New Rochelle, NY (February 11 , 2015) Two new studies find that Iona College’s total annual economic impact is up to $250 million – on the state of New York, and particularly on the Westchester & Bronx Region.
The findings are from a study conducted by two Iona professors and another conducted on behalf of the Commission on Independent Colleges and Universities (cIcu) by the Center for Governmental Research (CGR).
“The studies indicate Iona has a significant positive impact on the economic, educational and service environment of New Rochelle and the surrounding region,” says Anand Shetty, Ph.D., professor of finance and co-author of the Economic and Service Impact Report (ESIR). “Collectively with the state’s other independent institutions of higher education, it is clear Iona plays a major role in the vitality of New York.”
The CGR study looked at all independent institutions of higher education in the state and, for Iona College, estimates a grand total economic impact, direct and spillover, of more than $250 million – see www.cicu.org/economic-community-impact
for more on the study. [and see attached overview
Iona College’s more conservative Economic and Service Impact Report (ESIR) conducted by Iona business professors John Manley and Anand Shetty indicate the employment impact in the Region is 2,129, including 1,325 direct employees of the College. Further, the study estimates that the College’s total impact is $117.5 million. The service impact component of the study reflects the 22,500 student- volunteer hours given to provide for a variety of community service needs.
Iona’s role in the region’s economy was also recently recognized with approval to participate in Start-Up NY, a program intended to help start, expand or relocate qualified businesses to tax-free zones in New York State. The College’s credit worthiness has also been upgraded in the past year by both Moody’s and Standard and Poor’s, one of only a few colleges in the nation with that distinction.
“The results of this new economic and service impact study are an indicator of Iona’s commitment to reaching beyond the walls of its classrooms and the immediate boundaries of its physical campus,” said Westchester County Association President Marissa Brett. “As the College embarks on its next 75 years, we look forward to continuing to explore and develop partnerships that not only benefit the College, but the region at large.”
According to Manley and Shetty, the study highlights the role Iona serves as an incubator of economic activity through its direct purchases of goods and services, as well as the spending by its employees, students and visitors. Besides its day-to-day economic interactions through spending, Iona contributes to an educated workforce in the region and the nation at large. The study describes how workforce spending makes further contributions to the community in terms of income, employment and tax revenue to local and state governments, which is often referred to as the forward-linkage effect.
“We believe this study is a conservative estimate of Iona’s overall economic impact on the region,” says Manley. “For instance, we excluded the impact of Iona College’s additional operations in Rockland County and New York City, and the impact of capital expenditures for improvements to campus facilities.”
The Economic Impact Study addresses a common misconception about the tax-free status of a not-for-profit (NFP) institution such as Iona. The authors point out that there is often a perception that NFPs do not contribute to local governments’ tax revenues, while receiving the benefits of municipal services. The study concludes that Iona’s impact on government tax revenues includes: 1. additional taxes paid on higher earnings of College graduates who remain in the area, 2. income taxes paid by College employees, 3. sales taxes generated by student, faculty, staff and visitors of the College when they make purchases in the local areas, and 4. taxes paid by vendors and/or suppliers to the College. Other possible sources include tax revenues generated by mixed-use of College facilities and the real estate, property and school taxes paid by resident Iona employees and graduates.
See the full Iona report online at bit.ly/IonaImpact
About the ESIR authors:
John Manley, Ph.D., is a professor of finance at Iona College’s Hagan School of Business and has served as the conference chair (2005-2013) for the International Business and Economy Conference (IBEC) and currently, as chair emeritus, as the treasurer for IBEC. He has recently taught undergraduate courses in International Business, Sports Finance, Principles of Cash Management, Portfolio Management, and Options with Computer Applications and graduate courses in Operation of the Financial System, Sports & Entertainment Finance, and Corporate Financial Strategy.
Anand Shetty, Ph.D., is a professor of finance, business economics and legal studies at Iona College’s Hagan School of Business. He researches and publishes in the fields of finance and economics. His other works involving impact analysis include “Analysis of currency impact on International Investment (Managerial Finance, 2006) and “Factors in Multinational Valuation: Transparency, Political Risk and Diversification”(Journal of Multinational Financial Management, 2011) and an economic impact study of a motorsports complex in upstate NY in 1996 using the RIMS II multipliers for Empire State Motorsports Inc.
About Iona College:
Founded in 1940, Iona College is a four-year private coeducational institution of learning in the tradition of the Edmund Rice Christian Brothers and American Catholic higher education. It is a diverse community of learners and scholars dedicated to academic excellence and the values of justice, peace and service. Iona offers undergraduate degrees in liberal arts, science, and business administration, as well as Master of Arts, Master of Science and Master of Business Administration degrees and numerous advanced certificate programs. Iona College is the second largest private sector employer in New Rochelle, N.Y.
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