Annual Economic Impact of Florham Campus
Madison and Florham Park
Annual economic impact refers to measurable contributions to the cash flow of the local economy that are attributable to the institution. In the case of higher-education institutions, the measurable contributions come from spending by the institution, the employees and the students.
During fiscal year 2009, the Florham Campus spent $4,913,903 in Madison and Florham Park for various goods and services.
Out of 332 full-time employees, 34 lived locally in Madison and Florham Park. Out of 270 part-time employees, 22 lived locally. Together, they earned a net income of $1,191,133.
Three components are used to calculate the local expenditures by the employees of the institution:
(1) the disposable income of all locally residing employees spent on non-housing items [see note 1 at right]
(2) rental expenditures by full-time employees residing locally [see note 2 at right] and,
(3) expenditures of non-local, full-time employees in the local area [see note 3 at right]
Total local expenditures by employees amounted to $1,066,497.
Direct local expenses ascribed to students were $8,602,900.
Total direct expenditures by the college, the employees and the students amounted to $14,583,300.
Spending creates jobs. And the spending of $14,583,300 would yield an additional 146 jobs in the local area.
1 A product of: (a) net income of employees living locally, (b) estimated non-housing expenditures and (c) estimated in-county expenditures.
2 A product of: (a) total number of employees living locally, (b) percentage of people who rent, (c) average rent for the area and (d) 12 months.
3 A product of: (a) total number of employees living outside the defined area and (b) $1,000.