At a time where divisive issues and hostility towards institutions of higher learning are grabbing headlines and dominating conversations, it’s critically important to remember that New York City is a global hub of opportunity, and its institutions of higher education are indispensable to its economic, cultural, and social fabric.
Colleges and universities are more than academic spaces – they are engines of innovation, job creation, and community engagement. A recent study by the Commission on Independent Colleges and Universities (CICU) underscores this, revealing that independent colleges and universities in New York contributed a staggering $97 billion to the state’s economy – and over $66 billion in New York City – in the 2022–2023 fiscal year. More than $880 million was generated by Pace University alone.
Public colleges also play a vital role in our economic ecosystem, and together with private institutions, they create powerful collaborations that amplify economic growth and create ongoing educational and workforce opportunities. Pace’s economic contributions to New York City are multifaceted and representative of this larger dynamic. Pace’s institutional operations – including research, construction, salaries, and technology investments – accounted for $750.3 million of this impact, while student and visitor spending infused an additional $130.3 million into the local economy. The University supports 6,500 jobs, including those that depend on Pace indirectly, and contributed $19.1 million in state and local tax revenue. These figures represent real businesses, families, and neighborhoods that are thriving because of just one of our higher educational institutions.
Beyond the numbers, Pace, like many other universities, exemplifies the transformative power of higher education to address urban challenges and strengthen communities. Students and faculty at Pace and across many of the city’s other institutions are involved with projects that address everything from food insecurity, environmental sustainability, to public health initiatives, bringing practical solutions to local issues.
One Pace Plaza East, currently undergoing a significant renovation, is a key example of how Pace is reinvesting in the city’s future. Scheduled for completion in Fall 2026, the project will provide modern learning environments, cultural hubs, and state-of-the-art creative spaces. Other capital projects on campuses across the city and in every borough– whether it’s NYU, Fordham or Wagner College all have huge multiplier effects.
Higher education also drives New York’s workforce development, equipping students with the skills and experience needed to lead in industries like finance, technology, the arts, and public service. From internships with Fortune 500 companies to civic engagement programs tackling voter participation and urban sustainability, Pace students graduate ready to make meaningful contributions to their communities.
As public discourse questions the value of higher education, it is essential to recognize its role as a cornerstone of New York City’s vitality. The numbers and initiatives highlighted in the CICU study tell a compelling story: institutions like Pace University are investments in the city’s future, fostering economic growth, addressing societal challenges, and preparing the next generation of leaders.
Marvin Krislov is president of Pace University. Jessica Lappin is president of the Alliance for Downtown New York.
