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EMSI/CCbenefits, Inc. 1187 Alturas Dr. Moscow, ID 83843 (866) 999-3674. Presenting the Socioeconomic Benefits of. Maryland’s Community Colleges. Components of the Study. Economic Development Investment Analysis. Beginning with the. Economic Growth Analysis. What we measure…. - PowerPoint PPT Presentation
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Presenting the Socioeconomic Benefits of
EMSI/CCbenefits, Inc.
1187 Alturas Dr.
Moscow, ID 83843
(866) 999-3674
Maryland’s Community Colleges
Components of the Study
Economic Development
Investment Analysis
Beginning with the Economic Growth Analysis
College operations effect
Student spending effect
Past student productivity effect
What we measure…
College Operations Spending
• Includes direct income of faculty and staff plus…
• The indirect income due to associated multiplier effects minus…
• Any monies withdrawn from the state economy in support of the colleges
Annual Contribution
in state income(After adjusting for alternative use of funds)
College Operations
$435,328,800
Student Spending
• Measures income generated by spending of students from outside the State plus…
• Associated multiplier effects
Annual Contribution
$1,138,300
in state income
Student Spending
Past Student Productivity
• Measures the higher income of students still active in the workforce plus…
• The associated multiplier effects due to past student productivity
Annual Contribution
in state income
Past Student Productivity
$11,137,692,100
Total Regional Impact
Total State Income $257,900,358,300 100%
College Operations Effect $435,328,800 <1%
Student Spending Effect $1,138,300 <1%
Past Student Productivity Effect $11,137,692,100 4.3%
Total Effect $11,574,159,200 4.5%
Continuing with the
Investment Analysis
Student Benefits
Social Benefits
Taxpayer Benefits
What we measure…
Student Benefits
Student benefits consist of the present value of increased future income
These are measured against student costs - tuition paid and the opportunity cost of time
Student Benefits $11,540,217,503
Student Costs $2,233,381,904
Rate of Return
Student Perspective
Students receive an annual rate of return of 20.9% on their educational investment.
20.9%
Benefit/Cost Ratio
Student Perspective
5.0
For every $1 invested in education, students receive a cumulative return of $5.00.
Student Benefits
An Associate Degree will increase earnings to $47,900 per year, 39% more than the average HS graduate.
An Associate Degree graduate will earn $438,500 more than someone with a HS diploma or GED over his or her future career.
Social Benefits
Higher education is statistically correlated with the improved lifestyles of the students
This translates into medical, crime and welfare/unemployment savings to the taxpayer.
Social Benefits
Improved student lifestyles translate into $50.3 million in avoided costs to the
public each year.
Medical Savings $24,028,900
Crime Savings $19,608,800 = $50,303,700Welfare/Unempl. Savings $6,666,000
Taxpayer Benefits
Taxpayer benefits consist of the higher incomes of the students and avoided costs to the government
These are measured against taxpayer costs – state and local taxes and appropriations
Taxpayer Benefits $1,055,043,600
Taxpayer Costs $518,934,400
Rate of Return
Taxpayer Perspective
Taxpayers receive an annual rate of return of 9.8% on their educational investment.
9.8%
Benefit/Cost Ratio
Taxpayer Perspective
For every $1 invested in education, taxpayers receive a cumulative return of $2.00.
2.0
So what does all this mean?
Maryland’s Community Colleges…
Enrich the lives of learners;
Increase students’ lifetime income;
Generate government revenue;
Reduce the demand for social services;
Contribute to the growth of the economy.