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A new study that reports Eastern Michigan University contributed $3.7 billion to the state’s economy in 2008 highlights the role the school can play in Michigan's recovery. It also suggests there may be room for improvement, the report’s authors say.
The study is the second of its kind for the university, and follows up on an initial
impact study from 2002. It was requested by EMU President Susan Martin,
who has said the university should play a greater role in aiding the state’s economic recovery.
The report concludes the state receives almost $42 for every taxpayer dollar spent in support of the university.Â
By comparison, a 2002 study commissioned by the Michigan Economic Development Corp. and the Presidents Council, State Universities of Michigan, found that the state’s 15 public universities contributed $39 billion to the state economy. The result equated to a return of $26 for each dollar in state funding.
"The reason that ours is very apparent is because of the students that we have,” said co-author Raouf S. Hanna, head of the department of economics. An estimated 89 percent to 92 percent of EMU students stay in Michigan after graduating, he added.
“We think the regional schools have a particular impact here
because so many of our students live in this area and stay in this area,” said
Charles Monsma, a longtime political science professor and co-author of the
report.
The study, assembled over six months, examines EMU’s impact through direct and indirect spending and alumni earnings. It also examines the school’s social impact, through community engagement and workforce development.
It concludes that alumni earnings account for more than 75 percent of the university’s total $1.8 billion in direct economic impact. The university’s spending (18 percent) and student off-campus spending (7 percent) make up the difference.
The 42-to-1 rate of return compares with a 30-to-1 ratio identified in the 2002 study, Hanna said. The higher figure reflects the replacement of older alumni in the state’s workforce by higher-paid, younger alumni as well as a roughly 25 percent reduction in state funding.
Eastern Michigan received a total of $88.85 million from the state in fiscal 2008, covering about 29 percent of the university’s operating and non-operating expenditures for the year, the authors said.
On the social-impact side, the report found that nearly 4,500 students received credits during the 2007-2008 academic year for field-experience courses, including internships. About half the reporting academic units actively track graduates, but just 20 percent aggregate job-placement and career-employment data about graduates.
Officials hope to use the report to encourage more academic departments to adjust their educational programming to fit the needs of Michigan’s evolving workforce.
“So many of the jobs now require four-year education and more that we think that the more we focus on the career opportunities of our students, the stronger impact we’ll have on the economy,” Monsma said.
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