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Economic Impact Study
Study shows Minnesota State Mankato contributes $452 million, nearly 5,900 jobs to regional economy.
Minnesota State University, Mankato Media Relations Office News Release, 3-11-2013
Mankato, Minn. – Minnesota State University, Mankato today released the results of a study that estimates the economic impact of Minnesota State Mankato on the regional economy to be $452 million and an estimated 5,888 jobs in the South Central region.
“In addition to focusing on the success of our students through our ‘Big Ideas, Real- World Thinking’ approach to global education, Minnesota State Mankato plays a vital role in supporting our state and regional economy,” said Minnesota State Mankato President Richard Davenport. “Our operations and the economic activity generated by the University touch virtually every corner of our regional economy and support local business, education and industry. In addition, we have a five-year plan that will continue to grow the impact of the university on our economy.”
The study was conducted by Wilder Research, a nationally recognized source of data used by state and local planners, policy makers and service providers.
Jose Diaz, research scientist for Wilder, said, “This economic impact research provides a statistically valid measurement of the significance of an organization’s activities on the regional economy. Policy makers and community leaders can use the data to inform their decisions. Minnesota State Mankato clearly has a significant impact on the regional economy.”
The study also concluded that Minnesota State Mankato generates approximately $25 million in tax revenues for state and local government.
The study further estimated the value of the increase in productivity that the 2,810 bachelor’s, master’s, post master’s and doctorate degrees awarded by Minnesota State Mankato in 2011 will yield throughout the careers of the graduates. Assuming a 40-year work life, the education received by these graduates will yield additional state income of $552.6 million.
“Minnesota State Mankato makes a long-term contribution to the regional economy with every graduating class because the productivity improvements from higher education last for the worker’s entire career,” said Diaz.
On a statewide level, the Wilder study shows the seven state universities and 24 community and technical colleges that are part of the Minnesota State Colleges and Universities System:
- Generate an annual economic impact of $8.3 billion (direct impact of $5 billion and indirect impact in other industries of $3.3 billion).
- Represent a return of $13.53 for each $1 of state appropriation.
- Generate an estimated 80,856 jobs in the state (56,876 direct jobs and 23,979 additional indirect jobs created by vendors, contractors and businesses supplying inputs to our colleges and universities and their students).
- Generate approximately $490 million in tax revenues for Minnesota state and local governments.
In addition to the impact outlined above, the enhanced productivity of MnSCU graduates across the state is equivalent to $4.7 billion of future value created each year.
Minnesota State Mankato, a comprehensive university with 15,413 students, is part of the Minnesota State Colleges & Universities system, which comprises 31 state institutions.