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

1. #UEDASummit
#UEDASummit

2. University Center for Social and Urban Research

4. 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

5. This presentation
•
•
•
•
Anchor institutions
Engagement and impact
Cases in Western Pennsylvania
Conclusions and discussion

6. 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.

7. 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

8. 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

9. 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.

10. 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

11. 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.

12. Post-Secondary Educational Institutions in
Southwestern Pennsylvania

13. 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.

14. 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

15. #UEDASummit

16. #UEDASummit

17. #UEDASummit

18. #UEDASummit

19. 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

20. 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

21. 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.

22. 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%

23. 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!

24. The Impact of Universities as
Economic Development Engines
October 29, 2013
Susan Fisher
Fourth Economy Consulting
24Susan

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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.

42. 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.

43. 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.

44. 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.

45. 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.

46. 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.

47. 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.

48. 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

49. Contact Information
Susan Fisher
Fourth Economy Consulting
412-251-2668
49

50. 50

51. Universities as Anchors
for Regional Innovation
Ed Morrison
Purdue University
UEDA 2013
ED MORRISON
OCTOBER, 2013
51

52. From closed to open...

53. We can replicate and scale....

54. A new path...
Locations of Purdue
Strategic Doing
Workshops

55. Thinking Differently
Behaving Differently
Doing Differently

56. Thinking Differently
Behaving Differently
Doing Differently

57. Explain the real dynamics

58. Get good at “link and leverage”
58

59. Connect networks to innovation
59

60. Introduce the ecosystem
60

61. Thinking Differently
Behaving Differently
Doing Differently

62. Create new civic spaces
62

63. Connect civility to innovation

64. Thinking Differently
Behaving Differently
Doing Differently

65. Teach agile strategy

66. Use a simple strategy map
66

67. Visualize complex systems
67

68. 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

69. Thank you
ED Morrison
edmorrison@purdue.edu