What Does Boston University Spend?
Boston University’s direct spending consists of expenditures for employee salaries, employee benefits, and the purchase of goods and services. These direct expenditures are used in conjunction with the appropriate economic multipliers from the U.S. Department of Commerce to compute the resulting levels of indirect spending. Table 5 shows Boston University’s expenditures for salaries and benefits as well as the economic impact of the expenditures. Similarly, Table 6 shows the University’s expenditures for the purchase of goods and services and the resulting economic impact.
Employee Salaries and Benefits
As shown in Table 5, the economic impact of Boston University’s expenditures for salaries and benefits totals more than $2.0 billion in the Commonwealth. The impact on the City of Boston is nearly $349 million and the total for the Boston Metropolitan Area is more than $1.8 billion. These figures do not include additional income earned by University faculty and staff for professional consulting, publishing, or lectures.
In FY‐2008, Boston University spent a total of $862.9 million on salaries and benefits for employees living in Massachusetts ($689.4 million on salaries and $173.5 million on benefits). Of these amounts, $200.6 million went to employees living in the City of Boston and $828.3 million to employees living in the Boston Metropolitan Area.
Purchases of Goods, Services, and Capital Expenditures
In FY‐2008, Boston University purchased a wide variety of goods and services from more than 8,500 Massachusetts companies, including 3,482 in the City of Boston and an additional 4,096 in the remainder of the Boston Metropolitan Area (see Table 6). These purchases ranged from paper clips to trucks, sophisticated computer equipment, architectural designs, and construction contracts.
The economic impact of Boston University’s purchases totaled more than $955.0 million in the Commonwealth. This consisted of more than $383.0 million to vendors located in the City of Boston and more than $830.8 million to vendors located in the Boston Metropolitan Area. The purchases included nearly $169.7 million of capital expenditures made to Massachusetts contractors for large‐scale construction and renovation projects designed to improve Boston University’s physical facilities. These capital expenditures have supported the University’s continuing commitment to enhancing student life on campus.
Boston University has made major investments in improving the student experience through outstanding new housing and dining options, enriched academic facilities, and programming that helps build community. In FY‐2008, construction continued on Phase 2 of the John Hancock Student Village, a new apartment‐style residence that will house an additional 960 students and is scheduled to open for fall 2009. With this addition, Boston University will house 80 percent of its undergraduates, a significant step toward its goal of 85 percent.
Housing is also a critical issue on the Medical Campus because of the premium on safe, affordable residences in Boston’s South End. In 2007, the University approved the purchase of land for a residence at Albany and Fellows streets, a location that will support the around‐the‐clock schedules of medical students and residents. The purchase occurred in FY‐2008. Additionally, planning for construction of a new classroom building, which will incorporate a library, is under way on the Medical Campus.
|Table 6: Boston University
FY‐2008 Purchases of Goods and Services
|City of Boston||Boston Metropolitan Area||Commonwealth of Massachusetts|
|Number of Vendors & Contractors||3,482||7,578||8,538|
|TOTAL GOODS AND SERVICES||$285,826,940||$446,723,050||$476,947,460|