HENNEPIN TECHNICAL COLLEGE ECONOMIC IMPACT ON THE COMMUNITY: $288 MILLION
Hennepin Technical College released the results of a study that estimates the economic impact the college has on the regional economy to be $288 million per year.
Based on the Twin Cities metro economy of $190.7 billion, this means that for every $1,000 produced in the Twin Cities metro area, $15 are directly or indirectly related to Hennepin Tech. The direct impact of the college in 2011 was $169 million, while the indirect impact in other industries was $119 million.
Similarly, during 2011 the college and its students generated an estimated 2816 jobs in the Twin Cities. These jobs included an estimated 1,984 direct jobs and 832 additional indirect jobs created by vendors, contractors, and businesses supplying inputs to the college and its students.
The study was conducted by Wilder Research, a nationally recognized source of data used by state and local planners, policy makers, and service providers.
The Wilder analysis, which was prepared for the Minnesota State Colleges and University system, explains that HTC impacts the local economy in three ways:
- Direct spending by the college itself, including funds spent for construction projects, wages and salaries, contracted services, and supplies and repairs.
- Spending by students, many of whom are residents of the area.
- Labor markets impact, including the employment of local residents, job creation as a result of college, student spending, students working part-time while going to school, and students staying in the local area after completing their studies.
Jose Diaz, research scientist for Wilder, said, “This economic impact research provides a 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. Hennepin Technical College clearly has a significant impact on the regional economy.”
The study also concluded that Hennepin Technical College generates approximately $ 17 million in tax revenue for state and local government.
“In addition to focusing on the success of our students, Hennepin Technical College plays a vital role in supporting our state and regional economy,” said Hennepin Technical College President Cecilia Cervantes. “Our operations and the economic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy and support local business and industry.”
The study further estimated the value of the increase in productivity that 663 associate degrees were awarded by Hennepin Technical College in 2011 will 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 $62.1 million. “Hennepin Technical College makes a long-term contribution to the regional economy with every graduating class because the productivity improvement from higher education lasts for the worker’s entire career” said Diaz.
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 the impact outlined above, the enhanced productivity of MnSCU graduates across the state is equivalent to $4.7 billion of future value created each year.
Last updated by jlaabs : 2013-05-15 04:54:57