15 Ways Universities Benefit Mississippi

Later this month, the Joint Legislative Budget Committee (JLBC) will meet with state agencies one-by-one to hear their pleas for more state dollars. The annual IHL JLBC hearing, scheduled this year for September 25, is more than just an opportunity to ask for money; it is an opportunity to demonstrate what the universities do for Mississippi. IHL has only two hours to make its case at the Capitol, but it has 14 issues of the System Review between now and the holiday break to highlight the top 15 ways Mississippi's universities benefit the state.

15 - Universities offer a valuable investment opportunity for individuals and for the state. It is true that the cost of a university education has gone up in Mississippi, but it is such a VALUE. For about $2,300, a family of four could go to the beach for one week in the summer; buy a new high-definition TV, OR send a student to one of Mississippi's universities for a semester. And when the vacation is over, and the TV has completely depreciated, the university education will have appreciated in value. Not only do universities offer an excellent education and access to respected experts in numerous fields, they offer athletic events, the latest technology, libraries, museums, outstanding speakers and cultural events, and even opportunities to learn in other countries. And in comparison with other universities in the South, Mississippi's universities are a bargain! Of the sixteen states from Delaware to Texas that make up the Southern Regional Education Board (SREB), nine charge higher tuition than Mississippi, and thirteen have had higher tuition increases than Mississippi since 2000. Only Georgia and Florida have had smaller increases. For the state, Mississippi's university system offers a 3:1 return on investment. For every one dollar the state invests in higher education, the universities invest three dollars, and the universities send 14,000 college graduates into the economy each year to earn high wages and pay state taxes.

14 - Universities Improve Workforce Flexibility
(Top 15 Ways Universities Benefit Mississippi)
Mississippi's public universities grant bachelor's degrees and graduate degrees, which afford degree holders increased workforce flexibility. More education means more options for employment. After all, a brain surgeon can always deliver pizzas, but it doesn't work the other way around. Nearly 9 percent of Mississippi's population with less than a high school diploma is unemployed, compared to only 3 percent of those with a bachelor's degree. View national unemployment rates by education level and race in the recently released report Education Pays 2007.

13 - Universities Conduct Research, Bolster the Economy
(Top 15 Ways Universities Benefit Mississippi)
Mississippi's universities attracted $464 million into Mississippi in 2006 for research and contract projects, and although the numbers are not final, preliminary reports show that the 2007 extramural dollars will approach $530 million. This is important, when one realizes the impact of university research on the state's economy. University research accounted for about 69 percent of total Mississippi R&D in 2005, which resulted in an estimated $6.04 billion (about 5.9 percent) of the state GDP. But these impact figures represent only the tip of the "impact iceberg". Just as most of the mass of a real iceberg lies beneath the surface, most of the impact of university research is not readily apparent. The beneath the surface impact of university research is its impact on worker productivity. Worker productivity is directly impacted by knowledge stocks and by the ability to apply knowledge in a given field, both of which are driven by university-based research. By increasing the knowledge base, worker productivity increases. And by increasing productivity, the state's Gross Domestic Product increases, resulting in an increase in per capita income, a higher standard of living, and increased state and local tax revenues.

12 - UMMC Provides Vital Healthcare Services
(Top 15 Ways Universities Benefit Mississippi)
Mississippi's universities do much more than just educate students. They also provide vital services to the citizens of the state. One such service provider is the University of Mississippi Medical Center (UMMC). As the state's only level-1 trauma center, UMMC serves 27,000 inpatients each year with more than 418,000 outpatient and emergency room visits. While healthcare costs continue to rise at a rapid rate, the medical center is charged with providing service to those who could not otherwise afford it. By statute, UMMC must provide no less than 50 percent of their services to indigent persons including qualified beneficiaries of Mississippi's Medicaid program. With 67 percent of patients falling in this category, UMMC more than meets its mandate. In 2001, UMMC spent $291 million fulfilling this mission. In 2007, that number increased to $540 million.

11 - Ag Units Provide Necessary Agricultural Support
(Top 15 Ways Universities Benefit Mississippi)
Education is the first priority of Mississippi's universities, but the universities do much more for the state than just educate students. The universities also serve the state through agriculture extension and research programs at Alcorn State University and Mississippi State University. Mississippi's agriculture programs not only educate students, often in non-traditional environments, but also conduct research, develop new technologies, and then teach Mississippi farmers how to adopt and use new technologies. Mississippi companies benefit from the universities' ongoing agriculture and aquaculture research programs. Agricultural services, like those offered by Alcorn and Mississippi State are vital to the health of a state like Mississippi, in which more than 50 percent of the population lives in rural areas.

10 - University Graduates Enjoy Better Health
A recently published study, conducted by the College Board, reveals that the percentage of adults who report very good or excellent health increases with higher levels of education, regardless of age or income. In 2005, 68 percent of university graduates, ages 55 to 64, reported being in excellent or very good health, compared to 53 percent of associate degree holders in the same age group, 51 percent of those with only some college, 44 percent of high school graduates, and 28 percent of those who never completed high school. Similarly, 83 percent of university graduates with incomes between $55,000 and $74,999 reported very good or excellent health, compared to 75 percent of associate degree holders in the same income bracket, 74 percent of those with only some college, 73 percent of high school graduates, and 66 percent of those who never completed high school. The study also shows that college graduates were as likely as others to smoke in 1970 before the dangers of smoking became clear; they now smoke at much lower rates. By 2005, only 9 percent of university graduates smoked (and over half of those had made an effort to stop smoking in the past year), compared to 21 percent of associate degree holders, 23 percent of people with some college, and 26 percent of high school graduates. University graduates are also more likely to exercise and more likely to receive employer-provided health insurance. For more statistical data on the impact of higher education on health and other aspects of community life, read the study Education Pays: The Benefits of Higher Education to Individuals and Society.

9 - Children of University Graduates More Prepared for School, Active in Activities
(Top 15 Ways Universities Benefit Mississippi)
Mississippi benefits from the state's public universities because children of parents with university degrees are, on average, better prepared for school and more involved in extracurricular activities than children of parents with less education. A study conducted in 2005 revealed that 37 percent of children, aged 3-5, whose mothers had a bachelor's degree, could recognize all letters, compared to only 19 percent of children of mothers with a high school diploma. More than half (54 percent) of the children whose mothers had a bachelor's degree were more prepared for school because they had at least three of the following skills: they could recognize all letters, count to 20, read or pretend to read books, or write their name. Only 33 percent of the children of high school graduates had three or more of these skills. Among elementary and middle school children, 59 percent of those with at least one parent with a bachelor's degree participated in after-school activities, compared to 27 percent of children of high school graduates. In addition, children of college graduates were more than three times as likely as the children of high school graduates to participate in scouting and in arts-related after-school activities. For more statistical data on the impact of higher education on children and society, read the study Education Pays: The Benefits of Higher Education to Individuals and Society.

8 - University Graduates More Likely to Vote, Be Understanding
(Top 15 Ways Universities Benefit Mississippi)
Universities benefit Mississippi by producing graduates who are more likely to vote and to be open to differing opinions of others. According to the U.S. Census Bureau, in the 2004 presidential election, for every age group, people with higher levels of education voted at higher rates than their peers with less education. Among eligible voters ages 25-44, 76 percent of people with bachelor's degrees voted, compared to only 49 percent of high school graduates. According to a 2004 survey conducted by the National Opinion Research Center, 79 percent of adults with advanced degrees and 73 percent of those with bachelor's degrees believed it was very important (6 or 7 on a scale ranging from 1 to 7) to try to understand the reasoning behind the opinions of others, compared to 64 percent of high school graduates.

7 - University Graduates More Involved in Their Communities
(Top 15 Ways Universities Benefit Mississippi)
University graduates also contribute to the state by volunteering in their communities and giving blood. According to the Bureau of Labor Statistics, in 2006, about 27 percent of adults volunteered their time with an organization. Approximately 43 percent of college graduates volunteered an average of 55 hours, whereas high school graduates were less than half as likely to volunteer. Only 19 percent of high school graduates volunteered, but those who did volunteered an average of 52 hours. College graduates were also more likely to donate blood. In a 2005 National Health Interview Survey, researchers found that 9 percent of college graduates reported having given blood in the past year, compared to 4 percent of high school graduates.

6 - Higher Education Levels Correspond with Lower Crime Rates
(Top 15 Ways Universities Benefit Mississippi)
Mississippi's universities contribute to the state by producing graduates who are less likely to enter the corrections system. Approximately 75 percent of Mississippians sentenced to a prison term for the first time have never attended college; half never graduated from high school. Among statistics compiled by the Alliance of Excellent Education in 2003, a one-year increase in average education levels would reduce arrest rates by 11 percent. Education also impacts recidivism. A 1997 U.S. Department of Education study revealed that inmates who received education while in prison were 29 percent less likely to be re-incarcerated after their release than inmates who received no education. Education was also proven more effective than boot camps, shock incarceration, or vocational training. Reduced crime rates translate into savings for the state. After all, the state can pay for two people to go to a Mississippi university for a year for less than money than it costs to house one person in a Mississippi prison for a year.

5 - Higher Education Levels Lead to Less Public Assistance, Poverty
(Top 15 Ways Universities Benefit Mississippi
Universities benefit the state by producing graduates who are less likely to live in poverty and less likely to participate in social support programs than high school graduates. According to the U.S. Census Bureau, in 2005, about 3.6 percent of bachelor's degree holders lived at or below the poverty level, compared to 10.8 percent of high school graduates. Also in 2005, only 6 percent of university graduates, compared to 19 percent of high school graduates, participated in Medicaid. Only 1 percent of bachelor's degree holders lived in households that participated in the National School Lunch Program, compared to 8 percent of high school graduates. Finally, only 1 percent of university graduates lived in households that received food stamps, compared to 6 percent of high school graduates. Read about other ways that Mississippi's public universities benefit the state in archived issues of the System Review.

4 Universities Reap Economic Benefits for State
(Top 15 Ways Universities Benefit Mississippi)
Mississippi's university system produces graduates who earn higher wages than their peers without degrees. Higher wages lead to more money for the state through increased tax revenues and increased wages for all other employees. According to the U.S. Census Bureau, in 2005, the average working university graduate earned about 62 percent more than the average working high school graduate. These higher earnings by four-year degree holders translated into nearly 80 percent more in total federal, state, and local taxes paid than the taxes paid by the typical high school graduate. Governments rely on taxes to provide necessary services, such as education and health care. Findings released in Education Pays: The Benefits of Higher Education for Individuals and Society and based on studies by economist Enrico Moretti indicate that the earnings of workers with lower education levels are positively affected by the presence of university graduates in the workforce. In fact, every one percentage point increase in the population with a four-year degree leads to an increase in wages of 1.9 percent for workers without a high school diploma, 1.6 percent for workers with a high school diploma, 1.2 percent for workers with some college, and 0.6 percent for workers with a university degree. Read about other ways that Mississippi's public universities benefit the state in archived issues of the System Review.

3 - Universities Make State More Competitive in Global Economy
(Top 15 Ways Universities Benefit Mississippi)
Universities help prepare Mississippi for a more competitive role in the global marketplace. The global flow of goods, services, people, and resources is ever increasing, and Mississippi must be prepared to meet the challenges of this new, dynamic environment. To compete, Mississippi needs a more highly educated citizenry, a productive workforce, and an innovative business community. Thirty years ago, the United States boasted 34 percent of the world's enrollment in higher education; today, it has only 14 percent, and the percentage is falling. Moreover, the United States is one of only two nations where younger workers (aged 25-34) are less educated than older workers (45-54). Mississippi's universities are trying to combat this negative trend by sending 14,000 baccalaureate degree holders into the workforce each year. Mississippi's universities also impact the state's worker productivity by driving knowledge stocks and the ability to apply knowledge in a given field. Finally, Mississippi's universities drive business innovation and economic development through their research and development of new technologies with commercial applications.

2 - Universities Prepare State to Meet Job Market Demands
(Top 15 Ways Mississippi's Universities Benefit the State)
Mississippi's universities prepare the state to meet the job market demands by sending into the workforce approximately 14,000 quality, baccalaureate degree holders each year. According to U.S. Department of Labor statistics, by 2014, the workforce will have openings for 9 million more degree holders than will be available. There will be 3 million surplus openings for 2-year degree holders, 4 million for 4-year degree holders, and 2 million for advanced degree holders. Of the nation's 30 fastest-growing jobs, 70 percent require a postsecondary degree or other training beyond high school. Moreover, between 1998 and 2008, the growth rate for jobs requiring a college degree was predicted to be about 21.5 percent, which is nearly twice the growth rate (11.1 percent) predicted for jobs requiring less than a college degree. Mississippi's university system is committed to ensuring access to and success in college for all students in order to raise the educational attainment level in Mississippi.

1 - Universities Raise the Quality of Life for all Mississippians
(Top 15 Ways Universities Benefit Mississippi) Over the last three months, the System Review has counted down the top 15 ways that universities benefit Mississippi. Arguably the greatest benefit of universities is the increased earning power of the individual graduate. Mississippi's public universities graduate approximately 14,000 students each year. In a lifetime, those university graduates will earn nearly $1 million more than their friends and family members with only a high school diploma. On average, earnings increase with education, regardless of race or gender. In 2005, the typical full-time year-round worker with a bachelor's degree earned $50,900 per year, which is about 62 percent more than the $31,500 earned by workers with only a high school diploma, 37 percent more than the $37,100 earned by those with some college but no degree, and 25 percent more than the $40,600 earned by those with associate degrees. With higher salaries, university graduates have more disposable income, and generally experience a higher quality of life. Read the other ways that Mississippi's public universities benefit the state in archived issues of the System Review.

Contact Information
3825 Ridgewood Road
Jackson, Mississippi 39211
Fax: 601.432.7039

Dr. Jim Borsig
Assistant Commissioner of Governmental Relations
Telephone: 601.432.7039



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