Birmingham Business Alliance details $1.4 billion economic role of Alabama's 14 HBCUs

The Birmingham Business Alliance hosted a breakfast on Thursday morning to examine the financial contribution of historically Black colleges and universities in Alabama. The event took place in Beeson Hall at the Harbert Center and served as a parallel to the Magic City Classic festivities involving Alabama A&M and Alabama State.

Alabama currently operates 14 HBCUs, the highest number in the United States. Data from the United Negro College Fund’s 2024 Economic Impact report indicates these institutions generate a total economic impact of $1.4 billion for local and regional economies. This figure includes direct state spending on faculty, operations, and academic programs, as well as student expenditures and the subsequent ripple effects of that spending.

The report notes that every dollar spent by the state and students yields $1.20 in total economic activity. These colleges support 13,434 jobs across the region. Of those positions, 5,542 are located on campus while 7,892 are off campus. For every on-campus job created, 1.4 additional jobs appear in the public and private sectors. Additionally, each $1 million in initial spending creates 11 jobs.

Graduate earnings figures also illustrate the economic return of these institutions. The 2021 class of 6,571 graduates is projected to earn a combined $15.7 billion over their lifetimes. This total represents a 42% increase compared to earnings expected without a college degree. On an individual level, a full-time Alabama HBCU graduate can anticipate $712,872 in additional income throughout their working life due to their credentials.

The morning session featured a panel discussion on retaining local talent, moderated by host Jermaine “Funny Maine” Johnson. Mayor Randall Woodfin summarized the key takeaways for the attendees. He emphasized that exposure and opportunity are the two critical elements students need to remain in the state.

Woodfin urged employers to build pipelines through internships and apprenticeships as early as the summer following a student’s freshman year. He cited his own experience securing a political internship after his first year at Morehouse College as an example of how early access helps students secure their future.

The mayor concluded his address by thanking the business community for its support. The gathering concluded before the afternoon football game between the Bulldogs and Hornets at Legion Field.