Economic Impact Study: SCC Plays Significant Role in Local Economy
A study of Southeast Community College's impact on its 15-county service area economy has produced favorable data for students, taxpayers, businesses and society in general.
The study was released by Economic Modeling Specialists Inc. of Moscow, Idaho, a leading provider of socioeconomic impact and strategic planning tools to community and technical colleges in the U.S. and Canada.
The study indicates that SCC plays a significant role in the local economy and is a sound investment from multiple perspectives. Students benefit from improved lifestyles and increased earnings. Taxpayers benefit from a larger economy and lower social costs.
Finally, the community as a whole benefits from increased job and investment opportunities, higher business revenues, greater availability of public funds, and an eased tax burden.
Dr. Jack Huck, SCC president, said the data lends credibility to the College's overall mission and objectives.
"For years, we've been able to prove, if you will, that what we're doing positively impacts students, taxpayers and the economy," Huck said. "This study, conducted by an impartial organization, lends further credence that Southeast Community College plays a significant positive role in our local economy. We're very pleased with the results of the study."
Following is a capsule look at each perspective.
SCC Helps Students Earn More
There were 34,173 credit and non-credit students attending the College in FY 2007. About 75 percent of those students stayed in the service area initially after they left SCC, contributing to the local economy.
Students see their annual income increase by $96 per year for every credit completed at SCC. The study proves that education increases lifetime income. The average annual income of a one-year certificate graduate at the mid-point of his or her career is $30,500, 82 percent more than someone without a high school diploma, and 16 percent more than a student with only a high school diploma. The average income at the career mid-point of someone with an Associate's degree is $35,800, or 113 percent more than someone without a high school diploma, and 36 percent more than a student with only a high school diploma.
"SCC is a tremendous value," Huck said. "Yes, we have been very affordable and continue to be very affordable. But you have to look at what students get when they complete their education with us. What you find is that students either find work in their field or transfer to a four-year school, and that's what it's all about."
Throughout his or her working career, the average SCC student's discounted lifetime income (future values expressed in present value terms) increases by $5.70 for every $1 invested (tuition, fees, books and wages given up to attend). Students enjoy an attractive 18 percent rate of return on their SCC educational investment, recovering all costs, including wages foregone, in eight years.
The study also indicates that education is a proven ticket to a better job. By 2019, it is anticipated that there will be about 114,500 new and replacement jobs available in SCC's 15-county service area economy. Approximately 80 percent of the jobs will require short-, moderate- or long-term training, previous work experience or an Associate's degree or postsecondary certificate.
SCC Helps State and Local Economy
SCC's 15-county service area economy received roughly $40.3 million in income due to the College's operations and capital spending in fiscal year 2007. That year, the service area workforce embodied 4.8 million credits of past and present SCC training.
SCC's past and present activities in the workforce accounted for $390.7 million in labor income, including wages, salaries and benefits, and $174.2 million in property income, which were dividends, interest and rent, of the service area economy in FY 2006-07. Altogether, SCC's service area received roughly $564.9 million in income due to the operations of the College and the increased productivity of its past and present students.
About 9 percent of SCC's students came from outside the service area, bringing with them money that would not have otherwise entered the local economy. The expenditures of SCC's out-of-area students generated roughly $2.7 million in added income in the SCC service area.
SCC activities encourage new business, assist existing business and create long-term economic growth. The College enhances worker skills and provides customized training to local businesses and industries.
SCC skills translate to higher earnings for students and increased output of businesses. The added income attributable to the accumulation of SCC credits in the workforce amounted to $521.9 million in FY 2007.
And the College raises consumer spending. In FY 2006-07, SCC employed 631 full-time and 1,693 part-time faculty and staff, with an annual payroll of $47.1 million. During that same year, SCC had an operating budget of $74.4 million, of which $61.6 million (83 percent) was spent in the service area.
SCC Leverages Taxpayer Dollars
The state and local community will see avoided social costs amounting to $8 per year for every credit earned by SCC students, including savings associated with improved health, lower crime costs, and reduced welfare and unemployment. This translates to $3.2 million in avoided costs to the state of Nebraska each year as long as students are in the workforce.
"We are very appreciative of the taxpayer dollars we receive to help fund the College," Huck said. "And I'm pleased to say that for the upcoming academic year (2009-2010), SCC actually reduced the amount of property taxes by about 10 percent. So not only are we using taxpayer dollars wisely, but we're also working diligently to reduce the burden on citizens who live in our 15-county district."
Students benefit from higher earnings, thereby expanding the tax base and reducing the burden on state and local taxpayers. In the aggregate, SCC students generate about $38.1 million annually in higher earnings due to their SCC education.
SCC adds more money to the state treasury than it takes out. State and local government allocated around $39.3 million in support of SCC in fiscal year 2007. For every $1 of this support, taxpayers see a cumulative return of $4 over the course of student's working careers in the form of higher tax receipts and avoided social costs.
Not only does the College pull its own weight, but it also effectively subsidizes other sectors funded by taxpayers. Without SCC, taxes would actually have to be raised in order to maintain services in all other sectors at their current levels. State and local governments see a rate of return of 15 percent on their support for SCC, which compares favorably with private-sector rates of return on similar long-term investments.
SCC Reduces Social Costs
Education is statistically correlated with improved lifestyle behaviors, including reduced incidences of absenteeism, alcohol abuse and smoking, lower probability of committing crime, and fewer welfare and unemployment claims.
"These statistics prove that a college-educated person has a tremendous positive effect on society," Huck said. "We, in the business, have preached this for a long time. The data indicates to me that education is indeed the very foundation for a positive future. The more people we can get into college, graduate with a skill set, and help them find jobs, the better off we all are. This also validates our operation as an institution of higher education."
It is estimated that SCC's 2006-07 student population will generate social savings equal to $3.2 million a year, with $2.3 million in health savings, $551,600 in law enforcement savings, and $341,400 in welfare and unemployment savings.
These savings accrue to all state and local residents: students, homeowners, businesses and taxpayers.
EMSI also provided an executive summary of the economic contribution of all six of Nebraska's community colleges.
For more information, contact:
Stu Osterthun
Administrative Director of Public Information and Marketing
(402) 323-3401
sosterthun@southeast.edu
The study was released by Economic Modeling Specialists Inc. of Moscow, Idaho, a leading provider of socioeconomic impact and strategic planning tools to community and technical colleges in the U.S. and Canada.
The study indicates that SCC plays a significant role in the local economy and is a sound investment from multiple perspectives. Students benefit from improved lifestyles and increased earnings. Taxpayers benefit from a larger economy and lower social costs.
Finally, the community as a whole benefits from increased job and investment opportunities, higher business revenues, greater availability of public funds, and an eased tax burden.
Dr. Jack Huck, SCC president, said the data lends credibility to the College's overall mission and objectives.
"For years, we've been able to prove, if you will, that what we're doing positively impacts students, taxpayers and the economy," Huck said. "This study, conducted by an impartial organization, lends further credence that Southeast Community College plays a significant positive role in our local economy. We're very pleased with the results of the study."
Following is a capsule look at each perspective.
SCC Helps Students Earn More
There were 34,173 credit and non-credit students attending the College in FY 2007. About 75 percent of those students stayed in the service area initially after they left SCC, contributing to the local economy.
Students see their annual income increase by $96 per year for every credit completed at SCC. The study proves that education increases lifetime income. The average annual income of a one-year certificate graduate at the mid-point of his or her career is $30,500, 82 percent more than someone without a high school diploma, and 16 percent more than a student with only a high school diploma. The average income at the career mid-point of someone with an Associate's degree is $35,800, or 113 percent more than someone without a high school diploma, and 36 percent more than a student with only a high school diploma.
"SCC is a tremendous value," Huck said. "Yes, we have been very affordable and continue to be very affordable. But you have to look at what students get when they complete their education with us. What you find is that students either find work in their field or transfer to a four-year school, and that's what it's all about."
Throughout his or her working career, the average SCC student's discounted lifetime income (future values expressed in present value terms) increases by $5.70 for every $1 invested (tuition, fees, books and wages given up to attend). Students enjoy an attractive 18 percent rate of return on their SCC educational investment, recovering all costs, including wages foregone, in eight years.
The study also indicates that education is a proven ticket to a better job. By 2019, it is anticipated that there will be about 114,500 new and replacement jobs available in SCC's 15-county service area economy. Approximately 80 percent of the jobs will require short-, moderate- or long-term training, previous work experience or an Associate's degree or postsecondary certificate.
SCC Helps State and Local Economy
SCC's 15-county service area economy received roughly $40.3 million in income due to the College's operations and capital spending in fiscal year 2007. That year, the service area workforce embodied 4.8 million credits of past and present SCC training.
SCC's past and present activities in the workforce accounted for $390.7 million in labor income, including wages, salaries and benefits, and $174.2 million in property income, which were dividends, interest and rent, of the service area economy in FY 2006-07. Altogether, SCC's service area received roughly $564.9 million in income due to the operations of the College and the increased productivity of its past and present students.
About 9 percent of SCC's students came from outside the service area, bringing with them money that would not have otherwise entered the local economy. The expenditures of SCC's out-of-area students generated roughly $2.7 million in added income in the SCC service area.
SCC activities encourage new business, assist existing business and create long-term economic growth. The College enhances worker skills and provides customized training to local businesses and industries.
SCC skills translate to higher earnings for students and increased output of businesses. The added income attributable to the accumulation of SCC credits in the workforce amounted to $521.9 million in FY 2007.
And the College raises consumer spending. In FY 2006-07, SCC employed 631 full-time and 1,693 part-time faculty and staff, with an annual payroll of $47.1 million. During that same year, SCC had an operating budget of $74.4 million, of which $61.6 million (83 percent) was spent in the service area.
SCC Leverages Taxpayer Dollars
The state and local community will see avoided social costs amounting to $8 per year for every credit earned by SCC students, including savings associated with improved health, lower crime costs, and reduced welfare and unemployment. This translates to $3.2 million in avoided costs to the state of Nebraska each year as long as students are in the workforce.
"We are very appreciative of the taxpayer dollars we receive to help fund the College," Huck said. "And I'm pleased to say that for the upcoming academic year (2009-2010), SCC actually reduced the amount of property taxes by about 10 percent. So not only are we using taxpayer dollars wisely, but we're also working diligently to reduce the burden on citizens who live in our 15-county district."
Students benefit from higher earnings, thereby expanding the tax base and reducing the burden on state and local taxpayers. In the aggregate, SCC students generate about $38.1 million annually in higher earnings due to their SCC education.
SCC adds more money to the state treasury than it takes out. State and local government allocated around $39.3 million in support of SCC in fiscal year 2007. For every $1 of this support, taxpayers see a cumulative return of $4 over the course of student's working careers in the form of higher tax receipts and avoided social costs.
Not only does the College pull its own weight, but it also effectively subsidizes other sectors funded by taxpayers. Without SCC, taxes would actually have to be raised in order to maintain services in all other sectors at their current levels. State and local governments see a rate of return of 15 percent on their support for SCC, which compares favorably with private-sector rates of return on similar long-term investments.
SCC Reduces Social Costs
Education is statistically correlated with improved lifestyle behaviors, including reduced incidences of absenteeism, alcohol abuse and smoking, lower probability of committing crime, and fewer welfare and unemployment claims.
"These statistics prove that a college-educated person has a tremendous positive effect on society," Huck said. "We, in the business, have preached this for a long time. The data indicates to me that education is indeed the very foundation for a positive future. The more people we can get into college, graduate with a skill set, and help them find jobs, the better off we all are. This also validates our operation as an institution of higher education."
It is estimated that SCC's 2006-07 student population will generate social savings equal to $3.2 million a year, with $2.3 million in health savings, $551,600 in law enforcement savings, and $341,400 in welfare and unemployment savings.
These savings accrue to all state and local residents: students, homeowners, businesses and taxpayers.
EMSI also provided an executive summary of the economic contribution of all six of Nebraska's community colleges.
For more information, contact:
Stu Osterthun
Administrative Director of Public Information and Marketing
(402) 323-3401
sosterthun@southeast.edu
