Results from Wilder Research Study released February 2013
Dakota County Technical College released the results of a research study that estimates the annual economic impact of DCTC on the regional economy to be $162 million and 1,554 jobs.
“In addition to focusing on the success of our students, Dakota County Technical College plays a vital role in supporting our state and regional economy,” said DCTC President Ronald E. Thomas, Ph.D. “Our operations and the economic activity generated by our faculty, staff and students touch virtually every corner of our regional economy and support local business and industry.”
The February 2013 study, “The economic impact of Dakota County Technical College,” was conducted by Wilder Research, a nationally recognized source of data used by state and local planners, policymakers and service providers.
Jose Diaz, a Wilder research scientist, said, “This economic impact research provides a statistically valid measurement of the significance of an organization’s activities on the regional economy. Policymakers and community leaders can use the data to inform their decisions. Dakota County Technical College clearly has a significant impact on the regional economy.”
“The economic impact of Dakota County Technical College” | Wilder Research
Dakota County Technical College generates an annual economic impact of $162 million from its operations in the Twin Cities. Based on the Twin Cities metro economy of $190.7 billion, this means that for every $1,000 produced in the Twin Cities metro area, $9 are directly or indirectly related to Dakota County Technical College. The direct impact of Dakota County Technical College in 2011 was $95 million, while the indirect impact in other industries was $67 million.
Similarly, during 2011 the college and its students generated an estimated 1,554 jobs in the Twin Cities. These jobs included an estimated 1,089 direct jobs, and 465 additional indirect jobs, created by vendors, contractors, and businesses supplying inputs to the college and its students.
Additionally, by educating its students, Dakota County Technical College enhances the productivity of both public and private organizations in Minnesota. Only considering the 426 associate degrees awarded by Dakota County Technical College in 2011, this is equivalent to $39.9 million of future value created in the state.
The study also concluded that DCTC generates approximately $15 million in tax revenues for state and local government.
The study further estimated the value of the increase in productivity that the 426 associate degrees awarded by DCTC in 2011 will 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 $39.9 million. “Dakota County Technical College makes a long-term contribution to the regional economy with every graduating class because the productivity improvements from higher education last for the worker’s entire career,” said Diaz.
On a statewide level, the Wilder study illustrates the economic impact of the seven state universities and 24 community and technical colleges that are a part of the Minnesota State Colleges and Universities system:
- Generate an annual economic impact of $8.3 billion (direct impact of $5 billion and indirect impact in other industries of $3.3 billion).
- Represent a return of $13.53 for each $1 of state appropriation.
- Generate an estimated 80,856 jobs in the state (56,876 direct jobs and 23, 979 additional indirect jobs created by vendors, contractors and businesses supplying inputs to our colleges and universities and their students).
- Generate approximately $490 million in tax revenues for Minnesota state and local governments.
In addition to the impact outlined above, the enhanced productivity of MnSCU graduates across the state is equivalent to $4.7 billion of future value created each year.
For more information about “The Economic Impact of Dakota County Technical College,” contact:
- Kim Gelhar
Executive Assistant to the President