Study reveals over $300 million in annual economic impact by Reading’s independent nonprofit institutions
Together, Albright College and Alvernia University contribute over $303 million to Pennsylvania’s economy annually, according to a new report on the economic impact of private colleges and universities. This analysis, based on 2023 data, showed the institutions are a major economic driver for the City of Reading and beyond, responsible for over 2,400 jobs and millions in spending, payroll and tax generation.
Through research conducted by the Association of Independent Colleges and Universities of Pennsylvania (AICUP) and Parker Strategy Group, a nationally recognized economic impact analysis firm, the study found that Albright, Alvernia and more than 90 other nonprofit, degree-granting higher education institutions in the state have a substantial economic impact regionally and statewide.
“Independent, nonprofit colleges are among Pennsylvania’s greatest assets,” said Alvernia President Glynis A. Fitzgerald, Ph.D. “Together, we not only generate billions of dollars in economic activity, we do so while educating a majority of the state’s low-income, first-generation, and working-age students. We are resourceful stewards of taxpayer dollars, and we ensure that opportunity reaches every corner of our communities. This study affirms what we see every day—that independent higher education is essential to building a stronger workforce, strengthening social mobility, and sustaining vibrant communities across Pennsylvania.”
Criteria examined included student and visitor spending, payroll taxes, institutional expenditures, construction, and money earned and spent by college employees. Also examined were indirect and induced impacts, such as the positive financial impact on businesses that supply goods or services or changes in personal spending due to increased direct and indirect income.
Per the AICUP report, the institutions created 1,661 direct jobs resulting in $162.2 million in economic impact. The colleges are responsible for generating an additional 776 full- and part-time jobs attributable to institution-related economic activity, which resulted in $356.96 million in the regional economy. These jobs include contractors, supply and equipment vendors, and employment in related businesses such as retail stores, hotels, restaurants, gas stations and healthcare offices.
“This economic impact study underscores what we've long known - that vital economic partners and an important part of our community," said Dr. Debra M. Townsley, President of Albright College. "With over $300 million contributed to Pennsylvania's economy and over 2,400 jobs created, we're proud to demonstrate our commitment to both academic excellence and regional prosperity. As an integral part of Berks County, these numbers reflect our deep community roots and our ongoing dedication to being a catalyst for economic growth while preparing the next generation of leaders who will continue to strengthen our region.”
The study also concluded that the institutions generate about $23.8 million in tax revenue annually for local municipal governments and the Commonwealth of Pennsylvania. This includes sales tax, property tax, personal income tax and corporate income taxes.
In total, the study finds that independent colleges and universities in Pennsylvania create and sustain over 200,000 jobs, contribute $29 billion to the economy, return $158 to every $1 invested in state support, educate 53% of all students in Pennsylvania, and educate 47% of the lower-income students, creating real social mobility.
