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Business North - The Daily Briefing - Business Newspaper Online
NHED's economic impact: $209 million
The Northeast Higher Education District infuses $209 million into the area economy and supports 2,508 jobs, NHED announced Thursday.
“In addition to focusing on the success of our students and playing a significant role in regional workforce development activities to address the industry identified skills gap, the Northeast Higher Education District plays a vital role in supporting our state and regional economies and the vitality of our regional communities,” President Sue Collins said in a news release. “Our operations at five colleges and the economic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy and support our local businesses and industries.”
NHED colleges include Hibbing Community College, Itasca Community College - Grand Rapids, Mesabi Range Community and Technical College - Virginia and Eveleth, Rainy River Community College - International Falls, and Vermilion Community College in Ely.
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 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. The Northeast Higher Education District clearly has a significant impact on the northeast Minnesota economy.”
The study concluded that NHED generates approximately $12.3 million in tax revenues for state and local governments.I
It also estimated the value of the increase in productivity that the 802 associate degrees awarded by district colleges in 2011 will yield throughout the careers of the graduates. Assuming a 40-year work life, the education received by the graduates will yield additional state income of $49 million of future value. When the increased productivity of graduates with certificates and diplomas are factored in, the value of the increased productivity of all NHED graduates could exceed $83 million.
“District colleges make 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,” Diaz said.
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 those impacts, the enhanced productivity of MnSCU graduates across the state is equivalent to $4.7 billion of future value created each year.
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