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Gutierrez: Syracuse University should fulfil its responsibility to the local economy through fundraising initiative

If Syracuse University wants to live up to its vision as an “anchor institution” that plays “an integral role” in today’s society, it should look no further than the city in which it resides.

Syracuse is the 23rd poorest city in the United States, according to the U.S. Census Bureau, and upstate New York’s economic development has been lagging since the onset of the Great Recession. In response, Gov. Andrew Cuomo is leading an enormous economic stimulus plan, dumping $1.5 billion into the upstate New York economy.

While this increase in government spending should help in the long term, SU has the responsibility to play a greater role in the local economy. The benefits would be multi-faceted for both the university and the region, as it would attract employers to the area and improve SU’s overall public image. All the university would need to do is mirror the approaches other institutions have already taken.

The university does have a start, as the university’s South Side Innovation Center (SSIC) and South Side Entrepreneurial Connect Project (SSECP) provide office space and equipment to foster local business development. But if SU wants to build its public image and better assist the struggling local economy, a wide-scale fundraiser is needed.

The Haslam College of Business at the University of Tennessee announced a fundraiser earlier this month to expand the area’s tax base and create more statewide business and educational opportunities. Part of the initiative offers resources for businesses, including consulting appointments and physical office space.



SU should seriously consider a similar program, as it has a social responsibility to benefit the surrounding community. The university has been referred to as “a billion-dollar business” that provides about 4,400 full-time jobs for the local community. SU offers stability to the region since institutions of higher education are less susceptible to turbulence than other sectors of the economy, according to the New York Federal Reserve.

However, the poverty and job growth numbers in Syracuse clearly indicate that more needs to be done. This is why a university-initiated fundraiser, like the one in place at the University of Tennessee, could solidify Cuomo’s plans and take the region to new heights.

By incentivizing businesses to establish themselves in Syracuse the local tax base will increase, as more businesses will be taxed. This would lower tax rates and thereby encourage more businesses to flock to Syracuse. These businesses would be able to take advantage of university facilities to better develop their products and services.

Experts say that the effect institutions have on their regional economies can be profound when businesses are able to harness the knowledge of a local university.

“Colleges are all-important in making American workers and American families more productive,” said Bill Rodgers, a professor of public policy at Rutgers University. “There’s this knowledge spillover at colleges and universities, creating a ripple effect. Instead of one plus one equals two, one plus one equals three.”

Success of this kind has been seen before at the University of Pennsylvania, which completed a $4.3 billion project, a portion of which was used to extend its reach in the community. The university used parts of its endowment to strengthen its ties to the city of Philadelphia and promote business development.

In addition to improving the economy, the fundraiser could also improve SU’s public image. As the number of students pursuing degrees nationwide continues to mount, higher education institutions battle over how to best market their schools and attract students. But SU has an opportunity to stand out with an ethical fundraiser that would be feasible at virtually no cost to the university, as it would mostly be backed by donors.

It’s clear the city of Syracuse needs more help from SU, which has the resources and intellect to make powerful change. And heck, the university would look nice doing it.

Matthew Gutierrez is a freshman journalism and entrepreneurial management dual major. His column appears weekly. He can be reached atmguti100@syr.edu and followed on Twitter @MatthewGut21.





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