Duluth, Minn. (January 25, 2023) — Minnesota State, the system of 26 state colleges and seven state universities, released yesterday the results of a study that estimates the impact of Lake Superior College on the regional economy to be $200.3 million and 1,552 jobs.
“At Lake Superior College, our top priority is the success of our students, but it is important to note that the college plays a vital role in both the state and the regional economies,” said David Kline, vice president of advancement and external relations. “Our operations and the economic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy including education, hospitality, manufacturing, health care and retail.”
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 useful tool that policymakers can use to inform their decisions,” said Nichole Parker, President of Parker Philips. “The numbers speak for themselves — Lake Superior College clearly is an important contributor to the regional economy.”
In the analysis, the study considered the direct spending on operations, pay, benefits, and capital projects by Lake Superior College 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 Lake Superior College supports and sustains 1,552 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 college’s 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 Lake Superior College generates about $16.6 million in tax revenues for state and local government.
“Lake Superior College makes a long-term contribution to the regional economy with every graduating class because the productivity improvements from higher education last for the worker’s entire career,” said Kline.
Statewide, all Minnesota State operations, including all seven state universities and 26 community and technical colleges, plus the spending of its faculty, staff, and students, had a total statewide economic contribution of $8.4 billion. This activity generated an estimated 62,125 jobs in the state.
About Lake Superior College
Lake Superior College (LSC) is a comprehensive two-year community and technical college in Duluth, Minn., offering more than 90 programs, including liberal arts and science courses for transfer, technical and trades programs, allied healthcare and nursing programs, and continuing education and customized training for business and industry. LSC is a member of the Minnesota State Colleges and Universities system. LSC is also a leader in online courses and programs in Minnesota, and offers competitive DIII athletics and intermural activities. For more information, please visit: www.lsc.edu.
About Minnesota State
Minnesota State includes 26 community and technical colleges and seven state universities serving approximately 300,000 students. It is the fourth-largest system of two-year colleges and four-year universities in the United States.