Victor Valley College - Analysis of the Economic Impact and Return on Investment of Education
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This document summarizes an economic impact study of Victor Valley College conducted by Emsi. It finds that in FY 2016-17: - VVC added $627.5 million in income to the regional economy and supported 8,426 jobs. For every $1 spent by the college, $16.80 was added to the regional economy. - Impacts came from VVC's operations and construction spending, student spending, and increased alumni earnings. The highest impacts were in health care, government, and professional services. - Students saw a 17.9% return on their investment through higher future earnings. Taxpayers saw a 7.6% return through increased tax revenues and public sector savings.
Victor Valley College - Analysis of the Economic Impact and Return on Investment of Education
- 1. Analysis of the Economic Impact and Return on Investment of Education The economic v alue of Victor Valley College FY 2016-17
- 2. A D V ISOR S IN L A B OR MA R K ET IN F OR MA TION Years working with community colleges 2017 Aspen Prize finalists are Emsi customers Students used Emsis career pathways tools last year Of U.S. community colleges have used Emsis economic impact studies Emsi & Community College 15+ 1/ 2+ 1.2M 6 of 10
- 3. WHAT IS AN Measures how an event or institution affects the local economy. WHAT IS AN A comparison of the costs and benefits to determine the return on investment. ECONOMIC IMPACTANALYSIS? INVESTMENTANALYSIS?
- 4. T O T A L G R O S S R E G I O N A L P R O D U C T ( G R P ) T O T A L J O B S A V E R A G E E A R N I N G S B Y E D U C A T I O N L E V E L A T C A R E E R M I D P O I N T $18,700 $23,900 $28,200 $32,600 $47,400 < HS HS Certificate Associate Bac helor's $85.1 billion 1,011,106 About the Victor Valley Community College District
- 5. C R E D I T S T U D E N T S S E R V E D N O N - C R E D I T S T U D E N T S S E R V E D E M P L O Y E E S T O T A L P A Y R O L L / B E N E F I T S S T U D E N T S F R O M O U T S I D E T H E R E G I O N T O T A L T U I T I O N R E V E N U E VVC in FY 2016-17 16,691 481 765 $58.4 million 6% $3.5 million
- 6. OVERVIEW OF RESULTS T O T A L I N C O M E A D D E D I N T H E R E G I O N T O T A L J O B S S U P P O R T E D I N T H E R E G I O N R A T E O F R E T U R N T O S T U D E N T S R A T E O F R E T U R N T O T A X P A Y E R S O F R E G I O N S G R P $627.5 million 8,426 0.7% 17.9% 7.6%
- 7. Operations Spending Impact College payroll and other spending + ripple effects A D D E D R E G I O N A L I N C O M E J O B S S U P P O R T E D I N T H E R E G I O N or All results measured in income, not sales. Results are net of counterfactual scenarios. Construction Spending Impact College construction expenditures + ripple effects A D D E D R E G I O N A L I N C O M E J O B S S U P P O R T E D I N T H E R E G I O N or $97.6 million 1,329 $3 million 38
- 8. Student Spending Impact Relocated/Retained student spending + ripple effects A D D E D R E G I O N A L I N C O M E J O B S S U P P O R T E D I N T H E R E G I O N or Alumni Impact Higher alumni earnings and increased business profit + ripple effects A D D E D R E G I O N A L I N C O M E J O B S S U P P O R T E D I N T H E R E G I O N or All results measured in income, not sales. Results are net of counterfactual scenarios. $36.8 million 580 $490.1 million 6,479
- 9. Total Impact I M P A C T S B Y I N D U S T R Y T O T A L I N C O M E A D D E D I N T H E R E G I O N T O T A L J O B S S U P P O R T E D I N T H E R E G I O N O F R E G I O N S G R P or or J O B S T H E R E G I O N 1 out of every 120 4,946 842 1,095 1,542 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 JOBS Health Care & Social Assistance Government, Non-Educ ation Professional & Technical Services All Other 0.7% $627.5 million 8,426
- 10. Student Perspective Benefit: Higher future earnings B E N E F I T / C O S T R A T I O R A T E O F R E T U R N Future benefits are discounted to the present. Cost: Tuition, supplies, opportunity cost Taxpayer Perspective Benefit: Future tax revenue, government savings B E N E F I T / C O S T R A T I O R A T E O F R E T U R N Cost: State and local funding Social Perspective Benefit: Future earnings, tax revenue, private savings B E N E F I T / C O S T R A T I O R A T E O F R E T U R N Cost: Student and all college costs $415.6 million $70.5 million 5.9 17.9% $238.6 million $77.7 million 3.1 7.6% $3.2 billion $191.1 million N/ A 16.8
- 11. Next Steps Send the executive summary to local legislators. Use social media to broadcast student returns to prospective students and parents. Share industry impacts with local business partners. Leverage impacts for proposals, grant writing, & strategic planning. Use campus fliers, newsletters, & websites to publish results. Share results with local media. Emsis Press Packet Ongoing presentations from your Emsi economist Email/call us anytime How can Emsi help?
- 12. Share Your Results Combine your results with other institutional highlights to create a fact sheet. Include your results in your periodic publications. Create a web page that includes written highlights, animations, and videos.
- 13. Share Your Results Create a press release and share with your state and local media. Use your study to help secure additional funding. Use social media to share your investment results with prospective students.
- 14. The results of this study were prepared by F O R A C O P Y O F T H E R E P O R T, P L E A S E C O N T A C T T H E C O L L E G E .
Editor's Notes
- #3: We have completed over 1,700 EIS across US, UK, and Canada (with over 83% done for US clients)