Download - Presenting the Socioeconomic Benefits of
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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
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Components of the Study
Economic Development
Investment Analysis
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Beginning with the Economic Growth Analysis
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College operations effect
Student spending effect
Past student productivity effect
What we measure…
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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• Any monies withdrawn from the state economy in support of the colleges
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Annual Contribution
in state income(After adjusting for alternative use of funds)
College Operations
$435,328,800
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Student Spending
• Measures income generated by spending of students from outside the State plus…
• Associated multiplier effects
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Annual Contribution
$1,138,300
in state income
Student Spending
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Past Student Productivity
• Measures the higher income of students still active in the workforce plus…
• The associated multiplier effects due to past student productivity
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Annual Contribution
in state income
Past Student Productivity
$11,137,692,100
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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%
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Continuing with the
Investment Analysis
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Student Benefits
Social Benefits
Taxpayer Benefits
What we measure…
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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
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Rate of Return
Student Perspective
Students receive an annual rate of return of 20.9% on their educational investment.
20.9%
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Benefit/Cost Ratio
Student Perspective
5.0
For every $1 invested in education, students receive a cumulative return of $5.00.
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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.
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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.
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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
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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
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Rate of Return
Taxpayer Perspective
Taxpayers receive an annual rate of return of 9.8% on their educational investment.
9.8%
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Benefit/Cost Ratio
Taxpayer Perspective
For every $1 invested in education, taxpayers receive a cumulative return of $2.00.
2.0
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So what does all this mean?
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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.