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Study: Northland Community & Technical College economic contribution estimated at $127M

The study was released by the Minnesota State system

Northland Community & Technical College logo
Northland Community & Technical College logo
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EAST GRAND FORKS — A recent study found that Northland Community and Technical College had a big impact on the regional economy in northwest Minnesota, according to a press release from the school.

The study, released by the Minnesota State system, found that the college, which has campuses in East Grand Forks and Thief River Falls, contributed $127 million to the local economy and created 953 jobs in the last fiscal year.

Northland President Sandy Kiddoo said the college “plays a vital role in both the state and the regional economies.”

“Our operations and the economic activity generated by our faculty, staff and students touch virtually every corner of our regional economy including manufacturing, agriculture, healthcare and aerospace,” she said.

The study was commissioned by Minnesota State and was conducted by Parker Philips, a nationally recognized consulting firm specializing in economic impact analysis, the release said.

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“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 — Northland clearly is an important contributor to the regional economy.”

The study considered the direct spending on operations, pay, benefits and capital projects by Northland and the estimated increase in demand for goods and services in industry sectors that supply or support the college. It also measured the effect of student spending and the induced effect of increased household income.

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According to the study, a key result of this activity is that Northland supports and sustains 953 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. There were also jobs created in the community at hotels, restaurants and retail stores in support of the college’s faculty, staff, students and visitors, the release noted.

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 Northland generates about $10.4 million in tax revenues for state and local governments.

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.

Otto is a recent University of North Dakota graduate and intern at the Herald.
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