Where Value Meets Values: The Economic Impact of Community Colleges: Analysis...

“America’s community colleges have created value in many ways. With a wide range of program offerings, community colleges have played a key role in helping students achieve their individual potential and develop the skills they need in order to have a fulfilling and prosperous career.… These social and employment-related benefits have a positive influence on the health and well-being of individuals…. The colleges’ program offerings have supported a range of industry sectors in the U.S. and supply employers with the skilled workers they need to make their businesses more productive. The expenditures of the colleges and their international students further supported the national economy through the output and employment generated by businesses. Lastly, and just as importantly, the benefits of community colleges extended as far as the national treasury in terms of increased tax receipts and decreased public sector costs” (p.6). (Abstractor: Author and Website Staff)

Full publication title: Where Value Meets Values: The Economic Impact of Community Colleges: Analysis of the Economic Impact and Return on Investment of Education

• "The enhanced skills and abilities of community college students bolster the output of U.S. employers, leading to higher income and a more robust economy. The accumulated contribution of former students who were employed in the U.S. workforce in 2012 amounted to $806.4 billion in added income in the national economy" (p.8). • "The total effect of America’s community colleges on the U.S. economy in 2012 was $809 billion, approximately equal to 5.4% of the nation’s Gross Domestic Product. Return on investment to students, society, and taxpayers" (p.8). • "Students paid a total of $18.7 billion to cover the cost of tuition, fees, books, and supplies at America’s community colleges in 2012. They also forwent $78.7 billion in earnings that they would have generated had they been working instead of learning" (p.8). • "For every dollar that federal, state, and local taxpayers spent on America’s community colleges in 2012, society as a whole will receive a cumulative value of $25.90 in benefits, for as long as the colleges’ 2012 students remain active in the U.S. workforce" (p.8). • "Dividing the benefits to taxpayers by the amount that they paid to support the colleges yields a 6.8 benefit-cost ratio, i.e., every $1 in costs returns $6.80 in benefits. In other words, taxpayers fully recover the cost of the original investment and also receive a return of $5.80 in addition to every dollar they paid. The average annual internal rate of return for taxpayers is 14.3%" (p.9). (Abstractor: Author)

• Last Updated:
• Created:
• Resource Publication Date: 2014
• Author(s): No individual author identified.
• Organizational Author(s): Economic Model Specialists Intl.
• Funding Source: Economic Model Specialists Intl.
• Resource Availability: Publicly available
• Posted by: Wesley Peterson
• Posted in: Workforce System Strategies