Students see a 15.4% rate of return on their investment in Texas community colleges, which contribute $1.6 billion to the Texas economy each year. Those are two of the main findings in “Moving Texas Forward,” a statewide EMSI Economic Impact Study done in conjunction with the Texas Association of Community Colleges (TACC).
(Austin, Texas 11/12/2010) The newly released study Moving Texas Forward documents the vital role Community Colleges play in the economic future of Texas and the lives of the 730,000 students they enroll. The report concludes that Texas taxpayers see a rate of return of 6.9% on their investment in Texas Community Colleges and the Texas economy sees a total annual contribution of $1.6 billion from these institutions. Additionally, the report ﬁnds that every dollar of state and local tax money invested in the colleges today yields a cumulative of $28.00 in beneﬁts that accrue to all Texas residents as added income and avoided social costs.
The study ﬁnds meaningful economic impacts for students at Texas Community Colleges. Students see a rate of return on their educational investment of 15.2%. For every dollar a student invests in their education they receive a cumulative $5.20 over their working careers. Compared to someone with a high school diploma, associateʼs degree graduates earn $12,200 more per year, on average, over the course of a working lifetime
Dr. Richard Rhodes, TACC Chair and President of El Paso Community College said, “Community Colleges in Texas are pleased that this report conﬁrms the positive effect we have on the state of Texas.” He added, “We work each day to move our students and the State of Texas forward.”
Dr. Reynaldo Garcia, TACC President and CEO said, “As the State of Texas faces a looming budget shortfall, there is clear concern that additional cuts to these critical institutions could reduce their ability to impact the stateʼs economy.” He continued, “Our institutions are essential to the economy of Texas today and for the future. We need the state to remain committed to investing in Community Colleges or Texas will lose economic ground.” Dr. Rhodes added, “Our colleges are drivers of the stateʼs economy and must continue to have state funding that allows us to open economic opportunities for students and to move Texas towards a brighter future.”
In this study, Economic Modeling Specialists, Inc (EMSI) applied a comprehensive model designed to quantify the economic beneﬁts of community and technical colleges and translate these into common sense beneﬁt/cost and investment terms. The study includes two major analyses – Investment Returns and Economic Growth Analysis.
The Texas Association of Community Colleges (TACC) represents all 50 community college districts in Texas and is located in Austin, Texas.
For more on EMSI’s EIS, see here.