Analysis of the Return on Investment and Economic Impact of Education
THE ECONOMIC VALUE OF BROOKDALE COMMUNITY COLLEGE
FY 2013–14 WHAT IS AN ECONOMIC IMPACT ANALYSIS? Measures how an event or institution affects the local economy.
WHAT IS AN INVESTMENT ANALYSIS? A comparison of the costs and benefits to determine the return on investment. About Monmouth County
HIGHER EARNINGS BY EDUCATION LEVEL AT CAREER MIDPOINT
$61,800
$41,500 $33.2 BILLION $31,800 TOTAL GROSS $19,500 REGIONAL PRODUCT
356,903 Less than High Associate Bachelor’s high school TOTAL JOBS school BROOKDALE IN 2013–14
17,565 17,375 CREDIT STUDENTS SERVED NON-CREDIT STUDENTS SERVED
1,347 $70 MILLION EMPLOYEES TOTAL PAYROLL/BENEFITS
9% 89% STUDENTS FROM OUTSIDE STUDENTS REMAINING IN THE COUNTY THE COUNTY AFTER LEAVING THE COLLEGE OVERVIEW OF RESULTS
$578.8 MILLION 8,861 TOTAL INCOME SUPPORTED JOBS SUPPORTED IN THE COUNTY IN THE COUNTY
14.6% 19.7% RATE OF RETURN TO STUDENTS RATE OF RETURN TO TAXPAYERS
1.7% OF COUNTY’S GRP Operations Student Alumni Spending Impact Spending Impact Impact
College payroll and other Relocated/Retained student Higher alumni earnings spending + ripple effects spending + ripple effects and increased business profit + ripple effects
$84.8 MILLION $14.4 MILLION $479.6 MILLION RATE OF RETURN ADDED COUNTY ADDED COUNTY TO STUDENTS INCOME INCOME
or or or 1,583 271 7,007 JOBS SUPPORTED JOBS SUPPORTED JOBS SUPPORTED IN THE COUNTY IN THE COUNTY IN THE COUNTY
* All results measured in income, not sales ** Results are net of counterfactual scenarios Total Impact
1.7% IMPACTS BY INDUSTRY of Gross Regional Product = Slightly 10,000 557 larger than the county’s entire Accommodation Transportation & Warehousing and Food Services industry 8,000 493 Health Care and Social Assistance 6,000 $578.8 MILLION 478 TOTAL ADDED Professional and Jobs Technical Services COUNTY INCOME 4,000 or 7,333 All Other 2,000 8,861 TOTAL ADDED COUNTY JOBS 0 Student Taxpayer Social Perspective Perspective Perspective
$556.2 MILLION $231.4 MILLION $2.7 BILLION Benefit: Higher future Benefit: Future tax revenue, Benefit: Future earnings, tax earnings government savings revenue, private savings
$156.5 MILLION $39.6 MILLION $246.6 MILLION Cost: Tuition, supplies, Cost: State and Cost: Student and opportunity cost local funding all college costs
3.6 5.8 10.8 BENEFIT/COST RATIO BENEFIT/COST RATIO BENEFIT/COST RATIO
14.6% 19.7% N/A RATE OR RETURN RATE OR RETURN RATE OR RETURN
Future benefits are discounted to the present. ADDING INCOME TO YOUR COUNTY/STATE
• Add value to your alumni.
• Push workforce training and dual-credit.
• Increase enrollment.
• Keep your graduates in-region.
• Attract outside funding
Note that external factors heavily influence a college’s impact. Next Steps
• Send the executive summary to local legislators How can • Use social media to broadcast student Emsi help? returns to prospective students and parents • Emsi’s Press • Share industry impacts with local business Packet partners • Ongoing • Leverage impacts for proposals, grant presentations writing, & strategic planning from your Emsi • Publish results in campus fliers, newsletters, economist & websites • Email/call us • Share results with local media anytime The results of this study were prepared by
FOR A COPY OF THE REPORT, PLEASE CONTACT THE COLLEGE.