Analysis of the Return on Investment and Economic Impact of Education

The expenditures of relocated and retained students in the county during the analysis year added approximately $12.4 million in added income for the Monroe County economy, which is equivalent to supporting 225 jobs. Alumni impact Over the years, students gained new skills, making them more productive workers, by studying at MCC. Today, thousands of these former students are employed in Monroe County. The accumulated impact of former students currently employed in the Monroe County workforce amounted to $737.3 million in added income to the Monroe County economy, which is equivalent to supporting 10,155 jobs. Investment analysis is the practice of comparing the costs and benefits of an investment to determine whether or not it is profitable. This study considers MCC as an investment from the perspectives of students, taxpayers, and society. Student perspective Students invest their own money and time in their education. Students enrolled at MCC paid an estimated total of $38.8 million to cover the cost of tuition, fees, books, and supplies at MCC in FY 2014-15. While some students were employed while attending the college, overall students forwent an estimated $132.1 million in earnings that they would have generated had they been in full employment instead of learning. In return, students will receive a present value of $748.7 million in increased INVESTMENT ANALYSIS

earnings over their working lives. This translates to a return of $4.40 in higher future earnings for every $1 that students pay for their education at MCC. The corresponding annual rate of return is 16.0% . Taxpayer perspective Taxpayers provided $84.8 million of state and local funding to MCC in FY 2014-15. In return, taxpayers will receive an estimated present value of $397.5 million in added tax revenue stemming from the students’ higher lifetime earnings and the increased output of businesses. Savings to the public sector add another estimated $21.7 million in benefits due to a reduced demand for government-funded social services in New York. For every tax dollar spent on educating students attending MCC, taxpayers will receive an average of $4.90 in return over the course of the students’ working lives. In other words, taxpayers enjoy an annual rate of return of 14.8% . Social perspective New York as a whole spent an estimated $305.2 million on educations obtained at MCC in FY 2014- 15. This includes $160.4 million in expenses by MCC, $12.6 million in student expenses, and $132.1 million in student opportunity costs. In return, the state of New York will receive an estimated present value of $4.2 billion in added state revenue over the course of the students’ working lives. New York will also benefit from an estimated $61.3 million in present value social savings related to reduced crime, lower welfare and unemployment, and increased health and well-being across the state. For every dollar society invests in an education from MCC, an average of $13.90 in benefits will accrue to New York over the course of the students’ careers.

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