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JIM SKURLA

JIM SKURLA. Impact of Higher Education in Duluth January 9, 2008. DREW DIGBY. In this presentation. Demographics, employment numbers, institutions Impacts Issues and strategy. Educational Services Employment and Salaries in Duluth. 2006 Educational Services includes:

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JIM SKURLA

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  1. JIM SKURLA Impact of Higher Education in Duluth January 9, 2008 DREW DIGBY

  2. In this presentation • Demographics, employment numbers, institutions • Impacts • Issues and strategy

  3. Educational Services Employment and Salaries in Duluth 2006 Educational Services includes: • Elementary and Secondary Schools • Junior Colleges, Colleges • Universities and Professional Schools • Business Schools and Computer and Management Training • Technical and Trade Schools

  4. Growth in Education Employment • Between 2004 and 2006, employment in educational services in Duluth grew by 8.5% • Salaries since 2000 have grown faster in education than in Duluth as a whole (25.1% compared to 21.3% for all jobs in Duluth). • More recent data lumps education with healthcare, but together they added 3.9% more jobs in the year ending Nov. 2007. • Together, education and healthcare make up 28% of local employment (education is about a third of that category.) By comparison, leisure and hospitality is 9.6% of total Duluth employment.

  5. Duluth’s higher education institutions include . . . • UMD: University of Minnesota Duluth, public, 1895 • 12 bachelor's degrees in 75 majors, graduate programs in 20 fields, a two-year program at the School of Medicine, and a four-year College of Pharmacy program. Chief executive officer of UMD is Chancellor Kathryn A. Martin. • CSS: College of Saint Scholastica, private, 1912 • bachelor's and master's degrees, and one doctoral degree, the Doctorate of Physical Therapy. Undergraduate areas of study include business; computer science; education; humanities; mathematics; nursing, and other health-related fields; religious studies; and sociology. • LSC: Lake Superior College, public, 1995 (Duluth Technical and Community College merged) • pre-baccalaureate majors for students interested in transferring to senior educational institutions as well as over 75 certificate, diploma and degree programs in career/technical fields. President of Lake Superior College is Dr. Kathleen Nelson.

  6. Duluth’s higher education institutions include . . . • DBU: Duluth Business University, private, 1891 • focus on career specific training and offers the option of an Associate in Applied Science Degree; Bonnie Kupczynski, CEO, currently owned by James R. Gessner of Duluth and Terry L. Myhre of Minneapolis. • UWS: University of Wisconsin Superior, public, 1893 (1971 became part of UW system) • UW-Superior grants bachelor's, master's, and specialist's degrees. Chancellor, Julius E. Erlenbach • WITC: Wisconsin Indianhead Technical College: • two-year college, more than 50 full-time programs, plus technical certificates and apprenticeship programs

  7. Faculty and Staff Employment Sources: Estimates and calculations derived from UMD Campus Databook, UWS Factbook, RefUSA, LSC College Profile

  8. College Students in Duluth-Superior

  9. College Students as a Percentage of the Population

  10. How has this changed? • In 1990, Duluth had approximately 11,100 college students, which was the equivalent of 12.9% of the population. • Starting with the 2000 census, college students in Duluth have not shown up well on the census. Only 11,678 students were shown on the 2000 census for Duluth while the colleges reported 15,434 students. (They should have shown up on the census. As many UWS students live in Duluth as Duluth college students live outside of the city limits.)

  11. Most College Students Come From Outside of Northeast Minnesota • At both UMD and St. Scholastica, only 17% of the student body is from Northeast Minnesota. • Even at Lake Superior College, at least 31% of the student body is from outside of St. Louis County. • UMD used to draw substantially more of its student body from Northeast Minnesota. In 1990, the percentage was roughly double the current number, 33%.

  12. Student Volunteer Hours—UMDIncludes only formal arrangements by the Office Civic Engagement/Darland ConnectionSource: UMD Office of Civic Engagement

  13. “Traditional” College Students • According to the American Council on Education, about 40% of all college students are no longer “traditional” students, who are under 25. • At UMD, only 11% of the student body is over 25. At UWS, the percentage is 31%

  14. Challenges to Higher Education • The number of traditional college age students from Minnesota is expected to drop significantly between now and 2015, and stay stagnant until 2020 before growing again. (The drop will be 6.8%, according to an estimate by the State Demographer’s Office). • Some colleges and universities are expected to face dramatic losses while others are expected to maintain their numbers. How will our local institutions fare?

  15. Universities and Colleges Generate Three Types of Impacts Direct Impacts ____________________ • Purchases by educational institutions • Federal and State Research Grants • Student Spending • Outside dollars coming in • Local dollars kept within the region (import substitution) Indirect & Induced impacts _____________________ • Business to business spending • Employee spending • Induced impacts of new dollars multiplied throughout the overall economy

  16. Examples of Sectors Impacted • Banks: • credit cards, checking accounts and student loans. • Furniture: • furniture especially for dorm rooms. • Health and Services: • Student Laundromat customers • Chiropractor makes students aware of his Associated Chiropractic Physicians practice there. • Great Clips, half her customers are students. • Eating and Drinking: • Lake Aire Bottle Shop estimated students make up 30 to 40 percent of customers. • University proximity businesses: • Labor Day weekend, the merchants could plan to attract students.

  17. Negative Impacts Of College Students • Neighborhoods • Parties • Law enforcement • Parking • Traffic • Investment that graduates and leaves town

  18. Capital Investment in Education

  19. Workforce Issues • Higher Ed. Institutions are labor providers: • Students are a valuable workforce • Student labor is used heavily in Tourism, Eating and Drinking, Retail Trade • Higher Ed. Institutions are employers: • Faculty, staff, indirect and induced employment effects

  20. How do we keep students in Duluth • Create Opportunities/jobs • Support existing and spin-off companies • Continue economic development and Clustering industries around the universities • Encourage student entrepreneurs • Create Initiatives in the region to keep students

  21. Duluth Superior Area Community Foundation Young Adult Task Force Recommendations • Give Young Adults a Chance to Lead. • Create a Better Way to Share Information. • Raise Awareness of Career and Economic Opportunities. • Increase Connections between College and University Students and the Community. • We Love This Place. Now Admit It. In Public. • Support projects that foster Duluth Superior being a more vibrant place for young adults to live and work.

  22. Implementation Projects Underway • The Duluth Young Professionals have a significant mentorship project underway with UMD, CSS, and LSC • A Superior Leadership group is working with the Superior Jaycees to set up a similar group. • The Zeppa Foundation has made a significant grant to create a young adult one-stop shop website. • The Lake Superior Advertising Federation is working to create a advertising campaign as part of their scholarship program.

  23. Implementation Projects Underway-2 • A coalition of groups from the city and state are working to make workforce issues more apparent by talking about projected future job openings in the region. For example, The Northland Works project and website: (www.thenorthlandworks.org) • Groups from the Knight Creative Communities Initiative and the Duluth Higher Education Commission have been discussing additional projects that could be undertaken, including a community-wide welcome for college students.

  24. Thank You For more information: James Skurla, Acting Director  Bureau of Business and Economic Research UMD Labovitz School of Business and Economic 19 School of Business and Economic 412 University Drive 55812-3029 218-726-7895 Fax 218-726-6555 jskurla@d.umn.edu Drew Digby, Regional Labor Market Analyst-Northeast MN Minnesota Department of Employment and Economic Development 218-723-4775 drew.digby@state.mn.us

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