ALLENDALE, Mich. — A recent study conducted by Grand Valley State University (GVSU) reveals that the institution contributes approximately $3 billion each year to Michigan’s economy. This figure combines both the immediate financial activity generated by the university and the long-term economic benefits stemming from its graduates’ careers within the state. n nThe analysis shows that GVSU’s operational expenditures—such as student spending and institutional outlays—generate $787 million in direct economic activity annually. When indirect and induced effects are factored in, such as secondary spending by businesses receiving university-related funds, the total operational impact rises to $1.3 billion. n nA significant portion of the university’s economic footprint comes from alumni earnings. Former students of GVSU earn a combined $7.6 billion per year while working in Michigan. Of that, an estimated $1.6 billion is attributed directly to the value added by their education at Grand Valley, compared to what they might have earned with alternative academic paths. n nPaul Isley, associate dean and economics professor at GVSU’s Siedman College of Business, explained how these components combine: n n”When you combine the operational impact with the alumni contribution and apply the appropriate economic multipliers, the total output reaches $3 billion for the state,” he said. n nThe research also highlights the efficiency of public investment in higher education. For every dollar the state allocates to GVSU, the broader Michigan economy sees $31 in output—a return that surpasses many other forms of state-funded initiatives. Furthermore, the increased tax revenue generated by alumni incomes exceeds the annual state appropriation provided to the university. n n”We are bringing in more tax dollars for Michigan than the state spends on our institution,” Isley emphasized. n nBeyond fiscal contributions, GVSU plays a vital role in meeting regional labor demands. Despite being younger than flagship institutions like the University of Michigan and Michigan State University, GVSU now produces one out of every twenty college-educated workers in the state. A key factor in this influence is graduate retention: the university retains a higher proportion of its alumni in Michigan than peer institutions, particularly in the western part of the state where many establish long-term careers. n nIsley noted that these outcomes reflect the original vision behind GVSU’s founding. n n”The university was established by local business leaders with the goal of strengthening the workforce across West Michigan and enabling local enterprise development,” he said. n
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GVSU generates $3B in economic impact for Michigan annually
ALLENDALE, Mich. — Grand Valley State University generates $3 billion in annual economic impact for Michigan, according to a new GVSU study that examines both university operations and long-term alumni earnings. n nThe traditional economic impact analysis reveals GVSU ‘s day-to-day operations — including student spending and university expenditures — contribute $787 million in direct spending annually. When accounting for spillover effects as that money circulates through the local economy, the operational impact reaches $1.3 billion. n nThe study ‘s most interesting finding centers on alumni earnings. GVSU graduates collectively earn $7.6 billion annually in Michigan, with their Grand Valley education contributing an additional $1.6 billion compared to what they would have earned with other educational choices. n n”When you add these two things together and do that multiplier effect, it ends up being $3 billion in total output for Michigan,” said Paul Isley, associate dean and professor of economics for the GVSU Siedman College of Business. n nThe analysis also reveals a large return on taxpayer investment. The study says for every dollar the state spends on Grand Valley, $31 worth of economic output is generated across Michigan — a return rate that exceeds many other potential state investments. Perhaps most importantly for state coffers, the study says the additional taxes generated from GVSU alumni ‘s higher earnings exceed the total amount of state funding Grand Valley receives annually. n n”Our impact and our effect on taxes here in Michigan is such that we ‘re generating more tax revenue for the state than they ‘re spending on us,” Isely noted. n nThe study also highlights Grand Valley ‘s role in addressing Michigan ‘s workforce needs. Isley says despite being a young institution compared to University of Michigan and Michigan State University, GVSU now produces one in 20 college-educated workers across the state. A key factor in the university ‘s economic impact is graduate retention. According to the study, GVSU maintains higher rates of keeping graduates in Michigan compared to other state universities, particularly in West Michigan where many alumni remain to build careers. n nIsley says the findings align with Grand Valley ‘s original mission. n n”Grand Valley was created by businesspeople in order to influence the workforce across the state and here in West Michigan so that businesses could be created here,” Isley said.