The Economic Impact of Newark’s Institutions of Higher Education

The city’s colleges and universities are contributing to Newark’s renaissance through new initiatives and partnerships to engage residents and businesses.

By Jennifer Lesser, Contributing Writer On Sep 7, 2018

As the city of Newark undergoes perhaps its most momentous renaissance in its history, its institutions of higher education are making a significant economic impact with the creation of jobs and investment in facilities, initiatives targeted specifically to engaging residents of the city, and partnerships with local businesses to stimulate the local economy.

“Newark is becoming recognized as a tech epicenter. Technology is the foundation of Newark’s incredible renaissance and its bright future,” asserts Dr. Joel Bloom, president of New Jersey Institute of Technology (NJIT). “Newark is home to Panasonic, Audible, PSEG, Prudential, Verizon, and many other tech powerhouses, and those companies wouldn’t be here without the more than 55,000 college students in Newark and the opportunities for partnerships, research and development that come about when industry and higher education work together.”

Michael J. Smith, president of Berkeley College, agrees, saying, “These major employers need to operate in an environment that provides access to amenities like public transportation, but they also need access to a skilled, qualified workforce … and that’s where we come in.”

Founded in 1885, Newark is home to NJIT’s Newark College of Engineering, College of Science and Liberal Arts, Martin Tuchman School of Management, Albert Dorman Honors College, Ying Wu College of Computing Sciences, and the College of Architecture and Design. The institution is in the midst of an upwards of $400 million campus transformation, and has already added one million square feet.

“NJIT was founded by industrialists who wanted to build the workforce needed in Newark to support its business enterprises,” Bloom says. “We have remained in Newark since that day, and enjoy an extraordinary partnership with the city.”

Rutgers University-Newark has had a presence in the city for more than 100 years, and today, boasts programs in industries ranging from arts and sciences, business and law to criminal justice, public affairs, and administration. The university employs some 1,600 faculty and staff members, spends a net of $356 million a year on salaries, and contributes local tax revenues of $31 million.

“We want to serve as a direct strategic partner in support of the city of Newark. We work closely with the mayor’s office and strive to be an anchor institution that’s committed to creating pathways for local residents to access our university,” says Arcelio Aponte, senior vice chancellor for administration and economic development and chief financial officer of Rutgers University-Newark. “We’re always working to develop our own strategic initiatives, but we’re also trying to meet the mayor’s expectations in terms of local procurement and having more faculty and staff live locally.”

Rutgers Business School houses the Center for Urban Entrepreneurship and Economic Development (CUEED), which is a major contributor to neighborhood revitalization in the city. One such example is Halsey Street, where owners of restaurants and boutiques have been empowered by CUEED’s award-winning, nine-month Entrepreneurship Pioneers Initiative program. Over the past decade, the program has graduated 400 entrepreneurs, helped to create 580 jobs, and earned $134 million in annual revenues.

“We’re impacting the economy of Newark by bettering the lives of our students who go to school in Newark. Rutgers Business School takes great pride in providing business education to students that leads to jobs,” says Dr. Lei Lei, professor and dean of Rutgers Business School. “Many of the school’s international students in master’s programs live in Newark or Harrison, which is, in part, responsible for the new housing being developed in Newark, she notes. “We also train more than 4,500 working professionals and small businesses every year in entrepreneurship and leadership, helping them to grow their businesses, create jobs, and become stronger leaders in companies and non-profit organizations,” Lei adds.

“These institutions of higher learning ushered in the need for literally thousands of new rental housing units to be constructed and rented, bringing in new residents, new shoppers, users of amenities, and reviving a spirit of true diversity,” agrees Dr. Ralph Grant, Jr., vice president of development for the MBA program of Pillar College, which has been operating in Newark since 2010. Since then, the college has developed numerous initiatives targeted specifically at Newark residents, including institutional grants that benefit Newark residents in categories such as: urban residents, first-generation college students, and single parents.

According to Amy Huber, vice president of student engagement for Pillar College, the institution also offers numerous pathways for degree attainment, such as its BLEND program for non-English speaking Latino students as well as the LEAD program, which enrolls students who have completed the equivalent of two years of college. “The program provides an opportunity to complete their bachelor’s degree with an accelerated, adult-friendly schedule,” Huber explains.

Rutgers Biomedical and Health Sciences (RBHS) also boasts multiple locations in Newark, with numerous programs focusing on expanding access to healthcare for local residents and families. The Student Family Heath Care Center at Rutgers New Jersey Medical School, for example, offers free quality healthcare to the Newark community, while the Rutgers School of Dental Medicine treated 127,000 patients last year and provides local outreach in the form of oral healthcare education and dental screenings. The Rutgers School of Nursing operates the Rutgers Community Health Center, which is one of the few nurse-led, federally-qualified health centers in the country, as well as the Francois-Xavier Bagnoud Center HIV Primary Care Clinic to provide HIV healthcare and social services for more than 400 families.

Newark Therapy Services within the Rutgers School of Health Professions has provided physical and occupational therapy services to the children of the Newark Public Schools for more than 15 years, including evaluations, pre-school programming, and individual and group treatment, and the Rutgers School of Health Professions’ Free Community Participatory Physical Therapy Clinic provides free access to physical therapy for adults with chronic healthcare needs.

“The RBHS campus is an anchor institution in Newark – it’s one of its larger employers and an important contributor to its economy, culture, social fabric and health,” says Neal Buccino, a Rutgers spokesperson. “Its clinicians, researchers and staff members provide patient care services, recruit and train the next generation of health professionals, and promote the well-being of their neighbors, students and patients.”

Seton Hall’s law school calls Newark home, and its current building is approaching three decades in the city. “We built our law school very intentionally in Newark, and decided to stay here to be an anchor and serve the city. Being a strong citizen of the Newark community is truly part of our mission,” says Kathleen Boozang, dean and professor of law at Seton Hall University School of Law, which is home to the Center for Social Justice (CSJ). The CSJ offers multiple clinics that specifically target underserved members of the community and impact residents of Newark almost exclusively.

“I like to think that producing lawyers who largely stay to practice within the community is an important contribution to the city,” Boozang adds. “We employ many people who live in the community, and we also have policies in place for working with Newark vendors … and hope to inspire other institutions to do the same.”

Essex County College (ECC) has been a part of the city of Newark since the fall of 1968, when the college opened its doors at the former site of the Seton Hall Law Center. In June of 1972, the college broke ground on its expansive megastructure in the heart of the city’s University Heights section, and the new campus opened in 1976.

“Education has always been one of the most important components of the revitalization of any city,” says Dr. Anthony Munroe, president of ECC. “In Newark, ECC is joined by neighboring Rutgers University and NJIT. Collectively, these institutions provide outstanding, cutting-edge educational opportunities for all residents.”

The 580,000-square-foot ECC campus is comprised of its main megastructure in addition to its Center for Technology, Clara Dasher Student Center, and Physical Education Building, which hosts a Child Development Center. The college also offers off-campus educational services at the FOCUS Extension Center and the Ironbound Extension Center.

According to a 2017 economic impact study by EMSI, ECC’s operations, construction, and student spending added around $113.6 million in income – and more than 2,000 jobs – last year. The study found that former students added $956 million in income to the regional economy.

Berkeley College’s roots began in Essex County in 1931 as a finishing school for women, and today, it is one of the institutions that’s closely involved in the Newark City of Learning Collaborative, a citywide initiative to increase the percentage of Newark residents with postsecondary degrees from 17 percent to 25 percent by 2025. “We know that education creates economic mobility for individuals, and Newark understands the potential and opportunity for the residents of this city,” Berkeley President Michael Smith says. “The learning collaborative has picked up momentum because it’s under the direction of leaders who are dedicated to meaningful, measurable outcomes for student success – we’re not just focused on getting students into college, but getting them out of college so they can walk across that stage at graduation with the skills needed to succeed with local employers.”

The city’s colleges and universities are also partnering with local school districts to develop pre-college programs that better prepare high school students for success in college and beyond. To ensure a steady stream of potential students and enhance the pool of women and underrepresented minority students interested in STEM education, NJIT is involved in several initiatives at the elementary and high school levels. NJIT’s Center for Pre-College Programs (CPCP) supports more than 4,000 pre-college students each year – predominantly females and underrepresented minorities from the greater Newark area – with summer camps and courses introducing STEM. Its Upward Bound Program focuses specifically on 9th to 12th grade low-income students who will become the first generation in their families to attend college.

Seton Hall is also a founding partner of NJ LEEP (Law and Education Empowerment Project), a college access and success program that serves students and families throughout the greater Newark area. Its College Bound Program equips high school students with both academic and social/emotional skills to succeed in college and beyond via a curriculum that uses law to teach transferable skills.

“I think we strive to bring people into the city, which is very important, but we’re also an important anchor for the business community,” Boozang says. “Whether we’re awarding PhDs in biochemistry or producing lawyers to practice in the city, the economy of the state needs academic institutions to continue producing highly-qualified students and graduates who will stay here and contribute to the economy, growth and advancement of New Jersey.”

Newark’s institutions of higher education are also fostering partnerships with the state’s leaders in healthcare; in July, RWJBarnabas Health and Rutgers University announced the launch of their public-private partnership to create a world-class academic health system dedicated to life-changing research, clinical training of tomorrow’s healthcare workforce, and high-quality patient care. “The two higher education and healthcare industry leaders will enhance research and medical and health professional medication, improve access to care, and reduce health disparities in New Jersey,” Buccino notes.

In collaboration with Mayor Ras Baraka, Rutgers University–Newark Chancellor Nancy Cantor, RWJBarnabas Health and other major city employers, RBHS is also a partner in the Hire. Buy. Live. Newark initiative, whose partner organizations have established goals for increasing the employment of Newark residents, procurement of locally-sourced goods and services, and access to local housing opportunities.

Looking ahead, the city’s institutions of higher education seem determined to continue to invest in new strategic initiatives and partnerships that will engage the citizens of Newark and breathe new life into the city. “There used to be a sense that each of our institutions was insular, but Newark’s college presidents, school district, and the mayor’s office are teaming up so we can move the needle and continue to grow a healthy economic environment – and all while providing quality education and employment opportunities to the people and families of Newark,” Smith concludes.