NEW ROCHELLE, NY — Two new studies find that Iona College’s total annual economic impact is up to $250 million – on the state of New York, and particularly on the Westchester & Bronx Region.
The findings are from a study conducted by two Iona professors and another conducted on behalf of the Commission on Independent Colleges and Universities by the Center for Governmental Research.
“The studies indicate Iona has a significant positive impact on the economic, educational and service environment of New Rochelle and the surrounding region,” says Anand Shetty, Ph.D., professor of finance and co-author of the Economic and Service Impact Report. “Collectively with the state’s other independent institutions of higher education, it is clear Iona plays a major role in the vitality of New York.”
The CGR study looked at all independent institutions of higher education in the state and, for Iona College, estimates a grand total economic impact, direct and spillover, of more than $250 million – see www.cicu.org/economic-community-impact for more on the study.
Iona College’s more conservative Economic and Service Impact Report conducted by Iona business professors John Manley and Anand Shetty indicate the employment impact in the Region is 2,129, including 1,325 direct employees of the College. Further, the study estimates that the College’s total impact is $117.5 million. The service impact component of the study reflects the 22,500 student- volunteer hours given to provide for a variety of community service needs.
Iona’s role in the region’s economy was also recently recognized with approval to participate in Start-Up NY, a program intended to help start, expand or relocate qualified businesses to tax-free zones in New York State. The College’s credit worthiness has also been upgraded in the past year by both Moody’s and Standard and Poor’s, one of only a few colleges in the nation with that distinction.
“The results of this new economic and service impact study are an indicator of Iona’s commitment to reaching beyond the walls of its classrooms and the immediate boundaries of its physical campus,” said Westchester County Association President Marissa Brett. “As the College embarks on its next 75 years, we look forward to continuing to explore and develop partnerships that not only benefit the College, but the region at large.”
According to Manley and Shetty, the study highlights the role Iona serves as an incubator of economic activity through its direct purchases of goods and services, as well as the spending by its employees, students and visitors. Besides its day-to-day economic interactions through spending, Iona contributes to an educated workforce in the region and the nation at large. The study describes how workforce spending makes further contributions to the community in terms of income, employment and tax revenue to local and state governments, which is often referred to as the forward-linkage effect.
“We believe this study is a conservative estimate of Iona’s overall economic impact on the region,” says Manley. “For instance, we excluded the impact of Iona College’s additional operations in Rockland County and New York City, and the impact of capital expenditures for improvements to campus facilities.”
The Economic Impact Study addresses a common misconception about the tax-free status of a not-for-profit institution such as Iona. The authors point out that there is often a perception that NFPs do not contribute to local governments’ tax revenues, while receiving the benefits of municipal services. The study concludes that Iona’s impact on government tax revenues includes: 1. additional taxes paid on higher earnings of College graduates who remain in the area, 2. income taxes paid by College employees, 3. sales taxes generated by student, faculty, staff and visitors of the College when they make purchases in the local areas, and 4. taxes paid by vendors and/or suppliers to the College. Other possible sources include tax revenues generated by mixed-use of College facilities and the real estate, property and school taxes paid by resident Iona employees and graduates.
See the full Iona report online at bit.ly/IonaImpact
