Normandale Economic Impact Contribution Estimated at $401.2 million

By Steven Geller - Director of Media and Public Relations

Minnesota State, the system of 30 state colleges and seven state universities, released the results of a study that estimates the contribution of Normandale Community College to the regional economy to be $401.2 million dollars and 3,474 jobs.

"Normandale is dedicated to the mission of ensuring our students the highest quality education possible," said Normandale Community College President Joyce Ester. "Student Success is our primary focus, and we strive to create futures and change lives. We actively partner with community, industry, K-12 and university partners to enhance educational opportunities for our surrounding communities."

The study was commissioned by Minnesota State 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 tool that policymakers can use to inform their decisions," said Nichole Parker, a principal partner at Parker Philips. "Normandale Community College clearly is a major contributor to the regional economy."

In the analysis, the study considered the direct spending on operations, pay, benefits, and capital projects by Normandale 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 Normandale supports and sustains 3,474 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 Normandale generates about $23.8 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 Normandale 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 $3.1 billion (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration).  

"Normandale 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 Ester.

Statewide, all Minnesota State operations, including all seven state universities and 30 community and technical colleges, plus the spending of its faculty, staff, and students, had a total statewide economic contribution of $8.0 billion. This activity generated an estimated 67,717 jobs in the state. The economic contribution report for Normandale is available at MinnState.edu/IMPACT.