While other cities and regions in upstate New York have suffered enormously from the recession, Ithaca and Tompkins County have benefited from the presence of Cornell, Ithaca College and Tompkins Cortland Community College, according to a joint economic statement.

The Economic Impact Statement, entitled “Higher Education in Tompkins County,” was published by Cornell’s Office of Government and Community Relations in partnership with the other area colleges earlier this fall. The statement notes that, as the number one industry in the area, higher education gives “a solid foundation to the local economy.”

“Universities such as Cornell are not seen as the economic engines that they really are,” Vice President of Government and Community Relations Stephen Johnson said. “Our goal in presenting this report is to sell research and higher education as viable and vital industries.”

As the largest employer in Tompkins County, Cornell has contributed considerably to its growth and development. For example, the statement notes that in 2007 Cornell spent $179 million on construction, creating 726 local jobs. Also in 2007, off-campus student spending from the local schools was worth an estimated $145 million to the area economy.

When the University instituted a construction pause in 2008, The Ithaca Journal reported that the pause contributed in part to the $2.5 million budget shortfall faced by the City of Ithaca.

Cornell also served the local economy by attracting visitors to Ithaca and Tompkins County. According to the statement, in 2007 Cornell drew 172,370 visitors to Ithaca for on-campus events such as commencement and sporting events. These visitors contributed to the local economy by spending $47 million within the county on lodging, food and other expenses — directly supporting 778 full-time jobs.

These benefits are evident from demographic data that was included in the statement. 42 percent of Tompkins County residents age 25 and older have attained a bachelor’s degree or greater, as compared with 24 percent of the national population. In addition, the 2008 annual unemployment rate for the county was 4.1 percent as opposed to 5.4 percent for New York State and 5.8 percent nationally.

It is particularly important for the Cornell community to be economically sustainable, according to Johnson, because this attracts potential students and faculty members to the area and provides opportunities for spouses. As an example of economic development, he cited the Cornell Business and Technology Park, where 1,600 people are employed.

The data presented in the statement came as no surprise to Micheal Stamm, president of the local economic development corporation, Tompkins County Area Development (TCAD).

“The data was consistent with an analysis of sectors we had conducted,” he said. “We found the educational sector was the largest in the local economy and that it had a multiplier effect commonly associated with manufacturing.”

Stamm also noted that while Cornell has suffered due to the economic downturn, education is a “recession-resistant” industry and that there is no threat of relocation. Hence, the area benefits from having higher education as its dominant sector in the current economic climate.

The statement has many implications for Cornell and the community. It was given to both local and state politicians in order to demonstrate the economic benefits the University provides. The data is very beneficial to Johnson, who lobbies state and federal politicians on Cornell’s behalf.

On the University level, the statement is significant with regard to procurement policy and as a benchmark. procurement policy refers to the means by which the University buys goods and services. As part of Reimagining Cornell, President David Skorton announced that Cornell would alter its procurement system to cut costs and save jobs. Johnson noted that the statement and a report on Cornell’s economic impact on New York State show the benefits of purchasing from local sources.

“Before we did the research, we had no idea how much Cornell spends in the county and the state,” he said. “For example, you would be surprised how much the University spends in Brooklyn. Who knew we spent money there?”

Johnson added that the impact of local purchasing was not taken into account by the new procurement initiative.

“It’s not just about saving money and University jobs,” he said. “We also have to take into account the local economy and local jobs.”

The joint economic statement will also serve as a benchmark for future years. While this was the first time the three schools released an economic impact statement, they now plan to release one annually.

“We can now look at the data and see how we are doing compared to other years,” Johnson said.

The economic impact statement serves as one of many initiatives by the Office of Government and Community Relations to promote the role of higher education in the local and state economy.

“Twenty-two percent of the New York State Budget was formerly funded by Wall Street,” Johnson noted. “New York can rebound by forming partnerships with institutions of higher learning.”

In order to facilitate a recovery, New York Governor David Paterson appointed Skorton to head a Task Force on diversifying the state economy through industry-higher education partnerships. The task force focuses on the industries of energy generation and storage, biotechnology, nanotechnology, animal and human health medicine, sustainable agriculture and food and wine.

“If you look at upstate New York, the areas that are economically successful have, and are driven by colleges and universities,” Johnson said. “With over 200 institutions of higher learning, New York State has a natural advantage that it should [capitalize on].”

Stamm also noted that Cornell’s presence has implications for future development in the Ithaca area.

“The future of the local economy depends on Cornell,” he said. “Future domestic manufacturing must be high-tech to be successful, and Cornell is a leader in technology transfer.”

Both Johnson and Stamm hope that local residents will take the report seriously and appreciate the contribution of Cornell to the local economy.

“The community needs to support Cornell and take advantage of what it brings to the area,” Stamm said.