ACCD News & Events

New Study Rates ACCD Colleges as an Excellent Investment for Taxpayers and Students

CLICK HERE to view streaming video of the Nov. 1st Press Conference                            (Your will need the FREE Real Player to view the video)

For Immediate Release
October 31, 2005
Contact: Kay Hendricks, Coordinator of Communication
(210) 208-8006
khendric@accd.edu

Pictured: [L to R] Charles Conner, Chairman, ACCD Board of Trustees; Alan Miller, Executive Director, Alamo WorkSource; Michael Villarreal, State Representative; Ramiro Cavazos, Director, Economic Development Department, City of San Antonio; Sylvia Reyna, Associate Superintendent, San Antonio Independent School District; Dr. Federico Zaragoza, Vice Chancellor, Professional, Technical and Workforce Education, ACCD; and Dr. Kjell Christophersen, Economist, CCbenefits, Inc.

At a press conference November 1, Bexar County Judge Nelson W. Wolff and other officials applauded the results of a recently released study which concluded that the Alamo Community College District (ACCD) offers a 27% rate of return on investment for Bexar County taxpayers and a 17% rate of return on investment for its students.

“This report clearly shows the economic and social benefits of earning a certificate or associate degree or updating job skills at one of the ACCD colleges,” said Wolff. “This is a good return on dollars spent, and the fact that so many ACCD students stay in the area really magnifies the effect on the local economy,” he added.

Ramiro Cavazos, director of economic development for the City of San Antonio and Alan Miller, executive director of Alamo WorkSource,joined Wolff in applauding the study results and the “great job” the district does in addressing local workforce needs.

The economic impact study was conducted by internationally renowned economists
Dr. Kjell Christophersen and M. Henry Robison. The study concluded that ACCD and its colleges are: vital to the area’s economic growth; increase wages and prosperity for its students; and generate an excellent return on the local and state government’s investment.

For the ACCD, the region impacted is the Greater Bexar County Service Area (GBCSA) which encompasses Atascosa, Bandera, Bexar, Comal, Guadalupe, Kendall, Kerr and Wilson counties.

The study results show that ACCD is a sound investment from multiple perspectives—

Taxpayers benefit from an enlarged economy and lower social costs

• State and local governments will see a rate of return of 26.8% on their support for
  ACCD. This compares very well with private sector rates of return on investment
• Altogether, the regional economy owes roughly $2.2 billion of its current income to the past and present efforts of ACCD, making ACCD an engine of economic growth
• ACCD operations and capital spending contribute roughly $130.2 million to regional income in the Greater Bexar County Service Area economy
• Over the past 30 years, past ACCD students have brought over 10.7 million credit
  hours of instruction to the GBCSA workforce. These credit hours translate into
  increased skills in the regional workforce, encouraging new business, assisting exist-ing businesses and creating long-term economic growth
  • It is estimated that the current economy in the GBCSA owes roughly $1.7 billion of its regional income to higher student earnings. Along with these direct benefits comes an assortment of indirect benefits due to the increased skill base of the local workforce and subsequent industry growth. Adding these benefits together, ACCD students in-directly contribute another $390.7 million to regional income
• For every dollar appropriated by state and local government, taxpayers will see a
  cumulative return of $8.36 over the next 30 years or so
• State and local government support for ACCD will be fully recovered in 5.5 years, in the form of higher tax receipts and avoided social costs

Students benefit from improved lifestyles and increased earnings

• Students enjoy an attractive 17.1% rate of return on their ACCD educational invest-ment and recover all costs in 8.5 years
• As many as 80% of ACCD students stay in the region initially after leaving college and contribute to the local economy
• Average annual earnings of a student with a one-year certificate are $26,605
• Average annual earnings of someone with an associate degree are $31,145
• Over the next 39 years in the workforce, the average ACCD student’s discounted
  lifetime earnings will increase $5.37 for every education dollar invested

The community as a whole benefits from increased job and investment opportunities, higher business revenues, greater availability of public funds and an eased tax burden

• Students benefit from higher earnings, thereby expanding the tax base and reducing the tax burden on state and local taxpayers. When aggregated together, students generate about $103.4 million annually in higher earnings due to their ACCD education
• For every credit earned by ACCD students, the state and local community will see social savings amounting to some $20 per year, including savings associated with improved health, lower crime costs and reduced welfare and unemployment
• When aggregated across all exiting students, the state will benefit from $17.9 million worth of avoided costs per year