What's the U of M worth to Minnesota? $8.6B a year according to new report

The University of Minnesota recently hired research firm Tripp Umbach to study the U’s role in the state economy.

The conclusion: the U of M contributes $8.6 billion a year in total economic “impact” to the state.

The research firm included direct and indirect expenditures for goods and services by the university, its employees, students and visitors.  That means everything was counted; from the millions of dollars the U spends on a new building, to the $7 a U of M prof spends on lunch at Jimmy John’s.

The study also concludes every dollar the state invests in the U generates $13.20 for the statewide economy.

The report comes as University of Minnesota and the Minnesota State Colleges and Universities system officials worry their state funding will be slashed while lawmakers wrestle with a $5.03 billion state budget deficit (a big number, but smaller than the $6.2 billion that was predicted earlier in the session).

  • Anonymous

    1. How much did this project cost?

    2. Who paid for it?

    3. The job of Tripp Urbach is to make universities looking for funding look good. They are hardly unbiased. I hope they have also included Jimmy John’s purchases by U Hospital’s patients and revenue for the city from bus fares… Are these results any surprise?

    4. One could just as well argue that we should put all of our money in K-12 education because the output from these institutions is all the tax money that their products will produce in the future. Think of the ROI!

    5. What good, if any, will this report do, given the financial condition of the state? It is like pounding sand down the proverbial rat hole.

    6. Hopefully, next year, a much better justification for funding for the U will be given. One that lays out the actual costs for education and research. Continued serving of re-fried beans is no longer going to sell to the people of the state.