Higher education and funding have been under the microscope for the past few months, but the economic impact is often left out of the conversation. Instead, the focus is on state and federal budget expenses alone.
Evidenced by a new Economic Impact Study presented to the SEMO Board of Governors by international labor market analytics firm Lightcast, Southeast Missouri State University was shown to make a profound and far-reaching contribution to Missouri’s economy.
The report reveals that SEMO contributed a staggering $1.4 billion to the state’s economy in fiscal year 2023-24, which is equivalent to supporting over 14,700 jobs across Missouri and providing a substantial return for the students and taxpayers who invest in the University.
According to the company's website, Lightcast provides detailed information on skills, jobs, supply, and demand throughout the global labor market to build what they call a 'future-ready workforce'.
The analysis highlights the University’s influential role as an engine for economic growth, workforce development, and social opportunity. SEMO’s reach extends across several from student and alumni contributions to operational and visitor spending, to statewide taxpayer returns.
“This study confirms what many in our community already know. SEMO is not just a place of learning; it’s a driver of economic vitality,” said SEMO President Dr. Carlos Vargas. “From our campuses in Cape Girardeau, Kennett, and Sikeston, our work fuels opportunity, innovation, and growth for the entire state of Missouri.”
'A Catalyst for Statewide Prosperity'
The economic impact analysis breaks down how SEMO drives income across the state:
$90.2 million is attributed to operations spending by the University; $8.7 million is generated from out-of-state visitor spending when attending University events; $36.1 million comes from SEMO student spending; and $1.3 billion comes from alumni earnings and business productivity statewide.
'An Investment for Students, Taxpayers, and Society'
The study also offers a detailed investment analysis, showing the return students and taxpayers receive over time for their investment in SEMO:
Students see an average of $6.50 in higher lifetime earnings for every $1 invested in their SEMO education, with an annual rate of return of 22.1 percent; taxpayers receive $2.50 in value for every $1 of public money invested in SEMO, through increased tax revenue and reduced social costs; Society at large has a return of $11.70 for every $1 of public money invested in SEMO, seeing benefits of $2.4 billion through higher earnings, improved health outcomes, reduced crime and decreased dependence on public assistance.
SEMO conducted a similar study in 2020, which found the University contributed nearly a billion dollars to the state’s economy.
President Carlos Vargas spoke about the recent study results.
“The data speak volumes. SEMO delivers a return that rivals or surpasses most private investments,” said Vargas.
“But the study shows more than just dollars and cents, SEMO’s impact is truly shaping the lives of our students and their families as well as strengthening communities. Southeast Missouri State University is transforming lives and transforming Missouri’s economy.”
More information on the Economic Impact Study can be found at semo.edu/economic.
In the past week, SEMO has also signed partnerships through its SEMO Educators Advantage program with the Meadow Heights School District and the Delta School District.