Higher Education Institutions as Anchor Institutions in Smaller Communities and Rural Regions

#UEDASummit #UEDASummit

University Center for Social and Urban Research

Higher Education Institutions as Anchor Institutions in Smaller Communities in Western Pennsylvania -- Partnerships for Community and

Economic Regeneration

Sabina Deitrick, PhD University of Pittsburghwww.ucsur.pitt.edu

UEDA SummitPittsburgh, PAOctober 29, 2013

http://www.ucsur.pitt.edu/

This presentation

• Anchor institutions• Engagement and impact• Cases in Western Pennsylvania• Conclusions and discussion

Slippery Rock an economic engine, report saysTuesday, June 01, 2010Pittsburgh Post-GazetteA report commissioned by Slippery Rock University puts the school's economic impact on the region at $334 million a year, with a return of $18.60 for every state and local tax dollar, the school said today.

IN TODAY’S ENVIRONMENT:Institutions document their

impacts

Eds and Meds: Cities’ Hidden AssetsBy Ira Harkavy and Harmon Zuckerman

The College President as Urban PlannerFranklin & Marshall's John A. Fry helps reclaim industrial site

Community Relations: Economic impact nearly $300 millionThe total estimated annual economic of Clarion University of Pennsylvania is nearly $300 million according to an economic impact study conducted by the Pennsylvania State System of Higher Education (PASSHE).

Rankings and Presentations of Higher Education Institutions’ Civic Engagement

Rank Evan Dobelle -- Saviors of the City (2009)

Coalition of Urban Serving Universities

(2009)

President’s 2009 Higher Education

Community Service Honor

Roll

University of Maryland

Democracy Collaborative

Princeton Review

Kellogg Foundation

“Best Neighbor”

Colleges and Universities

“Models of Community

Engagement” (not ranked)

University

Engagement at a Crossroads

Town and Gown

Relations are Great

Engaged Institutions –

support for civic engagement

1 University of PennsylvaniaUniversity of Southern California

University of Illinois—ChicagoUniversity of MinnesotaPortland State UniversityArizona State UniversityUniversity of CincinnatiUniversity of Missouri – Kansas CityTemple UniversityCalifornia State University – San Bernardino

Lee University, TN Emory UniversityIndiana University-Purdue University IndianapolisLeMoyne-Owen CollegeMiami Dade CollegePortland State UniversitySyracuse UniversityUniversity of CincinnatiUniversity of Minnesota – Twin CitiesUniversity of PennsylvaniaYale University

Clemson University

University of Texas, El PasoPenn State UniversityUniversity of Minnesota, Twin CitiesUniversity of California, Santa Cruz

2 University of DaytonUniversity of Pittsburgh

Ohio Wesleyan University

St. Michael’s College

3 University of North Carolina, Chapel Hill

Franklin W. Olin College of Engineering

4 Emory & Henry College

Davidson College

5 Indiana University-Purdue University Indianapolis

Raritan Valley Community College

Wheaton College (IL)

6 Creighton University Willamette University

St. Olaf College

7 Case Western Reserve University

College of the Ozarks

8 Tulane University Agnes Scott College

Higher Education in Pennsylvania:A Competitive Asset for Communities Jennifer S. Vey

Community Partnerships for Higher Educational Institutions -- Support Organizations, Advocates, and

Brokers

• Association of Independent Colleges and Universities (AICUP) – Making the Case (for 83 HEIs)

• Community Outreach Partnership Centers (HUD grants to Duquesne, Pitt, Robert Morris, Point Park, Edinboro, PSU)

• Pennsylvania Campus Compact (67 HEI members; 19 in Western PA)

• Project Pericles – (Allegheny College, Chatham University;)• Pittsburgh Council on Higher Education (PCHE) (Allegheny

County members)• SPRING – Southwestern Pennsylvania Regional Network for the

Growth of Service Learning

Anchor roles

• Facilitator• Leader • Convener

• HEI largest or among the largest employer in municipality and/or county.

• HEI communities in Western Pennsylvania typically “not growing,” former industrial and mining communities often severely affected byde-industrialization.

Smaller colleges and universities “provide an anchor” to their municipality and communities as do larger urban institutions in the national discussion.

Some shifts for HEIs over 1970s and 1980s• The number and size of HEIs was growing and

continued to grow.• Post “baby boom” generation resulted in decline in

supply of college students.• Heightened competition for new students.• Diversification of traditional liberal arts colleges.

“Schools that once subsisted on a combination of genteel poverty among faculty, tweedy relationships between admissions deans and prep school headmasters, and ‘old school’ ties with the alumni now depend on four-color brochures, marketing directors, meticulously planned capital campaigns, and elaborate pricing and discount policies that make airline pricing look straightforward by comparison” (McPherson and Schapiro, 2000).Of 540 “liberal arts” colleges measured by a set of metrics,

including 40% or more of the college’s majors in liberal arts, David Breneman found that 212 achieved that number. “The majority … had transformed themselves, some quietly, some with fanfare, into schools specializing in business, computing, nursing, and the like, often equipping themselves with large populations of adults and part time students. Today the Carnegie Foundation doesn’t even call them liberal arts colleges – they are baccalaureate institutions.”

Higher Education Institutions in Southwestern Pennsylvania: Changes over 25 Years

• The increased relative importance of “Eds & Meds” across the region and nation in post-industrial economy.

• University of Pittsburgh -- Shift from being a “university in the city” to a “university of the city.” (Bender, 2002)

• The establishment of “anchor institutions” in the regional landscape.

Colleges and universities in their communities are “by far the most powerful partners, ‘anchors,’ and creative catalysts for change and improvement in the quality of life in American cities and communities,” Ira Harkavy, Penn Institute for Urban Research, 2009.

Post-Secondary Educational Institutions in Southwestern Pennsylvania

Total Enrollment – Higher Education Institutions Pittsburgh MSA, 1980 - 2008

Includes 26 higher education institutions that award bachelors’ degrees or higher.Source: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS). Data limited in some years.

1996 2008 ChangeByzantine Catholic Seminary 0 13 +13California University of Pennsylvania 5,636 8,519 +2,883Carlow University 2,338 2,128 -210Carnegie Mellon University 7,749 10,875 +3,126Chatham University 801 2,184 +1,383Duquesne University 9,362 10,106 +744Geneva College 1,753 1,951 +198La Roche College 1,642 1,425 -217Moore College of Art and Design 381 556 +175Penn State Beaver 786 845 +59State Greater Allegheny 892 767 -125Penn State New Kensington 905 876 -29Pittsburgh Theological Seminary 283 318 +35Point Park University 2,297 3,784 +1,487Reformed Presbyterian Theological Seminary 66 86 +20Robert Morris University 4,881 4,815 -66Saint Vincent College 1,216 2,021 +805Saint Vincent Seminary 88 73 -15Seton Hill University 965 2,087 +1,122Slippery Rock University of Pennsylvania 7,291 8,458 +1,167Art Institute of Pittsburgh 2,447 2,968 +521Trinity Episcopal School for Ministry 107 149 +42University of Phoenix-Pittsburgh Campus 0 81 +81University of Pittsburgh-Greensburg 1,380 1,826 +446University of Pittsburgh-Pittsburgh Campus 25,479 27,562 +2,083Washington & Jefferson College 1,256 1,519 +263

Total: 80,001 95,992 +15,991

Growing enrollment in

2000s and local impacts

25-34 35-44 45-54 55-64 65+10%

20%

30%

40%

50%

60%

48.1%

39.6%

34.2%

31.7%

24.4%

34.7% 34.6%

32.2%

36.7%

34.5%

Pittsburgh Remainder of US

Proportion of Labor Force with a Bachelor’s Degree or Higher, Pittsburgh Region and U.S., 2009

Local impacts – better educated workforce

Percent of Population with Bachelor’s Degree or Higher, by Age Group, U.S. and Pittsburgh Region, 2010

25-34 35-44 45-64 65 and over0%

10%

20%

30%

40%

50%

31.1% 31.3%

28.6%

21.3%

40.5%

36.8%

28.9%

16.5%

United States Pittsburgh MSA

Proportion of Labor Force Aged 25-34 with a Bachelor’s Degree or Higher, Forty Largest Metropolitan Statistical Areas, 2009

Riversi

de

Las V

egas

San Antonio

Sacramento

Cincinnati

Houston

Providence

Los A

ngeles

PhoenixDalla

s

Charlotte

Virginia Beach

Miami

Columbus

St. Louis

Tampa

Jacksonvil

le

Orlando

Indianapolis

Detroit

Atlanta

San Diego

Baltimore

Cleveland

Chicago

Milwauke

e

Kansas C

ity

Seattle

Philadelphia

Nashvil

le

Portland

San Jose

Denver

Minneapolis

New York

Pittsb

urghAusti

n

Wash

ington

San Francisco

Boston

0%

10%

20%

30%

40%

50%

60%

15.5%

48.1%

56.0%

Proportion of Labor Force Age 25-34 with a Graduate or Professional Degree, Forty Largest Metropolitan Statistical Areas, 2009

Sacramento

Las V

egas

Virginia Beach

Los A

ngeles

Orlando

Cincinnati

Dallas

Providence

Denver

St. Louis

Milwauke

e

San Diego

Seattle

Philadelphia

Chicago

Nashvil

le

Kansas C

ity

Detroit

New York

Wash

ington0%

10%

20%

2.3%

21.5%

Smaller Colleges and Universities in Economic and Community Development in SW PA – summary of

characteristics

HEI 1 HEI 2 HEI 3 HEI 4 HEI 5 (2011)

Full-time equivalent fall enrollment (2009) 1,777 1,503 1,982 1,481 1,480

Total FTE staff (2009) 312 307 290 333

Total expenses-Total amount (2009)

$32,703,304 $46,933,390 $35,857,288 $36,468,606 $39,674,747

Annual expenses per student (2009)

$18,404 $31,226 $18,091 $24,624 $27,500

FTE employees per 1,000 students

176 204 146 225

Source: Integrated Post-Secondary Data System, 2011

Collaborations

Community-economic development• Revitalization from economic

restructuring• Comprehensive neighborhood

development• Neighborhood investments• Capacity building – CDCs• Educational and health partnerships• Service learning courses• Real estate investments• Local purchasing• Partnership role with community/city• Multi-anchor partnerships• Regular town/gown meetings to

review community issues• Office space for local non-profits

Financial-tax revenue• Revitalization from economic

restructuring• Capacity building – local businesses• PILOTs• Non-campus real estate investments,

including downtown investments• Capital donations, property tax

payments• Annual payments to local

government• Unrestricted monetary grants• Grants for special projects

Sustainable partnerships with local communities

• Development and/or renovation of downtown real estate.• Active and organized student volunteerism.• Participation in economic planning efforts.• Grants for special community projects. • Unrestricted monetary grants.• Regular town/gown meetings to review community issues.• Landscape and beautification planning.• Office space for local non-profits.• Sponsorship or support of special events.• Shared facility use.• Organized special classes.

Major McKean, PANumber in

region TotalPercent in region

TOTAL 338 548 985 55.6%Nursing (ASN) 39 91 126 72.2%Business Management 42 82 167 49.1%Criminal Justice 27 40 73 54.8%Human Relations 30 39 68 57.4%Nursing (BSN) 18 29 47 61.7%Psychology 23 26 36 72.2%Elem Education 15 25 43 58.1%CIS&T/Comp Science 12 17 28 60.7%Biology 15 17 37 45.9%Social Science 10 15 18 83.3%Information Sys 4 16 21 76.2%Public Relations 12 14 29 48.3%

Pitt-Bradford graduates working in the six county Bradford Region, by major, December 2000 – August 2010

Summary• Economic and community

development initiatives are leadership-driven, typically by the college or university president.

• Each college or university developed its own strategy for civic engagement.

• Funding leans more toward local and state politicians (TIFs, New Market Credits, revenue bonds, DCED); foundation, donor and institutional dollars also important, as well as federal officials.

• Relationship to Pittsburgh remains important.

• Partnership organizations promote civic engagement, but not all HEIs members.

• Foundations can support partnerships between HEIs and their communities for developing coordinated strategies of civic engagement.

• Long-term planning and sustainable partnerships may produce more beneficial impacts for both academic institution and local community than project-by-project approach.

• Foundations can play cross-institutional role by using their convening power to bring HEIs together to examine CED strategies, share knowledge and leverage resources.

• Foundations can fund possible multi-campus initiatives, e.g. Evergreen Initiative in Cleveland that links CED to anchor institutions.

• Foundations played critical role in service learning initiatives and expansion – can play in next wave of civic engagement!

The Impact of Universities as Economic Development Engines

24Susan

October 29, 2013

Susan FisherFourth Economy Consulting

My Background

25

I have 16 years experience as a senior economic and social impact analyst. I worked for many years with Tripp Umbach and now I have the honor of working with Fourth Economy Consulting.

I conduct economic impact research and analysis assignments for health care and higher education clients. I work all aspects of the process, including methodology design, model design, and analysis, project management, statistical analysis and reporting.

I have completed more than 75 economic impact studies and planning assessments for clients that include Pennsylvania State University, Saint Louis University, Mayo Clinic, UPMC, and Ohio Medical Colleges and Teaching Hospitals.

Economic Impact’s Role in Economic Development

26

• Institutions use economic impact studies to express, in standard measures, what they contribute to their communities on an annual basis

and to show that changes to any inputs will change the resulting outputs.

• An example: When a university adds a new department, it requires additional staff, attracts new students, and requires additional facilities. Subsequently, this means more spending at local

businesses and more local taxes paid.

Economic Impact’s Role in Economic Development

27

• An economic impact study can help an institution gauge their economic development progress related to their economic goals, such as

employment, business activity, and tax revenues.• State legislatures have a growing expectation for

the role of higher education in promoting economic development. In many cases,

states are requiring their university systems to design, implement and measure the effectiveness of programs targeted at economic development.

What is an Economic Impact Study?

28

• To understand a university’s important role in economic development as an anchor institution

within its community it is helpful to incorporate an economic impact study.

• Discovering the economic impact a university generates within a geographic area establishes

the framework on which to assess a university‘s current and future economic development activities.


29

• An economic impact study measures the direct business volume generated by a university's

spending plus the indirect spending which is the re-spending of dollars within the local economy by vendors/suppliers and households.

• All operating universities have a positive economic impact when they spend money and attract

spending from out-of-area sources such as hiring out of town consultants or hosting out of town visitors.


30

• Economic impact begins when a university spends money.

• Economic impact calculates the dollars that are generated within a given geographic area

due the presence of and the spending by a university.

• Economic impact has nothing to do with the dollars collected by a university such as tuition, their

profitability or revenue, fundraising activities or even their sustainability.


31

• An economic impact study allows community stakeholders and residents, and state legislators

to tangibly see and communicate what their local university brings to the local, regional and state economies.

• A university’s economic impact can be calculated using a linear cash flow model with primary

data inputs supplied by the university.


32

• The linear cash flow model was originally derived from a standard set of research tools and techniques developed by the American

Council on Education (ACE) for the measurement of an institution’s economic impact. The ACE-based methodology is well established, having been used in hundreds of impact studies throughout the United States. For the impact analysis, computerized spreadsheet models are developed to calculate the business volume and government revenue impacts.


33

• Primary data collected from a university include:• Capital account expenditures (5-year average)• Goods & services expenditures (non-staff, non-

capital)• Number of staff, faculty, researchers, fellows,

medical residents and their pay and benefits• Number of students who live off campus• Number of conference and meeting visitors to

the university • Direct taxes paid by the university

Economic Impact Model

34

Business spin-offsfrom research

& staff expertise

Multiplier Effect(re-spending of

university- related income)

University

Spending bystudents

Total ImpactTax receipts for

state & localgovernment

Direct Univer

spending for goods & serv

Spending by faculty & staff

Direct Impact(business

receipts)

Spending by out of area visitors

Areas that Establish a University as an Economic Engine and Anchor in their Community

35

• Creating Jobs• Building a Skilled Workforce• Visitor Destination• Strong Community Partner• Research• Government Revenue

Creating Jobs

36

• A university is often a leading generator of jobs and one of the top employers in their local economy.

• Jobs in higher education tend to offer greater pay and benefits than some business sectors. Since larger

salaries translate into more spending, the impact from university employees’ spending may surpass that of other local business employees.

• A university supports not only its own employees, but also many indirect jobs in virtually every sector of an economy --- business services, information

technology, hospitality, construction and many more.

Creating Jobs

37

• The direct university jobs include those individuals who receive a paycheck from the university.

• The indirect jobs include those individuals who provide support services to the

university. Jobs such as supply and equipment vendors; information technology vendors; security and temporary employment workers; contractors

and laborers for the construction and renovation of

university facilities; and employees of hotels, restaurants and retail

businesses.

Building a Skilled Workforce

38

• A university can play an important role in helping their community build a skilled workforce that meets state and local human capital and workforce needs.

• A university attracts talented, bright students in a wide range of disciplines - some of whom stay in the local area after graduation.

•A university’s investment in human capital creates in the labor force the skill-base that is so essential

for economic growth and development.

Building a Skilled Workforce

39

• A university educates the workforce that communities need to succeed in the rapidly changing, knowledge-based 21st century economy.

• A university’s alumni positively contribute to a local or regional workforce in many disciplines and professions - a university educates local citizens,

future employees, business and community leaders, healthcare professionals, and

innovators.

Visitor Destination

40

• Visitors travel to a university campus every year, frequently bringing out-of-area dollars into the local economy.

• Visitors may include prospective students, family and friends of students, employees or faculty. And depending

on the university visitors could include patients and support persons, business associates, or those attending sports or cultural events.

• In fact, many studies that I’ve completed show that those who come as students stay in the local area to

become permanent residents who start careers, start businesses, buy homes, raise families and pay taxes.

Strong Community Partner• A university can be a vital economic development

partner in the local and regional economies by strategically investing capital improvement dollars to develop and beautify its campus.

• A university is often a symbol of stability and leadership as well as a catalyst for economic

development through campus development projects and a strong purchasing history

within the local community.

Strong Community Partner• University employees, faculty and students are

exceedingly charitable. They are typically very involved in local charitable organizations and give generously of their time and money to support those in need.

• University faculty, staff, students, alumni, and friends give back to their communities through donations to local charitable organizations and volunteer services to organizations, events and individuals in need.

Strong Community Partner• Community service and outreach provided by university

students gives them tremendous experiential education opportunities.

• In fact, university departments frequently offer community outreach opportunities to their students through

various department courses.

• Help to the community includes: health and wellness fairs, provision of free consultation or consulting services,

or free health services –- depending on what the university specializes in.

Research• University faculty researchers are reshaping the frontier of

medicine, science, humanities, and arts and sciences.

• In fields ranging from water quality to cancer and diabetes, to genomics, university faculty researchers are

transforming their fields of expertise and having a local, national and international impact on future research development and outcomes.

• Research developments and outcomes are economic catalysts as research funding and subsequent business

spin-offs generate significant economic impact in the local economy.

Government Revenue• The presence of a university stabilizes, strengthens and

supports the state and local tax base.

• Part of what a university spends on salaries, goods, and services returns to state and local governments in taxes paid by employees, vendors, and others that do business with the university.

• A university’s tax impact may include: income, sales, property and other taxes paid by employees; taxes paid by companies who receive payments from the university; and a wide range of taxes paid by visitors to the university.

Economic Development• It is through these various impacts (job creation, building a

skilled workforce, visitors, community service, research and government revenue) that a university becomes a catalyst for economic development and an anchor for its community.

• A university’s strengths and assets can be leveraged to benefit their mission and also to benefit the

geographic area where they will have an impact.• The presence of a university provides stability to the local

business community and confidence to local, non-university business owners who choose to locate

their businesses in the area.

Economic Development

• Policymakers are increasingly viewing universities as important economic engines.

• Policymakers who are seeking to maximize the economic impact of local universities should consider policies to retain local graduates and help local businesses

create high-skilled jobs through partnerships between businesses and local universities.

A University is the Heart of a Community• A university educates citizens, scholars, future

employees, leaders and innovators. It provides access to knowledgeable faculty, arts and cultural activities, a top-tier education, extensive libraries and a highly skilled future workforce. It is challenging to assign a dollar amount to the outreach and community activities of a university. However, it can be said that the lives of residents are significantly enhanced on a daily basis by the presence of a local university.

48

Contact Information

Susan FisherFourth Economy Consulting

412-251-2668

49

50

51

ED MORRISONOCTOBER, 2013

Universities as Anchorsfor Regional InnovationEd MorrisonPurdue UniversityUEDA 2013

From closed to open...

We can replicate and scale....

A new path...

Locations of Purdue Strategic

Doing Workshops

Thinking Differently Behaving DifferentlyDoing Differently


Explain the real dynamics

58

Get good at “link and leverage”

59

Connect networks to innovation

60

Introduce the ecosystem


62

Create new civic spaces

Connect civility to innovation


Teach agile strategy

66

Use a simple strategy map

67

Visualize complex systems

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”

John Quincy Adams

Promote new (old) ideas

Thank you

ED [email protected]

mailto:[email protected]