Colleges a huge North Coast economic force
Times-Standard 4/29/07
It's a force that's driving Humboldt County's economy, providing more than 3,000 jobs that supply some of the highest wages and salaries on the North Coast.
The area's two main institutions -- Humboldt State University and College of the Redwoods -- are both implementing major cutbacks, however, as enrollment, which in part dictates how much state funds each receive, is dwindling at both campuses.
Even so, experts, such as HSU economics chairman Erick Eschker, are hopeful the impact of losing faculty, staff and potential students won't be felt too deep.
”There's no doubt that budget cuts to institutions of higher education will be felt throughout the local economy,” Eschker said. “It'd be similar if a government agency were to experience large cutbacks. (But) with the university, it's somewhat unique in that not only can you look at the initial dollars spent, but you also need to look at what they're producing -- educated individuals and an educated workforce.”
Those educated individuals, be it current HSU students or employees, account for one in 14 county residents. But HSU's reach is even wider, considering local alumni and HSU families.
”If HSU were a company, it would be the biggest in the local economy -- It has a very important role in the county's prosperity,” said HSU economics lecturer Dan Ihara, who co-authored “HSU Impact 2005,” an analysis of the university's effects on the local economy.
Ihara is mostly right. In terms of employees and payroll, HSU and its auxiliaries is the second-biggest employer in Humboldt County and one of only two employers with 1,000 employees or more. The County of Humboldt is the top employer and provides the largest payroll.
”I really see Humboldt State as being at the center of economic development for our community,” HSU President Rollin Richmond said. “(HSU's) economic benefits to the North Coast community are significant in financial terms and invaluable in putting human talent to work in highly productive ways.”
HSU provides more than 1,450 jobs with an annual payroll topping $86 million. At the same time, more than 8,000 jobs in the area depend on the university and the more than $14 million in annual tax revenue it generates, according to a study conducted by the California State University system.
CR provides 575 full- and part-time jobs in Humboldt County, serving about 3,900 students. These two educational institutions combined provide a huge portion of the area's educated workforce, Eschker said.
For that trend to continue, however, key programs, such as CR's hospitality, restaurant and culinary arts program, and HSU's popular nursing, sciences and environmental programs, must remain and continue to draw students.
In the midst of budget cuts, “What I hope happens is we don't lose a lot of students,” Eschker said. “I hope this budget crunch will be resolved and have a minimal impact on students. But you'll still have students graduating, getting education and going into the workforce productively.”
Higher education's effect locally is best put when one imagines life in Humboldt County without a four-year-university.
”It would be very different” Eschker said. “It's my guess that what differentiates Humboldt County from Del Norte, Trinity, Siskiyou and Lake, is really having a good regional university here.
”This is a bit of speculation, but it's an educated guess -- I think you would not have the growth here. You wouldn't have the population here. Towns nearby would be very different.”
And as the logging industry has dropped off over the years, education has boomed to become the second largest industry in Humboldt County.
Its impact can be compared to dropping a stone in a pond and watching the ripples, Eschker said. “We've had a ripple effect for almost a century,” he said. “And it's had a big effect on this area. My sense is that second only to (logging) the redwoods, I can't think of anything more significant than Humboldt State.”