Alexandria College’s economic contribution estimated at $139.8 million

Jan 26, 2023 | 2:22 PM
A new study released this week estimates the impact of Alexandria Technical & Community College on the regional economy to be $139.8 million and 1,027 jobs.

“In addition to its workforce and cultural contributions, Alexandria Technical & Community College plays a vital role in the local, state and regional economies,” said Alexandria College President Michael Seymour. “Our operations and philanthropic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy.”

The study was commissioned by Minnesota State, the system of 26 state colleges and seven state universities, 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 — Alexandria 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 Alexandria 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 Alexandria College supports and sustains 1,027 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 Alexandria College generates about $11.1 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 Alexandria College 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 $64.5 million (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration). 

“Alexandria College continues to make long-term contributions to the regional economy with every graduating class,” Seymour said. “As Stuart Henrickson likes to say, a healthy college makes for a healthy community, this study provides further evidence of that.”

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.

View the report for Alexandria Technical & Community College
View the Minnesota State report

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