Community News

It seems readily apparent that Montana State University is a big player in the local economy, but not only does MSU affect Bozeman, but it also impacts the state as a whole.

In addition to the main campus in Bozeman, there are campuses in Billings, Havre, and Great Falls. Furthermore, there is a presence in all 56 counties in the form of extension offices, Montana Agricultural Experiment Stations (MAES), Tribal College Affiliates, and an additional Nursing Campus in Great Falls. 

The University of Montana’s Bureau of Business and Economic Research prepared an Economic Impact Report in December 2010.  The report measures the university’s impact in several areas including university operations, research expenditures, increased earnings of graduates, and visitor and nonresident student off-campus spending. 

The best synopsis of the report is below, taken verbatim:

Based on the analysis of MSU and the state economy, the economic impact study reported that MSU’s economic impact (excluding MSU Extension) is:

• Jobs: 13,511 Montana jobs. (9,000 due to the Bozeman campus)
• Income: More than $1 billion in personal income which equates to $897.7 million in after-tax income.
• Tax Revenue: $253 million in state tax revenue, which means the state receives $2.60 in tax revenues for every $1 of tax support.
• Compensation: MSU’s presence increases annual wages across the state by $1,087.
• Investment Spending: An increase of $349.3 million in investment spending in the Montana economy occurs every year due to the operation of MSU.

One fact that many fail to realize is that with the combined forces of MSU’s four campuses, the university comprises the largest amount of research conducted in Montana.  Nearly $100 million of federal funding is received annually by the campuses and MAES.  This money would go elsewhere if it were not for MSU’s presence, which also creates an atmosphere conducive to attracting top-notch graduate students and faculty to mentor and teach the undergrad students.

The Bobcat stadium expansion (along with a winning record) has led to increased crowds coming to Bozeman on gameday Saturdays.  Not only did the stadium’s capacity increase by 5,000 seats, but the games are actually selling out. These crowds, with over 18,000 fans per game, are spending money in many categories besides just tickets, which impacts the economy most notably in retail, restaurants, and hotels according to anecdotal evidence versus actual numbers after the five home games thus far this season. A winning season even helps in that those who can’t get tickets to the game often band together in a local establishment to enjoy the game. The Bobcat’s season promises to thrill to the very end with the upcoming annual ‘Cat-Griz game scheduled for Saturday, November 19. The Cats enter this regular season finale with a 9-1 record and with Big Sky conference co-championship status. If the Bobcats win the Brawl of the Wild, they will achieve their first outright conference title since 1984. If the University of Montana prevails, the two Montana teams will share the title. A recent, anonymous $500,000 donation has sparked further contributions toward outdoor stadium lighting. Four 110’ lights will be erected in time for the final regular season game, and additional lighting will be added in stages as funding becomes available. Once the project is complete, MSU will be able to host night games as it meets the requirements for night television broadcasting.

The numbers for MSU’s enrollment peaked this fall with over 14,000 students for the first time ever, with this being the 4th year in a row to set a new record.  There have been positive strides in many categories including higher incoming freshman ACT scores, an increase in the six-year graduation rate, and a slight increase was shown in retention (the number of freshmen who returned for their sophomore year).

Officials at MSU recently received regent approval for $16 million in bonds for dormitories, more specifically the addition of a 70-bed residence hall at the cost of $7 million and the renovation of outdated dorms with an $8 million price tag.  The bonds are expected to be paid off in sixteen years and the construction is anticipated to be completed within three years.

Additional off-campus housing may come in the form of a student housing community located south of the University. An application has been filed by RTR Holdings II to begin Phase One of a luxury student housing complex which would consist of six three-story apartment buildings and a community clubhouse. The builders anticipate breaking ground next spring with completion scheduled to coincide with the 2013-2014 school year. The developers purchased the subject property south of Kagy Boulevard between South 19th and South 11th Avenues back in 2007 and have been seeking direction from Bozeman city officials, noting that with the project anticipated to take potentially decades to build, phases will change and will need to stay fluid. 

A further bonus that can only help increase MSU’s impact is the recent announcement of alumnus Jake Jabs’ unrestricted gift of $25 million to the College of Business. Upon approval from the Montana Board of Regents and the Montana Legislature, construction of a new building could begin in the spring of 2013 with additional funds going towards new scholarships and academic programs. An emphasis on improving entrepreneurial spirit is imperative in our current national economy. This gift will not only lead to construction industry employment but also a stronger business program that will ideally draw more top students to the university.

One additional way that Montana State University greatly affected the local economy recently was with the help of Mother Nature. Summer 2010 brought a hail storm that has kept roofing companies and auto body shops perpetually busy throughout town.  The associate vice president of university services reported that over 300 buildings at the University received $7.9 million in hail damage which is still being repaired.

University towns in general seem to have a certain pulse that draws people to them. The simple fact that the institution exists changes the economic and social makeup of the community. Employment created directly by the university and the success of businesses that cater primarily to the student population boosts a town’s economy substantially. In this season of gratitude, we can be thankful for all of the benefits that Montana State University brings to our special town. GO CATS!