The North Dakota University System (NDUS) has a strong economic presence in the state, according to a study by Dean A. Bangsund and F. Larry Leistritz, North Dakota State University Department of Agribusiness and Applied Economics.

“The state’s colleges and universities are able to leverage more than $2.50 from external sources for every dollar of state-appropriated funds,” Bangsund says. “Much of those nonappropriated funds come from outside sources and could be considered new money to North Dakota.”

Those dollars, along with appropriated funds, are spent within the state through the purchase of services, inputs and payroll that support university programs, events and activities. In 2009, these institutions employed more than 11,000 workers and educated more than 36,000 full-time students. The expenditures also supported more than 19,900 secondary jobs.

The NDUS consists of 11 colleges and universities throughout the state. The NDUS receives revenues from state-appropriated funds; state, federal and private grants; contracts; and donations.

In the analysis, Bangsund combined direct and secondary economic effects to get an estimate of the gross business volume created by the state’s colleges and universities.

The gross business volume associated with the NDUS was estimated at $1.6 billion in 1999, $2.2 billion in 2004, $2.4 billion in 2006, $2.8 billion in 2008 and $2.9 billion in 2009.

“Student spending also creates an economic impact that is in addition to that of the NDUS,” Bangsund says. “Excluding tuition and fees, student spending was estimated at $327 million in 2009. When combined with NDUS expenditures, the total was approximately $1.31 billion in 2009.”

When the secondary impacts were added, the combined total for 2009 was an estimated economic impact of $3.7 billion.

“The institutions of higher education in the state also are influential in many other perspectives,” Leistritz says. “The institutions help provide the state with an educated work force ready to meet the challenges of a changing work environment. In addition to providing education, the NDUS creates and supports jobs and employment opportunities through research, Extension and teaching activities. All these important services and products provide economic benefits that enhance local and state economies, as well improving the quality of life in North Dakota.”

Assisting Bangsund and Leistritz in the study was Randal Coon from the NDSU Department of Agribusiness and Applied Economics.

NDSU Agriculture Communication - Jan. 12, 2011