Wednesday, December 6, 2017

Historically Black Colleges and Universities (HBCUs) generate $14.8 billion in economic impact annually, which is equivalent to a ranking in the top 200 on the Fortune 500 list of America’s largest corporations, according to a stunning new report by the United Negro College Fund (UNCF).

The report, conducted by the University of Georgia’s Terry College of Business Selig Center for Economic Growth, revealed that the 1,634-student Alabama school generates $67 million for its local region.

• In total, the nation’s HBCUs generate $14.8 billion in economic impact annually; that’s equivalent to a ranking in the top 200 on the Fortune 500 list of America’s largest corporations. This estimate includes direct spending by HBCUs on faculty, employees, academic programs and operations, and by students attending the institutions, as well as the follow-on effects of that spending. • Public HBCUs account for $9.6 billion of that total economic impact, while private HBCUs account for $5.2 billion.

The economic impact of Historically Black Colleges and Universities (HBCU) on their local communities has never been stronger, especially at Miles College in Fairfield, Ala.

A new report funded by the United Negro College Fund (UNCF) and

Fact sheets for the economic impact of individual HBCUs are available at https://www.uncf.org/programs/hbcu-impact.

“It’s the first time that we’ve had a study conducted by such a professional institution to recognize the importance of HBCUs and particularly the impact on our community,” Miles College President Dr. George T. French, Jr., told the NNPA Newswire. “We’ve talked in general terms, but to quantify this is important so that our partners can understand the value of our institution. It’s a win-win for our region and for government partners who look to partner with us.”

The landmark study titled, “HBCUs Make America Strong: The Positive Economic Impact of Historically Black Colleges and Universities,” makes clear that the benefits also flow to the local and regional economies connected to Miles College.

The study is a precursor to a larger report that UNCF plan to release on Tuesday, November 14, about the overall impact of all 105 of the nation’s HBCUs.

“The presence of an HBCU means a boost to economic activity, on and off—and even well beyond—campus. Stronger growth, stronger communities, more jobs and a more talented workforce,” UNCF authors wrote in the report. 

The benefits flow to Miles College’s graduates, who’ll enter the workforce with sharper skills and vastly enhanced earning prospects, according to the report.

For every $1 spent by Miles College and its students, $1.48 is generated in initial and subsequent spending for the local and regional area, authors of the report said.

Miles College tuition for in-state and out-of-state students is $11,604 annually and the school offers courses in accounting, communication, education, humanities, social and behavior sciences, natural sciences and mathematics.

“Hampton University generates $270 million in total economic impact for its local and regional economies,” the study said. “This estimate includes direct spending by Hampton University on faculty, employees, academic programs and operations— and by students attending the institution, as well as the follow-on effects of that spending. Every dollar spent by Hampton University and its students produces positive economic benefits, generating $1.34 in initial and subsequent spending for its local and regional economies. Communities and regions hoping to foster a more robust and diversified economic climate find HBCU-connected spending a critical component of that effort.”

According to the study, Hampton University generates 2,249 jobs for its local and regional economies. Of this total, 825 are on-campus jobs, and 1,424 are off-campus jobs. For each job created on campus, another 1.7 public- and private-sector jobs are created off campus because of Hampton University-related spending. Looked at in a different way: Each $1 million initially spent by Hampton University and its students creates 11 jobs.

Hampton University plays a major role in the economic success of its graduates by enhancing their education, training and leadership skills. A college degree opens the door to economic prosperity through greater employment and earnings potential. In fact, the 949 Hampton University graduates in 2014 can expect total earnings of $2.6 billion over their lifetimes—that’s 62 percent more than they could expect to earn without their college credentials. Or viewed on an individual basis, a Hampton University graduate working full time throughout his or her working life can expect to earn $1.1 million in additional income due to a college credential.i

Howard University generates $1.5 billion in total economic impact for its local and regional economies. This estimate includes direct spending by Howard University on faculty, employees, academic programs and operations—and by students attending the institution, as well as the follow-on effects of that spending. Every dollar spent by Howard University and its students produces positive economic benefits, generating $1.58 in initial and subsequent spending for its local and regional economies. Communities and regions hoping to foster a more robust and diversified economic climate find HBCU-connected spending a critical component of that effort.

Howard University generates 9,591 jobs for its local and regional economies. Of this total, 3,301 are on-campus jobs, and 6,290 are off-campus jobs. For each job created on campus, another 1.9 public- and private-sector jobs are created off campus because of Howard University-related spending. Looked at in a different way: Each $1 million initially spent by Howard University and its students creates 10 jobs.