Presenting the Socioeconomic Benefits of

EMSI/CCbenefits, Inc.

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Maryland’s Community Colleges

Components of the Study

Economic Development

Investment Analysis

Beginning with the Economic Growth Analysis

College operations effect

Student spending effect

Past student productivity effect

What we measure…

College Operations Spending

• Includes direct income of faculty and staff plus…

• The indirect income due to associated multiplier effects minus…

• Any monies withdrawn from the state economy in support of the colleges

Annual Contribution

in state income(After adjusting for alternative use of funds)

College Operations

$435,328,800

Student Spending

• Measures income generated by spending of students from outside the State plus…

• Associated multiplier effects

Annual Contribution

$1,138,300

in state income

Student Spending

Past Student Productivity

• Measures the higher income of students still active in the workforce plus…

• The associated multiplier effects due to past student productivity

Annual Contribution

in state income

Past Student Productivity

$11,137,692,100

Total Regional Impact

Total State Income $257,900,358,300 100%

College Operations Effect $435,328,800 <1%

Student Spending Effect $1,138,300 <1%

Past Student Productivity Effect $11,137,692,100 4.3%

Total Effect $11,574,159,200 4.5%

Continuing with the

Investment Analysis

Student Benefits

Social Benefits

Taxpayer Benefits

What we measure…

Student Benefits

Student benefits consist of the present value of increased future income

These are measured against student costs - tuition paid and the opportunity cost of time

Student Benefits $11,540,217,503

Student Costs $2,233,381,904

Rate of Return

Student Perspective

Students receive an annual rate of return of 20.9% on their educational investment.

20.9%

Benefit/Cost Ratio

Student Perspective

5.0

For every $1 invested in education, students receive a cumulative return of $5.00.

Student Benefits

An Associate Degree will increase earnings to $47,900 per year, 39% more than the average HS graduate.

An Associate Degree graduate will earn $438,500 more than someone with a HS diploma or GED over his or her future career.

Social Benefits

Higher education is statistically correlated with the improved lifestyles of the students

This translates into medical, crime and welfare/unemployment savings to the taxpayer.

Social Benefits

Improved student lifestyles translate into $50.3 million in avoided costs to the

public each year.

Medical Savings $24,028,900

Crime Savings $19,608,800 = $50,303,700Welfare/Unempl. Savings $6,666,000

Taxpayer Benefits

Taxpayer benefits consist of the higher incomes of the students and avoided costs to the government

These are measured against taxpayer costs – state and local taxes and appropriations

Taxpayer Benefits $1,055,043,600

Taxpayer Costs $518,934,400

Rate of Return

Taxpayer Perspective

Taxpayers receive an annual rate of return of 9.8% on their educational investment.

9.8%

Benefit/Cost Ratio

Taxpayer Perspective

For every $1 invested in education, taxpayers receive a cumulative return of $2.00.

2.0

So what does all this mean?

Maryland’s Community Colleges…

Enrich the lives of learners;

Increase students’ lifetime income;

Generate government revenue;

Reduce the demand for social services;

Contribute to the growth of the economy.