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Impact of College Operations on Stakeholders: Income, Benefits, and Costs Analysis

This study examines the impact of college operations, student spending, and alumni on various stakeholders. It calculates the initial sales generated in the region, derives sales created by multiplier effects, and converts results to income impact. The study also analyzes benefits and costs from the perspectives of students, society, and taxpayers, determining net present value, benefit-cost ratio, and rate of return. The study highlights the creation of new income, job support, skilled workforce sustainability, increased lifetime income for students, expanded economic base, and improved quality of life.

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Impact of College Operations on Stakeholders: Income, Benefits, and Costs Analysis

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  1. impact of COLLEGE OPERATIONS impact of STUDENT SPENDING impact of ALUMNI

  2. Calculate initial sales generated in region • Derive sales created by multiplier effects • Convert results to income

  3. impact of COLLEGE OPERATIONS Income created by the spending of the college and its employees College payroll

  4. impact of STUDENT SPENDING Income created by the spending of businesses patronized by students Income created by the spending of out-of-region students

  5. impact of ALUMNI Income created by the spending of students and businesses Higher wages of former students + increased output of businesses

  6. STUDENT perspective SOCIAL perspective TAXPAYER perspective

  7. Calculate benefits and coststo stakeholders • Derive the future benefits stream • Discount resultsto current-year dollars • Determine net present value, benefit-cost ratio, and rate of return

  8. 4.0 STUDENT perspective Present value of benefits Present value of costs Net present value (benefits minus costs) Benefit-cost ratio (benefits divided by costs) Rate of return Benefits= Greater job opportunities + higher lifetime income Costs = Tuition and fees + books and supplies + forgone time and money

  9. $2.1 billion SOCIAL perspective Present value of benefits Present value of costs Net present value (benefits minus costs) Benefit-cost ratio (benefits divided by costs) Benefits = Expanded economic base + savings related to improved health, reduced crime, and reduced unemployment Costs = All college expenditures and all student expenditures and costs

  10. TAXPAYER perspective Present value of benefits Present value of costs Net present value (benefits minus costs) Benefit-cost ratio (benefits divided by costs) Rate of return Benefits =Added tax revenues + reduced demand for government services Costs = State and local government funding

  11. Creates new incomein the region • Supports local jobs • Sustains a skilled workforce • Increases students’ lifetime income • Expands thestate’s economic base • Improves quality of life

  12. The results of this study were prepared by For a copy of the report, please contact the college.

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