By Sarah Atwood, satwood@detroitnews.com
Lansing — Several of Michigan’s public university leaders gathered last week to reveal the results of a study analyzing the positive economic impact their institutions have on the state, generating $45 billion annually.
As public scrutiny of higher education and its mission has grown over the last five years, the speakers, including Michigan State University President Kevin Guskiewicz and Grand Valley State University President Philomena Mantella, explained on Tuesday how Michigan’s public schools are continuing to improve the lives of all Michigan residents.
It’s been 10 years since the last report on the economic impact of Michigan’s universities, said Britany Affolter-Caine, executive director of Research Universities for Michigan, an organization of the four Michigan research universities.
The report, done by the East Lansing-based Anderson Economic Group, shows that Michigan’s public universities contributed $45 billion in net new economic activity through operations, student spending and alumni earnings for the state. The report pointed out that this revenue was more than 28 times the amount given in state appropriations for the 15 universities.
“This is economic impact that would not exist in Michigan if these institutions were not here,” said Dan Hurley, CEO of the Michigan Association for State Universities.
However, about 70% of Americans now say higher education is going in the wrong direction, a poll by Pew Research released in October showed, up from 56% in 2020.
Guskiewicz and Mantella agreed that the public perception of higher education is something they’re trying to repair. Graduates coming out of college with jobs in their field, more affordable tuitions so students have less debt and showing the impact of universities in local communities are all ways the institutions can rebuild public trust, the speakers said.
Perception of higher education
Americans were losing confidence in higher education because they believe it’s too expensive, doesn’t provide the skills needed for today’s jobs and is “indoctrinating” students, Guskiewicz said.
The misinformation regarding the value of a degree conflicts with the real data that shows, Guskiewicz said, the social upward mobility and the opportunity that come with a degree, along with the improvements to quality of life in all sectors that touch a university.
“We have to do a better job of telling our story, just like we are today,” Guskiewicz said.
But negative perceptions of higher education held by lawmakers, federally and statewide, can hurt a university’s finances. In the past year, President Donald Trump’s administration has cut millions of dollars from Michigan universities, according to Treasury Department data compiled by the Center for American Progress, a liberal group.
Michigan House Republicans toyed with the idea of cutting $291 million from the University of Michigan’s and MSU’s state appropriations to redistribute among the other state universities. This was rejected by the Democratic-led Senate and Democratic Gov. Gretchen Whitmer, and all universities saw an increase in their state appropriations in the budget approved in October.
“That was an effort by one caucus in one chamber, which is a pretty distinct minority in the entire public body that ultimately is responsible for passing the state budget,” Hurley said. “All of our universities need to have reinvigorated state investment. … We are thankful for what the Legislature has done in recent years. … But we are conservatively at least 41st out of 50 in this country as it involves per student state support for public universities.”
The worth of a degree
Pew’s poll showed that about 80% of adult respondents said colleges and universities aren’t doing enough to keep tuition affordable, and about half said higher education wasn’t doing enough to prepare students for well-paying jobs.
The speakers acknowledged the longstanding problem of graduates struggling to find employment in their degree’s field, or any meaningful employment at all.
“This is not a new challenge,” Affolter-Caine said. “It happens to maybe be exacerbated in the current cycle.”
However, the report shows that graduates from Michigan universities make double what high school degree holders earn and, on average, about $20,000 more than what graduates from out-of-state public institutions make.
On average, the report said, Michigan university alumni ages 25-24 earn $91,073 yearly.
Mantella said Grand Valley, like other universities, has embraced and strengthened “experience-based learning.” This includes ensuring all students have access to an internship, project-based learning or other professional workforce experience while still in college.
“This is not only an opportunity to accelerate to the workforce,” Mantella said. “It’s so (students) come into the workforce at the appropriate levels, in the appropriate roles. … It also links the individual to a Michigan employer, so there’s a higher probability that they will, in fact, stay in the state and contribute to the state rather than go somewhere else.”
Hurley said about 84% of the top 50 most in-demand jobs over the next few years will require at least a bachelor’s degree.
“(Those jobs) are our state’s economy, our private sector, our non-private sector, our health care sector speaking,” Hurley said. “And so for us to be competitive in the future, we have to continue generating that talent. And of course, it’s the role of the state government to make sure that college remains affordable.”
