Michigan’s economic future depends on decisions made today about workforce talent, innovation and prosperity. Few investments advance all three as powerfully and as measurably as our state’s 15 public universities. 

Daniel Hurley headshot
Daniel Hurley is chief executive officer of the Michigan Association of State Universities. (Courtesy photo)

A newly released, independent economic impact study tells a compelling and consistent story: Michigan’s public universities are not only centers of learning, research and discovery; they are also among the most significant drivers of statewide economic growth, job creation, increased personal earnings and tax revenue. Together, they form a backbone of prosperity that reaches every region of the state and provides an outstanding return on investment to the state and its residents.

According to a comprehensive analysis commissioned by the Michigan Association of State Universities (MASU), the state’s 15 public universities collectively generated nearly $45 billion in net new economic activity in fiscal year 2024 — activity that would not have occurred in Michigan without the presence of these institutions. This impact stems from university operations, student spending and the increased earnings of alumni who live and work in Michigan. That’s nearly 28 times the state’s appropriation of $1.6 billion to these institutions. Few public investments deliver that level of return. 

Public universities collectively enroll almost 260,000 students and employ some 97,000 faculty and staff, making them among the state’s largest employers. When the ripple effects of spending are included, university activity directly and indirectly supported more than 129,000 jobs across Michigan in 2024. 

The study amplifies one of the most enduring economic benefits of public universities: human capital. More than 1.6 million alumni of Michigan’s public universities live and work in the state, earning an estimated $89 billion in post-tax income. Their higher earnings fuel consumer spending, strengthen families and communities, and generate sustained state tax revenue that in turn bolsters local economies in every county. Further, university-related activity generated more than $7 billion in state tax revenue in 2024, from personal income, sales and use, and transportation taxes paid by employees, students and alumni living in Michigan.

The research mission that is so prominent at several of our universities exemplifies the role these institutions fulfill in powering Michigan’s innovation economy. They drive research and development, health care delivery and technology commercialization, activities that anchor advanced industries and attract federal funding and private investment to the state. In 2024, our research universities conducted nearly $3.5 billion in academic research, which in turn generated nearly $950 million in economic impact, supporting thousands of high-skill jobs and specialized suppliers. 

Alumni of public universities earn almost double the earnings of those with a high school diploma, an advantage that compounds over a lifetime. We also know that in the years ahead, according to the Michigan Center for Data and Analytics’ latest report, a remarkable 42 of the top 50 high-wage, high-demand occupations in Michigan will require a bachelor’s degree or higher, underscoring the fact that our state’s future competitiveness requires that we produce more individuals who attain a college degree.

Equally important is how Michigan’s public universities work together and alongside their communities to multiply impact. Collaboration across institutions allows the state to leverage complementary strengths, creating an integrated system that serves students, employers and residents alike. 

At the local level, partnerships between universities and communities translate economic impact into tangible quality-of-life gains. The MASU economic impact study shows that student spending, university payroll and alumni earnings support jobs and small businesses in every county in Michigan, anchoring regional economies and sustaining downtowns large and small. 

Beyond the numbers, universities collaborate daily with K–12 schools, hospitals, local governments and employers to expand access to education, respond to workforce needs and address pressing community challenges. When universities and communities succeed together, the return on public investment grows, not just in dollars, but in opportunity, resilience and shared prosperity across the state. 

For policymakers, the takeaway is clear. Public universities are not a cost center; they are a growth strategy. They stabilize regional economies during downturns, expand opportunity for Michigan residents and generate outsized fiscal returns for the state budget. From the Upper Peninsula to Detroit to west Michigan, their impact is broad, measurable and indispensable. 

As Michigan debates its economic priorities, the evidence points decisively in one direction: Sustained, strategic investment in public universities is among the smartest decisions the state can make for its workforce, communities and long-term prosperity. 

Michigan’s public universities are already delivering. With the right policy choices, they can do even more.

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