Regional Economic Impact

With more than 4,500 benefits eligible employees and an overall work force of approximately 9,400 individuals (students and casual hourly employees), Princeton University is the largest private employer in Mercer County and the fourth largest in the central New Jersey region consisting of Mercer, Middlesex and Somerset Counties.

With the University's total expenditures (operating and capital budgets) at approximately $575.5 million, along with the expenditures of an estimated 310,000 people attending events on campus as well as the expenditures of the thousands of students and employees, the institution's overall regional economic impact amounts to nearly one billion dollars for 1995-96.

The University makes an effort to purchase goods and services in New Jersey as much as possible; it is part of a consortium that meets with New Jersey vendors to determine how the vendors can serve the needs of educational institutions. It is estimated that Princeton University has spent $49million on goods and services from New Jersey vendors in 1995-96.

In addition to serving as a major employment center for the State, the University creates non-campus jobs related to the University's economic activity. University employees contribute $7.2 million in New Jersey state income taxes.

The University serves as a strong economic magnet and anchor for the region and helps attract prestigious international corporations to central New Jersey. Among other things, the University's positive effect on the economy helps Princeton Borough, Princeton Township, and the Princeton Regional School District to obtain a Triple A Bond rating.

Employment, 1995-96

· Permanent employees: 4,495. In total, approximately 9,440 individuals (including 1,245 casual hourly employees and 3,700 student employees) receive paychecks from the University.

· Total payroll: $304 million.

Expenditures, 1995-96

· Total expenditures: $575.5 million

· Operating expenditures (including payroll): $531 million

· Capital expenditures: $45 million

· Goods and services from New Jersey: $49 million

· Construction projects in the past five years: $100 million (50 percent of this amount was spent on New Jersey construction, businesses and architects)

Visitors, 1995-96

· Estimated total: 310,000 (this figure is more than in previous years because of the University's 250th Anniversary celebrations)

· Conferences (non-alumni related): 30,000

· Art Museum: 86,000

· Firestone Library: 10,000

· Athletic events: 175,000

· Concerts at Richardson and Taplin Auditoriums: 100,000

· Orange Key tours: 25,000

· Alumni Council activities: 14,000

· Commencement: 7,000

Community Contributions

The University owns approximately 4,000 acres in seven central New Jersey municipalities (Princeton Borough, Princeton Township, West Windsor Township, Plainsboro Township, South Brunswick Township, Hopewell Township, and Bedminster Township) and makes contributions to these communities, especially to the two Princetons that serve as host to the University's main campus lands.

The 1995-96 property and sewer taxes in the above-listed communities amount to approximately $4.54 million, exclusive of any sewer payments by tenants of University-owned property. The University is the largest taxpayer in both Princeton Borough and Princeton Township, with the combined property tax and sewer tax in the two Princetons amounting to $4.19 million. The breakdown is as follows: property tax payment in Princeton Township -- $1.42 million; sewer tax payment in the Township -- $637,000; property tax payment in Princeton Borough -- $1.43 million; sewer tax payment in the Borough -- $704,000. It should be noted that a significant portion of these tax payments in both the Borough and the Township is made on properties (such as graduate housing, faculty and staff housing, and including the president's house) that arguably could have tax-exempt status. However, payments are made on these properties in order to ensure that the public school system is compensated for any children that these properties might produce.

In addition to tax payments, the University makes an annual voluntary contribution to Princeton Borough. For 1995-96, this contribution is more than $120,000, which consists of $70,000 as a general donation, plus $51,000 made on behalf of the University-owned McCarter Theatre property. The $70,000 portion of the donation is scheduled to go up $10,000 per year until 1999 and then will increase according to the tax rate from that time forward; the McCarter property donation also increases each year according to the tax rate.

Also, the University has just negotiated with the Borough an affordable housing "Developers' Fee" agreement, mandating a $30,000 payment per year for five years beginning in June 1996. A similar agreement at the rate of $7,500 per year is being negotiated in the Township. The University has made cash-and-land affordable housing contributions worth nearly $900,000 to the Township and $50,000 in the Borough since 1990. Therefore, the University's financial support of affordable housing in the two Princetons during this decade is going to amount to nearly $1.14 million. In Plainsboro, the University-owned Princeton Forrestal lands and its corporate residents have provided $1.5 million toward affordable housing.

Other major financial contributions from the University to community groups include those to the Medical Center at Princeton, the Princeton Fire Department, and the Princeton First Aid and Rescue Squad. The University made a valuable gift estimated to be worth as much as $250,000 to the Public Library and Public School District by arranging for free Internet access and use of a server.