VOLUME 11, NO. 3     FEBRUARY 1998

Consortium economic impact study released

he Colleges of Worcester Consortium recently released an economic impact report that showed area colleges pumped $1.5 billion into the Massachusetts economy last year in direct spending and spin-offs. Three-fourths of this impact was in the Worcester area and $.76 billion in the city of Worcester. The Colleges of Worcester: A Foundation for Economic Success was commissioned by the Worcester Area Chamber of Commerce; it was underwritten by BankBoston, which has done two similar reports for MIT.

A full-page ad from the heads of each of the 10 colleges and universities that appeared in the Worcester Telegram & Gazette the day following the report's release, noted that the economic impact was only one facet of the colleges' relationship with Worcester. "We know that our well-being and our ability to perform the ambitious missions our founders entrusted to us depends on our concern for the city we proudly share and its people," the ad noted.

Direct spending was calculated at $620 million, which stimulated an indirect and induced spending of an additional $857 million. Fifty-two percent of the total spending, $253 million, covered wages and salaries for 6,700 employees. The rest of the expenditures went for everything from fuel oil and examination books to sophisticated research equipment. In 1996 new construction at the colleges came to $34 million.

The report noted that 17,000 full-time students and 10,000 part-time students are enrolled in Consortium colleges and that they spend money directly in the local economy as well as through the colleges and universities.

To determine the amount spent, a survey of 2,500 students was conducted that showed that $111 million was spent by students. Another $22 million was spent by parents, friends and visitors.

Also cited in the report were the many community support contributions made by the colleges through economic development, partnerships and quality of life. WPI was highlighted for its work with the Central Massachusetts Manufacturing Partnership and computer expertise help to the Worcester Public Schools and the Worcester Area Chamber of Commerce, as well as its Venture Forum, continuing education, and research centers and laboratories made available to local firms and industries. Several projects completed for the Worcester community were also highlighted as was the Massachusetts Academy of Mathematics and Science, located on the WPI campus.

As a follow-up to the report, on Nov. 19 a Town Meeting was held with about 200 educators, business and community leaders to discuss the report. Keynote speaker Sen. Edward M. Kennedy called for expanded federal aid to education to meet the pressures of advancing technology and a global economy.

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