Central New Mexico Community
College
Economic Impact Study – Summer 2012
Two parts to the study ……
Investment analysis
Economic growth analysis
General Information
- Third time we have contracted for this study
- Model evolves and is refined. Not comparable to previous results
- Snapshot using 10-11 data
- Reflection of today’s economic conditions and economic theory
Investment Analysis
Are you getting your money’s worth?
Treats education funding as an investment, calculates
measurable returns and compares to cost from three
perspectives
Investment Analysis
- Student perspective
- Social perspective
- Taxpayer perspective
Investment Analysis: Student perspective
- Sacrifice current earnings in return for lifetime of higher
income
- Cost: tuition and fees, books and supplies, and time
Investment Analysis: Student perspective
Education Will Pay You Back – For A Lifetime
- Average CNM student income increases $4.30 for every
$1 invested in CNM
- By 2021, anticipated 162K new and replacement jobs in
CNM service area
- About 27% will require Associate and 8% certificate
Investment Analysis: Student perspective
Average income in CNM Service Area at career midpoint
$101,990
$110,000
$90,000
$70,000
$58,800
$50,000
$30,000
$19,500
$30,300
$70,900
$41,000
$10,000
-$10,000
<HS
HS
Associate's
Bachelor's
Master's
Doctorate
Investment Analysis: Student perspective
14.1%
return on investment of time and money
Investment Analysis: Social perspective
- Adds all benefits attributable to CNM and compares to
the original investment made
Investment Analysis: Social perspective
Social
savings,
$5.1
Added
income,
$85.5
Higher earnings of CNM students and associated increases in state income expand the tax base by
about $85.5M with $5.1M in social savings
Investment Analysis: Social perspective
Every dollar of state and local tax money invested in the
college today yields a cumulative of $14.30 to all New
Mexico residents
Investment Analysis: Taxpayer perspective
Only benefits that accrue to state and local
governments are counted such as increased tax
collections and reduced government
expenditures
Investment Analysis: Taxpayer perspective
For every $1 appropriated by state and local
governments to CNM, taxpayers see a $1.60
return in higher tax revenues and avoided social
costs
Investment Analysis: Taxpayer perspective
5.6%
annual rate of return state and local governments see on
their support for CNM
Economic Growth Analysis
Economic Growth Analysis
Measures added income into the region due to
- College Operations
- Student spending
- Student productivity
Economic Growth Analysis: College Operations
- Faculty and staff earnings become part of the service area
income
- The institution also purchases supplies and services
generating additional jobs and income.
Economic Growth Analysis: College Operations
$79.8 million
net contribution to service area income
Economic Growth Analysis: Student Spending
- Spending by students who are from outside the service
area
- Approximately 15% of students from outside the service
area
Economic Growth Analysis: Student Spending
$38.5 million
net contribution to service area income
Economic Growth Analysis: Student Productivity
- Effects of former CNM students who increase skills and
acquire new skills
- Results in increased spending by those who increase
skills and increased business and property income by those
who acquire new skills
Economic Growth Analysis: Student Productivity
$431.2 million
net contribution to service area income
The bottom line ….
- CNM
is a great value!