Study Shows University Contributes $106 Million to Cambridge Economy

University officials yesterday released a study concluding Harvard and its students, workers and laculty contribute $106 million annually to the economy of Cambridge.

The study which includes estimates of direct spending as well as a "multiplier" figure tracing the reinvestment of the dollars, "provides solid documentation of the importance of Harvard and other colleges and universities to the economic." Robin Sehmidt, assistant vice president for government and community affairs, said yesterday.

"It's a partial answer to those trying" to end the University's exemption from the property tax. Harvard community affairs spokesman. David Rosen said, adding. "It makes little sense to tax an institution that is performing a valuable public service."

The study does not include any estimate of the negative economic impacts of Harvard on Cambridge, including the use of municipal services and the ownership of tax-exempt property. Rosen said the government and community affairs office would probably commission a study soon to determine the "net economic impact" of the University on Cambridge.

Cambridge mayor Francis H. Duehay '55, who yesterday called Harvard's study a "little self-serving," said "rather than fight the effort to tax them. Harvard should realize that if the city goes under Harvard will go under too."

Officials from the city government and the University should "fight together" to insure the continued economic health of the city. Duehay added.

Proposition 2 1 2 "has so heavily curtailed revenues that we may not be able to provide basic public services." Duehay added, saving Harvard should consider increasing its payment to the city.

The study, conducted by the Cambridge firm of Putnam. Hayes & Bartlett, found that during the 1979-80 school year:

IHarvard students spend nearly $12 million in Cambridge:

IFaculty members and staff spent more than $18 million of their after-tax compensation in the city:

IEmployees of businesses attracted to Cambridge because of Harvard spent nearly $8 million:

IVisitors to the University spent nearly $4 million ("and that doesn't include Commencement." Rosen added): and

IHarvard purchased more than $19 million in goods and services from local businesses.

The study is an outgrowth of a Data Resources Ine. report which showed the state's 79 colleges and universities added $2.3 billion to the state's economy. That report was released earlier this year when state legislators were considering a bill that would have removed property tax exemptions for universities.

That bill and a separate Cambridge home rule petition that would remove the exemption from MIT and Lesley are given little chance of passage in this session of the state legislature.