Report: Michigan's 15 public universities have $45 billion economic impact for state

Michigan's public universities generate nearly $45 billion in economic activity each year for Michigan, supporting more than 129,000 jobs and $7 billion in state tax revenue according to a report issued Tuesday, Jan. 13, by the Michigan Association of State Universities . The report reinforces a separately commissioned study r eleased in the fall by Grand Valley State University, a MASU member, showing the university contributes more than $3 billion to the state's economy each year.

"This study affirms what I hear from our students and employers every day: Healthy public universities are the key to unlocking the potential of Michigan's talent base and turning around the state's population decline," said Philomena V. Mantella, president of GVSU and MASU Board vice chair. "Investments in public universities not only change the lives of our residents; they also pay long-term dividends, driving innovation and entrepreneurship to fuel a brighter future for Michigan."

Mantella was in Lansing as part of a media roundtable announcing the release of the MASU economic impact report.

She emphasized the intentionality of GVSU's careful choices that ensure college remains affordable, students graduate with less debt, employers become close partners to ensure offerings meet their needs and graduates are well prepared for careers that enable them to build families in Michigan.

"When 86 percent of GVSU graduates stay, they buy homes, start businesses, and invest in Michigan," she said. "They're not just earning more. They're building Michigan's future."

Other key findings from the studies show that in fiscal year 2024:

• The $45 billion in annual economic activity generated by Michigan universities is nearly 28 times the state's 2024 appropriation of $1.6 billion for these institutions. GVSU generates $31 in economic activity for every $1 invested by the state.
• 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.
• 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. GVSU's own report showed it sustains 116,000 jobs, with 98,880 GVSU alumni living and working in Michigan plus 17,292 jobs supported by the activities of GVSU and its students.
• 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. At GVSU alone, a graduate on average will earn $1.4 million more than their peers with a high school diploma.

"The numbers are impressive. But the real story is how these institutions link research and scale, discovery and talent, innovation and retention to build an economy that is resilient, inclusive and built to last for all of Michigan," Mantella said.