Minnesota State Mankato’s Economic Contribution Estimated at More than $827 Million
Mankato, Minn. – Minnesota State, the system of 26 state colleges and seven state universities, released today the result of a study that estimates the impact of Minnesota State University, Mankato on the regional economy to be $827.2 million and 5,884 jobs.
“This economic impact report affirms the critical role this university plays in our state and regional economies,” said Minnesota State Mankato President Edward Inch. “As we move forward, it’s important that we continue to offer our students the kinds of high-impact learning experiences that prepare them for careers needed by industries throughout our state and region.”
The study was commissioned by the Minnesota State system and was conducted by Parker Philips, a nationally recognized consulting firm specializing in economic impact analysis.
“An economic contribution analysis is an objective way to measure the significance 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 – Minnesota State Mankato clearly is an important contributor to the regional economy.”
In the analysis, the study considered the direct spending on operations, pay, benefits and capital projects by Minnesota State Mankato 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 result of this activity is that Minnesota State Mankato supports and sustains 5,884 jobs, including direct employment by the University as well as indirect and induced jobs created by supply and equipment vendors, contractors and laborers for the construction and renovation of facilities, and jobs created in the community at hotels, restaurants and retail stores in support of the University’s faculty, staff, students and visitors.
The study also calculated tax revenues generated by this level of economic activity, including sales, property, personal income and corporate income taxes. The study concluded that Minnesota State Mankato generates about $59.1 million in tax revenues for state and local government.
The study further estimated the value of the increase in productivity that the degrees awarded by Minnesota State Mankato 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 $76.6 billion (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration).
“There are more than 82,000 Minnesota State Mankato alumni living and working in Minnesota,” said Inch. “We are proud of their contributions to our state and regional economies. We’ve been told by our alumni that when they are hiring new employees, they look first to our graduates because they know of the exceptional education our students receive.”
Statewide, all Minnesota State system operations, including all seven state universities and 26 community and technical colleges, plus the spending of its faculty, staff and students, had a total statewide economic contribution of $8.4 billion. This activity generated an estimated 62,125 jobs in the state.
The economic contribution report for Minnesota State Mankato is available at https://www.mnsu.edu/about-the-university/fast-facts/economic-impact/.
Minnesota State Mankato, a comprehensive university with 14,482 students, is part of the Minnesota State system, which includes 26 colleges and seven universities.
About Minnesota State
Minnesota State 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.