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Minnesota State College Southeast
New study estimates Minnesota State College Southeast's contribution to Southeast MN economy to be $80.3 million per year
Red Wing and Winona, MN (November 14, 2018) -- Minnesota State, the system of 30 state colleges and seven state universities, today released the results of a study that estimates the annual contribution of Minnesota State College Southeast to the regional economy to be $80.3 million. It's also estimated that the college supports and sustains 694 jobs.
"At Minnesota State College Southeast, our top priority is the success of our students, but it is important to note that the college also plays a vital role in both the state and the regional economies. Our operations and the economic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy including education, hospitality, child day care services, and retail," said Larry Lundblad, Interim President, MSC Southeast.
The study was commissioned by Minnesota State and was conducted by Parker Philips, a nationally recognized consulting firm specializing in economic impact analysis. The study reflects information from fiscal year 2017.
"An economic contribution analysis is an objective way to measure the significance of an organization in the regional economy; it is a tool that policy makers can use to inform their decisions," said Nichole Parker, a principal partner at Parker Philips. "Minnesota State College Southeast clearly is a major contributor to the economy in Southeast Minnesota."
In the analysis, the study considered the direct spending on operations, pay, benefits, and capital projects by Minnesota State College Southeast and the estimated increase in demand for goods and services in industry sectors that supply or support the college. 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 College Southeast supports and sustains 694 jobs, including 183 in direct employment by the college, as well as 434 indirect and induced jobs created by supply and equipment vendors; contractors and laborers for the construction and renovation of facilities; and employment in hotels, restaurants, and retail stores supporting the college'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 College Southeast generates about $4.7 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 MSC Southeast yield throughout the careers of the graduates. Assuming a 40-year work life, the education received by the 19,864 graduates living in the state will yield additional state income of $4.0 billion (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration).
"Minnesota State College Southeast 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 Larry Lundblad.
Statewide, all Minnesota State operations, including all seven state universities and 30 community and technical colleges, plus the spending of its faculty, staff, and students, had a total statewide economic contribution of $8.0 billion. This activity generated an estimated 67,717 jobs in the state.
The economic contribution report for Minnesota State College Southeast is available at MinnState.edu/IMPACT.
About Minnesota State College Southeast
Minnesota State College Southeast is a two-year technical and community college that prepares students for a lifetime of learning by providing education for employment, skill enhancement, retraining, and transfer, to meet the needs of students and the community. The Winona campus opened in 1949, merging with the Red Wing campus in 1992 and updating its name to Minnesota State College Southeast in 2016 with the change of mission to offer both technical training and the associate of arts degree. Minnesota State College Southeast is a member of Minnesota State. For more information, visit www.southeastmn.edu.
About Minnesota State
Minnesota State includes 30 community and technical colleges and seven state universities serving approximately 375,000 students. It is the fourth-largest system of two-year colleges and four-year universities in the United States.