Binghamton University generates nearly $1.5B economic impact

VESTAL — A 2023-24 report finds Binghamton University’s direct and associated expenditures produced an overall economic impact of $1.49 billion on the Binghamton metropolitan area. That’s according to a recent report from the Binghamton University Office of Institutional Research, a May 6 announcement on the Binghamton University website stated. The $1.49 billion regional impact is up from $1.42 billion in 2022–23. The report also found Binghamton University’s economic impact on New York state in 2023–24 is estimated at $1.65 billion. “The University significantly contributes to the local economy through its annual expenditures on operations, employee compensation, procurement of goods and services, capital investments, and auxiliary spending generated by students and visitors,” the 2023–24 report stipulated. The report found Binghamton University visitors contributed an estimated $8.6 million to the local economy, while students contributed $297 million. Both the campus and community have benefited from the school’s growth in recent years, Donald Hall, provost and executive VP for academic affairs at Binghamton University, said in the announcement. “Binghamton University set out years ago to grow while maintaining its high-quality academic programs and reputation,” Hall said. “We’ve achieved many of our goals, and we’re looking forward to continued strong partnerships with area elected officials and local industry in the years to come.” The report also notes that the campus plays a “multifaceted role” as one of the primary employers in the Binghamton metropolitan statistical area and the broader Southern Tier region.

Impact in three categories

The analysis examines Binghamton University’s economic impact in three categories: direct economic effects, indirect economic effects, and the induced effects. Those include visitor expenditures, effects on property values, and the establishment of new businesses in the region. “Dollars spent for University operations and by its faculty, staff, students and visitors ripple through the local and state economy to support additional economic activity and employment in related industries such as utilities, transportation, travel and hospitality,” the report said. In terms of economic output, the analysis found Binghamton University’s total expenditures rose to $1.054 billion in 2023–24, up from $1.002 billion the year before, representing a 5.25 percent increase. In addition, salaries, wages, and benefits were up $46.86 million (or 10.93 percent) in 2023-24, “indicating new campus hires.” As a result of faculty and staff wages, Binghamton University will contribute about $18 million in property and sales taxes to local governments, per the school’s announcement. The report also found capital expenditures were up $8.49 million (or 20.55 percent) in 2023–24, “suggesting more investments in facilities and infrastructure.” Visitor spending rose by 2.85 percent, while student spending was up 1.19 percent. But the report also found that Binghamton University contributes more than dollars to the region and state. The university is the largest employer in the Binghamton area, with more than 5,590 faculty, staff and student workers in 2023–24, compared to 5,400 in 2022–23. University expenditures also supported more than 10,570 jobs in Broome and Tioga counties. In addition, a large number of the university’s 18,800 students are involved in service learning, internships, clinical work, and volunteer experiences. The report estimates that this generated $28 million of value in Broome and Tioga during 2023–24, while also “enhancing the quality of life across the region and state.” The report also says that the growing number of alumni is “stimulating” the local and state economies. The alumni figure has grown from 125,974 in 2018–19 to 143,415 in 2023–24. More than 90,100 Binghamton alumni reside in New York state — and 85 percent are working and earning almost $5.4 billion in total income annually.

Partnerships

Binghamton University’s partnerships and collaborations with local and state governments, private companies, and nonprofit organizations are also vital, the report emphasized. “These partnerships enable faculty and staff to leverage their expertise, involve students in meaningful engagements, drive research initiatives, and secure funding for projects that enrich the Binghamton community,” it said. The continued focus on fostering entrepreneurship and innovation has also led to “the creation of new businesses and solutions to societal challenges.” Binghamton University has leading roles in both the New Energy New York initiative and the NSF Energy Storage Engine in Upstate New York.