Measuring the impact: NIU in city limits

By Sylvia Phillips

Purchases of albums, alcohol, fast foods, clothing and supplies generate money within the economy of DeKalb County. Students spend an estimated $4,000 apiece in the county each academic year.

The statistics come from a report titled, “The Economic Impact of Northern Illinois University on DeKalb County and the Northern Illinois Region” as it examines the impact of NIU on the local economy.

Compiled in May 1988 by NIU’s Center for Governmental Studies, the report is based on a model used for a University of Wisconsin-Madison study.

“We used local expenditure patterns and fit them into the theoretical model,” said John Lewis, director of NIU’s corporate relations.

The study, which measured direct and indirect results of NIU on the economy, found the college has a substantial impact on the area. Business growth occurred in the community as a result of NIU, and the employment base offered by the college lends economic stability to the community. In addition to the direct impact (number of jobs), the indirect effects multiply, Lewis said.

“Within DeKalb County, NIU directly and indirectly contributes to 21 percent of the county’s net wages and 14 percent of the county’s employment,” the report said.

To illustrate the multiplier effect the campus has on the community, the report uses the example of a local printing company that receives the college’s business. The business prospers from publishing catalogues and brochures for NIU. In turn, employees of the business spend some of their salaries in the community, indirectly creating a positive effect on the community.

As DeKalb’s largest employer, NIU is responsible for $331 million of economic activity in the county and $443 million in northern Illinois, the report said.

“The university generates a great deal of economic activity in a direct sense,” said Bill Syverson, a research associate for the center. “This is translated into wages and generates dollars through sales. University employees purchase goods and services, and students who come here also bring dollars into the region.”

More than $80 million in total annual sales to the local economy is generated by NIU’s 20,400 residential students, the report said. Residential students spend $20 million on rent, $10 million for food, $7 million at restaurants and bars and $14 million in department, retail and apparel stores in DeKalb County.

DeKalb Assistant City Manager Gary Boden said the figure of residential students is closer to 16,000, based on census data. “Students are not year-round residents,” Boden said. “They live in DeKalb for eight months of the year.” As a result, spending does not have such a dramatic impact on the county, he said.

The study adjusts for commuting students, Syverson said. Expenditures for the commuting students were estimated at $10 a day.

Visits from parents and friends enhance DeKalb’s economy. Parents accounted for 52 percent of the visitor’s expenditures. The study estimated parents visited five times a year and spent $90 during the stay, accounting for $7.8 million dollars.

Boden said these dollar estimates are high because about 80 percent of NIU students live within two hours of the Chicago metropolitan area and families could visit and return home on the same day.

Employees of the college also contribute significantly to the economy. Residential faculty and staff generated $42 million in total sales in the county and $74 million in the northern Illinois region.

Employees who commute and visitors of faculty and staff contributed an estimated $31 million to the county and $40 million to the region.

NIU adds a unique dimension to DeKalb. If it weren’t for NIU, it is possible DeKalb would be just another rural community in Illinois.