Bemidji State University and Northwest Technical College have a combined impact of over $310 million on Minnesota’s economy.
An economic impact study on the Minnesota State system of 26 state colleges and seven state universities, released in January 2023, has found that Bemidji State University and Northwest Technical College combine to contribute an estimated total of $310.4 million and more than 2,200 jobs to Minnesota’s economy each year.
LEARN MORE: Complete information sheet from Parker Philips (11 MB PDF)
As this report shows, each dollar the state invests into Minnesota State institutions like Bemidji State University and Northwest Technical College induces over $310 million in economic activity in the state,” Dr. John L. Hoffman, president of Bemidji State University and Northwest Technical College, said. “That’s a huge multiplier effect and an essential key to our future.”
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.
The study considered the direct spending on operations, pay, benefits and capital projects and the estimated increase in demand for goods and services in industry sectors that supply or support BSU and NTC. The study also measured the effect of student spending and the induced effect of increased household income.
According to the study, this economic activity has a direct impact on the state’s labor market, as BSU and NTC either support or sustain an estimated total of 2,277 jobs in Minnesota. Those jobs include persons directly employed by both BSU and NTC, as well as indirect or 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 BSU/NTC faculty, staff, students and visitors.
The study also estimated that state and local tax revenues generated by this level of economic activity — which include sales, property, personal income and corporate income taxes — totaled about $22.5 million.
The study further estimated the value of the increase in productivity that the degrees awarded by BSU and NTC yield throughout the careers of their more than 1,200 graduates each year. Assuming a 40-year work life, the education received by these graduates will yield additional state income with a future value of $24.8 billion. Future value is adjusted to account for factors such as foregone income while attending school and migrating out of the state.
“The 32,000 BSU and NTC alumni living in Minnesota each contribute nearly $20,000 of economic activity in the state each year. Even more staggering is their collective impact on Minnesota’s economy throughout their careers — nearly $25 billion. This demonstrates the value that a well-trained, skilled and highly educated workforce delivers to the state’s workforce,” Hoffman said.
In total, Parker Phillips’ study estimated the combined impact of Minnesota State’s 26 colleges and seven state universities, plus the spending of its faculty, staff and students, is approximately $8.4 billion per year, which generates an estimated 62,125 Minnesota jobs.
An individual contribution report for BSU and NTC, along with complete results of the study, are available at MinnState.edu/IMPACT.