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MSU boasts $6.8B economic impact, calls for more state funding

January 13, 2026
<p>Michigan State University President Kevin Guskiewicz speaks during the MSU Board of Trustees meeting at Hannah Administration Building in East Lansing, Michigan on Friday, Dec. 12, 2025.</p>

Michigan State University President Kevin Guskiewicz speaks during the MSU Board of Trustees meeting at Hannah Administration Building in East Lansing, Michigan on Friday, Dec. 12, 2025.

Michigan State University contributed $6.8 billion to Michigan's economy during fiscal year 2024 through spending on research, employee salaries and alumni earnings, according to a report released Tuesday morning.

The report, commissioned by an advocacy group representing Michigan public universities, comes after state funding for those institutions was challenged by state Republicans last year.

Now, as the state Legislature begins drafting next year's budget, MSU and its public peers are making the case for the state's continued financial support.

The report found that Michigan's 15 public universities collectively contributed $45 billion dollars to the state's economy during fiscal year 2024. MSU's share of that contribution was $6.8 billion, or roughly 15%.

The public institutions' collective economic impact included over $7 billion in tax revenue for the state, $1.7 billion generated by students in local economies and 63,801 new jobs, according to the study conducted by Anderson Economic Group. The study also credited public universities with driving $15 billion in higher salaries for their graduates.

In a public discussion held Tuesday with business and healthcare leaders and other college presidents, MSU President Kevin Guskiewicz emphasized the university's role in spurring economic growth and drew attention to the institution's $932 million research investment.

Guskiewicz also highlighted two university projects — the Facility for Rare Isotope Beams and a program to monitor wastewater in the state — as examples of MSU creating new jobs in Michigan.

"Research institutions function as not only tax-revenue each year, reflecting the broad economic value created through research work-force development, healthcare and innovation (...), but as long term economic assets for Michigan," Guskiewicz said during the discussion.

The institutions generated an estimated $45 billion in economic impact in fiscal year 2024, while the state provided them with $1.6 billion in appropriations, according to the report.

Participants in the discussions, such as Michigan Tech President and chair of the Michigan Association of State Universities Rick Koubek, said that statistic shows public investment in higher education to be a good deal for the state.

"This study underscores a simple truth," Koubek said in a press release. "Investing in Michigan's public universities isn't just good education policy — it's smart economic policy."

The conversation on the economic benefits of public institutions in Michigan coincided with recent political battles over how much taxpayer money should go toward public colleges.

Last year, Michigan House Republicans sought to cut $56.6 million of state funding to MSU before backing down. The final state budget included a 2.1% funding boost to the university.

How much money MSU and other public institutions will receive from the state for fiscal year 2027 will be decided by the Legislature later this year.

As president, Guskiewicz has spent considerable effort positioning MSU as a key player in the state's economy and promoted its usefulness to all 83 Michigan counties.

In October 2024, just a month after becoming president, Guskiewicz embarked on the inaugural "Spartan Bus Tour," in which he and other MSU leaders toured various Michigan communities to hear from residents and identify potential academic economics and outreach partnerships.

In April 2025, Guskiewicz also chartered a collective of business and university leaders, called the Green and White Council, with the goal of launching projects to help MSU bolster the state's workforce and economy.

And at the Tuesday discussion, Guskiewicz said that MSU and other public institutions "have a role to play" in addressing Michigan's declining population, which is expected to drop by 1.3% through 2025, according to the state.

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