February 22, 2005

Wayne State University providing major economic benefits to Michigan

Wayne State University's net economic benefit to Michigan's economy totals more than $1 billion annually, according to findings of a published report by the Anderson Economic Group (AEG).

The report provided a comprehensive analysis of the net economic and fiscal benefits of Wayne State in 2003 after deducting the likely earnings, expenditures, or employment that would otherwise have occurred in the region without the operation of the university. Net economic benefits included items such as the university's non-payroll expenditures on teaching, operations and research, expenditures and incomes of students, faculty and staff. The region included a seven-county area of Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw and Wayne.

The economic benefit of the university to the tri-county region, composed of Wayne, Oakland and Macomb counties, accounted for $910 million of the total net benefit of more than $1 billion. \"The report confirms the significant role of the university in contributing to Michigan's economy and future workforce,\" said Wayne State University President Irvin D. Reid. \"Our role as an educational partner with the state continues to be critical to the success of Michigan's economic future,\" Reid added.

Wayne State also offers major benefits that serve the public good in several areas, according to the report findings. New discoveries and methods that improve business efficiencies, advance medical care and better environmental practices are among such benefits to the public good.

Another category of benefits contributing to Michigan's economy outlined in the report is the education component. From 2002-2004, Wayne State graduated an average of 5,800 students a year. It's estimated that 2,200 of these yearly graduates would not have attended a university if Wayne State did not exist. These graduates alone earn and spend more than $93 million per year within two years of receiving a diploma.

As the graduates grow in number, the amount of additional labor earnings will grow to over $586 million within six years and to $1.3 billion by the end of the decade following the graduation of the initial class. The additional personal income will result in approximately $8.4 million in additional state tax revenue annually within the first two years of graduation, growing to $100.8 million annually by the end of the decade.

Another feature of the report was a comparison of Wayne State to Michigan's other public universities. Among the state's public universities, Wayne State was found to have the most diverse student body, by racial heritage, and was considered to be among the most affordable.

For further information and to access the full report, visit www.wayne.edu/docs/eirwsu.pdf or www.AndersonEconomicGroup.com.

The author of the report, Anderson Economic Group, L.L.C., specializes in economics, finance, public policy and market assessments. Their work is commonly used in legislative hearings, legal proceedings and executive strategy discussion. The firm, based in East Lansing, Mich., has worked with publicly-held corporations, private businesses, governments and non-profit organizations throughout the United States. Recent AEG Clients include General Motors Corporation, Ford Motor Company, SBC Communications, State of Michigan, State of North Carolina, City of Cincinnati, Michigan Chamber of Commerce and Michigan Retailers Association.

Wayne State University is a premier institution of higher education offering more than 350 academic programs through 12 schools and colleges to more than 33,000 students in metropolitan Detroit.