Higher Education Institutions as Anchor Institutions in Smaller Communities and Rural Regions

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Higher educational institutions (HEIs) are now viewed as anchor institutions in many cities, place-based institutions with the capacity to help local and regional economic growth and engage in …

Higher educational institutions (HEIs) are now viewed as anchor institutions in many cities, place-based institutions with the capacity to help local and regional economic growth and engage in community-based revitalization strategies. Colleges and universities in smaller cities, towns and rural areas also play anchor roles in their communities and can be as important a driver of economic and community impact as large HEIs in metropolitan regions. This panel will discuss and compare the role of colleges and universities as anchor institutions in both urban and rural areas. While university-community partnerships are extensive in rural areas through many means, including extension services, less attention has been paid to their role in community and economic partnerships as anchor institutions. University-community partnerships and collaborations have become increasingly important in community and economic development across U.S., in both urban and nonmetropolitan areas.
Sabina Deitrick, PhD, Director of Urban and Regional Analysis Program, University of Pittsburgh (moderator)
Susan Fisher, Economic Impact Analyst, Fourth Economy Consulting
Ed Morrison, Regional Economic Development Advisor, Purdue University

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  • They also document their community impacts and now there are ranking systems and anchor institutions toolkits to see how you fare.
  • Here are just a few member organizations that Western PA educational institutions are involved in.
  • No longer a new term. In 2008, almost 40 urban universities came together as the Coalition of Urban Serving Universities. At my institution, the chancellor often states the city is our campus. Axelroth and Dubb concluded a review of universities in urban settings with three roles: University roles:Facilitator – for institutions with few financial resources, partner role in community setting, service learning and engagement.Leader – U Penn – playing a large role in neighborhood revitalization, with significant financial investment. Large presence in community development and education.Convener – targeted efforts, capacity building for neighborhood revitalization. In the same vein, smaller HEIs also play similar roles, often with fewer resrouces and less capacity building, but can achieve similar results.
  • Pittsburgh region – 26 institutions offer bachelors or higher, from Byzantine Catholic Seminary in Pgh, with under a dozen students, to Pitt, 27,000 students and 7,000 degrees. Steady gains over the past decade and a half – Total enrollment up 20%, 1996 – 2008 tfrom 80,000 students to 96,000 students
  • Pittsburgh has a very low immigrant population that keeps the figures up, but it is, on average, more highly educated than the U.S. for those under the age of 50.
  • There are many here:Seton Hill University put its theatre department in downtown Greensburg. It’s been a major addition, along with historic preservation. UP Bradford bought a downtown office building, revitalized it and put Center for Economic
  • In many smaller communities, the local HEI generates a large part of the educated labor force. Let’s use UPBradford as an example. There are three main ways a HEI raises skill and educational attainment in smaller communities. First, graduates of the school not originally from the immediate area who remain in the region upon graduation are a net addition to the region’s human capital. It’s reasonable to assume that few of these individuals would have come to this region for employment, had they not been students there first.Second, local students who plan to attend college, would go to college elsewhere if not for the local HEI. Many of these students may remain in the region after graduation as well, somewhat less likely if they attended college farther from home.Third are those students who would not have attended an HEI at all, if not for the opportunity provided by the local institution. Artz and Yu, 2011, concluded that students choosing rural residences post-graduation were more likely to have originated from rural regions. Overall, 55.6 percent of UPB graduates from Dec. 2000 – August 2010 were working in the six county Bradford region. In the fastest growing occupations, UPB grads fill many positions.


  • 1. #UEDASummit #UEDASummit
  • 2. University Center for Social and Urban Research
  • 3. Higher Education Institutions as Anchor Institutions in Smaller Communities in Western Pennsylvania -- Partnerships for Community and Economic Regeneration Sabina Deitrick, PhD University of Pittsburgh www.ucsur.pitt.edu UEDA Summit Pittsburgh, PA October 29, 2013
  • 4. This presentation • • • • Anchor institutions Engagement and impact Cases in Western Pennsylvania Conclusions and discussion
  • 5. IN TODAY’S ENVIRONMENT: Institutions document their impacts Community Relations: Economic impact nearly $300 million The total estimated annual economic of Clarion University of Pennsylvania is nearly $300 million according to an economic impact study conducted by the Pennsylvania State System of Higher Education (PASSHE). Slippery Rock an economic engine, report says Tuesday, June 01, 2010 Pittsburgh Post-Gazette Eds and Meds: Cities’ Hidden Assets By Ira Harkavy and Harmon Zuckerman A report commissioned by Slippery Rock University puts the school's economic impact on the region at $334 million a year, with a return of $18.60 for every state and local tax dollar, the school said today.
  • 6. Rankings and Presentations of Higher Education Institutions’ Civic Engagement Rank Evan Dobelle -- Saviors of the City (2009) “Best Neighbor” Colleges and Universities 1 2 University of Pennsylvania University of Southern California University of Dayton University of Pittsburgh Coalition of Urban Serving Universities (2009) “Models of Community Engagement” (not ranked) University of Illinois—Chicago University of Minnesota Portland State University Arizona State University 3 University of Cincinnati 4 5 Higher Education in Pennsylvania: A Competitive Asset for Communities Jennifer S. Vey 6 7 8 Indiana UniversityPurdue University Indianapolis Creighton University Case Western Reserve University Tulane University University of Missouri – Kansas City Temple University California State University – San Bernardino President’s 2009 Higher Education Community Service Honor Roll University of Maryland Democracy Collaborative Princeton Review Town and Gown Relations are Great Lee University, TN Emory University Clemson Indiana University- University Purdue University Indianapolis Ohio Wesleyan St. Michael’s LeMoyne-Owen University College College University Engagement at a Crossroads University of North Carolina, Chapel Hill Emory & Henry College Raritan Valley Community College Willamette University Miami Dade College Portland State University Syracuse University University of Cincinnati University of Minnesota – Twin Cities University of Pennsylvania Yale University Franklin W. Olin College of Engineering Davidson College Wheaton College (IL) St. Olaf College College of the Ozarks Agnes Scott College Kellogg Foundation Engaged Institutions – support for civic engagement University of Texas, El Paso Penn State University University of Minnesota, Twin Cities University of California, Santa Cruz
  • 7. Community Partnerships for Higher Educational Institutions -- Support Organizations, Advocates, and Brokers • Association of Independent Colleges and Universities (AICUP) – Making the Case (for 83 HEIs) • Community Outreach Partnership Centers (HUD grants to Duquesne, Pitt, Robert Morris, Point Park, Edinboro, PSU) • Pennsylvania Campus Compact (67 HEI members; 19 in Western PA) • Project Pericles – (Allegheny College, Chatham University;) • Pittsburgh Council on Higher Education (PCHE) (Allegheny County members) • SPRING – Southwestern Pennsylvania Regional Network for the Growth of Service Learning
  • 8. Anchor roles • Facilitator • Leader • Convener • HEI largest or among the largest employer in municipality and/or county. • HEI communities in Western Pennsylvania typically “not growing,” former industrial and mining communities often severely affected by de-industrialization. Smaller colleges and universities “provide an anchor” to their municipality and communities as do larger urban institutions in the national discussion.
  • 9. Some shifts for HEIs over 1970s and 1980s • The number and size of HEIs was growing and continued to grow. • Post “baby boom” generation resulted in decline in supply of college students. • Heightened competition for new students. • Diversification of traditional liberal arts colleges. “Schools that once subsisted on a combination of genteel poverty among faculty, tweedy relationships between admissions deans and prep school headmasters, and „old school‟ ties with the alumni now depend on four-color brochures, marketing directors, meticulously planned capital campaigns, and elaborate pricing and discount policies that make airline pricing look straightforward by comparison” (McPherson and Schapiro, 2000). Of 540 “liberal arts” colleges measured by a set of metrics, including 40% or more of the college‟s majors in liberal arts, David Breneman found that 212 achieved that number. “The majority … had transformed themselves, some quietly, some with fanfare, into schools specializing in business, computing, nursing, and the like, often equipping themselves with large populations of adults and part time students. Today the Carnegie Foundation doesn‟t even call them liberal arts
  • 10. Higher Education Institutions in Southwestern Pennsylvania: Changes over 25 Years • The increased relative importance of “Eds & Meds” across the region and nation in post-industrial economy. • University of Pittsburgh -- Shift from being a “university in the city” to a “university of the city.” (Bender, 2002) • The establishment of “anchor institutions” in the regional landscape. Colleges and universities in their communities are “by far the most powerful partners, ‘anchors,’ and creative catalysts for change and improvement in the quality of life in American cities and communities,” Ira Harkavy, Penn Institute for Urban Research, 2009.
  • 11. Post-Secondary Educational Institutions in Southwestern Pennsylvania
  • 12. Total Enrollment – Higher Education Institutions Pittsburgh MSA, 1980 - 2008 Includes 26 higher education institutions that award bachelors’ degrees or higher. Source: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS). Data limited in some years.
  • 13. 1996 Growing enrollment in 2000s and local impacts 2008 Change Byzantine Catholic Seminary California University of Pennsylvania Carlow University Carnegie Mellon University Chatham University Duquesne University Geneva College La Roche College Moore College of Art and Design Penn State Beaver State Greater Allegheny Penn State New Kensington Pittsburgh Theological Seminary Point Park University Reformed Presbyterian Theological Seminary Robert Morris University Saint Vincent College Saint Vincent Seminary Seton Hill University Slippery Rock University of Pennsylvania Art Institute of Pittsburgh Trinity Episcopal School for Ministry University of Phoenix-Pittsburgh Campus University of Pittsburgh-Greensburg University of Pittsburgh-Pittsburgh Campus Washington & Jefferson College 0 13 5,636 8,519 2,338 2,128 7,749 10,875 801 2,184 9,362 10,106 1,753 1,951 1,642 1,425 381 556 786 845 892 767 905 876 283 318 2,297 3,784 66 86 4,881 4,815 1,216 2,021 88 73 965 2,087 7,291 8,458 2,447 2,968 107 149 0 81 1,380 1,826 25,479 27,562 1,256 1,519 +13 +2,883 -210 +3,126 +1,383 +744 +198 -217 +175 +59 -125 -29 +35 +1,487 +20 -66 +805 -15 +1,122 +1,167 +521 +42 +81 +446 +2,083 +263 Total: 80,001 95,992 +15,991
  • 14. #UEDASummit
  • 15. #UEDASummit
  • 16. #UEDASummit
  • 17. #UEDASummit
  • 18. Smaller Colleges and Universities in Economic and Community Development in SW PA – summary of characteristics HEI 1 Full-time equivalent fall enrollment (2009) HEI 2 HEI 3 HEI 4 HEI 5 (2011) 1,777 1,503 1,982 1,481 Total FTE staff (2009) 312 307 290 333 Total expenses-Total amount (2009) $32,703,3 04 $46,933,390 $35,857,288 $36,468,606 $39,674,747 Annual expenses per student (2009) $18,404 $31,226 $18,091 $24,624 $27,500 176 204 146 225 FTE employees per 1,000 students Source: Integrated Post-Secondary Data System, 2011 1,480
  • 19. Collaborations Community-economic development Financial-tax revenue • • • • • • • • • • • • • Revitalization from economic restructuring Comprehensive neighborhood development Neighborhood investments Capacity building – CDCs Educational and health partnerships Service learning courses Real estate investments Local purchasing Partnership role with community/city Multi-anchor partnerships Regular town/gown meetings to review community issues Office space for local non-profits • • • • • • • Revitalization from economic restructuring Capacity building – local businesses PILOTs Non-campus real estate investments, including downtown investments Capital donations, property tax payments Annual payments to local government Unrestricted monetary grants Grants for special projects
  • 20. Sustainable partnerships with local communities • • • • • • • • • • • Development and/or renovation of downtown real estate. Active and organized student volunteerism. Participation in economic planning efforts. Grants for special community projects. Unrestricted monetary grants. Regular town/gown meetings to review community issues. Landscape and beautification planning. Office space for local non-profits. Sponsorship or support of special events. Shared facility use. Organized special classes.
  • 21. Pitt-Bradford graduates working in the six county Bradford Region, by major, December 2000 – August 2010 Major TOTAL Nursing (ASN) Business Management Criminal Justice Human Relations Nursing (BSN) Psychology Elem Education CIS&T/Comp Science Biology Social Science Information Sys Public Relations Number in McKean, PA region 338 39 42 27 30 18 23 15 12 15 10 4 12 548 91 82 40 39 29 26 25 17 17 15 16 14 Total 985 126 167 73 68 47 36 43 28 37 18 21 29 Percent in region 55.6% 72.2% 49.1% 54.8% 57.4% 61.7% 72.2% 58.1% 60.7% 45.9% 83.3% 76.2% 48.3%
  • 22. Summary • • • • • Economic and community development initiatives are leadership-driven, typically by the college or university president. Each college or university developed its own strategy for civic engagement. Funding leans more toward local and state politicians (TIFs, New Market Credits, revenue bonds, DCED); foundation, donor and institutional dollars also important, as well as federal officials. Relationship to Pittsburgh remains important. Partnership organizations promote civic engagement, but not all HEIs members. • • • • • Foundations can support partnerships between HEIs and their communities for developing coordinated strategies of civic engagement. Long-term planning and sustainable partnerships may produce more beneficial impacts for both academic institution and local community than project-by-project approach. Foundations can play cross-institutional role by using their convening power to bring HEIs together to examine CED strategies, share knowledge and leverage resources. Foundations can fund possible multicampus initiatives, e.g. Evergreen Initiative in Cleveland that links CED to anchor institutions. Foundations played critical role in service learning initiatives and expansion – can play in next wave of civic engagement!
  • 23. The Impact of Universities as Economic Development Engines October 29, 2013 Susan Fisher Fourth Economy Consulting 24Susan
  • 24. My Background I have 16 years experience as a senior economic and social impact analyst. I worked for many years with Tripp Umbach and now I have the honor of working with Fourth Economy Consulting. I conduct economic impact research and analysis assignments for health care and higher education clients. I work all aspects of the process, including methodology design, model design, and analysis, project management, statistical analysis and reporting. I have completed more than 75 economic impact studies and planning assessments for clients that include Pennsylvania State University, Saint Louis University, Mayo Clinic, UPMC, and Ohio Medical Colleges and Teaching Hospitals. 25
  • 25. Economic Impact’s Role in Economic Development • Institutions use economic impact studies to express, in standard measures, what they contribute to their communities on an annual basis and to show that changes to any inputs will change the resulting outputs. • An example: When a university adds a new department, it requires additional staff, attracts new students, and requires additional facilities. Subsequently, this means more spending at local businesses and more local taxes paid. 26
  • 26. Economic Impact’s Role in Economic Development • An economic impact study can help an institution gauge their economic development progress related to their economic goals, such as employment, business activity, and tax revenues. • State legislatures have a growing expectation for the role of higher education in promoting economic development. In many cases, states are requiring their university systems to design, implement and measure the effectiveness of programs targeted at economic development. 27
  • 27. What is an Economic Impact Study? • To understand a university‟s important role in economic development as an anchor institution within its community it is helpful to incorporate an economic impact study. • Discovering the economic impact a university generates within a geographic area establishes the framework on which to assess a university„s current and future economic development activities. 28
  • 28. What is an Economic Impact Study? • An economic impact study measures the direct business volume generated by a university's spending plus the indirect spending which is the re-spending of dollars within the local economy by vendors/suppliers and households. • All operating universities have a positive economic impact when they spend money and attract spending from out-of-area sources such as hiring out of town consultants or hosting out of town visitors. 29
  • 29. What is an Economic Impact Study? • Economic impact begins when a university spends money. • Economic impact calculates the dollars that are generated within a given geographic area due the presence of and the spending by a university. • Economic impact has nothing to do with the dollars collected by a university such as tuition, their profitability or revenue, fundraising activities or even their sustainability. 30
  • 30. What is an Economic Impact Study? • An economic impact study allows community stakeholders and residents, and state legislators to tangibly see and communicate what their local university brings to the local, regional and state economies. • A university‟s economic impact can be calculated using a linear cash flow model with primary data inputs supplied by the university. 31
  • 31. What is an Economic Impact Study? • The linear cash flow model was originally derived from a standard set of research tools and techniques developed by the American Council on Education (ACE) for the measurement of an institution‟s economic impact. The ACE-based methodology is well established, having been used in hundreds of impact studies throughout the United States. For the impact analysis, computerized spreadsheet models are developed to calculate the business volume and government revenue impacts. 32
  • 32. What is an Economic Impact Study? • Primary data collected from a university include: • Capital account expenditures (5-year average) • Goods & services expenditures (non-staff, noncapital) • Number of staff, faculty, researchers, fellows, medical residents and their pay and benefits • Number of students who live off campus • Number of conference and meeting visitors to the university 33 • Direct taxes paid by the university
  • 33. Economic Impact Model University Direct Univer spending for goods & serv Spending by faculty & staff Spending by students Spending by out of area visitors Direct Impact (business receipts) Business spin-offs from research & staff expertise Multiplier Effect (re-spending of university- related income) Tax receipts for state & local government Total Impact 34
  • 34. Areas that Establish a University as an Economic Engine and Anchor in their Community • • • • • • Creating Jobs Building a Skilled Workforce Visitor Destination Strong Community Partner Research Government Revenue 35
  • 35. Creating Jobs • A university is often a leading generator of jobs and one of the top employers in their local economy. • Jobs in higher education tend to offer greater pay and benefits than some business sectors. Since larger salaries translate into more spending, the impact from university employees‟ spending may surpass that of other local business employees. • A university supports not only its own employees, but also many indirect jobs in virtually every sector of an economy --- business services, information technology, hospitality, construction and many more. 36
  • 36. Creating Jobs • The direct university jobs include those individuals who receive a paycheck from the university. • The indirect jobs include those individuals who provide support services to the university. Jobs such as supply and equipment vendors; information technology vendors; security and temporary employment workers; contractors and laborers for the construction and renovation of university facilities; and employees of hotels, restaurants and retail businesses. 37
  • 37. Building a Skilled Workforce • A university can play an important role in helping their community build a skilled workforce that meets state and local human capital and workforce needs. • A university attracts talented, bright students in a wide range of disciplines - some of whom stay in the local area after graduation. • A university‟s investment in human capital creates in the labor force the skill-base that is so essential for economic growth and development. 38
  • 38. Building a Skilled Workforce • A university educates the workforce that communities need to succeed in the rapidly changing, knowledge-based 21st century economy. • A university‟s alumni positively contribute to a local or regional workforce in many disciplines and professions - a university educates local citizens, future employees, business and community leaders, healthcare professionals, and innovators. 39
  • 39. Visitor Destination • Visitors travel to a university campus every year, frequently bringing out-of-area dollars into the local economy. • Visitors may include prospective students, family and friends of students, employees or faculty. And depending on the university visitors could include patients and support persons, business associates, or those attending sports or cultural events. • In fact, many studies that I‟ve completed show that those who come as students stay in the local area to become permanent residents who start careers, start businesses, buy homes, raise families and pay taxes. 40
  • 40. Strong Community Partner • A university can be a vital economic development partner in the local and regional economies by strategically investing capital improvement dollars to develop and beautify its campus. • A university is often a symbol of stability and leadership as well as a catalyst for economic development through campus development projects and a strong purchasing history within the local community.
  • 41. Strong Community Partner • University employees, faculty and students are exceedingly charitable. They are typically very involved in local charitable organizations and give generously of their time and money to support those in need. • University faculty, staff, students, alumni, and friends give back to their communities through donations to local charitable organizations and volunteer services to organizations, events and individuals in need.
  • 42. Strong Community Partner • Community service and outreach provided by university students gives them tremendous experiential education opportunities. • In fact, university departments frequently offer community outreach opportunities to their students through various department courses. • Help to the community includes: health and wellness fairs, provision of free consultation or consulting services, or free health services –- depending on what the university specializes in.
  • 43. Research • University faculty researchers are reshaping the frontier of medicine, science, humanities, and arts and sciences. • In fields ranging from water quality to cancer and diabetes, to genomics, university faculty researchers are transforming their fields of expertise and having a local, national and international impact on future research development and outcomes. • Research developments and outcomes are economic catalysts as research funding and subsequent business spin-offs generate significant economic impact in the local economy.
  • 44. Government Revenue • The presence of a university stabilizes, strengthens and supports the state and local tax base. • Part of what a university spends on salaries, goods, and services returns to state and local governments in taxes paid by employees, vendors, and others that do business with the university. • A university‟s tax impact may include: income, sales, property and other taxes paid by employees; taxes paid by companies who receive payments from the university; and a wide range of taxes paid by visitors to the university.
  • 45. Economic Development • It is through these various impacts (job creation, building a skilled workforce, visitors, community service, research and government revenue) that a university becomes a catalyst for economic development and an anchor for its community. • A university‟s strengths and assets can be leveraged to benefit their mission and also to benefit the geographic area where they will have an impact. • The presence of a university provides stability to the local business community and confidence to local, nonuniversity business owners who choose to locate their businesses in the area.
  • 46. Economic Development • Policymakers are increasingly viewing universities as important economic engines. • Policymakers who are seeking to maximize the economic impact of local universities should consider policies to retain local graduates and help local businesses create high-skilled jobs through partnerships between businesses and local universities.
  • 47. A University is the Heart of a Community • A university educates citizens, scholars, future employees, leaders and innovators. It provides access to knowledgeable faculty, arts and cultural activities, a top-tier education, extensive libraries and a highly skilled future workforce. It is challenging to assign a dollar amount to the outreach and community activities of a university. However, it can be said that the lives of residents are significantly enhanced on a daily basis by the presence of a local university. 48
  • 48. Contact Information Susan Fisher Fourth Economy Consulting 412-251-2668 49
  • 49. 50
  • 50. Universities as Anchors for Regional Innovation Ed Morrison Purdue University UEDA 2013 ED MORRISON OCTOBER, 2013 51
  • 51. From closed to open...
  • 52. We can replicate and scale....
  • 53. A new path... Locations of Purdue Strategic Doing Workshops
  • 54. Thinking Differently Behaving Differently Doing Differently
  • 55. Thinking Differently Behaving Differently Doing Differently
  • 56. Explain the real dynamics
  • 57. Get good at “link and leverage” 58
  • 58. Connect networks to innovation 59
  • 59. Introduce the ecosystem 60
  • 60. Thinking Differently Behaving Differently Doing Differently
  • 61. Create new civic spaces 62
  • 62. Connect civility to innovation
  • 63. Thinking Differently Behaving Differently Doing Differently
  • 64. Teach agile strategy
  • 65. Use a simple strategy map 66
  • 66. Visualize complex systems 67
  • 67. Promote new (old) ideas “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” John Quincy Adams
  • 68. Thank you ED Morrison edmorrison@purdue.edu