Our good friend and exceptional colleague Steven Gavazzi has wrote about the impact of the Coronavirus pandemic on American Colleges’ cities and towns.
Until recently, college towns were thought to have a distinct economic advantage over municipalities that did not host an institution of higher learning. Colleges and universities were touted as “anchor institutions,” a term indicating their long-term investment in the communities they served. With the COVID-19 pandemic, however, these same towns now face very real economic peril. Students have been sent back to their homes to reduce the spread of the virus. Gone with them is the purchasing power they had poured into the local economy.
So far, significant government attention has been paid to the current fiscal difficulties faced by our nation’s colleges and universities. Most importantly, this includes $14 billion in aid from Congress to institutions of higher learning (half of which must be used for emergency student financial aid) embedded in the $2.2 trillion CARES Act (an acronym that stands for Coronavirus Aid, Relief, and Economic Security). While state and local governments also stand to benefit from CARES Act money through a $150 billion fund, there is nothing in the congressional action that addresses the specialized needs of college towns.
Chief among the unique aspects of the college town is the back and forth movement of students and how those population swings impact the local economy. When students arrive on campus in the fall, businesses thrive. Apartments are rented, back to school supplies are purchased, etc. Once students settle in, they frequent coffee shops, restaurants, bars, and various entertainment venues surrounding campus. Home football games and other large social events hosted by universities add to the mix. Food and beverages are bought in copious quantities by participants in the revelry. Hotel rooms fill, collegiate merchandise is snapped up, and gas tanks are filled, among other purchases made by these weekend visitors.
When the academic year is over in the spring, students graduate or go back to their hometowns for the summer. Sports seasons are completed, and other campus events wind down. Hence, the college town population contracts for several months, and the economy slows to a trickle of its former self. In a normal year, this downturn is relatively brief, and it can be anticipated by local businesses. Now, however, the COVID-19 pandemic has brought the local economy to an almost immediate and complete standstill, and many months earlier than had been anticipated.
Alarm bells are beginning to ring among various individuals and organizations familiar with the plight of college towns. For example, a recent webinar on this topic was organized by the International Town-Gown Association with the title “College Towns in Crisis.” Attended by campus and community representatives from across the country – including mayors, city managers, town council members, and university staff members – it proved to be an interesting conversation, to say the least.