacred Heart University on Connecticut’s economy is:
A total impact of $351.76 million in sales of goods and services in Connecticut including:
♦ $94.72 million in spending including $86.24 million spent by the institution for employee compensation(earnings), operating and capital costs; and $8.47 million spent by net new students and campus visitors; and
♦ $257.04 million in indirect or induced economic activity in the rest of Connecticut's economy.
A total of 4311 jobs in Connecticut including:
♦ 909 full time equivalent positions[1] at the institution;
♦ 84 full time equivalent positions at off-shoot businesses; and
♦ 3,319 full time equivalent positions in the rest of Connecticut’s economy.
Increased earnings[2], and state and local tax revenues from job creation including:
♦ $53.77 million in earnings for 909 full time equivalent positions at the institution;
♦ $72.76 million in earnings for remaining 3403 full time equivalent positions in off-shoot businesses and in the rest of Connecticut’s economy; and
♦ $18.92 million[3] in tax revenue from the institution’s economic activity.
Increased earnings, and state and local tax revenues from alumni living and working in Connecticut including:
♦ $1117.71 million in earnings for 15,755 alumni living in Connecticut; and
♦ $99.58 million in tax revenues paid by 15,755 alumni living in Connecticut.
SACRED HEART UNIVERSITY – DETAIL
Direct Impact on the Connecticut Economy
| Table 1. Direct Impact on State of Connecticut (in millions) (2007) |
| Spending in Connecticut |
Amount |
| Earnings (Wages, Salaries, Benefits) |
$53.77 |
| Institutional Operations |
$22.35 |
| Institutional Capital Expenses |
$10.12 |
| Student Expenditures |
$7.53 |
| Campus Visitors |
$0.94 |
| Total |
$94.72 |
| Table includes expenditures in Connecticut only. |
Total Impact (Direct + Indirect) on the Connecticut Economy by Sector
| Table 2. Total Impact on Sectors of the State Economy (in units) (2007) |
| Industry |
Total Impact |
Total (FTE) Jobs |
| Agriculture/Mining |
$253,831 |
42 |
| Construction |
$18,740,511 |
349 |
| Finance/Real Estate |
$54,192,956 |
224 |
| Communication |
$10,281,274 |
40 |
| Manufacturing |
$25,782,623 |
151 |
| Services |
$98,940,749 |
1923 |
| Transportation/Utilities |
$9,327,812 |
53 |
| Wholesale/Retail |
$28,426,534 |
252 |
| Government |
$110,087,619 |
1278 |
| Total |
$351,756,011 |
4311 |
| Numbers may not add due to rounding. |
Impact on State and Local Tax Revenues
The 4311 (direct & indirect) employees generate state and local tax revenue as follows:
♦ $6.83 million in sales and excise taxes;
♦ $9.42 million in income tax;
♦ $2.28 million in property taxes, which is
♦ a total of $18.54 million in state and local taxes.
The 15,755 alumni living in Connecticut generate state and local tax revenue as follows:
♦ $41.08 million in sales and excise taxes;
♦ $37.62 million in income tax;
♦ $20.88 million in property taxes, which is
♦ a total of $99.58 million state and local taxes.
The state government pays $751,375 to the local municipalities, Fairfield and Bridgeport, under the Payment-In-Lieu of Taxes (PILOT) program.
Economic Impact by Sector Detail
| Table 3: Economic Impact by Sector (Detailed Breakout in units) (2007) |
| Industry |
Direct Impact* |
Total Impact |
Indirect Jobs |
| Agriculture |
$233,763 |
$224,081 |
41 |
| Mining |
$0 |
$29,750 |
1 |
| Construction |
$8,162,041 |
$18,740,511 |
349 |
| Manufacturing - Durable |
$2,776,543 |
$17,772,520 |
99 |
| Manufacturing - Non-Durable |
$4,229,873 |
$8,010,517 |
51 |
| Transportation |
$894,904 |
$2,960,872 |
38 |
| Utilities |
$1,471,566 |
$6,366,940 |
14 |
| Information |
$2,269,587 |
$10,281,274 |
40 |
| Finance, Insurance & Real Estate |
$1,638,556 |
$54,192,956 |
224 |
| Whole Trade |
$4,840,676 |
$14,277,216 |
56 |
| Retail Trade |
$5,013,870 |
$14,277,216 |
154 |
| Professional & Technical Services |
$2,181,790 |
$18,437,220 |
184 |
| Other Business Services |
$789,082 |
$15,903,330 |
193 |
| Accommodations & Food Services |
$2,150,184 |
$3,346,688 |
78 |
| Other Consumer Services |
$1,900,234 |
$7,821,386 |
197 |
| Health & Education Services |
$2,389,830 |
$53,432,124 |
320 |
| Government |
$0 |
$110,087,619 |
1278 |
| Total |
$40,942,499 |
$351,756,011 |
3319 |
| *Direct impact does not include institutions' spending on employees' wages and benefits. |
[1] A full time equivalent position (FTE) represents an expected 40 hours of work per week. This work may be performed by one full time worker. In this case, one full time equivalent position is one job. This work may be performed by multiple part time workers. In this case, one full time equivalent position could represent more than one job. As such, results stated in full time equivalent positions may underestimate the actual number of jobs created.
[2] Earnings include salaries, wages and benefits.
[3] This state tax revenue figure includes changes in corporate taxes associated with general equilibrium changes resulting from increased or decreased economic activity in different economic sectors. Table 5 in the Economic Impact Summary includes only taxes paid by employees: general and excise sales tax, income taxes, and personal property taxes.
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