LOGAN — A new policy brief from the University of Utah’s Kem C. Gardner Policy Institute highlights the far-reaching benefits of higher education in Utah, emphasizing its role in economic growth, workforce development, and social mobility. The report underscores the particularly strong impact of institutions like Utah State University in Logan, where the university serves as a major economic driver for Northern Utah and Southeast Idaho.
Utah ranks third nationally in educational attainment, with 61.5% of adults ages 25 to 64 holding a postsecondary credential. The report finds that individuals with higher education degrees earn significantly more, with median annual earnings rising from $37,000 for those without a high school diploma to $92,000 for those with a graduate degree.
“Five years after graduation, Utah System of Higher Education (USHE) graduates earn 10% to 64% more than their peers who did not complete a degree,” the report states.
Economic and Workforce Benefits
Higher education contributes heavily to Utah’s economy, supporting an estimated 132,000 jobs and generating $12.1 billion in GDP statewide. Utah’s research universities, including USU and the University of Utah, collectively bring in over $1 billion in research funding each year, fostering innovation and business development.
Locally, Utah State University plays a crucial role in Logan’s economic landscape. As one of the largest employers in Cache Valley, USU provides thousands of jobs, both directly and indirectly, while supporting local businesses and infrastructure development. The steady flow of students, faculty, and visitors boosts demand for housing, retail, and services, strengthening the region’s economy.
USU also plays a critical role in workforce development, ensuring local industries have access to a well-trained labor pool. Many graduates enter fields like agriculture, engineering, and business, directly benefiting Cache Valley’s key economic sectors. Additionally, through partnerships with local businesses, the university offers internships, research opportunities, and job placements, helping students transition into the workforce.
Social and Community Impact
Beyond economic benefits, higher education institutions foster civic engagement and public welfare. The report highlights that college graduates are more likely to vote, volunteer, and participate in community activities. USU has a long-standing tradition of service, supporting local nonprofits, schools, and public health initiatives through Extension Services and student engagement programs.
The university also enriches the region’s cultural life, bringing concerts, theater performances, art exhibits, and guest lectures to Logan. Additionally, USU’s athletic programs generate tourism revenue, boosting local businesses and fostering community pride.
Long-Term Growth and Stability
The presence of USU helps Cache Valley remain economically resilient, even during downturns, as universities provide a stable foundation for employment and investment. By attracting and retaining students, faculty, and businesses, USU prevents “brain drain” and strengthens the local economy for future generations.
With Utah’s economy continuing to expand, the report suggests that sustained investment in higher education will yield long-term returns, both for individual graduates and for communities like Logan that benefit from thriving academic institutions.
Budgetary Challenges Ahead
Despite these benefits, Utah State University is facing significant financial challenges. The Utah Legislature approved a 1.5% budget cut during the 2024 legislative session, resulting in a $4.8 million reduction for USU, effective July 1, 2025. Additionally, the recently passed HB 265: Higher Education Strategic Reinvestment mandates a further budget reduction of approximately $12.5 million.
In response, USU plans to implement a university-wide Voluntary Separation Incentive Program (VSIP) before considering other measures, including potential layoffs and operational reductions. The VSIP will open on March 17 and close on May 2, 2025, with separations effective July 1, 2025.
Interim President Alan L. Smith acknowledged the difficulty of these decisions, stating, “Developing and implementing the strategic reinvestment plan will mean difficult decisions and significant changes in some areas of our university. I well understand the concern and anxiety this raises and assure you that we are centering the long-term health of our institution.”