economic contribution of. investment analysis economic growth analysis study consists of…

Economic Contribution of

Salt Lake Community College

Investment analysisEconomic growth

analysis

Study consists of…

Investment Analysis

• Student perspective

• Social perspective

• Taxpayer perspective

• Benefits—present value of increased future income

• Costs—tuition and fees, books and supplies, and opportunity cost of time

INVESTMENT ANALYSIS: Student Perspective

$333.0

$1,816.3

Cost Benefit

benefit/cost ratio

INVESTMENT ANALYSIS: Student Perspective

SLCC student benefits and costs, $ millions

5.5

return on investment

INVESTMENT ANALYSIS: Student Perspective

15.4%

INVESTMENT ANALYSIS: Student Perspective

$21,000

$32,500

$44,000

$63,100

< HS HS Associate's Bachelor's

Average income in Salt Lake County at career midpoint

•Added income—higher earnings and increased property income

•Social savings—reduced medical costs, lower crime rates, and reduced income assistance

INVESTMENT ANALYSIS: Social Perspective

INVESTMENT ANALYSIS: Social Perspective

Added income, $153.7

Social savings,

$3.5

Annual benefits to Utah public due to SLCC, $ millions

•Benefits—added tax revenue and avoided costs to government

•Costs—state and local government funding

INVESTMENT ANALYSIS: Taxpayer Perspective

$69.9

$171.2

Cost Benefit

2.4benefit/cost

ratio

INVESTMENT ANALYSIS: Taxpayer Perspective

Benefits and costs to state and local taxpayers due to SLCC, $ millions

8.0%return on investment

INVESTMENT ANALYSIS: Taxpayer Perspective

Economic Growth Analysis

• College operations

• Student spending

• Student productivity

• Direct income of faculty and staff

• Multiplier effects due to employee and college spending

• Adjustment for alternative uses of funds

ECONOMIC GROWTH: College Operations Effect

$90.4 millionnet contribution to county income

ECONOMIC GROWTH: College Operations Effect

• Spending by students from outside the county

• Associated multiplier effects

ECONOMIC GROWTH: Student Spending Effect

$22.7 millionnet contribution to county income

ECONOMIC GROWTH: Student Spending Effect

•Higher income of former students who remain active in the county workforce

•Associated multiplier effects

ECONOMIC GROWTH: Student Productivity Effect

ECONOMIC GROWTH: Student Productivity Effect

net contribution to county income$840 million

So what does all this mean?

•Enriches the lives of students

• Increases students’ lifetime income

•Generates government revenue

•Reduces the demand for social services

•Contributes to the growth of the economy

Salt Lake Community College