Contact: Katryn Conlin, Director of Communications
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For Immediate Release
New report estimates Minnesota State College Southeast's economic impact at $88.3 million annually
Winona and Red Wing, Minnesota (January 30, 2023) -- Minnesota State, the system of 26 state colleges and seven state universities, has released the results of a study that estimates the impact of Minnesota State College Southeast on the regional economy to be $88.3 million annually. The study also estimates that the college supports and sustains 668 jobs.
"At Minnesota State College Southeast, student success is our top priority, but it is important to note that the college plays a vital role in the economy of both the state and the Southeast region," said Dr. Marsha Danielson, President of MSC Southeast. "Our operations and the economic activity generated by our faculty, staff, and students impact every aspect of our regional economy, particularly the business, industry, and healthcare sectors."
The study was commissioned by Minnesota State 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 College Southeast 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 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 MSC Southeast supports and sustains 668 Minnesota jobs including direct employment by the college, as well as indirect and induced jobs created by supply and equipment vendors, contractors, and laborers for the construction and renovation of facilities. Jobs created in the community at hotels, restaurants, and retail stores in support of college faculty, staff, students, and visitors are also considered in the total estimate of 477 direct and 191 indirect/induced jobs.
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 $7.2 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 College Southeast 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 $931.3 million (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration).
"With every graduating class, Minnesota State College Southeast makes a long-term contribution to the regional economy, because the productivity improvements from higher education last for each individual's entire career," said Dr. Danielson.
Statewide, all Minnesota State 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.
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About Minnesota State College Southeast
Located in the historic river towns of Red Wing and Winona, Minnesota State College Southeast is a two-year technical and community college offering small class sizes, state-of-the-art facilities, and an environment that is friendly and supportive. Minnesota State College Southeast is a member of Minnesota State.
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.