HARRISBURG, PA — Pennsylvania’s independent nonprofit colleges and universities say they are a powerful engine for the state’s economy, supporting roughly 200,000 jobs and generating $29 billion in annual economic activity, according to a new analysis released by the Association of Independent Nonprofit Colleges and Universities of Pennsylvania (AICUP).
Prepared by the Parker Strategy Group, the 28-page report tallies the scale of more than 80 AICUP member schools and their affiliated operations. When teaching hospitals are included—capturing the state’s “eds and meds” footprint—the annual economic contribution rises to $65 billion, which AICUP describes as about 7% of Pennsylvania’s economy.
AICUP members educate 279,000 students each year and enroll 53% of all Pennsylvanians pursuing four-year degrees, the report states. Nearly half of students (47%) come from lower-income backgrounds. The group also highlights what it characterizes as a striking return on public investment: for every $1 in state funds—most of which go to need-based scholarships—it says $158 flows back into the economy.
“These schools lead the state and do the heavy lifting for Pennsylvania by creating jobs and attracting talent to the state,” said Tom Foley, AICUP’s president and a former Secretary of Labor and Industry of Pennsylvania. “The fact is, the AICUP schools are the lifeblood that keep dozens of towns in Pennsylvania thriving.”
Beyond employment and enrollment, the report points to several community and business touchpoints. Nine of the state’s 15 Small Business Development Centers are located on AICUP campuses, which the association says helps seed local startups and innovation. Member institutions also channel research dollars through science and health grants, contributing to emerging industries. On the public finance front, AICUP estimates its schools generate $1.5 billion in combined state and local tax revenue.
The study includes a county-by-county view of where campuses rank among top local employers, student demographic breakdowns and degree paths in in-demand fields, and examples of philanthropy and student volunteerism. Regional summaries outline localized impacts across Pennsylvania.
To underscore scale, AICUP notes its $29 billion annual contribution exceeds the annual budgets of 28 U.S. states; the $65 billion “eds and meds” figure, it says, tops Pennsylvania’s own state budget and those of 40 other states, and rivals the GDPs of several countries. The Pennsylvania Chamber of Business and Industry has identified higher education as the state’s fifth-largest industry; AICUP represents more than half of that sector.
While the association’s findings emphasize the sector’s breadth, they also frame an argument for continued public support through need-based aid and policies aimed at retaining students and talent in Pennsylvania.
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