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FY 2009 University System Economic Impact Estimated at $3.7 billion

Posted on 12/28/2010

For Immediate Release:For More Information Contact:
Dec. 28, 2010Debra A. Anderson, Director of Public Affairs and Marketing
North Dakota University System
Phone: 701.328.2962
E-mail: debra.a.anderson@ndus.edu

FY 2009 University System Economic Impact Estimated at $3.7 billion

BISMARCK, N.D. - The economic impact of the North Dakota University System and its students on the state has risen dramatically over the past 10 years and now stands at an estimated $3.7 billion for Fiscal Year 2009, according to a recent report by North Dakota State University's Department of Agribusiness and Applied Economics.

Titled Economic Impact of the North Dakota University System, the FY 2009 report is similar to studies conducted for FY 1999, FY 2004, FY 2006 and FY 2008. Report authors F. Larry Leistritz, Dean A. Bangsund and Randall Coon use the North Dakota Input-Output Model to estimate economic impact.

"In addition to providing education, the state's universities and colleges create and support jobs and employment opportunities through research, extension and teaching activities," the authors concluded. "All these important services and products provide economic benefits, which enhance local and state economies. Essentially, the state's 11 University System colleges, universities and supporting centers and facilities act as centers for local and regional economic development."

"Higher education is a driving force in our state's vibrant economy," said Bill Goetz, chancellor of the University System. "It is the foundation for personal and professional success and for enhancing the state's quality of life. The economic impact report validates the connectivity between a strong University System and a strong North Dakota.

"Economic growth and diversity is dependent upon a strong higher education system," Goetz said. "Investments in higher education flow back out to North Dakota as a contributor to economic growth."

Key measures of the economic impact of the North Dakota University System in FY 2009 include:

  • In FY 2009, the NDUS injected $980 million into local economies, including $706 million from non-general fund sources such as grants, contracts, donations, etc.

  • With an added $327 million in student spending, excluding tuition and fees, the direct economic impact is estimated at more than $1.3 billion.

  • When turned over in the economy, the estimated NDUS total annual economic impact was $3.7 billion.

  • Combining direct and secondary economic effects from general and non-general funds created a gross business volume of $2.9 billion in 2009, compared to $1.6 billion in FY 1999. The $2.9 billion included $709 million in retail trade activity and $1.1 billion in personal income.

  • Increased business activity generated by student spending was estimated at $813 million, which included $368 million in retail trade activity and $197 million in personal income, supporting about 3,800 secondary jobs.

  • For every dollar of state-appropriated funds, the state's colleges and universities generate more than $2.50 from external sources.

The North Dakota Input-Output Model estimates secondary impacts based on NDUS direct expenditures. The model estimates the changes in gross business volume (gross receipts) for all sectors of the area economy.


Bismarck State CollegeDakota College at BottineauDickinson State UniversityLake Region State CollegeMayville State UniversityMinot State UniversityNorth Dakota State College of ScienceNorth Dakota State UniversityUniversity of North DakotaValley City State UniversityWilliston State College
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