Higher ed: great return on investment

For every state dollar spent on higher education in Montana, our public colleges and universities have consistently returned $3 to the state's economy. So it only makes sense to invest in higher education.

MEA-MFT recently presented the following study to the Montana Board of Regents, using figures from the Montana University System. It's the case we will make to the state legislature and governor during the 2005 legislatives session.

State need
Montana needs active, affordable, high-quality universities, colleges, and technical schools. They serve as economic engines, cultural centers, and information agencies to keep Montana as an attractive choice for business and industry development.

Market realities
80% of the fastest growing jobs in the country require postsecondary education.

Public university students typically want to live in and work in the state where they receive their postsecondary education.

The most important business location consideration is access to a skilled and educated workforce.

College and university communities in other western states have seen and contributed to unprecedented economic growth as the "knowledge economy" continues to expand.

Problems
Montana's colleges and universities are struggling to recruit and retain high-quality faculty members due to low salaries, high teaching loads, and reduced benefit levels.

Faculty salaries at two-year colleges are the lowest in the country.

Faculty salaries for four-year faculty are amongst the lowest in the country when compared to peer institutions and controlled for cost-of-living differences.

Montana's tuition and fee levels at public institutions are now amongst the highest in the western United States.

Montana's total investment in public higher education ranks behind only Vermont and New Hampshire.

Montana higher education institutions are becoming less attractive to prospective students from out of state.

Retention rates for students at Montana's public universities are amongst the lowest in the country (48th out of 50 states).

Six-year graduation rates for students at Montana's public universities are amongst the lowest in the country (43rd out of 50 states).

Montana University System facilities are becoming increasingly outdated and in disrepair due to years of deferred maintenance.

MEA-MFT's proposed solution
Restore Montana support for public higher education to present law base levels as defined prior to the 2003 legislative session. Required investment: $39.05 million.

Engage the legislature, governor, and Montana public in a statewide plan to bring state investment in higher education up to the national average spending per capita by 2009. Required investment by 2009: $45 million per year additional spending on higher education.

Engage the legislature, governor, and Montana public in a statewide plan to bring higher education spending per capita up to the regional (ND, SD, ID, UT, WY) average by 2013. Required investment by 2013: $90 million per year additional spending on higher education.

With this additional spending, commit to increasing faculty salaries to market levels for faculty and staff at all institutions.

Required state investment - 2006-2007
$39.05 million

Return on investment
For every state dollar expended on higher education in Montana, our public colleges and universities have consistently returned $3 to the state's economy in the form of out-of-state tuition, research grants, contracts, student expenditures for housing and services, and much more.

For every million dollars invested in the Montana university system, nearly 60 private sector jobs are created. These all contribute to the state's economy.

Assuming an increase of $19.5 million in each of the next two years, these numbers would translate into a $58.5 million increase per year in related economic activity in Montana, and a net increase of over 1100 private sector jobs.