Minnesota State, the system of 30 state colleges and seven state universities, released the results of a study that estimates the contribution of Lake Superior College to the regional economy to be about $195.9 million and 1,843 jobs.
“Our top priority at Lake Superior College is the success of our students, but we also pride ourselves on the important role LSC plays in both the state and the regional economies,” said Lake Superior College President Pat Johns. “Our operations and the economic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy including education, healthcare, aviation, manufacturing and so much more.”
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 tool that policy makers can use to inform their decisions,” said Nichole Parker, a principal partner at Parker Philips. “Lake Superior College clearly is a major contributor to the regional economy.”
In the analysis, the study considered the direct spending on operations, pay, benefits, and capital projects by Lake Superior College and the estimated increase in demand for goods and services in industry sectors that supply or support Lake Superior 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 Lake Superior College supports and sustains 1,843 jobs including direct employment by LSC, as well as indirect and induced jobs created by supply and equipment vendors, contractors, and laborers for the construction and renovation of facilities, and jobs created in the community at hotels, restaurants, and retail stores in support of the Lake Superior 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 Lake Superior College generates about $11.5M in tax revenues for state and local government.
The total number of graduates from LSC over the past 20 years totals over 19,980. Based upon the conservative assumption that each graduate will earn an additional $6,250 annually over those with a high school degree, and that 80 percent of these graduates are still living and working in Minnesota, alumni will generate an additional $3.2 billion over the span of their 40-year career.
“Lake Superior College makes an immediate and 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 Johns.
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.