Analysis of the Return on Investment and Economic Impact of Education

Economic impact analysis

MCC-DCC promotes economic growth in Monroe County in a variety of ways. The campus is an employer and buyer of goods and services, and the living expenses of students benefit local businesses. In addition, MCC-DCC is a primary source of education to Monroe County residents and a supplier of trained workers to Monroe County industries.

OPERATIONS SPENDING IMPACT MCC-DCC is an important employer in Monroe County. In FY 2014-15, the campus employed 218 full-time and part-time faculty and staff. Of these, 91% lived in Monroe County. Total payroll at MCC-DCC was $13 million, much of which was spent in the county for groceries, rent, dining out, clothing, and other household expenses. MCC-DCC is itself a large-scale buyer of goods and services. In FY 2014-15 the campus spent $6.3 million to cover its expenses for facilities, professional services, and supplies. MCC-DCC added $17.5 million in added income to the county during the analysis year as a result of its day-to-day operations. This figure represents the campus’s payroll, the multiplier effects generated by the spending of the campus and its employees, and a downward adjustment to account for funding that the campus received from state and local sources. The $17.5 million in added income is equivalent to supporting 279 jobs. IMPACT OF STUDENT SPENDING Around 7% of students attending MCC-DCC originated from outside the county in FY 2014-15, and some of these students relocated to Monroe County to attend MCC-DCC. These students would not have come to the county if the campus did not exist. In addition, a number of in-county students would have left the area for other education opportunities if not for the existence of MCC- DCC. While attending the campus, these relocator and retained students spent $3.6 million to purchase groceries, rent accommodation, pay for transportation, and so on. A significant portion of these expenditures occurred in the county, generating $1.3 million in added income in the county economy during the analysis year, which is equivalent to supporting 24 jobs.

TABLE 1: Impacts created by MCC-DCC in FY 2014-15

ADDED INCOME

JOBS

$17.5 million 279

Operations spending impact

$1.3 million 24

Student spending impact

$86.6 million 1,193

Alumni impact

$105.4 million 1,496

Total impact

3

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