PrincetonUniversity
A Princeton Profile 1997-98Regional Economic Impact
With an overall work force of more than 11,300 people, Princeton University is the largest private employer in Mercer County and the fourth largest in the central New Jersey region, which includes Mercer, Middlesex, and Somerset counties.
The institution's overall regional economic impact amounted to nearly one billion dollars for 1996-97 based on the University's total expenditures of approximately $598.9 million, along with the expenditures of an estimated 320,000 people attending events on campus and the expenditures of the University's thousands of students and employees.
The University makes an effort to purchase goods and services in New Jersey as much as possible. It is estimated that Princeton University in 1996-97 spent $44.5 million on goods and services provided by New Jersey vendors and another $20 million with New Jersey based businesses for the University's construction-related projects.
Serving as a major employment center for the state, the University is the source of $6.4 million in New Jersey state income tax revenue. In addition, the University's intense economic activity creates employment opportunities not only within the University but also within businesses and industries whose economic health is linked to the campus.
The University plays an important role in attracting prestigious international corporations to central New Jersey. The University-developed Forrestal Center properties in Plainsboro -- the headquarters for many of these international corporations -- has an assessed value of $700 million. The University's overall positive effect on the economy, according to Moody's Investor Services, is the dominant factor in the Triple A bond rating for Princeton Borough, Princeton Township, and the Princeton Regional School District.
Employment, 1996-97
- Total: 11,371. Includes 4,381 employees who are eligible for benefits as well as 800 part-time, 1,266 casual, and 4,924 student workers
- Total payroll: $303 million
Expenditures, 1996-97
- Total expenditures: $598.9 million
- Operating expenditures (including payroll): $544 million
- Capital expenditures: $54.9 million
- Dollars spent with New Jersey firms (including goods and services, plus construction expenses): $64.5 million
- Construction dollars spent in the past five years: $120 million
- Construction dollars spent in New Jersey in the past five years: $60 million
Visitors, 1996-97
- Estimated total: 320,000 (factoring for duplication since visitors may attend more than one event)
- Conferences (non-alumni related): 30,000
- Art Museum: 85,000
- Firestone Library: 7,000
- Athletic events: 200,000
- Concerts at Richardson and other auditoriums: 100,000
- Orange Key tours: 28,800
- Alumni Council activities: 14,000
- Commencement: 10,000
Community Contributions
The University owns approximately 4,000 acres for commercial and academic use in seven central New Jersey municipalities, with significant holdings in Princeton Borough, Princeton Township, West Windsor Township, Plainsboro Township, and South Brunswick Township and minor holdings in Hopewell Township and Bedminster Township. Most of the academic properties are located in Princeton Borough and Princeton Township, which serve as host to the University's main campus lands.
The 1996-97 property and sewer taxes in the above-listed communities amount to approximately $5.239 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 a combined property tax and sewer tax in the two Princetons amounting to $4.956 million. A significant portion of the tax payments in both the borough and the township is made on properties, such as faculty and graduate student housing and the President's residence, that could be tax-exempt. Payments are made on these properties to ensure that the public school system is compensated for any children who may come from these households.
In addition, it has been University policy to remove a building from the tax rolls only when 100 percent of the building is used for academic purposes, even though state law exempts colleges and universities from paying taxes on any portion of a building used for academic purposes. When a Princeton University property is removed from the tax rolls, payments are phased out over a 10-year period.
University tax payments to the Princetons are:
- Property taxes to Princeton Township: $1.728 million
- Sewer taxes to Princeton Township: $778,000
- Property taxes to Princeton Borough: $1.498 million
- Sewer taxes to Princeton Borough: $952,000
In addition to tax payments, the University makes an annual voluntary contribution to Princeton Borough. For 1996-97, this contribution was more than $120,000, which consisted of $80,000 as a general donation, plus $41,000 made on behalf of the University-owned McCarter Theatre property. The $80,000 donation is scheduled to rise $10,000 per year until 1999; after that, it will increase by the same percentage as the tax rate. Also, the University has recently negotiated with both Princetons a five-year "Developer's Fee" for affordable housing, based on the amount of new University construction. The University pays $30,000 to the borough and $10,000 to the township each year until 2001. Including developer's fees, the University's support for Princeton affordable housing will approach $1.15 million in this decade, due to the University's significant donations of land and cash to the borough and the township.
Other major financial contributions from the University to community groups include:
- Free Internet access and server use, worth $250,000, for the Princeton public schools, library, and municipal facilities
- $100,000 to be paid to Princeton Township over 10 years to preserve the Institute Woods
- $10,000 per year to the Princeton fire and first aid squad, plus $3,000 annually for confined-space rescue training and equipment
- $20,000 per year for operating costs at the Medical Center at Princeton.