The College's Economic Impact

Connecticut College is the third largest private employer in New London, with 830 employees and a payroll of $41.1 million. Nearly one-fourth of employees live in New London.

The College spends more than $39.81 million a year on goods and services, with a direct and indirect economic impact of at least $198.22 million.

Events on campus, such as the Connecticut Early Music Festival, the Cerebral Palsy International Sports and Recreation Association World Championships and the Connecticut Storytelling Festival, draw 70,000 visitors annually.

Students and faculty are active participants in the local community through volunteering and teaching. The College donates meeting space valued at $85,000 to local non-profits, including Alcoholics Anonymous, the Southeastern Connecticut Chinese School and New London High School.

The College's 1,900 students and thousands of campus visitors spend an estimated $2.82 million per year in the local economy.

For the year ending June 30, 2009, New London is scheduled to receive $2.29 million in payments from the state of Connecticut to compensate for the College's tax-exempt status. (See "Payments in Lieu of Taxes")

Payments In Lieu of Taxes

As a private non-profit higher-education institution, Connecticut College is exempt from local property taxes under state law. The law is based on the premise that the education and services provided by the College are an important benefit to the public. With the exemption, the state acknowledges and supports the mission of the College. The exemption implicitly recognizes that if the College were to pay taxes, it would divert funds from its educational mission, ultimately hurting the public. The tax exemption also helps the College remain accessible to students of all income levels by maintaining its commitment to need-based financial aid.

Currently, the state of Connecticut reimburses New London for approximately 67 percent of the taxes that the College would pay if it were a for-profit business. The reimbursement is based on the theory that the social benefits of the College extend well beyond New London's borders and that therefore the financial costs should also be shared. Reimbursement is made through the Payment-In-Lieu-Of-Taxes Program, or PILOT, and through the Mashantucket Pequot and Mohegan Fund. For the fiscal year ending June 30, 2009, the city was slated to receive a total of $2.29 million of the $3.4 million from which the College is exempt.

Last Modified: Wednesday, January 06, 2010 2:57 PM