jim skurla drew digby impact of higher education in duluth january 9, 2008
TRANSCRIPT
JIM SKURLA DREW DIGBY
Impact of Higher Education in DuluthJanuary 9, 2008
In this presentation1) Demographics, employment numbers,
institutions2) Impacts3) Issues and strategy
Educational Services Employment and Salaries in Duluth
2006 Educational Services includes: Elementary and Secondary Schools Junior Colleges, Colleges Universities and Professional Schools Business Schools and Computer and Management
Training Technical and Trade Schools
Educational Services Employment: 5,494
Total Employment in Duluth including Government: 60,012 Average Annual Salary: $38,371
200 Total Wages Paid: $210,812,962
Growth in Education Employment Between 2004 and 2006, employment in educational
services in Duluth grew by 8.5%
Salaries since 2000 have grown faster in education than in Duluth as a whole (25.1% compared to 21.3% for all jobs in Duluth).
More recent data lumps education with healthcare, but together they added 3.9% more jobs in the year ending Nov. 2007.
Together, education and healthcare make up 28% of local employment (education is about a third of that category.) By comparison, leisure and hospitality is 9.6% of total Duluth employment.
Duluth’s higher education institutions include . . . UMD: University of Minnesota Duluth, public, 1895
12 bachelor's degrees in 75 majors, graduate programs in 20 fields, a two-year program at the School of Medicine, and a four-year College of Pharmacy program. Chief executive officer of UMD is Chancellor Kathryn A. Martin.
CSS: College of Saint Scholastica, private, 1912 bachelor's and master's degrees, and one doctoral
degree, the Doctorate of Physical Therapy. Undergraduate areas of study include business; computer science; education; humanities; mathematics; nursing, and other health-related fields; religious studies; and sociology.
LSC: Lake Superior College, public, 1995 (Duluth Technical and Community College merged) pre-baccalaureate majors for students interested in
transferring to senior educational institutions as well as over 75 certificate, diploma and degree programs in career/technical fields. President of Lake Superior College is Dr. Kathleen Nelson.
Duluth’s higher education institutions include . . . DBU: Duluth Business University, private, 1891
focus on career specific training and offers the option of an Associate in Applied Science Degree; Bonnie Kupczynski, CEO, currently owned by James R. Gessner of Duluth and Terry L. Myhre of Minneapolis.
UWS: University of Wisconsin Superior, public, 1893 (1971 became part of UW system) UW-Superior grants bachelor's, master's, and
specialist's degrees. Chancellor, Julius E. Erlenbach WITC: Wisconsin Indianhead Technical College:
two-year college, more than 50 full-time programs, plus technical certificates and apprenticeship programs
Faculty and Staff Employment
faculty FT & PT staff
PT FT total civ. Ser. other total
UMD 211 497 708 832 790 1622
CSS 118 142 260 na na 230
LSC 144 98 242 82 74 156
UWS 49 116 165 153 236 389
DBU na na na na na 50
total 1,375 2,337
Sources: Estimates and calculations derived from UMD Campus Databook, UWS Factbook, RefUSA, LSC College Profile
College Students in Duluth-SuperiorFall Headcount
(Total number of full and part-time students)
Degrees Awarded
UMD 11,184 1,841 (2005-2006; plus approx
50 M.D.’s awarded by the Twin Cities)
College of St. Scholastica 3,259 784 (2003-2004)
Lake Superior College 4,318 550
Duluth Business University
245 (fall 2006)
45 (A.A. degrees 2003-2004)
UWS 2,924 (fall 2006)
520
WITC-Superior Campus 2,051 N/A
College Students as a Percentage of the Population
Duluth Population:
86,884
Duluth College Students
19,006 21.8%
Superior Population:
27,368
Superior College Students:
4,947 18.2%
Twin Ports Population:
114,252
Twin Ports College
Students:23,953
21.0%
How has this changed? In 1990, Duluth had approximately 11,100
college students, which was the equivalent of 12.9% of the population.
Starting with the 2000 census, college students in Duluth have not shown up well on the census. Only 11,678 students were shown on the 2000 census for Duluth while the colleges reported 15,434 students. (They should have shown up on the census. As many UWS students live in Duluth as Duluth college students live outside of the city limits.)
Most College Students Come From Outside of Northeast Minnesota At both UMD and St. Scholastica, only 17% of
the student body is from Northeast Minnesota.
Even at Lake Superior College, at least 31% of the student body is from outside of St. Louis County.
UMD used to draw substantially more of its student body from Northeast Minnesota. In 1990, the percentage was roughly double the current number, 33%.
Student Volunteer Hours—UMDIncludes only formal arrangements by the Office Civic Engagement/Darland ConnectionSource: UMD Office of Civic Engagement
Year 2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
Number of Students
1,226 1,118 1,013 1,324 1,751
Recorded Volunteer Hours
33,24334,04
654,342
41,159
48,476
“Traditional” College Students According to the American Council on
Education, about 40% of all college students are no longer “traditional” students, who are under 25.
At UMD, only 11% of the student body is over 25. At UWS, the percentage is 31%
Challenges to Higher Education The number of traditional college age
students from Minnesota is expected to drop significantly between now and 2015, and stay stagnant until 2020 before growing again. (The drop will be 6.8%, according to an estimate by the State Demographer’s Office).
Some colleges and universities are expected to face dramatic losses while others are expected to maintain their numbers. How will our local institutions fare?
Universities and Colleges Generate Three Types of Impacts
Direct Impacts____________________
Purchases by educational institutions
Federal and State Research Grants
Student Spending Outside dollars
coming in Local dollars kept
within the region (import substitution)
Indirect & Induced impacts
_____________________ Business to business
spending Employee spending Induced impacts of
new dollars multiplied throughout the overall economy
Average annual $ per student
Full-time students
Mankato State University estimate
Books and supplies $879
Food away from home $1,046
Other spending $2,503
Total $4,427$4,427/yr, 21,641 students =
$95 million a year
Examples of Sectors Impacted Banks:
credit cards, checking accounts and student loans.
Furniture: furniture especially for dorm rooms.
Health and Services: Student Laundromat customers Chiropractor makes students aware of his Associated
Chiropractic Physicians practice there. Great Clips, half her customers are students.
Eating and Drinking: Lake Aire Bottle Shop estimated students make up 30 to 40
percent of customers.
University proximity businesses: Labor Day weekend, the merchants could plan to attract
students.
Negative Impacts Of College Students Neighborhoods Parties Law enforcement Parking Traffic Investment that graduates and leaves town
Capital Investment in EducationConstruction projects: Duluth 709 UMD
Swenson Science Building ..................................... $33 million UMD Library........................................................... $25.8 million Labovitz School of Business and Economics ........... $23 million Robert W. Bridges Grounds/Fleet Building Weber Music Hall..................................................... $9.2 million Civil Engineering Building ....................................... $15 million
CSS Dormitory apartments ........................................... $43.5 million new science lab
UWS Rothwell Student Center ........................................ $17 million Health and Wellness Center, (proposed) ............... $30 million
DBU (April 2003, DBU moved to a new
27,000 square foot campus building) LSC
Academic and Student Services Building ............... $11.2 million
Workforce Issues Higher Ed. Institutions are labor providers:
Students are a valuable workforce Student labor is used heavily in Tourism, Eating
and Drinking, Retail Trade
Higher Ed. Institutions are employers: Faculty, staff, indirect and induced employment
effects
How do we keep students in Duluth Create Opportunities/jobs
Support existing and spin-off companies Continue economic development and Clustering
industries around the universities Encourage student entrepreneurs Create Initiatives in the region to keep students
Duluth Superior Area Community Foundation Young Adult Task Force Recommendations
1. Give Young Adults a Chance to Lead. 2. Create a Better Way to Share Information. 3. Raise Awareness of Career and Economic
Opportunities.4. Increase Connections between College and
University Students and the Community. 5. We Love This Place. Now Admit It. In Public. 6. Support projects that foster Duluth Superior
being a more vibrant place for young adults to live and work.
Implementation Projects Underway The Duluth Young Professionals have a significant
mentorship project underway with UMD, CSS, and LSC
A Superior Leadership group is working with the Superior Jaycees to set up a similar group.
The Zeppa Foundation has made a significant grant to create a young adult one-stop shop website.
The Lake Superior Advertising Federation is working to create a advertising campaign as part of their scholarship program.
Implementation Projects Underway-2 A coalition of groups from the city and state
are working to make workforce issues more apparent by talking about projected future job openings in the region. For example, The Northland Works project and website: (www.thenorthlandworks.org)
Groups from the Knight Creative Communities Initiative and the Duluth Higher Education Commission have been discussing additional projects that could be undertaken, including a community-wide welcome for college students.
Thank You
For more information:James Skurla, Acting Director Bureau of Business and Economic ResearchUMD Labovitz School of Business and Economic19 School of Business and Economic412 University Drive 55812-3029218-726-7895 Fax 218-726-6555 [email protected]
Drew Digby, Regional Labor Market Analyst-Northeast MNMinnesota Department of Employment and Economic