Echo staff report
ST. PAUL ñ Minnesota State, the system of 30 state colleges and seven state universities, released the results of a study that estimates the contribution of Rochester Community and Technical College to the regional economy to be $231.9 million and 2,009 jobs.
ìAt RCTC, 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,î said RCTC President Jeffery Boyd. ìOur operations and the economic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy including education, hospitality, child day care services, and retail.î
The study was commissioned by Minnesota State and was conducted by Parker Philips, a consulting firm specializing in economic impact analysis.†
ìAn 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,î said Nichole Parker, a principal partner at Parker Philips. ìRCTC clearly is a major contributor to the regional economy.î
In the analysis, the study considered the direct spending on operations, pay, benefits, and capital projects by RCTC, and the estimated increase in demand for goods and services in industry sectors that supply or support the 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 Rochester Community and Technical College supports and sustains 2,009 jobs including direct employment by the College, 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 Collegeís 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 RCTC generates about $13.4 million in tax revenues for state and local government.
The study further estimated the value of the increase in productivity that the degrees awarded by RCTC yield throughout the careers of the graduates. Assuming a 40-year work life, the education received by these graduates will yield additional state income of $5.4 billion (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration).†
ìRCTC makes a long-term contribution to the regional economy with every graduating class because the productivity improvements from higher education last for the workerís entire career,î Boyd said.
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 RCTC is available at MinnState.edu/IMPACT.