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VOL. 132 | NO. 231 | Tuesday, November 21, 2017

Pearl and Mel Shaw

The Economic Impact of HBCUs

Mel and Pearl Shaw

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For too long historically black colleges and universities have been asked to answer for their very existence.

“What is the value of an HBCU?” is an often-asked question. Is that a reasonable question? How many other educational institutions are asked to justify their very existence over and over again? “Why do we need HBCUs?” “Isn’t that about segregation?”

The United Negro College Fund has stepped to the plate and answered the question with their new report “HBCUs Make America Strong: The Positive Economic Impact of Historically Black Colleges and Universities.” This just-released report documents a collective $14.8 billion economic impact. It looks at the economic impact on local communities and regions, the country as a whole, and individual students. Here are a few excerpts from the report

• In total, the nation’s HBCUs generate $14.8 billion in economic impact annually; that’s equivalent to a ranking in the top 200 on the Fortune 500 list of America’s largest corporations. This estimate includes direct spending by HBCUs on faculty, employees, academic programs and operations, and by students attending the institutions, as well as the follow-on effects of that spending.

• Every dollar in spending by an HBCU and its students produces positive economic benefits, generating $1.44 in initial and subsequent spending for its local and regional economies.

Each $1 million initially spent by an HBCU and its students creates 13 jobs.

• The nation’s HBCUs generate 134,090 jobs in total for their local and regional economies – equivalent to the jobs provided by Oracle, the nation’s 48th-largest private employer.

• There are 101 accredited HBCUs, public and private, concentrated in 19 states, the District of Columbia and the U.S. Virgin Islands. They enroll almost 300,000 students, approximately 80 percent of whom are African-American, and 70 percent are from low-income families.

• The 50,000-plus HBCU graduates in 2014 can expect total earnings of $130 billion over their lifetimes – that’s 56 percent more than they could expect to earn without their college credentials.

• On an individual basis: An HBCU graduate working full time throughout his or her working life can expect to earn $927,000 in additional income due to a college credential.

Tennessee has five HBCUs with an $873 million total economic impact, 7,289 jobs and students with projected $6 billion in lifetime earnings. Two institutions are in West Tennessee: LeMoyne-Owen College in Memphis and Lane College in Jackson. The other three – Fisk University, Meharry Medical College and Tennessee State University – are in Nashville.

LeMoyne-Owen College creates $40 million in total economic impact and 245 jobs for Memphis and the region, and the 127 students who graduated in 2014 can expect total earnings of $322 million over their lifetimes.

Lane College creates $36 million and 475 jobs, and the 239 graduates from 2014 can expect total earnings of $607 million. Viewed on an individual basis, a graduate from either college, working full time throughout his or her working life, can expect to earn $1.1 million in additional income due to a college credential.

Read it yourself online at www.uncf.org/hbcu-impact.

Mel and Pearl Shaw, owners of fundraising consultancy firm Saad&Shaw, can be reached at 901-522-8727 or saadandshaw.com.

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 0 133 1,342
MORTGAGES 0 131 1,047
FORECLOSURE NOTICES 0 19 170
BUILDING PERMITS 0 305 3,056
BANKRUPTCIES 20 118 736
BUSINESS LICENSES 27 53 329
UTILITY CONNECTIONS 0 0 0
MARRIAGE LICENSES 0 0 0