FY 2012-13

impact of
COLLEGE OPERATIONS impact of
STUDENT SPENDING impact of
ALUMNI

• Calculate initial sales generated in region
• Derive sales created by multiplier effects
• Convert results to income

impact of
COLLEGE OPERATIONS
College payroll Income created by the spending of the college and its employees
$30.7 million

impact of
STUDENT SPENDING
Income created by the spending of out-of-region students
Income created by the spending of businesses patronized by students
$755.6 thousand

impact of
ALUMNI
Higher wages of former students + increased output of businesses
Income created by the spending of students and businesses
$171.4 million

Impact of college operations
Impact of student spending
Impact of alumni
Total impact
A D D E D I N C O M E I N R E G I O N
$30.7 million
$755.6 thousand
$171.4 million
$202.9 million

STUDENT perspective
SOCIAL perspective
TAXPAYER perspective

• Calculate benefits and costs to stakeholders
• Derive the future benefits stream
• Discount results to current-year dollars
• Determine net present value , benefit-cost ratio , and rate of return

STUDENT perspective
Benefits = Greater job opportunities + higher lifetime income
Costs = Tuition and fees
+ books and supplies
+ forgone time and money
Present value of benefits
$315.9 million
Present value of costs
$79.5 million
Net present value (benefits minus costs)
$236.3 million
Benefit-cost ratio (benefits divided by costs)
4.0
Rate of return
15.2%

SOCIAL perspective
Benefits = Expanded economic base + savings related to improved health, reduced crime, and reduced unemployment
Costs = All college expenditures and all student expenditures and costs
Present value of benefits
$2.1 billion
Present value of costs
$106.6 million
Net present value (benefits minus costs)
$2.1 billion
Benefit-cost ratio (benefits divided by costs)
19.3

TAXPAYER perspective
Benefits = Added tax revenues + reduced demand for government services
Costs = State and local government funding
Present value of benefits
$143.1 million
Present value of costs
$16.7 million
Net present value (benefits minus costs)
$126.4 million
Benefit-cost ratio (benefits divided by costs)
8.6
Rate of return
20.5%

Wharton County Junior College
• Creates new income in the region
• Supports local jobs
• Sustains a skilled workforce
• Increases students’ lifetime income
• Expands the state’s economic base
• Improves quality of life

T H E R E S U LT S O F T H I S S T U D Y
W E R E P R E PA R E D BY
F O R A C O P Y O F T H E R E P O R T, P L E A S E C O N TA C T T H E C O L L E G E .