What Is Excluded?
For the purposes of this report, out‐of‐state expenditures by Boston University are considered to have no economic impact within Massachusetts. Specifically, the salaries that the University pays to employees who live out‐of‐state and the dollars that the University spends to purchase goods and services from out‐of‐state vendors are excluded from the University’s direct spending calculations. As a result, Boston University’s economic and employment impacts on the region are understated by two factors. They are understated to the extent that: (1) the University’s out‐of‐state suppliers purchase goods and services from Massachusetts companies, and (2) the University’s employees who reside out‐of‐state may purchase goods and services in Massachusetts and pay taxes in Massachusetts if they work in the state.
This report also excludes local purchases by the tens of thousands of visitors that the University attracts to Boston each year for events such as Alumni Weekend, Commencement, athletic events, cultural and social programs, and class reunions (although it does include spending by certain categories of visitors to our students). These visitors spend money on lodging, food, entertainment, parking, gas, and myriad other consumer goods and services. Their purchases are considerable and the dollars flow directly into the local economy. Nearby hotels, restaurants, clothing stores, bookstores, copy centers, pharmacies, and other small businesses constitute a thriving retail community that provides jobs to local residents and adds economic vitality to Kenmore Square and the corridors along Commonwealth Avenue, Beacon Street, and Brookline Avenue.
Also excluded from this report is the economic impact of the Huntington Theatre Company, a professional company in residence at Boston University. Boston University is a major sponsor of the Huntington Theatre Company. This independent organization is so closely related to Boston University that without the University’s support it would, most likely, not exist or be forced to locate elsewhere. The Huntington Theatre Company has operating expenditures of nearly $13.7 million and ticket sales totaling nearly $5.4 million by 131,807 patrons. These expenditures and those of the theatre’s patrons are not included in the University’s direct spending, but they certainly impact the economic vitality and quality of life in the region.