The independent sector of higher education in the State of New York provides 88,000 jobs and almost $8 million of identifiable economic impact. It also plays a unique role in the state's recovery effort. The institutions in this sector award almost half the bachelor's and more than two thirds of the postbaccalaureate degrees in the state. As an employer the independent sector of higher education is one of the largest in the state. Its operating revenues in 1976 amounted to over $2 billion, including 30 percent from out-of-state sources and one quarter billion in federal government grants and contracts. Spending by institutions and by students is expected to amount to almost $8 billion in 1977-78. The importation of monies by out-of-state students is a significant factor, as is the savings in state and local tax levies as measured against units of production (degrees) of independent institutions. It is concluded that the independent sector is an important element in the state's economy. (MSE)