Polytechnic has key role in provincial economy

Everyone in society benefits from students’ education, says Larry Rosia.

As taxpayers, we want to know that our hard-earned dollars are wisely spent. A new economic analysis shows that from a taxpayer perspective, Saskatchewan Polytechnic is a good investment.

The analysis by U.s.-based Emsi, which conducts economic impact studies and provides labour market data to educational institutions in Canada, the U.S. and internationally, confirms that taxpayers will see a 12.4 per cent annual internal rate of return for every tax dollar spent to support Sask Polytech.

There are several reasons for this. Chief among them is that the institution generates more in tax revenue than it takes. These benefits to taxpayers consist primarily of taxes that the provincial government will collect from the added revenue created in Saskatchewan. As Sask Polytech students earn more, they will make higher tax payments throughout their working lives. Companies that employ these students will also make higher tax payments as they increase their output and purchases of goods and services.

Benefits to taxpayers also consist of savings generated by the improved lifestyles of Sask Polytech students and the corresponding reduced government services, according to Emsi.

The education received by students generates savings in three main categories: health care, crime reduction and prevention, and income assistance.

Emsi’s analysis finds other effects as well, and that Sask Polytech plays a vital role in Saskatchewan’s economy. Some key findings:

One out of every 24 jobs in Saskatchewan is supported by the activities of Sask Polytech,

its students and alumni.

Sask Polytech adds $2.2 billion in income to the provincial economy, which is approximately 3.1 per cent of Saskatchewan’s total gross provincial product (GPP). That is a larger contribution than the utilities industry.

The average diploma graduate from Sask Polytech will see an increase in earnings of $13,300 annually, compared to a person with a high school diploma or equivalent, working in Saskatchewan. Over his or her lifetime, a Sask Polytech graduate will earn $505,000 more than someone who holds a high school diploma or equivalent.

With campuses in Moose Jaw, Prince Albert, Regina and Saskatoon, Sask Polytech also adds economic value to Saskatchewan as an employer and as a large-scale buyer of goods and services, according to Emsi.

Emsi’s analysis contains a wealth of other important data demonstrating the positive impact Sask Polytech has on Saskatchewan’s economy.

This is the first economic impact study the institution has undertaken since the transformation to a polytechnic, with an emphasis on applied research and work-integrated learning, more than five years ago.

The report’s executive summary can be found at saskpolytech.ca/economicimpact.

Those who read it will discover something I like to point out whenever I have the opportunity: Saskatchewan runs on Sask Polytech. Dr. Larry Rosia is the president and CEO of Saskatchewan Polytechnic.

The institution generates more in tax revenue than it takes.