The Economic and Societal Impact of the University of Minnesota (FY 09-10)

The Economic and Societal Impact of the University of Minnesota(FY 09-10)

To quantify the economic and employment impacts of the University of Minnesota system on the state of Minnesota. To quantify the economic and employment impacts of the University of Minnesota campuses and statewide resources on each region of the state. To better articulate the benefits of a major research institution and its partnership with the community, citizens and the state. U of M Economic ImpactStudy Goals

Statewide Impact of University of Minnesota Operations

U of M’s Overall Economic Impact: $8.6 Billion Per Year

Components of the Economic Impact

U of M is a Major Generatorof Jobs • 79,497 jobs are supported by the U of M and Fairview • 42,319 direct jobs • Faculty and Staff - 19,157 jobs • Graduate/Post-Doc/Residents – 6,279 jobs • Fellows and Students - 8,866 jobs • UMMC-Fairview/UMP - 8,017 jobs • 37,178 indirect and induced jobs • 1 in every 43 jobs in the state is attributable to the U of M.

What is the U of M’s Return on Investment to the State? $1.00 in State Investment $13.20 is generated in the Statewide Economy

It is a common misperception that public universities do not generate tax revenue. U of M generates $512.3 Million per year in state and local tax revenue ($136.0 Million direct). U of M Strengthens State and Local Tax Revenue Collections

U of M research expenditures from competitively awarded funding generate $1.5 billion in impact and support 16,193 jobs. U of M Research is a Key Economic Driver for the State

The U of M educates the workforce that Minnesota needs to succeed in the 21st century. The 14,000 students who graduate every year from the U of M are essential to the state's human capital and workforce needs. The U of M awards 90% of all STEM doctoral degrees, 85% of all MD degrees, and 100% of all dentistry, pharmacy, and veterinary medicine degrees. The U of M is a talent magnet, attracting talented students in a wide range of disciplines—many of whom stay in MN upon graduation. Educating the Future Workforce

According to alumni surveys conducted in 2004-2006: U of M alumni have formed nearly 10,000 companies in Minnesota. Nearly 25% of these company founders moved to Minnesota to attend the U of M. These companies employed approximately 500,000 people annually and generated some $100 billion in annual revenues in the state. U of M Alumni Play a Vital Role in Minnesota’s Economy

Economic Impact of U of M Alumni • The U of M graduating class of 2010 will have an $8.9 billion impact on future increased earnings. This impact is above and beyond the impact of the University’s operations. Economic Impact of Earnings of U of M Alumni (in billions)

The U of M educates children, citizens, future employees, leaders and innovators. The U of M makes the state of Minnesota a better place to live providing more than $204 million in community benefits, including: $4.9 Million in free care provided by UMMC-Fairview and UM Physicians $71.3 Million donated to local charitable organizations by U of M Faculty, Staff and Students Nearly $127.8 Million in value of volunteer time provided to area communities by U of M students, faculty and staff U of M is a Strong Community Partner

$8.6 Billion in economic impact throughout the entire state The U of M has an impact in every economic development region of the state Campuses in Crookston, Duluth, Morris, Rochester, and the Twin Cities, Extension offices, Research and Outreach Centers, and other statewide resources are integral parts of the regional and state economy 79,497 jobs for Minnesota citizens throughout the state Over$13.00 returned to the state as a result of U of M operations for every $1.00 invested Why is This Important?

$512.3 million in tax revenue generated for the State of Minnesota U of M Research funding generates $1.5 Billion in impact and supports 16,193 jobs The U of M graduating class of 2010 will have an $8.9 billion impact on future increased earnings – in addition to the operational impact $204 million in charitable giving as a result of staff, faculty and students Why is This Important? (cont’d)

U of M’s Impact by Economic Development Region

U of M’s Impact: Region 1 • U of M operations generate $1.2 Million per year in indirect state and local tax revenue.

U of M’s Impact: Region 2 • U of M operations generate $179,230 per year in indirect state and local tax revenue.

U of M’s Impact: Region 5 • U of M operations generate $226,972 per year in indirect state and local tax revenue.

U of M’s Impact: Region 6E • U of M operations generate $245,315 per year in indirect state and local tax revenue.

U of M’s Impact: Region 6W • U of M generates $114,404 per yearin indirect state and local tax revenue.

U of M’s Impact: Region 7E • U of M operations generate $911,374 per year in indirect state and local tax revenue.

U of M’s Impact: Region 7W • U of M operations generate $4.3 Million per year in indirect state and local tax revenue.

U of M’s Impact: Region 8 • U of M generates $228,457 per yearin indirect state and local tax revenue.

U of M’s Impact: Region 9 • U of M generates $813,363 per yearin indirect state and local tax revenue.

U of M’s Impact: Region 11 • U of M operations generate$343 Million per year in indirect state and local tax revenue.

The Economic and Societal Impact of the University of Minnesota (FY 09-10)