You and your friends have just finished a midterm and you’re wondering what to do. You decide to go to your car and get something to eat at Mike’s Pizza. Before you get there, however, you know that you need to get gas and you want to buy a new book at Borders.
Every day, in situations just like this, Fairfield University students contribute to the economy of the town and the surrounding communities.
Konstantinos Mentis of Mike’s Pizza estimated that up to $4,000 a week comes from the student population of the university. He was cautious with his estimate but said students were a “good part of the business” for the restaurant.
John Mercer, the owner of Dominos, said 25 percent of his business came from students at the university. In terms of dollars and cents, this is about $125,000 annually, said Mercer. When classes are not in session, Mercer said that business drops about $2,000 – $3,000 per week.
Though the economy is slumping and this has affected Mercer’s business, he estimated that the presence of the university is responsible for employing eight of his drivers. He said he needs six drivers just for Friday and Saturday nights.
“It is very difficult to quantify the funds that are going to local stores, restaurants (and) gas stations,” wrote William Lucas, vice president of finance, in an email. Economics professors expressed the same sentiment.
Few stores would close their doors without the university, said Prof. Edward Deak of the economics department, but the presence of the university adds to the profitability of these businesses. According to Deak, the impact of the university “in terms of the overall income generated in the town of Fairfield [is] relatively small.”
However, the economic impact is “large in an absolute sense,” said Deak. He estimated that the impact would be measured in millions of dollars. Deak said that there was no doubt in his mind that the university contributes more than it takes from the town.
The university has a “hugely positive” economic impact, according to Prof. Philip Lane also of the economics department.
Additionally, the town of Fairfield received $2.8 million this year from Pilot Program in the state of Connecticut in lieu of taxes from the university. The program compensates towns for non-profit organizations that are not taxed.
Both professors mentioned that if the university were to be replaced by a residential neighborhood, it would drain revenue from the town. There would be more demand on municipal services, fire fighters, police and schools, according to Lane.
Education services account for half of the town’s budget, estimated Deak. “Absolutely, positively, families cost you money,” he said.
University students benefit certain business more than others, according to Deak. “Everyone who walks in the front door is important,” said Pat Caso, who works at Borders on Post Road. Students do have an impact on sales, according to Caso. She said that student customers are interested in textbooks in addition to the books and music at Borders.
The university has more than 800 full-time employees. About 30 percent of those employees live in Fairfield, according to Lucas. This is in addition to the more than 3,300 full time undergraduates reported in 2001 by the university.
According to Lane, where a person lives is where most of the economic benefit from their income will go. “Last time I looked, college students save next to zero,” he said.
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