A report released this month by Grand Valley State University’s Seidman College of Business reflected on the most recent fiscal year, and detailed the University’s economic impact in the state, which exceeds $3 billion.
The finding states economic activity in Michigan is supported by the University through its operations, student spending and alumni contributions. Primary researchers assigned to the report were Christian Glupker, senior clinical affiliate in the University’s Economics Department, and Paul Isely, associate dean of the Seidman College of Business. Following the report’s release, President Philomena Mantella discussed the economic impact at an Oct. 2 press conference, posted to the University’s YouTube account.
“Every dollar GVSU spends on payroll goes straight to local businesses and household incomes within Ottawa and Kent Counties,” Glupker explained.
He explained that when students enroll at GVSU, the majority move, even if temporarily, to Allendale or Grand Rapids.
“They’re bringing new dollars for housing, dining and local retail within Allendale and Grand Rapids,” Glupker added. “Student spending alone (accounts for) $251 million in new demand for local goods and services, which is a needle mover for these communities.”
Isely detailed the relationship between the state of Michigan and GVSU alumni. With the University leading in-state retention, many graduates engage in Michigan’s job market and economic structure.
“We have 116,000 jobs or more that are in Michigan because GVSU is here,” Isley said. “As a result, the output we have so far for every dollar we get from the state, we create $31 in output for the state.”
Being 86% of GVSU alumni staying and working in Michigan, estimated incremental earnings of alumni are around $1.8 billion. On average, graduates earn $27,600 more per year than their peers who have a high school diploma, adding up to about $1.4 million gap between college and high school graduates over time.
“We have a good group of students who come through, they are employed in the state and they’re earning money in jobs generally above what they would have earned if they hadn’t gone to school,” Isely stated.
Smaller drivers of profit, including upcoming construction projects, the University’s Blue Dot initiative and staff spending also contribute to GVSU’s economic impact. Isely feels that in the end, the University is “not costing the state of Michigan anything” because the economic impact pays back more in taxes than funding allocated by the state.
Speaking on the report, Mantella highlighted the evolution of GVSU in the Grand Rapids metropolitan area during the press conference.
“The growth of Grand Valley State University and the growth of greater Grand Rapids are clearly highly correlated,” said Mantella. “For decades, GVSU has been more than a University. It’s been a driver of talent, an engine of innovation and a committed partner in building a thriving community. While there are many strong educational institutions across the country and around the world, very few have built a culture of community collaboration as deeply as Grand Valley.”
