Private Colleges Net State $3.7B Yearly

Private colleges and universities generate one in 20 jobs in Massachusetts and contribute $3.7 billion yearly to the state's economy, according to a study released yesterday at the State House.

The study found that higher education--including spending by students from out of state--accounted for 3.43 percent of the money spent in Massachusetts during the 1984-85 academic year, and that each $1000 spent on education caused $1410 to be spent in other sectors of the economy.

The Association of Independent Colleges and Universities in Massachusetts (AICUM), representing the state's 60 such institutions, commissioned the report, which was prepared by Boston College's Social Welfare Research Institute.

"It's good to have the facts in order to refute those who feel universities are a drain on local economies," Harvard Financial Vice President Thomas O'Brien said. Private universities, including Harvard, often draw criticism from town governments because as non-profit institutions they are exempt from property taxes.

The study reports that students and their parents pay 63 percent of tuition and living expenses. On average, parents provide about $2 for every $1 students contribute.

Students surveyed said they spent an average of $10,510 to live and study in Massachusetts. Harvard's tuition, room and board this year totaled $16,145.

The study also estimated that Massachusetts students' out-of-state visitors spend $103.5 million in the Commonwealth annually.

"The economic base of this part of the state is a combination of high tech and universities," and the two areas complement each other, Vice President for Government and Community Affairs John Shattuck said.

Shattuck said the survey "certainly demonstrates the favorable economic impact of colleges and universities on the area" and "will help to create an awareness of the importance of colleges and universities to the state."

Shattuck said, "this area is fairly sophisticated about the issue of tax-exempt status," and said Cambridge receives a payment in lieu of taxes from Harvard, as well as direct taxes on some University real estate which is not considered exempt.

O'Brien complained that proposed cuts in Federal student aid programs would especially harm this state, where the survey shows 155,668 people work in private higher education. "It's not something that will affect everyone equally. It will affect Massachusetts more," he said of the measure's nationwide impact.

"I think that you have to recognize that the largest segment of education in Massachusetts is the independent sector. They've been doing a good job of it for 350 years, and they'll continue to," said James A. True, AICUM vice president for governmental relations.