Michigan's Public Universities Deliver a Powerful Economic Impact

Michigan’s public universities are among the state’s strongest and most reliable economic engines, generating nearly $45 billion in annual net economic activity, supporting more than 129,000 jobs, and delivering a 28:1 return on public investment. Together, they fuel talent, innovation, personal incomes, and long-term economic competitiveness in every region of the state. 

These figures come from a just-released report, Economic and Fiscal Impact of the State Universities of Michigan, commissioned by the Michigan Association of State Universities and produced by the Anderson Economic Group. The report used an independent analysis based on fiscal year 2024 data. A one-page summary of key findings can be viewed here.

What do the report’s findings mean for Michigan, its residents, and state leaders? Here are a few observations: 

Michigan’s public universities deliver an exceptional return on investment

Among the top takeaways from the economic impact report is that Michigan’s 15 public universities provide a profound return on investment to the state and its taxpaying residents. These institutions collectively generate $44.9 billion in net new economic activity each year, nearly 28 times the state’s $1.6 billion appropriation. This impact is driven by university operations, student spending, faculty and staff wages, research activity, and alumni earnings that circulate dollars through local economies statewide. Public higher education is one of Michigan’s highest-return public investments, producing sustained economic value year after year.

Michigan’s public universities power jobs, communities, and local economies

In FY 2024, the state universities of Michigan supported 129,311 jobs statewide, including nearly 64,000 net new jobs that would not exist without these institutions. The universities employ nearly 97,000 faculty and staff, most of whom live and work in the communities they serve. Student spending alone generates $1.47 billion in net new spending retained in Michigan and grows to $2.9 billion when those dollars are recirculated throughout the state’s economy. This spending by students is especially impactful to thousands of small businesses throughout the state.

Alumni of the state universities are a major driver of Michigan’s economy

More than 1.6 million public university alumni live and work in Michigan, earning an estimated $89 billion in post-tax income. Alumni earnings that are attributable to a public university degree generate more than $15 billion in incremental earnings annually, strengthening Michigan’s workforce and tax base. Public university graduates earn nearly twice as much as peers without a college degree, helping retain talent and stabilize communities statewide. As one example, in 2024, alumni from these institutions who were 25-34 years of age had an average income of $91,073; in contrast, the average income for the same age group without a college degree was $46,282.

Our public universities strengthen state and local finances

The report found that university-related economic activity generated more than $7.1 billion in state tax revenue in 2024, including income, sales and use, and transportation taxes—more than four times the state’s annual appropriation to these institutions. These revenues are reinvested by state lawmakers and local officials alike, in public services, programs, and resources that positively impact virtually every aspect of our lives, our families, and our communities. 

Michigan’s public research universities are vital innovation and growth assets

While not specifically in the purview of the MASU economic impact study, a separate analysis by the Research Universities for Michigan finds that the state’s four Research 1 institutions conducted nearly $3.5 billion in academic research in 2024, attracting federal and industry funding from outside the state, which in turn generated $950 million in additional in-state economic activity. For a state of Michigan’s size, we are fortunate to have a collection of universities that drive so much discovery that leads to commercialization in critical sectors such as health care, mobility, energy, artificial intelligence, and advanced manufacturing, delivering benefits to every region of the state.

The bottom line: Public investment in Michigan’s public universities is smart economic policy for Michigan’s future

Investing in Michigan’s public universities is not just good education policy — it is smart economic policy. Sustained support for public higher education strengthens Michigan’s workforce, accelerates innovation, and positions the state to compete nationally and globally for talent, employer attraction and retention, research dollars, and economic growth in all its forms. These vibrant institutions are vital assets that provide a profound return on investment to Michigan taxpayers while serving the public interest in countless ways. 

Daniel Hurley is the CEO of the Michigan Association of State Universities