Duke's Annual Economic Impact On Durham Estimated at $2.6 Billion
"This report provides further evidence that major research universities such as Duke are economic engines whose activities dramatically benefit their hometowns and regions," says Duke President Nan Keohane
Thursday, February 12, 2004
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The third study of Duke's financial impact on Durham found that local spending by the university, its students and visitors during the 2002-03 fiscal year amounted to $1.3 billion. The impact of that spending, however, is at least twice that amount, or about $2.6 billion, because economists say each dollar spent initiates at least one more round of spending before it leaves the local economy.
The first report, conducted in 1997, estimated the university's economic impact at $1.9 billion.
"Duke University takes seriously the degree to which the university's and the city's fortunes are intertwined," said President Nannerl O. Keohane. "This report provides further evidence that major research universities such as Duke are economic engines whose activities dramatically benefit their hometowns and regions."
The study, which uses government and other data and models to measure Duke's impact on Durham, was conducted by Duke's Office of Public Affairs, with the advice of economists at Duke and North Carolina State University.
Thomas White, president of the Greater Durham Chamber of Commerce, praised the report, noting that chamber members view Duke as Durham's "number one economic development asset."
"Duke is a widely recognized, world-class educational institution that excels not only in the provision of a superior quality of education and health care, its core mission, but also acts as a quintessential community development engine," White said. "A great deal of the impressive corporate investment that our chamber has helped attract to Durham sub-markets, such as Research Triangle Park, Treyburn and our downtown/central business area, has come here expressly because of Duke's presence."
Alan DeLisle, director of Durham's Office of Employment and Economic Development, said Duke's $2.6 billion economic impact is felt in different ways.
"That impact takes many forms -- from a Durham small business that received a Duke contract, to the faculty, students and staff who bring new ideas and spending power to Durham's communities; from a lease in a revitalization project that enhances Durham's downtown and quality of life as a result of the Duke-Durham Neighborhood Partnership, to Duke's varied cultural and artistic contributions," DeLisle said.
Highlights of the 14-page study, "Durham and Duke," report these estimated impacts:
Employment -- $1.46 billionDuke is the largest employer in Durham County, employing 18,343 Durham residents out of a total university and health system work force of 35,201 in 2003, including students and part-time workers. Durham residents working at Duke earned $732 million in wages and benefits.
Purchasing -- $366 millionPurchases in Durham County in 2002-03 totaled $171 million. Duke leased about a third of the office space in Durham and paid about $12 million in rent, which generated an estimated $1.5 million in property taxes payable to Durham government.
Services, taxes and fees -- $38 millionDuke provided $14 million in municipal-type services, such as police and road maintenance, that the city otherwise would be obligated to provide. Additionally, while Duke is tax-exempt like other colleges, religious, cultural and social service institutions, it paid taxes and fees totaling $5.4 million for Duke-owned facilities and municipal services such as water and solid waste.
Annual recurring donations -- $102 millionDuke University Health System provided more than $48 million in uncompensated medical care to county residents. Through various means, the university and its community members donated $2.3 million to Durham organizations.
Student and visitor spending -- $634 millionDuke's 11,700 students spent an estimated $89.5 million off-campus. The Durham Convention & Visitors Bureau, which also concluded that Duke was the most frequent destination of visitors to Durham, estimated that Duke visitor spending amounted to $227 million in 2003.
The study can be found on the web here.