Analysis of the Return on Investment and Economic Impact of Education

supply chain. Together, the incomes generated by the expansions in business input purchases and household spending constitute the multiplier effect of the increased productivity of the college’s alumni. The final results are $207.8 million in added labor income and $72.4 million in added non-labor income, for an overall total of $280.2 million in multiplier effects. The grand total of the alumni impact thus comes to $737.3 million in total added income, the sum of all initial and multiplier labor and non-labor income effects. This is equivalent to 10,155 jobs. The total economic impact of MCC on Monroe County can be generalized into two broad types of impacts. First, on an annual basis, MCC generates a flow of spending that has a significant impact on the Monroe County economy. The impacts of this spending are captured by the operations and student spending impacts. While not insignificant, these impacts do not capture the true purpose of MCC. The basic mission of MCC is to foster human capital. Every year, a new cohort of MCC former students adds to the stock of human capital in TOTAL IMPACT OF MCC

Monroe County, and a portion of alumni continues to add to the Monroe County economy. Table 2.7 displays the grand total impacts of MCC on the Monroe County economy in FY 2014-15. For context, the percentages of MCC compared to the total labor income, total non- labor income, combined total income, sales, and jobs in Monroe County, as presented in Table 1.5 and Table 1.6, are included. The total added value of MCC is equivalent to 2.0% of the GRP of Monroe County. By comparison, this contribution that the college provides on its own is slightly larger than the Accommodation & Food Services industry in the county. These impacts, stemming from spending related to the college and its students, spread throughout the county economy and affect individual industry sectors. Table 2.8, on the next page, displays the total impact of MCC on industry sectors based on their two–digit NAICS code. The table shows the total impact of operations, students, and alumni as shown in Table 2.7, broken down by industry sector using processes outlined earlier in this chapter. By showing the impact on individual industry sectors, it is possible to see in finer detail where MCC has the greatest impact. For example, MCC’s impact for the Government, Education industry sector was 2,135 jobs in FY 2014-15.

TABLE 2.7: Total impact of MCC, FY 2014-15

LABOR INCOME (THOUSANDS)

NON-LABOR INCOME (THOUSANDS)

TOTAL INCOME (THOUSANDS)

SALES (THOUSANDS)

JOBS

Operations spending

$128,554

$16,998

$145,552

$230,004

2,316

Student spending

$7,698

$4,703

$12,401

$55,654

225

Alumni

$542,032

$195,235

$737,268

$1,527,284

10,155

Total impact

$678,284

$216,936

$895,220

$1,812,942

12,696

% of the Monroe County economy

2.6%

1.2%

2.0%

2.2%

2.7%

2 0

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