$41.9 Million: DSU’s Impact on the Madison Economy
Dakota State University has an annual economic impact of $41.9 million on the community of Madison and Lake County. That is the conclusion reached by a recent economic impact study supported by the Lake Area Improvement Corporation (LAIC) commissioned by the Rural Learning Center, Howard, South Dakota and conducted by researchers from the National Center for Rural Health Works from Oklahoma State University.
The study also found that Dakota State University was directly involved in creating 559 jobs in Lake County.
The objective of the study was to find the economic impact of Dakota State on Madison and the area. The report focused primarily on the impact of jobs and income, created on an annual basis through employment, construction activities, students, and visitors.
Dakota State is the largest employer in Madison. DSU spent $29.7 million in operating expenditures in FY09 including salaries, wages, and benefits. The $41.9 million was determined by applying a higher education multiplier of 1.41 to DSU's 2009 operating expenditures of $29.7 million. The multiplier takes into account both direct and indirect economic impacts from the University's activities. Direct impacts can be wages and benefits earned by employees at DSU. Indirect impacts can be jobs created in support of DSU activities, for example, increased retail employees, and expenditures by students and visitors.
Dakota State's construction expenditures for 2009 were $3.4 million, with an additional $8 million planned for 2010. With funding from the DSU capital campaign, an additional $23.9 million in construction expenses are planned within the next 5 years.
The annual average expenditure for a DSU student living in Lake County is estimated at $8,820. As a result, the study showed that DSU students spent $2.1 million in housing and other living expenses in FY09.
Dakota State regularly draws visitors to Madison due to special events and other campus activities. Visitors, including alumni, prospective students, and parents of students spent approximately $2 million in Madison during FY09.
Dakota State University continues to draw additional professionals from across the country to live and work in Madison. The University also draws business and industrial enterprises to Madison and enhances the intellectual and cultural quality of life in the city through research, specialized programs and entertainment options. The steady growth of DSU ensures that the University will continue to impact jobs, generate revenue, and provide opportunities to the community of Madison, and to the state.