News

UM launches economic study to prove its worth

In a major effort to convince Montanans that the university system is a lucrative
business — rather than a bottomless pit of expenses — UM is launching a three-part
study to measure the economic impact of higher education.

Bryan O’Connor
Montana Kaimin

The first part of the plan is an economic impact analysis measuring the direct
spending of students, UM employees and campus visitors in Missoula and other
university communities.

A second study aims to capture the impact of university-generated grants, contracts
and businesses on a county-by-county basis.

The third piece of the research will take a broad look at how much money the
university system puts into the Montana economy and how many jobs it generates.

"It’s a very valid argument that higher education in not an expense," said Bob
Duringer, vice president of administration and finance at UM. "It’s an investment."

University officials have long felt that the Legislature doesn’t fully appreciate the
economic benefits that universities bring to the state — and thus is reluctant spend
money on higher education. Currently, the state only covers about 40 percent of a
Montanan’s tuition, while most states in the Northwest shoulder 50 percent or more.

The Missoula economic impact analysis, an expansion of a 1996 study, will
measure university-generated spending in 22 sectors of the local economy, including
food, gas, medical, child care and entertainment.

Students, faculty, staff and even visitors to UM will be polled at the beginning of the
fall semester using a Web-based survey. Paul Polzin, director of the Bureau of
Business and Economic Research at UM, said the surveys will be given either to
students at random, or entire classes of students may be asked to participate.

Polzin said that it is important for the faculty and staff to participate and get the word
out, so the study is as accurate as possible.

"The more people know about UM in the state, the better," Polzin said. "Lack of
information is the killer."

The county-by-county economic study, called Montana Invests, will look at the
impact of grants, contracts, construction projects and university-related businesses.
It will tie these revenues to specific legislative districts, an idea Duringer said he
borrowed from some colleagues in Oregon."This will show the ripple effects from
each university," Duringer said. "We’ll be able to relate it to the individual legislators
themselves."

Polzin added that all Montanans, not just legislators, should understand what federal
grants and investments mean to them.

"They represent an injection of money from the outside," Polzin said, "just like
agriculture, mining or any other business."

Duringer said the Board of Regents does not have to vote on the $70,000 studies,
but he said he’d heard favorable comments from nearly all the Regents. But he said
MSU, which is supposed to pick up half the cost, has not shown enough interest in
the program.

"They’re somewhat reluctant brides," Duringer said, "We’re trying to drag them to the
altar."

MSU officials were not available for comment on Thursday.

Mike Kadas, mayor of Missoula, said he thought the economic impact studies
would be beneficial. He pointed to Montech, a small business incubator, as an
example of the kind of economic benefits the university creates.

Montech, which is funded exclusively by grant and investment money from out of
state, allows students with business ideas to rent cheap space and develop their
businesses. As they progress in school, their rent increases to prepare them for the
real world after graduation.

Lloyd Chesnut, vice president of research and development at UM, said the students
who make the Bio Diesel at UM are taking advantage of the program, and that it’s a
great way for the university’s intellectual property to benefit the local economy.
Satellite programs are scheduled for Hamilton, Pablo and Kalispell.

"Montech has had a real positive impact on the community," said Kadas.

Duringer is eager to get proof of the economic benefits of the university in the hands
of the Montana Legislators by November, following the elections. He said that is a
key time to approach new legislators, because they are still forming their platforms.

"We want to say, look at this, invest in us now, because we will bring in `X’ number
of dollars to the state in the next biennium," Duringer said. "The trickle down effect
is three and four times what the (state) appropriation is."

http://www.kaimin.org/Mar_02/3-8-02/news3_3-8-02.html

Sorry, we couldn't find any posts. Please try a different search.

Leave a Comment

You must be logged in to post a comment.