New Report Shows Economic Impact of Michigan's Public Universities

Michigan's public universities generate nearly $45 billion in net new economic activity each year, supporting more than 129,000 jobs and contributing more than $7 billion in state tax revenue, according to a new independent economic impact study released by the Michigan Association of State Universities (MASU).

Key findings from the study, as referenced in a MASU press release, show that in fiscal year 2024:

• Michigan's 15 public universities generated nearly $45 billion in net new economic activity, driven by university operations, student spending and alumni earnings. That's nearly 28 times the state's 2024 appropriation of $1.6 billion for these institutions.

• Public universities supported an estimated 129,311 jobs statewide, including nearly 64,000 net new jobs that would not exist without these institutions. These institutions collectively employed nearly 27,000 faculty and 70,000 staff, the majority of whom work and live locally.

• The 1.6 million living alumni of Michigan's public universities generated more than $15 billion in incremental earnings due to having graduated from one of these institutions.

• University-related economic activity produced more than $7.1 billion in state tax revenue, from personal income tax, sales and use tax, and transportation tax paid by employees, students and alumni living in Michigan.

• Michigan public university graduates earn nearly twice as much, on average, as peers without a college degree.

"More than 49,000 [Northern Michigan University] alumni live in Michigan, creating a $333 million economic impact in the state," reads the NMU description within the report. "University-generated visitors spend $6.3 million in the Marquette area annually, and community service activities performed by students and staff are valued at $21.3 million. In addition, Northern provides free services (and student training) through the Speech, Language and Hearing Clinic; the Behavior Education Assessment and Research (BEAR) Center for those with intellectual and/or developmental disabilities; and The Concussion Clinic, easing financial burdens on Michigan families."

"The scale of Michigan's public university impact is hard to overstate," the MASU press release stated. "To put it in context, some of the most visible economic forces in entertainment and sports generate huge activity, yet still don't match the annual economic contribution of Michigan's public universities. For example, Taylor Swift's Eras Tour was estimated to generate roughly $9 billion in economic activity over two years across 19 nations, and the NFL's total revenues topped $23 billion in 2024, driven by media rights, sponsorships and game-day activity."

Anderson Economic Group completed the analyses using fiscal year 2024 data.