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Tuesday, June 21, 2016

No. 101 Inadequate funding of the MU system is causing Missouri's slow growth

Ronald Harstad, J. Rhoads Foster professor in the economics of regulated industry at MU, and Joseph Haslag, professor and Kenneth Lay chair in economics and director, Economic & Policy Analysis Research Center and MU, has completed a report that compares the growth path of Missouri’s economy with and without UM System research and development and without the enhanced skills that increase graduates’ lifetime earnings.

“For decades, we have shared the value of the UM System, our campuses and research to the state of Missouri. This report solidifies those claims,” UM System Interim President Michael Middleton said. “To be able to use current numbers to support our value statements reinforces the significant return on investment of a University of Missouri education and research for our state.”
Harstad and Haslag outlined several key findings that illustrate how the university is integral to the state’s economy:
  • Missouri’s economic growth rate is 25 percent higher due to the UM System’s research and development efforts.
  • Aggregate income would decline if the UM System stopped educating students.
    • Over a generation, the more educated workforce in Missouri is worth $252.7 billion in extra real gross domestic product.
  • At the current level, state appropriations account for more than 30 percent of UM System expenditures.
    • Continuing at current funding levels, in the next 25 years, a return on Missouri’s investment in the UM System will result in $238.4 billion in real gross domestic product.
    • One dollar spent on the UM System from the state equals $38.43 of goods and services; $1.46 in extra general revenue funds.
The full report can be found at: http://umurl.us/econimpact.