MIDWOOD — A recent study found that Brooklyn College, part of the City University of New York system, annually contributes around $2.6 billion in income to the New York City economy. The study by Lightcast analyzed operations spending, student spending and alumni impact from the 2021-2022 fiscal year to examine the college’s economic impact and investment value. 

“Investing in Brooklyn College is a win-win for our communities and our students,” said Michelle J. Anderson, president of Brooklyn College. “Our world-class staff and faculty not only equip students with the tools needed for personal success but empower them to contribute significantly to the regional economy. We are proud to be one of the leading institutions for social mobility and to be a beacon for young people looking to receive an unparalleled, affordable education.”

Since 1930, Brooklyn College has invested in the education and futures of students from immigrant and diverse socioeconomic backgrounds. The college boasts a student population representing 136 countries and 91 languages. The study implies that the college’s diverse student and alumni network positively affects the city and investors, as a significant portion of alumni work in the New York City metropolitan area, generating spending, jobs and income. 

Brooklyn College prides itself for its diverse student population, noting that the U.S. News and World Report has recognized the institution as having the highest Campus Diversity Index number for six years. From the study, the college considers its diversity to be its biggest strength, noting the societal benefits it creates. Included in the $6.9 billion of Brooklyn College’s value is $4.4 billion in added student income, $2 billion in added business income, $295.4 million in added income from college activities and $252 million in social savings related to health, the justice system and income assistance in New York, according to the study.

The study found that the college generates benefits to students, taxpayers and stakeholders from operations spending, student spending and alumni income. The alumni impact reflected 17,482 local jobs and $2.3 billion in added income to the economy. 

“It’s fitting that one of Brooklyn’s premier institutions of higher education is one of the greatest economic drivers of our economy,” said Brooklyn Borough President Antonio Reynoso. “With so many young New Yorkers, particularly students of color and children of immigrants, attending Brooklyn College, we must continue to invest in institutions like these that play such a critical role in advancing economic and social mobility.”

The college, as an employer, serves as a large-scale buyer of goods and services, which contributes to the regional economy positively. Brooklyn College spent $217.4 million on payroll, supporting its employees who live within the New York City region. The college’s employees spend their wages on groceries, mortgage and rent, entertainment and household expenses which help the local economy thrive. 

The college also spent $108.7 million on expenses such as facilities, supplies and professional services. Totalling the institution’s spending and contributions, Brooklyn College adds $284.6 million in income to the region which translates to supporting 2,900 regional jobs. 

From 2021-2022, 19,234 students at the college paid for tuition, fees, books and supplies. Some took out loans which accrued interest and spent money they would have otherwise earned from working. The student body’s total investment equaled a present value of $260.7 million or $68.8 million in out-of-pocket expenses and $191.9 million in forgone time and money. Approximately 8% of the college’s students relocate to the city to attend Brooklyn College, adding $52.1 million to the local economy. 

In return for students’ expenses to attend the college, they receive higher-paid jobs after graduation. Bachelor’s degree graduates saw annual earnings averaging $41,200 more than the average high school graduate or equivalent working in the city. The study found that for each dollar a student invested in their education at Brooklyn College, they received a cumulative value of $7.30 in future earnings. 

Taxpayers, who are partially responsible for funding Brooklyn College, also receive a return on their investment by receiving savings in healthcare, the justice system and income assistance. The present value of these savings amounts to $121.6 million. The taxpayer benefits total $749.6 million, considering tax revenue and public sector savings, whereas the cost to taxpayers is $200.9 million.

The study was conducted by Lightcast, a company that uses labor market data to predict student, business and community outcomes for higher education institutions. The data and conclusions noted in the study were based on sources such as the fiscal year 2021-2022 academic and financial reports from Brooklyn College along with industry and employment data from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau. The company also conducted surveys and studies relating education to social behavior.