Salem State releases FY2010 economic impact report
In a report released today (Friday, March 25, 2011) by Salem State University’s Center for Economic Development and Sustainability, the North Shore university is shown to have an economic impact of over $562 million in the Commonwealth of Massachusetts. Its economic impact on Essex County and the city of Salem was equally significant in fiscal year 2010, with an impact amounting to $296 million and $104 million respectively. Salem State’s impact on the state, region and city is based on employee salaries and benefits, purchased goods and services and student spending.
The Salem State Economic Impact Report also points to the economic benefit to the Commonwealth of the nearly 80 percent of Salem State graduates who remain in Massachusetts to live and work. By completing a bachelor’s or master’s degree, each has an increased earning potential. During their first year after graduation, Salem State University graduates from FY2010 alone will produce an increased economic impact of $37.4 million in Massachusetts, $20 million in Essex County and $2.4 million in Salem. Given the large amount of Salem State alumni who live in Massachusetts, the 40-year differential impact to Massachusetts is $1.5 billion, to Essex County $800 million and to Salem $96.5 million.
According to Salem State’s president, Patricia Maguire Meservey, “Public higher education graduates stay in Massachusetts and give back many times over. Our investment in our students yields great gains for our Commonwealth.”
One of the largest employers in Salem and one of the top 10 employers on the North Shore, Salem State University’s 1415 employees are an important part of the Commonwealth’s economy. Their fiscal year 2010 compensation resulted in an economic impact on the state of more than $125 million; that impact was $84 million in Essex County and nearly $25 million in Salem.
Notable highlights of the FY2010 report include the following:
- In the city of Salem alone, the university spent $30.5 million with 260 vendors that included local restaurants, hotels and other retail services. This created a local economic impact of over $44 million.
- The direct result of local student spending in the city of Salem was more than $11 million in FY2010 and approximately $74 million in Essex County.
- Salem State faculty, staff and students performed 20,474 hours of volunteer community service.
- Over 1,600 students completed practicums and internships in 395 locations, providing local businesses with over 400,000 hours of work.
- The university’s Northeastern Massachusetts Aquaculture Center cultivated over 3.3 million clam seeds with a market value of $108,000.
In noting the many positive impacts Salem State University had on the economies of Massachusetts, Essex County and the city of Salem from July 2009 through June 2010 at the unveiling of the report to the North Shore Alliance for Economic Development and The Salem Partnership this morning, Lorri Krebs PhD, executive director of the Center for Economic Development and Sustainability, remarked that, “These benefits occur through the university’s employees and students, who live, work, study, spend money, and pay taxes in Massachusetts; and through the university’s purchases of goods and services throughout the county and state.”
For more information on the economic impact report, visit community connections.