UND’s economic impact keeps growing beyond $1 billion mark

The economic impact of the University of North Dakota on its local economy was pegged at about $1.13 billion in fiscal year 2009, up from $1.09 billion in FY2008, according to the most recent study commissioned by the North Dakota University System (NDUS). This is the fourth year in a row UND’s economic impact has exceeded the $1 billion mark. UND’s level of impact has increased every year for the past 10 years, up from $657.4 million in FY1999.

Not included in those figures was spending by UND’s students, the majority of whom, for example, live in private housing in the community. The report cites the direct impacts of student spending in the Grand Forks area as $104.3 million in FY2009. The total economic impact of student spending was $259 million, highlighted, the reports states, by increased retail trade activity of $117 million and personal income increases totalling $62.8 million. The report says these levels of business activity would generate an additional $5.4 million in sales and use tax revenue, and nearly $1 million more in personal income tax collections. This level of student spending would create enough business activity to support 1,210 secondary (indirect and induced) jobs in the community.

The total NDUS economic impact, including the effects of all University System student spending, was $3.7 billion, according to the study.

The figures come from a recent report, “Economic Contribution of the North Dakota University System,” by Dean A. Bangsund, F. Larry Leistritz and Randal C. Coon of the North Dakota State University Department of Agribusiness and Applied Economics. They estimated that business activity resulting from UND’s budget would support about 6,420 jobs in the community, over and above the University’s own workforce of 4,394 individuals (excluding student jobs).

In addition to the numbers laid out in the report by Bangsund, Leistritz and Coon, UND’s Office of Research and Economic Development reported sponsored research programs at UND had a state and regional economic impact of $217.7 million in FY2010, an increase of $22.4 million over the previous year. The University’s research activity in FY 2009 resulted in 1,837 jobs, including more than 900 at UND. Also, of the jobs resulting from UND sponsored programs 1,599 jobs were within North Dakota. UND research activity generated about $21.5 million in federal and state tax revenue in FY2010.

The UND figures do not include the impacts of about $27 million in contracts for training pilots and air traffic controllers that is taking place in FY2010.

— David L. Dodds, writer/editor, University Relations, 777-5529, daviddodds@mail.und.edu.