New study shows Carleton College and St. Olaf College add $289.9 million to the local economy in Northfield

A new community and economic impact study commissioned by Carleton and St. Olaf colleges found that the two higher education institutions:

• contribute $289.9 million toward the local Northfield–area economy,
• support more than 2,000 jobs, and
• generate $13.4 million in local and state taxes.

Both Carleton and St. Olaf are among the top 10 taxpayers in the city of Northfield in 2023 — at sixth and eighth in property taxes, respectively. This ranking includes the annual gift from both colleges to the city; in 2024, Carleton and St. Olaf contributed $170,000 — $85,000 each — for the respected annual donation to the city. Carleton and St. Olaf also are the first- and second-highest property taxpayers among nonprofit organizations in the city. Additionally, between the two colleges, more than $1 million annually is spent for essential municipal services including sewer, water, and waste removal provided by or contracted with the city.

The colleges annually sponsor community organizations and events such as the Northfield Arts Guild, Northfield Shares, Winter Walk, and the Defeat of Jesse James Days (DJJD) — including the beloved tradition of first-year St. Olaf choir students singing in the DJJD Parade. Additionally, Carleton is contributing $2 million in support of the Reimagine Northfield High School project.

In 2024, 481 faculty and staff from Carleton and 440 faculty and staff from St. Olaf called Northfield, Dundas, Dennison, and Webster their home. They are active members of the community who shop downtown, volunteer with local organizations and nonprofits, enroll their children in the Northfield School District, and contribute to state and local property taxes. 

“Since the 1860s, the colleges have been vital to Northfield’s identity and prosperity. We are fortunate to have two elite liberal arts institutions whose students, employees, and alumni contribute to our economy and our quality of life in countless ways,” said Mayor Erica Zweifel. “As Northfield grows and evolves, it is important that we continue to nurture this unique relationship — finding new opportunities to align our strengths, deepen our partnerships, and build a thriving future together.”

The economic and community impact study was conducted by the national research firm Parker Strategy Group. They measured the direct and indirect impact that Carleton and St. Olaf colleges have on job creation, economic growth, and community development in the local community. The area they studied was defined by the Northfield Public School District boundary, and payroll and consumption tax data was collected from the 2022–23 fiscal years. 

Read more about each colleges’ individual economic and community impact from the study:

Carleton College

• $127 million in generated economic impact through direct, indirect, and induced spending in Northfield stimulating local retail, service, and housing sectors.
• 930 full-time and part-time jobs supported and sustained by Carleton across Northfield, both through direct employment and those created within local businesses.
• $6.1 million in local and state taxes generated including payroll taxes, sales taxes, and unemployment taxes in Northfield.
• $198,407 paid in property taxes.

“Given how much higher education is in the news right now, it’s a really important time to both have and share data on economic and community impact,” said Carleton Vice President and Treasurer Eric Runestad. “Having two colleges in one small town is uncommon, and this data tells a timely and powerful story about the deep connections between the health of our colleges and the health of our community.”

Carleton students engage with their Northfield neighbors in many ways. During the 2023–24 academic year, 73 percent of Carleton students engaged with volunteer programs, internships, work study, and nonprofits in the local community. In total, Carleton students contributed 51,594 hours to local communities through programs and projects supported by Carleton’s Center for Community and Civic Engagement (CCCE). The College’s annual garage sale, Lighten Up! earned $35,000 to benefit Project Friendship, the local Special Olympics chapter, and the Northfield Union of Youth. Another annual Carleton program, Empty Bowls — which features hundreds of handmade ceramic dishes created by Carleton students, faculty, and staff alongside homemade soup — raised $30,000 for the Community Action Center. Carleton also offers hundreds of free athletic, art, and musical offerings throughout the year, and in partnership with the State of Minnesota and City of Northfield, a new section of the Mill Towns Trail is under construction along the eastern edge of the Carleton Arboretum, scheduled for completion by the end of 2025.

St. Olaf College

• $162.9 million in generated economic impact through direct, indirect, and induced spending in Northfield stimulating local retail, service, and housing sectors.
• 1,071 full-time and part-time jobs supported and sustained by St. Olaf across Northfield, both through direct employment and those created within local businesses.
• $7.3 million in local and state taxes generated including payroll taxes, sales taxes, and unemployment taxes in Northfield.
• $647,146 annual expenditure for essential municipal services including sewer, water, and waste removal provided by or contracted with the city.

“St. Olaf is proud to be a part of the Northfield community and a neighbor to many of the residents, local businesses, and nonprofits that enrich the city,” said St. Olaf Vice President for Business and Finance and Chief Financial Officer Mike Berthelsen. “We look forward to continuing to be an active neighbor and partner within our community.”

Outside of the community study, students from St. Olaf regularly participate in internships, volunteer with local nonprofits and community groups, and engage with the community through class projects and the academic civic engagement program. During the 2023–24 academic year, 845 students learned and worked alongside Northfielders as EMTs, nurses, teachers, and more through the college’s Academic Civic Engagement program. Members of the Northfield community also come to campus to attend athletic, art, and musical offerings throughout the year, which are almost always free and open to the public.

Carleton’s and St. Olaf’s community and economic impact study is connected to a larger effort by the Minnesota Private College Council to measure the statewide impact of its 18 member institutions. The council-wide Parker Strategy Group study shows that the 18 private colleges contributed $4.5 billion to the statewide economy in fiscal year 2023 through operations, student presence, and visitor activity. They supported and sustained 34,687 jobs as a result of daily expenditures by the colleges and universities and spending by students and visitors. Combined, they generated $253.6 million in local and state tax revenue. Additionally, students, staff and faculty give back to the community an estimated $51.7 million annually, which includes $8.9 million in philanthropic contributions and 1.2 million volunteer hours each year — valued at approximately $42.8 million.