Presenting the Socioeconomic Benefits of

EMSI/CCbenefits, Inc. 1187 Alturas Dr. Moscow, ID 83843 (866) 999-3674 Presenting the Socioeconomic Benefits of Maryland’s Community Colleges

Components of the Study • Economic Development • Investment Analysis

Beginning with the Economic Growth Analysis

What we measure… • College operations effect • Student spending effect • Past student productivity effect

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direct income of faculty and staff plus… • The indirect income due to associated multiplier effects minus… • Any monies withdrawn from the state economy in support of the colleges

Annual Contribution College Operations in state income (After adjusting for alternative use of funds)

Student Spending • Measures income generated by spending of students from outside the State plus… • Associated multiplier effects

Annual Contribution Student Spending in state income

Past Student Productivity • Measures the higher income of students still active in the workforce plus… • The associated multiplier effects due to past student productivity

Annual Contribution Past Student Productivity in state income

Total Regional Impact

Continuing with the Investment Analysis

What we measure… • Student Benefits • Social Benefits • Taxpayer Benefits

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 Perspective Rate of Return Students receive an annual rate of return of 20.9% on their educational investment.

Student Perspective Benefit/Cost Ratio For every $1 invested in education, students receive a cumulative return of $5.00.

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.

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.

Social Benefits Improved student lifestyles translate into $50.3 millionin avoided costs to the public each year.

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 Perspective Rate of Return Taxpayers receive an annual rate of return of 9.8% on their educational investment.

Taxpayer Perspective Benefit/Cost Ratio For every $1 invested in education, taxpayers receive a cumulative return of $2.00.

So what does all this mean?

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. Maryland’s Community Colleges…

Presenting the Socioeconomic Benefits of