According to the Mangum Economics report, the 27 nonprofit private colleges and universities that comprise the Council of Independent Colleges in Virginia employ nearly 30,000 and had $4.6 billion in overall economic output in the Commonwealth in Academic Year 2023.
Richmond, VA — The Council of Independent Colleges in Virginia (CICV), also known as Virginia Private Colleges, announces the results of an economic analysis in a report titled, “The Economic Contributions that CICV’s Private Colleges and Universities Made to Virginia in Academic Year 2022-2023.” This comprehensive study, executed by Mangum Economics, showcases the significant positive economic impact on the Commonwealth of Virginia by CICV’s 27 member institutions. The report provides objective data supporting the vital economic contributions of nonprofit private colleges and universities. It describes the sector’s pivotal role in fostering educational access and community development across Virginia.
According to the Mangum report, the 27 nonprofit private colleges and universities that comprise CICV employ nearly 30,000 and had $4.6 billion in overall economic output in the Commonwealth in Academic Year 2023. Spending from these private colleges and universities, out-of-state students, and out-of-state visitors directly and indirectly supported approximately $2.0 billion in associated wages and benefits and $157.0 million in state and local tax revenue. For every 43 dollars invested by the state in the Tuition Assistance Grant program, the state, and local tax return is $78, nearly 1:2. In the academic year 2022-23, the state spent $86 million in $5,000 (on-campus) and $2,500 (on-line) awards.
The report’s author, Fletcher Mangum, who began his career at the State Council of Higher Education in Virginia, wrote, “This report has provided an assessment of the economic and fiscal contribution that the 27 private, non-profit colleges and universities that comprise the Council of Independent Colleges of Virginia (CICV) made to the state of Virginia. What that assessment has shown is that CICV’s member institutions are a critical component of Virginia’s coordinated higher education eco-system. In addition to making a substantial economic and fiscal contribution to Virginia’s economy, they also play a valuable role in diversifying the options available to Virginia’s college-bound students while at the same time contributing to the development of an educated citizenry and a skilled workforce at substantial savings to the taxpayer.”
CICV Vice Chair Mary Dana Hinton, President of Hollins University, emphasized the value of the Virginia Tuition Assistance Grant investment, highlighting the substantial impact and cost-effectiveness of private education in Virginia. “This report shows that the Virginia Tuition Assistance Grant investment of $86M provides an excellent return, especially compared to the $1.6B spent on public higher education. The impact of TAG is high, and the cost is low.”
The Mangum report reveals the rich demographic, economic, and geographic diversity of CICV’s member institutions. Notably, Virginia’s private colleges are strategically situated in regions with limited educational resources, providing crucial opportunities for higher education. These areas would otherwise be “higher education deserts,” particularly in Southwest and Southern Virginia. Moreover, in fall 2023, CICV’s private colleges and universities enrolled a higher proportion of African American and white, non-Hispanic students than their public counterparts, including significant numbers of in-state students from lower-income and middle-income households. Three CICV members are designated minority-serving institutions (MSI): Hampton University and Virginia Union University are historically black universities (HBCUs) that formed after the Civil War, and Marymount University is Virginia’s only designated Hispanic-serving institution (HSI).
As access institutions, including significant percentages of first-generation college students and federal Pell Grant eligible students, CICV member institutions enrolled in fall 2023 higher proportions of in-state students from lower-income and middle-income households than their public counterparts, while Virginia’s public four-year colleges and universities enrolled higher proportions of students from upper-income households than the CICV member institutions.
Private, nonprofit colleges and universities, such as those in the CICV’s membership, significantly contribute to local economies, especially in smaller communities. In places like Buchanan County, the City of Danville, Tazewell County, Prince Edward County, and the City of Lynchburg, where the 2022 unemployment rates were above the statewide average, these institutions emerge as critical employers. Their presence in these areas highlights their role in providing stable employment opportunities and supporting the local economy, emphasizing the positive impact of private colleges in these regions.
CICV Chair Alison Morrison-Shetlar, President of the University of Lynchburg, highlighted these institutions’ crucial role in their predominantly rural communities by providing employment opportunities and preventing higher education deserts. “The contributions to the communities in which our institutions are located, and support of students is impressive indeed. Without our institutions – especially in rural areas – there would be fewer employment opportunities and higher education deserts with no access for local students.”
After a competitive selection process in late summer of 2023, CICV appointed Mangum Economics for its reputable expertise in economic analysis. With over two decades of experience, Mangum Economics specializes in the economic examination of public policy, assessing the effects of proposed regulations, workforce development, and economic strategies. The firm, founded by A. Fletcher Mangum in 2003, delivers unbiased economic evaluations from its Richmond office (https://www.mangumeconomics.com/). The full report, an executive summary, and a fact sheet are available for review through CICV’s new website (www.vaprivatecolleges.org).
The Council of Independent Colleges in Virginia, Inc. (CICV) was founded in 1971 and currently operates as Virginia Private Colleges, a nonprofit 501(c)(6) organization representing 27 accredited nonprofit independent colleges and universities in Virginia. CICV is the collective voice of Virginia private higher education.
