socioeconomic impact of
Austin Community
College
study consists of…
Regional analysis
Investment analysis
college operations
student spending
past student productivity
college operations
• Direct income of faculty and
staff
• Associated multiplier effects
• Net of alternative use of funds
college operations
$154.5 million
gross contribution to regional income
$110.3 million
net contribution to regional income
student spending
• Spending by students
from outside the local
region
• Associated multiplier
effects
student spending
$6,600
net contribution to regional income
past student productivity
• Higher income of
students still active in the
workforce
• Associated multiplier
effects
past student productivity
$2.2 billion
net contribution to regional income
total impact
$2.3 billion
total regional impact
student perspective
social perspective
taxpayer perspective
student perspective
• Benefits—present value
of increased future
income
• Costs—tuition, fees and
opportunity cost of time
student perspective
Benefits
$2.2 billion
Costs
$310.9 million
student perspective
22.2%
return on investment
student perspective
7.18
benefit/cost ratio
Associates Degree
g r a d u a t e s w i l l ...
• Earn an average of
$46,700 per year, 38.6%
more than someone with
a high school diploma
• Over their future careers,
earn $481,000 more
than someone with a
high school diploma
social perspective
• Education is statistically
correlated with improved
lifestyles
• This translates into
medical, crime and
unemployment savings
to taxpayers
social perspective
Medical
$5.2 million
Crime
$6.2 million
Welfare/Unempl $1.1
million
$12.5 million
annual savings
taxpayer perspective
• Benefits—added tax
revenue and avoided
costs to government
• Costs—state and local
government funding
taxpayer perspective
Benefits
$390.5 million
Costs
$122.4 million
taxpayer perspective
13.5%
return on investment
taxpayer perspective
3.19
benefit/cost ratio
So what does
all this mean?
Austin Community College
• Enriches the lives of students
• Increases students’ lifetime income
• Generates government revenue
• Reduces the demand for social
services
• Contributes to the growth of the
economy