Economic Contribution of Rosalind Franklin University

Introduction

Rosalind Franklin University (RFU) contributes to the economy of North Chicago and the region via its operations and faculty/staff, retaining student spending, and construction projects.

Economic Impact Definitions

Direct effects are specific to economic activities specifically attributable to RFU. Examples include student spending, the value of patient care provided, and the value of construction projects.

Indirect effects represent broader economic activity that occurs as a result of the direct effect. Direct effects of the project ripple across the region as companies purchase from suppliers and employees at those companies spend their wages. An example of an indirect effect would be an increase in retail sales as workers who do business with RFU students spend their wages in the region.

The total effect represents the direct and indirect effects combined. A multiplier is calculated as the total effect divided by the direct effect, it provides a measure of the number of jobs supported in the region as a result of RFU’s presence.

Region Definitions

RFU commuter flows are fragmented, but the largest share are in Lake County and Cook County. The majority of RFU employees live in Lake County and about 33% of workers live in Cook County. About 3% of commuters live in DuPage County, fragmented across many communities each with less than 3 workers. About 10% of workers live outside of Illinois. In the interest of defining a compact and contiguous region, in this study, the region is defined as Lake County and all Cook County ZIP codes with one or more RFU employees.

Operations & Faculty/Staff

The largest share of RFU economic impacts comes from its operations, which includes instruction, student services, research, and patient care. In fiscal year 2024, RFU spent a total of $147.8 million, including 1,267 employees and $79 million in personnel. RFU spent $25.1 million on research, which includes 207 jobs and $16.8 million in value added for the regional economy. Value added includes employee compensation, proprietor income, taxes on production, and property income or profits.

About 182 jobs and $23.7 million in value added are generated through the indirect and induced effects, which include business-to-business spending from RFU’s vendors and spending of wages by affected employees. The university has a larger multiplier than would be typical for an institute of higher education, due to its distinct research and patient care activities.

Economic Impact of RFU Operations and Faculty/Staff

Impact Type	Jobs	Compensation	Value Added	Output
Direct	1,267	$79,370,000	$103,898,000	$147,801,000
↳ Research	207	$12,633,000	$16,883,000	$25,081,000
↳ Patient Care	58	$6,049,000	$7,929,000	$14,134,000
Indirect	182	$12,175,000	$23,689,000	$38,007,000
Total	1,448	$91,546,000	$127,587,000	$185,809,000
Multiplier	1.1	1.2	1.2	1.3

Source: IMPLAN, 2023.

By far the most-impacted industry by RFU operations and faculty/staff is real estate, with $7 million in indirect value added. This includes owned and rented dwellings for impacted workers. The second-largest share of value added was in health care, with $2.4 million. RFU operations indirectly added $1.7 million in value added for finance and insurance.

Student Spending

RFU had 2,021 students enrolled for 2024–2025. Based on estimates from Financial Aid, living expenses at RFU total $25,200 per student. Students directly spend about $50.9 million in the region each year, including housing costs, utilities, travel, and retail purchases. Living expenses are higher for students with dependents, and lower for those living with parents. The $25,200 estimate was modeled as a midpoint. Detailed spending patterns are estimated based on the Bureau of Labor Statistics’ Consumer Expenditure Survey. For example, the living costs from Financial Aid show estimated total utility costs, while the Consumer Expenditure Survey was used to determine which proportion of utility costs is spent on electricity, internet, etc.

Direct student spending supports 206 jobs and contributes $40.9 million in value added. An additional 40 jobs and $5.6 million are generated through the indirect effect, which includes supply chain purchases by companies who do business with students, and by workers of those companies spending their wages. For every $1,000 spent by an RFU student, an additional $200 in output is generated in the economy of Lake County and northeast Cook County.

Impact of RFU Student Spending

Impact Type	Jobs	Compensation	Value Added	Output
Direct	206	$9,061,000	$40,930,000	$50,897,000
Indirect	40	$3,152,000	$5,567,000	$8,807,000
Total	245	$12,213,000	$46,497,000	$59,704,000
Multiplier	1.2	1.3	1.1	1.2

Source: Implan, 2023.

Of the $5.6 million in indirect value added from student spending, the largest share of value added is from real estate, including rented dwellings. Other heavily impacted industries include finance and insurance, professional services (e.g., accounting, research and development), and Other Services, which includes repair and maintenance. About $412,000 in value added is supported for the Information sector, which includes telecommunications. Indirect impacts include business-to-business spending by companies who do business with students. It is distinct from the direct purchases made by students.

Construction

RFU spent $14.8 million on capital projects for fiscal years 2022 through 2025 combined. This spending directly supported 94 employees during the construction period, with total compensation of $7.65 million, or $81,500 per job. Through the indirect effect, an additional 17 jobs and $3.9 million in output were temporarily supported during the construction period. For every $1 million in construction spending by RFU, an additional $270,000 in output is generated through multiplier effects. Construction impacts are temporary and specific to the construction period. All construction impacts are specific to Lake County.

Impact Type	Employment	Compensation	Value Added	Output
Direct	94	$7,658,000	$9,392,000	$14,838,000
Indirect	17	$1,388,000	$2,558,000	$3,993,000
Total	111	$9,046,000	$11,950,000	$18,831,000
Multiplier	1.2	1.2	1.3	1.3

Source: IMPLAN, 2023.