september 10, 2015 economic impact of scotland’s colleges
TRANSCRIPT
September 10, 2015
Economic Impact of Scotland’s Colleges
Background to set the stage: our “credentials”11
on the agenda…
22 Differences in economic impact studies—understand the context for the economic impact results and what they mean
33 Results: A broad overview of the results followed by Q & A
“Colleges Scotland is the collective voice of the college sector in Scotland; striving to create cohesive and sustainable partnerships, demonstrate positive impact, acting as representatives, and campaigning for the sector”
Colleges Scotland mission statement
background
Economic impact studies:
•1,500 + US, UK, Canada, Australia
•UK: 130 studies, of which 22 colleges have refreshed more than once, 1 university study + regional aggregates
differences in impact studies
introduction to results
22
11
33
44
Total revenue: £658 million
Served approximately 270,000 learners 2013/14
Aggregate study, 26 FE colleges
Demographics: 48% male, 52% female, 85% white, 15% minority, average age 17 years
the EMSI study
added workforce
skills
College and staffexpenditures
learner taxpayersociety
Scottish impact (region)
Stakeholder investment
Two components
Scotland’s GDP £ 170 billion
Objective: measure how much of GDP is attributable to the colleges
NET LEARNER
SPENDINGADDED
WORKFORCE SKILLS
STAFF AND COLLEGE
EXPENDITURES
impacts of Scotland’s Colleges measured against GDP
results: total impact
Staff and college expenditure impacts
£ 700.8M
Added workforce skills impacts
£ 14.2B
8.8% of all Scottish income + 593K average wage jobs£14.9B/yeartotal £14.9B/year
++++++++
Average income at career midpoint and unemployment rates
£17,000£18,000
£20,000£23,000
Entry SVQ 1 SVQ 2 SVQ 3
results: learner perspective
>SVQ 3
£34,000
15%
12%
11%
8%
5%
results: investment analysis
IRR = 14.8%
learner perspective• tally up higher earnings
• tally up tuition + opportunity cost of time
social perspective (broad)• tally up higher earnings + avoided costs
• tally up all costs to society
B/C = 6.3
IRR = 16.4%
B/C = 6.3
taxpayer perspective (narrow)• tally up increased tax collections + avoided costs
• tally up taxpayer investments
B/C = 5.7
IRR = 15.6%
create new income and jobs in the country by stimulating regional economies directly and indirectly through added workforce skills
in summary… Scotland’s Colleges collectively…
✓
✓✓✓ generate economic benefits far beyond taxpayer costs
save £ millions in social costs every year and improve the quality of life
greatly increase the lifetime earnings of learners
Moving the needle in the future….Moving the needle in the future….
