Minnesota State, the system of 30 state colleges and seven state universities, today released the results of a study that estimates the contribution of St. Cloud Technical & Community College to the regional economy to be $188.6 million and 1,650 jobs.
“At SCTCC, our top priority is the success of our students, but it is important to note that the college also plays a vital role in both the state and the regional economies. Our operations and the economic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy, including education, health care, hospitality, manufacturing, child day care services, and retail,” said SCTCC President Annesa Cheek.
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. “SCTCC 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 and the estimated increase in demand for goods and services in industry sectors that supply or support SCTCC. 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 SCTCC supports and sustains 1,650 jobs, including direct employment, 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 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 SCTCC generates about $11 million in tax revenues for state and local government.
The study further estimated the value of the increase in productivity throughout the careers of SCTCC graduates. Assuming a 40-year work life, the education received by these graduates will yield additional state income of $3.6 billion (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration).
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.
The economic contribution report for SCTCC is available at MinnState.edu/IMPACT.