With an annual operating budget of approximately $2.4 billion, Harvard University has a considerable impact on the local economy. Harvard is one of the largest employers in Massachusetts and in its host communities, Cambridge and Boston. More than 15,000 people work at Harvard, including more than 2,000 faculty, as well as casual workers and 12,000 staff on the University's regular payroll.

Over half of the budget is spent annually on equipment purchases, support services, building and maintenance, and student financial aid. Much of that goes to local companies and individuals.

Harvard annually spends about three-quarters of a billion dollars in Cambridge and Boston on taxes, voluntary payments in lieu of taxes, municipal fees and services, purchases of goods and services, and payroll for University employees who are Cambridge and Boston residents.

Local Payroll. In 2000, Harvard employed more than 5,800 residents of Cambridge and Boston residents at a total annual payroll of more than $255 million.

Goods and Services Purchased. In 1998-99, Harvard purchased $830.6 million in goods and services, of which about 38 percent, or $315.3 million was purchased from Boston and Cambridge businesses and individuals. Harvard's annual purchases are about $77.3 million in Cambridge and about $238 million in Boston.

Taxes and Payments. In 1999-2000, Harvard paid an annual total of about $13 million in real estate taxes, voluntary payments in lieu of taxes, and for municipal services in both Cambridge and Boston.

Harvard also assists and enhances its neighboring communities through financial aid to Cambridge and Boston residents attending Harvard College (more than $1 million annually), more than 240 public service programs, and support of local community organizations and events, open Extension School enrollment (some 570 courses offered to more than 13,000 students annually), and special access to its facilities and educational and cultural programs.

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