Transcript Impact of Higher Education in Duluth January 9, 2008 JIM SKURLA DREW DIGBY.

Impact of Higher Education in Duluth
January 9, 2008
JIM SKURLA
DREW DIGBY
In this presentation
1)
2)
3)
Demographics, employment numbers, institutions
Impacts
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:
Total Employment in Duluth including Government:
Average Annual Salary:
200 Total Wages Paid:
5,494
60,012
$38,371
$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
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CSS: College of Saint Scholastica, private, 1912
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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.
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
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UWS: University of Wisconsin Superior, public, 1893
(1971 became part of UW system)
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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.
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
PT
FT
FT & PT staff
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
Sources: Estimates and calculations derived from UMD Campus Databook, UWS Factbook,
RefUSA, LSC College Profile
2,337
College Students in Duluth-Superior
Fall Headcount
(Total number of full and part-time students)
UMD
Degrees Awarded
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
2,051
N/A
WITC-Superior Campus
College Students as a
Percentage of the Population
Duluth Population:
Duluth College
Students
19,006
21.8%
27,368
Superior College
Students:
4,947
18.2%
Twin Ports
Population:
114,252
Twin Ports College
Students:
23,953
21.0%
86,884
Superior Population:
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—UMD
Includes only formal arrangements by the Office Civic
Engagement/Darland Connection
Source: UMD Office of Civic Engagement
Year
Number of
Students
Recorded
Volunteer
Hours
20022003
20032004
20042005
20052006
20062007
1,226
1,118
1,013
1,324
1,751
33,243
34,046
54,342
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
____________________

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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
_____________________


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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
Food away from home
Other spending
$879
$1,046
$2,503
Total
$4,427/yr,
21,641 students =
$4,427
$95 million a year
Examples of Sectors Impacted

Banks:
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Furniture:
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Student Laundromat customers
Chiropractor makes students aware of his Associated Chiropractic Physicians
practice there.
Great Clips, half her customers are students.
Eating and Drinking:
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furniture especially for dorm rooms.
Health and Services:
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credit cards, checking accounts and student loans.
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
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Neighborhoods
Parties
Law enforcement
Parking
Traffic
Investment that graduates and leaves town
Capital Investment in Education
Construction projects:
Duluth 709
UMD
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CSS
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UWS
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DBU
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Swenson Science Building ..................................... $33
UMD Library........................................................... $25.8
Labovitz School of Business and Economics ........... $23
Robert W. Bridges Grounds/Fleet Building
Weber Music Hall.....................................................$9.2
Civil Engineering Building ....................................... $15
million
million
million
million
million
Dormitory apartments ........................................... $43.5 million
new science lab
Rothwell Student Center ........................................ $17
Health and Wellness Center, (proposed) ............... $30
million
million
(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:
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Students are a valuable workforce
Student labor is used heavily in Tourism, Eating and Drinking,
Retail Trade
Higher Ed. Institutions are employers:
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Faculty, staff, indirect and induced employment effects
How do we keep students in Duluth
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Create Opportunities/jobs
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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.
2.
3.
4.
5.
6.
Give Young Adults a Chance to Lead.
Create a Better Way to Share Information.
Raise Awareness of Career and Economic
Opportunities.
Increase Connections between College and University
Students and the Community.
We Love This Place. Now Admit It. In Public.
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
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A Superior Leadership group is working with the
Superior Jaycees to set up a similar group.
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The Zeppa Foundation has made a significant grant to
create a young adult one-stop shop website.
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The Lake Superior Advertising Federation is working to
create a advertising campaign as part of their scholarship
program.
Implementation Projects Underway-2
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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)
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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 Research
UMD Labovitz School of Business and Economic
19 School of Business and Economic
412 University Drive 55812-3029
218-726-7895 Fax 218-726-6555
[email protected]
Drew Digby, Regional Labor Market Analyst-Northeast MN
Minnesota Department of Employment and Economic Development
218-723-4775
[email protected]