The latest university to contract with EMSI on a comprehensive economic impact study is North Dakota State University, a land grant research institution based in Fargo that released the results of its study to the media last week.
As highlighted in the Fargo Forum and Prairie Business Magazine, NDSU accounts for $884.6 million in average annual added income to the state of North Dakota and the 18 counties it serves in Minnesota, all of which are within a 100-mile radius of Fargo. This equals just under 2% of the total regional economy.
Most of NDSU’s impact is related to what EMSI calls the student productivity effect — the added skills of past students who join or rejoin the regional workforce and make more money because of the education they received at NDSU. Of the institution’s $884.6 million impact on the region, $655.4 million comes from the accumulated contribution of NDSU instruction received by former students (both completers and non-completers).
The following is from the Prairie Business Magazine article:
The analysis, commissioned by NDSU and conducted by Idaho-based Economic Modeling Specialists International, looked at 2010-11 academic and financial reports, employment data from the U.S. Bureau of Labor Statistics, earnings figures from the U.S. Census Bureau and other studies.
EMSI Assistant Vice President of Professional Services Annike Crapuchettes said the report found a high return on investment at NDSU. Students have an average return of 14.4 percent each year for the tuition, fees and wages they give up during their education, meaning they recover the costs in 10.6 years.
She said taxpayers, too, enjoy a healthy return. The state government provided $126.5 million to the university in the 2011 fiscal year, resulting in an expected $1.03 return for each tax dollar invested over the course of students’ careers through higher taxes and avoided costs.
EMSI’s Economic Impact Study estimates the impact of colleges and universities in terms of job and income formation, students’ high earnings, returns to taxpayers, and a broad collection of social benefits and avoided costs. Please contact Rob Sentz (email@example.com) if you have questions or comments. Follow us @desktopecon.