Michigan public universities generate nearly $45 billion in economic impact according to newly published study

According to a new independent economic impact study, Michigan's 15 public universities prove to be a powerful economic engine for the state, generating 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.

The study was conducted by Anderson Economic Group and released by the Michigan Association of State Universities.

Breaking down the report's highlights during a media event earlier this month, MASU CEO Daniel Hurley noted that the $44.9 billion net economic impact state universities provided during the 2024 fiscal year was 28 times more than the state's appropriations put into school support that year. He later added that university-driven activity produced more than $7.1 billion in state tax revenue during that same time period, further exceeding the state's investment in public universities. 

"The bottom line is that investing in public universities is not just good education policy, it is smart, high-return economic policy," Hurley said.

"This report underscores the critical role public universities play in strengthening Michigan's economy," said Laurence B. Alexander, chancellor of the University of Michigan-Flint. "At UM-Flint, we are preparing a highly skilled workforce that is choosing to live, work and invest in our state. Our graduates are fueling innovation, supporting employers and helping drive long-term economic growth across the region."

Key findings from the new MASU report 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 around the state.
• 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 as peers without a college degree, averaging $91,073 for ages 25–34, compared to $46,272 for high school graduates.

About Anderson Economic Group
Since its founding in 1996, Anderson Economic Group has become one of the nation's premier boutique consulting firms, specializing in business valuation, expert testimony, and public policy. Anderson Economic Group has assisted governments, universities, large corporations, and businesses across the U.S. and abroad. All of the firm's work is grounded in the core values of professionalism, integrity, and expertise. Anderson Economic Group has offices in East Lansing and Chicago. For more information or to speak with one of our experts, visit andersoneconomicgroup.com.

About the Michigan Association of State Universities
The Michigan Association of State Universities serves as the coordinating board for Michigan's 15 public universities, providing advocacy and fostering policy to maximize the collective value these institutions provide in serving the public interest and the state of Michigan. Learn more at https://www.masu.org/