|UND's economic impact still more than $1 billion |
The economic impact of the University of North Dakota on its local economy continues to be more than $1 billion a year, according to a study commissioned by the North Dakota University System. This is the third year in a row UND's economic impact as exceeded the $1 billion mark.
The impact of UND's expenditures grew by 65.4 percent over the past nine years, reaching $1.087 billion in the fiscal year ending June 30, 2008. The total North Dakota University System economic impact was $2.8 billion, according to the study.
"This report clearly shows the impact that UND and other institutions in the University System have on the state and regional economy," said UND President Robert Kelley. "In addition, the report indicates the important contributions that students make to the economy, both through participation in the state's workforce and through their expenditures in their local communities. The report underlies the impact that university-based research has on business development, productivity, and improving the quality of life within the State of North Dakota."
The figures come from a recent report, "Economic Impact of the North Dakota University System," by F. Larry Leistritz and Randal C. Coon of the North Dakota State University Department of Agribusiness and Applied Economics. They estimated that business activity resulting from UND's budget would support almost 10,600 jobs in the community, over and beyond the University's own workforce of 4,183 individuals.
Not included was the spending by UND's students, the majority of whom, for example, live in private housing in the community. The report cites the direct impacts of student spending in the Grand Forks area as $98 million in FY2008. The total economic impact of the student spending was $243.6 million, highlighted, the reports states, by increased retail trade activity of $110.2 million and personal income increase of $59.1 million. The report says these levels of business activity would generate an additional $5.1 million sales and use tax revenue, and $881,000 more personal income tax collections. This level of student spending would create enough business activity to support 1,776 secondary (indirect and induced) jobs.
The University's economic impact, of course, extends beyond its community. For example, a 2007 study commissioned by UND Office of Research showed that institution's research expenditures alone -- some $85.98 in FY2007-- generated more than $174 million in economic output and 1,649 jobs and more than $32.9 million in local, state and federal tax revenues.