by jamesc 2/28/2014 10:17:38 AM --
NORFOLK – New data confirms that Northeast Community College has a major economic impact on the 20 counties in its service area.
A study by Economic Modeling Specialists International (EMSI) for the College shows that Northeast Community College adds $232.5 million annually to its 20-county service area’s economy. The study took into account $200 million in student productivity, plus the combined effects of spending each year by the College which totals $31.9 million, and by students who relocate to Northeast’s service area which has a $561,400 impact. The total effect for Fiscal Year 2012-13 amounted to approximately 3.8% of the Northeast service area’s total Gross Regional Product.
“Education, skills training, and career enhancement is considered to be the greatest economic impact that Northeast Community College provides,” said Julie Melnick, director of institutional research at Northeast. “Because of skills acquired through Northeast, students are earning higher incomes. At the same time, their increased productivity raises business profits, which translates into higher incomes and increased revenues as those dollars are spent in the region.”
The average income at the career midpoint of a person with an associate’s degree is $28,200, which is $6,900 more than someone with a high school diploma. This translates into associate’s degree completers earning $902,400 over their working lifetime, an increase of $220,800 compared to someone with a high school diploma.
Students also realize a 22.4 percent rate of return on their educational investment at Northeast and recover all costs, including tuition, fees, and forgone wages, in 5.9 years. On average, Northeast’s 2012-13 students will receive a cumulative $3.70 in higher future income for every $1 they invest in their education.
“Northeast provides an educational environment for students to learn the skills they need to gain and maintain productive employment,” said Dr. Michael Chipps, president of Northeast. “The recent announcement that Tejas Tubular will be locating in Northeast Nebraska is a prime example of how Northeast Community College plays a significant role in assisting new industries and new employees in meeting educational and workforce training requirements. It is but one example of how everyone in the 20 county region benefits from what the College has to offer.”
EMSI reports that taxpayers see the value from the higher earnings of Northeast students. Over the student’s working lives, state and local governments will have collected a present value of $51.3 million in the form of higher tax receipts. Similarly, Northeast students who achieve higher levels of education are statistically less likely to have poor health habits, commit crimes, or claim welfare or unemployment benefits. The improved lifestyles of students result in a reduced demand for government-supported services with a present value of $5 million in savings.
From the taxpayer’s perspective, state and local governments see a rate of return of 6.4 percent relative to their support of Northeast Community College. This return compares favorably with the 1.1% discount rate used by the federal government to appraise long-term investments.
Since 2002, EMSI of Moscow, ID, has conducted more than 1,200 economic impact studies for educational institutions in the U.S. and internationally. Its methods employ a conservative methodology and follow standard practices using only the most recognized indicators of investment effectiveness and economic impact.
Chipps said Northeast Community College creates value in numerous ways. “In addition to meeting our student’s educational needs, our College creates many employment opportunities on our four campuses in Norfolk, O’Neill, South Sioux City and West Point. The EMSI report speaks to the importance of Northeast’s presence by reflecting $27.5 million in annual payroll for faculty and staff, along with the economic impact of Northeast on the local business community and return on investment generated by the College for its key stakeholder groups: students, taxpayers, and society.”
“Northeast Community College is more than just an academic institution. It is a key player in creating value through increasing economic opportunities across its 20-county service area and beyond,” Chipps said.