COUNCIL FOR HIGHER EDUCATION IN NEWARK RELEASES ECONOMIC IMPACT REPORT
If the four schools that comprise CHEN - Essex County College, New Jersey Institute of Technology, Rutgers University- Newark and the University of Medicine and Dentistry of New Jersey - were viewed as a business, they would be a $1.1 billion corporation with more than 11,800 employees, $480 million in payrolls and 26,000 students, the report says.
The schools propel the city's resurgence in many ways. They not only educate students, who soon join the workforce, but they also employ thousands of local residents.
In Essex County, they employ more people than the chemical, construction, and legal industries. They number among Newark's largest employers, accounting for nine percent of the city's jobs.
The $1.1 billion spent by the schools on labor, materials and services has a ripple effect that benefits nearly every aspect of the state's economy. Last year, for instance, the schools' total spending of $1.1 billion generated more than $2.6 billion in spending.
The total impact of CHEN's operations also generate 24,558 jobs in the state, of which almost half were in Essex County. And most of those jobs - 10,304 of them - were located in Newark - people working on the college campuses. And 40 percent of those workers, moreover, live in Essex County.
CHEN capital investments between 1990 and 2000 generated a total of $923 million in spending and 7,843 construction-related jobs throughout the state. Investments planned for 2001-2005 are expected to generate $918 million in spending and 7,801 jobs in New Jersey.
But their combined impact on the economy is only part of the story. The four schools also vitalize the city, improving the quality of life and turning it into a vibrant college town. Thousands of students graduate each year from the colleges, joining the workforce as doctors, dentists, engineers, architects, computer scientists, lawyers, teachers and executives.
The schools, all located in the University Heights section of Newark, have a long record of invigorating the neighborhood with developments and capital improvements.
The most ambitious project is the development of University Heights' Science Park. When the project is completed, University Heights' Science Park will offer one million square feet of building space for research, technology, business start-ups and offices. Science Park will also include housing units, a child-care center, retail space and a Science High School for Newark.
From the opening of the New Jersey Performing Arts Center and Riverfront Stadium, to the increased demand for office space and the construction of thousands of houses, the city is on an upswing; more and more people are choosing to live, work and study here. And propelling the city's resurgence are the four schools that make Newark their home, together educating students, employing workers, using goods and services, while making the city a better place to live, learn and work.
This study was requested and funded by the CHEN to evaluate the collective economic impact of the four Newark campuses of the State of New Jersey, and to describe their contributions to the local economy of Newark and its surrounding area. Richard W. Roper, President of the Roper Group, prepared the study. Amos Ilan, principal of A. Ilan Consulting, provided assistance and conducted the economic impact assessment of CHEN's spending pattern. A full copy of the report is available on line at www.CHEN-NJ.org.
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