Making an Impact
Fairleigh Dickinson University has a long tradition of inspiring students and transforming lives. While we provide a rich landscape of global learning opportunities, we are extensively proud of our New Jersey roots. The growth and prosperity of our institution and our host towns are inextricably linked, and FDU is committed to enhancing the health and welfare of vibrant communities.
The University injects millions of dollars into the economy of our host towns through direct spending and indirect expenditures based on the University’s operation. In Hackensack and Teaneck, our Metropolitan Campus community generates nearly $20 million in economic activity each year. In Florham Park and Madison, the Florham Campus community has a $14.5-million annual impact on the local economy.
In this brief report, you can see the extent of our economic impact on our communities. But our impact is not limited to dollars and cents. Fairleigh Dickinson University offers our local towns great educational benefits and many community services.
In addition, FDU directly supports many community efforts. FDU made significant voluntary contributions to the police, fire, and emergency service units in Florham Park, Hackensack, Madison, and Teaneck. Our acclaimed Henry P. Becton School of Nursing and Allied Health has partnerships with both Holy Name Medical Center in Teaneck and Hackensack University Medical Center. Academic scholarships have been created for high school graduates from each of our four host towns. Many students, faculty, and staff are engaged in community-wide initiatives and volunteer on behalf of community-wide causes.
Fairleigh Dickinson University is part of the fabric of our host communities. We are pleased that our activities generate positive economic benefits for our region, and we promise to continue to provide as many educational and social benefits as possible for the towns we call home.
Annual Economic Impact of Metropolitan Campus for Teaneck and Hackensack
Annual economic impact refers to measurable contributions to the cash flow of the local economy that are attributable to the institution. In the case of higher-education institutions, the measurable contributions come from spending by the institution, the employees and the students.
During fiscal year 2009, the Metropolitan Campus spent $3,595,192 in Teaneck and Hackensack for various goods and services.
Out of 647 full-time employees, 74 lived locally in Teaneck and Hackensack. Out of 531 part-time employees, 50 lived locally. Together, they earned a net income of $3,119,188.
Total local expenditures by employees amounted to $2,582,033.
Direct local expenses ascribed to students were $13,161,000.
Total direct expenditures by the college, the employees and the students amounted to $19,338,225.
Spending creates jobs. And the spending of $19,338,225 would yield an additional 193 jobs in the local area.
Annual Economic Impact of Florham Campus for Madison and Florham Park
Annual economic impact refers to measurable contributions to the cash flow of the local economy that are attributable to the institution. In the case of higher-education institutions, the measurable contributions come from spending by the institution, the employees, and the students.
During fiscal year 2009, the Florham Campus spent $4,913,903 in Madison and Florham Park for various goods and services.
Out of 332 full-time employees, 34 lived locally in Madison and Florham Park. Out of 270 part-time employees, 22 lived locally. Together, they earned a net income of $1,191,133.
Total local expenditures by employees amounted to $1,066,497.
Direct local expenses ascribed to students were $8,602,900.
Total direct expenditures by the college, the employees and the students amounted to $14,583,300.
Spending creates jobs. And the spending of $14,583,300 would yield an additional 146 jobs in the local area.
Three components are used to calculate the local expenditures by the employees of the institution.
The disposable income of all locally residing employees spent on non-housing items is a product of:
- net income of employees living locally,
- estimated non-housing expenditures, and
- estimated in-county expenditures
Rental expenditures by full-time employees residing locally is a product of:
- total number of employees living locally,
- percentage of people who rent,
- average rent for the area, and
- 12 months.
Expenditures of non-local, full-time employees in the local area is a product of:
- total number of employees living outside the defined area, and
A Note on Methodology
The Ryan/New Jersey model, which is a variation on the classic economic impact model developed by Caffrey and Isaacs, was used to calculate the economic impact of Fairleigh Dickinson University. The difference between the two models lies in the substitution of estimated values from data available in the census to the information collected from surveys of faculty, staff and students. The latter was found to be problematic due to the low response rate of the surveys.
The variables that were substituted for survey data are:
- an estimate of non-housing expenditures in New Jersey counties,
- an estimate of the percentage of local residents who rent,
- an estimate of median rent,
- an estimate of employees’ and students’ expenditures within the local area,
- an estimate of local spending by full-time non-local employees,
- an estimate of average annual college-related expenses by full-time and part-time students, and
- the coefficient for jobs attributable to the institutions’ expenditures.
Variable Estimate Source Estimate of non-housing expenditures for NY MSA Survey, Bureau of Labor Statistics, U.S. Dept of Labor (Table 21) .74 for Madison/ Florham Park and Teaneck/ Hackensack 2007-08 Consumer Expenditure Estimate of in-area expenditures for employees .75 for Madison/ Florham Park and Teaneck/ Hackensack COEP Handbook for Economic Impact Estimate of the percentage of local area residents who rent Morris: 24%
2006-08 American Community Survey, U.S. Census Bureau Estimates of the area's median monthly rent Morris: 1,097
2006-08 American Community Survey, U.S. Census Bureau Estimate of in-area spending on non-housing items by non-local, full-time employees $1,000 Based on economic impact study at City University of New York and other regional universities Estimate of annual college-related expenditures locally by full-time students $2,900 Student cost of attendance budget by Financial Aid office Estimate of annual college-related expenditures locally by part-time students $1,000 Student cost of attendance budget by Financial Aid office Coefficient for estimating jobs attributable to expenditures .000010 Based on the economic impact study of New Jersey's Independent Colleges and Universities on the State of New Jersey
The data was compiled and prepared by FDU’s Office of Institutional Research and Assessment
John Caffrey and Herbert H. Isaacs, 1971, Estimating the Impact of a College or University on the Local Economy, Washington, D.C.: American Council on Higher Education. College Outcomes Evaluation Program (COEP), 1990, Handbook for Calculating Short-Term Economic Impact at New Jersey’s Institutions of Higher Education, Trenton, New Jersey Department of Higher Education.