Report shows $91.4 million, 450 job impact of Dickinson State University
Dickinson State University (DSU) brings $91.4 million and over 450 jobs to the region according to a recently compiled study of the economic impacts of the North Dakota University System. The study was conducted by Randal Coon, Dean Bangsund and Nancy Hodur of North Dakota State University’s Department of Agribusiness and Applied Economics and Center for Social Research.
According to the study’s findings, DSU expenditures injected $30.1 million into the local economy in fiscal year 2015, reflecting a 102 percent increase over the past 16 years. In addition, those expenditures created a ripple effect, or series of indirect impacts, which brought DSU’s total economic impact within the region’s economy to $91.4 million.
Sectors receiving impacts from the university’s presence included household income, retail trade, construction, finance, insurance and real estate, and business and personal services. Researchers estimated that approximately 205 secondary jobs are supported within the community by the university’s expenditures and by the services required to sustain the increased population. These positions are in addition to the 249 persons employed by the university during fiscal year 2015.
Retail sales also benefited with a $21.7 million impact. That figure, too, represented a sizable increase over the $10.7 million reported in the 1999 study. Student expenditures play a key role in the retail market of the region. According to Christopher Meek, director of Financial Aid at DSU, the average student spends $3,400 on “personal items” during the nine months university classes are in session. Those expenditures include clothing, gasoline, entertainment and other miscellaneous expenses. Direct impact of student spending in the Dickinson area was $12.3 million in fiscal year 2015. Student spending was estimated to generate an additional $639,000 in sales and use tax revenue and $111,000 in personal income tax collections.
“Dickinson State University and the city of Dickinson have maintained a synergistic relationship for one hundred years,” said DSU President, Dr. Thomas Mitzel. “As this study reveals, the university does carry a positive impact on the region and we work hard to ensure this impact goes beyond just the financial. We are grateful for the support we receive from the community and are heartened to see the positive nature of the support that also flows from the campus community to the larger area.”
Statewide, the study estimates that the North Dakota University System has a $1.6 billion direct impact on the state’s economy. These expenditures resulted in increased total business activity of $4.6 billion.
The survey was conducted using an input-output methodology which examined the direct impact and expenditures of the university system within the state and host-campus communities.
Expenditures having no impact on the state’s economy – such as out-of-state purchases of equipment – were not included in the study. The resulting direct impact amounts were then multiplied by established coefficients or multipliers to arrive at the indirect impacts for each campus region and the university system as a whole.
The complete study can be accessed here: http://www.ndus.edu/uploads/reports/169/ndus-rpt-econimpact-2017.pdf