Guest column: Higher education is an investment

Published 12:00 am Tuesday, December 10, 2002

Recognizing that the state faces a financial crunch, in October the Minnesota State Colleges and Universities Board of Trustees approved a request for $107.6 million more in state money for the system over the next two years. This amount is less than half of the $255.6 million increase sought in the 2001 legislative session. That year, the Legislature appropriated a $100 million increase to the system, but cut back $22.7 million last year when state revenue did not materialize. The request also assumes a 3 percent average tuition increase for each of the next two years, substantially less than the double-digit increases of the past two years.

The Minnesota State Colleges and Universities System has proposed this conservative budget with the knowledge that the state budget shortfall will mean lean budgets for all state-supported institutions. Chancellor James McCormick has committed all colleges and universities in the system to continue to find ways to be efficient and still remain on course with high-quality programs at a price students can afford.

However, in tough economic times, I think it is important to consider the philosophy that higher education is an investment, not a cost. By investing in higher education, the state stimulates the economy, increases the productivity of the workforce and improves overall quality of life. In a recent study, economist Paul Anton conservatively estimated that for every $1 of net state appropriation, $6.28 is returned to the state’s economy.

Email newsletter signup

The study determined that the economic impact of enhanced productivity is the largest and most profound economic effect on the state. By educating and training students, the system enhances the productivity of both public and private enterprises in Minnesota. Former students do not make just a one-time addition to the state’s economy; they continue to contribute throughout their working lives.

And what is the local impact of Riverland Community College? Economists say that payroll dollars have nine times the effect of the actual payroll. If this theory is valid, in 2001 the effect of Riverland’s payroll on the economy of the area impact was $99 million, This does not take into account college expenditures with local vendors or what our students add to the economy with their tax dollars.

Include the improved workforce we develop with the vitality of college theatre, music, arts, collegiate sports and human development opportunities created by Riverland and it is apparent that an investment in Riverland is an investment in an enhanced quality of life for all of us in the region.

Jim Davis is interim president of Riverland Community College, which has campuses in Albert Lea, Austin and Owatonna.