NOVEMBER 2019

The Economic Value of

the City College of New York
FACT SHEET
The City College of New York (CCNY) creates a significant positive impact
on the business community and generates a return on investment to its major
stakeholder groups—students, taxpayers, and society. Using a two-pronged
approach that involves an economic impact analysis and an investment analysis,
this study calculates the benefits received by each of these groups. Results of
the analysis reflect fiscal year (FY) 2017-18.

Economic impact analysis

In FY 2017-18, CCNY added $1.9 billion in income to the CCNY Service Region*
economy, a value approximately equal to 0.2% of the region’s total gross
regional product (GRP). Expressed in terms of jobs, CCNY’s impact supported
16,760 jobs.

O P E R AT I O N S S P E N D I N G I M PAC T

• CCNY employed 2,518 full-time and part-time faculty and staff (not includ-
ing research employees). Payroll amounted to $249.3 million (excluding
payroll from research employees), much of which was spent in the region
for groceries, mortgage and rent payments, dining out, and other household
expenses. The college spent another $63.1 million on day-to-day expenses
related to facilities, supplies, and professional services (excluding research
expenditures).

• The net impact of the college’s operations spending added $288.3 million
in income to the regional economy in FY 2017-18.

R E S E A R C H S P E N D I N G I M PAC T

• Research activities at CCNY impact the regional economy by employ-

ing people and making purchases for equipment, supplies, and services.

* For the purposes of this analysis, the CCNY Service Region is comprised of Bronx, Kings, Nassau, New York,
Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester Counties.

ECONOMICMODELING.COM | 208-883-3500
 They also facilitate new knowledge creation in the CCNY Service Region I M PAC T S C R E AT E D
B Y C C N Y I N F Y 20 17-18
through inventions, patent applications, and licenses. In FY 2017-18, CCNY
spent $22.5 million on payroll and $30 million on other expenses to sup-
port research activities.

• CCNY’s research spending generated $31.9 million in added income for

the CCNY Service Region economy in FY 2017-18.
$288.3 million
Operations Spending Impact

C O N S T R U C T I O N S P E N D I N G I M PAC T

• New York State and the City University of New York invest in construction
each year at CCNY to maintain its facilities, create additional capacities,
$31.9 million
Research Spending Impact
and meet its growing educational demands, generating a short-term infu-
sion of spending and jobs in the regional economy.

• The net impact of CCNY’s construction spending in FY 2017-18 was

$18.3 million in added income for the CCNY Service Region.
$18.3 million
Construction Spending Impact

V I S I T O R S P E N D I N G I M PAC T

• Out-of-region visitors attracted to the CCNY Service Region for activities

at CCNY brought new dollars to the economy through their spending at
$57.4 million
Visitor Spending Impact
hotels, restaurants, gas stations, and other regional businesses.

• Visitor spending added approximately $57.4 million in income to the CCNY

Service Region economy.
$50.9 million
Student Spending Impact
S T U D E N T S P E N D I N G I M PAC T

• Around 6% of credit students attending CCNY originated from outside the

region. Some of these students relocated to the CCNY Service Region. In
addition, some in-region students, referred to as retained students, would
$1.5 billion
Alumni Impact
have left the CCNY Service Region for other educational opportunities
if not for CCNY. These relocated and retained students spent money
on groceries, mortgage and rent payments, and other living expenses at
regional businesses.

• The expenditures of relocated and retained students in FY 2017-18 added

$50.9 million in income to the CCNY Service Region economy.
$1.9 billion
TOTAL IMPACT

A L U M N I I M PAC T – OR –

• Over the years, students have studied at CCNY and entered or re-entered 16,760
the workforce with newly-acquired knowledge and skills. Today, thousands JOBS SUPPORTED
of these former students are employed in the CCNY Service Region.

• The net impact of CCNY’s former students currently employed in the

regional workforce amounted to $1.5 billion in added income in FY 2017-18.

ECONOMICMODELING.COM | 208-883-3500
 Investment analysis STUDENTS SEE A HIGH
R AT E O F R E T U R N F O R T H E I R
INVESTMENT IN CCNY

STUDENT PERSPECTIVE
22.2%

44 + 20 + 2
• CCNY’s FY 2017-18 students paid a present value of $60.5 million to cover
Average annual return for
the cost of tuition, fees, supplies, and interest on student loans. They also CCNY students
forwent $149.1 million in money that they would have earned had they
9.9%
been working instead of attending college.
Stock market 30-year
• In return for their investment, students will receive $1.4 billion in increased average annual return

earnings over their working lives. This translates to a return of $6.70 in

0.8%
higher future earnings for every dollar students invest in their education.
Students’ average annual rate of return is 22.2%. Interest earned on savings account
(National Rate Cap)

TA X PAY E R P E R S P E C T I V E Source: Forbes’ S&P 500, 1989-2018. FDIC.gov, 6-2019.

• Taxpayers provided CCNY with $210.4 million of funding in FY 2017-18. In

return, they will benefit from added tax revenue, stemming from students’
higher lifetime earnings and increased business output, amounting to
$521.8 million. A reduced demand for government-funded services in New
York will add another $110.8 million in benefits to taxpayers. FOR EVERY $1…

• For every dollar of public money invested in CCNY, taxpayers will receive
Students gain
$3.00 in return, over the course of students’ working lives. The average
annual rate of return for taxpayers is 8.7%.
$6.70
in lifetime earnings

SOCIAL PERSPECTIVE
Taxpayers gain

• In FY 2017-18, New York invested $575.6 million to support CCNY. In turn, $3.00
in added tax revenue and
the New York economy will grow by $5.2 billion, over the course of stu-
public sector savings
dents’ working lives. Society will also benefit from $213.7 million of public
and private sector savings.
Society gains

• For every dollar invested in CCNY in FY 2017-18, people in New York will $9.30
in added income and
receive $9.30 in return, for as long as CCNY’s FY 2017-18 students remain
social savings
active in the state workforce.

ECONOMICMODELING.COM | 208-883-3500