Economic Impact Infographic
Minnesota State, the system of 26 state colleges and seven state universities, today released the results of a study estimating Southwest Minnesota State University’s impact on the regional economy to be $286.5 million and 2,248 jobs.
“At Southwest Minnesota State University, our top priority is the success of our students, and through that, SMSU can play a vital role in the state and regional economies,” said Bill Mulso, Vice President of Government Relations, Communications and Marketing. “Our operations and the economic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy, including education, health care, hospitality, child care services, business, and retail.”
The study was commissioned by the state of Minnesota and was conducted by Parker Philips, a nationally recognized consulting firm that specializes in economic impact analysis.
“An economic contribution analysis is an objective way to measure the importance of an organization in the regional economy; it is a useful tool that policymakers can use to inform their decisions,” said Nichole Parker, President of Parker Philips. “The numbers speak for themselves: SMSU is clearly a significant contributor to the regional economy.”
In the analysis, the study considered SMSU’s direct spending on operations, salaries, benefits, and capital projects and the estimated increase in demand for goods and services in industry sectors that supply or support the university. The study also measured the effect of student spending and the induced effect of increased household income.
According to the study, a key outcome of this activity is that SMSU supports and maintains 2,248 jobs, including direct university employment, as well as indirect and induced jobs created by supply and equipment vendors, contractors, and workers for construction and renovation of facilities. and jobs created in the community at hotels, restaurants, and retail stores in support of the college’s faculty, staff, students, and visitors.
The study also calculated the tax revenue generated by this level of economic activity, including taxes on sales, property, personal income, and corporate income. The study concluded that SMSU generates about $23.4 million in tax revenue for state and local governments.
The study further estimated the value of productivity gains that SMSU-granted degrees produce throughout graduates’ careers. Each year, Southwest Minnesota State University alumni generate $424.5 million in economic impact for Minnesota and support and maintain 2,309 jobs. During their 40-year careers, SMSU alumni will generate $17 billion in the economy.
“SMSU continues to contribute to the regional economy with each graduating class,” Mulso said. “The knowledge and productivity of higher education sustain that contribution throughout a graduate’s career. The impact is even greater when those alumni stay in the region to work and raise families.”
Statewide, all of Minnesota’s operations, including the seven state universities and 26 community and technical colleges, plus their faculty, staff and student expenses, had a total statewide economic contribution of $8.4K millions. This activity generated an estimated 62,125 jobs in the state.
The Economic Contribution Report for SMSU is available to view and download: Economic Impact, January 2023 Report. To view the system-wide report, visit: https://www.minnstate.edu/impact/
About Southwestern Minnesota State University
By providing a student-centered and inclusive learning environment, Southwestern Minnesota State University (SMSU) prepares its students to solve complex challenges and become engaged citizens of their local and global communities. SMSU’s comprehensive degree programs, rooted in the liberal arts, connect academic and professional development with the rest of the world, producing leaders who excel in their fields. About the Minnesota State System The State of Minnesota includes 26 community and technical colleges and seven state universities serving approximately 300,000 students. It is the fourth largest system of two-year colleges and four-year universities in the United States.
About the Minnesota State System
The state of Minnesota includes 26 community and technical colleges and seven state universities serving approximately 300,000 students. It is the fourth largest system of two-year colleges and four-year universities in the United States.