FOR IMMEDIATE RELEASE
JUNE 19, 2002
CONTACT: KAY HENDRICKS
COORDINATOR OF COMMUNICATION
(210) 208-8006
FOR IMMEDIATE RELEASE
JUNE 19, 2002
CONTACT: KAY HENDRICKS
COORDINATOR OF COMMUNICATION
(210) 208-8006
ACCD COLLEGES ARE A GREAT INVESTMENT FOR
TAXPAYERS AND STUDENTS, ACCORDING TO NEW STUDY
The Alamo Community College District (ACCD) is generating substantial benefits for Bexar County and the surrounding
counties in its service area, producing significant returns for the area’s economy, students and taxpayers, according
to a study released yesterday by the Texas Association of Community Colleges. The study reached three major conclusions:
community colleges stimulate the local and state economies; community colleges generate a return on the local and state
government’s investment; and community colleges increase the earning potential of their students.
Those conclusions were reached in a new economic impact study, entitled "The Socioeconomic Benefits Generated by
50 Community College Districts in Texas," conducted by CCBenefits, Inc. for the Texas Association of Community
Colleges (TACC). The study was funded by Houston Endowment Inc. and the 50 community college districts in Texas.
Economists Kjell Christophersen and Henry Robison collected information for Fall 2000 from all 50 public community
college districts in Texas. For the ACCD, the region impacted is the Greater Bexar County Economic Region, which
encompasses Atascosa, Bandera, Bexar, Comal, Guadalupe, Kendall, Kerr and
Wilson counties.
According to the study, the Alamo Community Colleges are stimulating their area’s economy
by $1.21 billion. This is explained by two activities. The colleges’ payrolls and the multiplier effect of those
payrolls account for $167.3 million in the area’s economy. Additionally, the value of past college students working
in the area, using their enhanced skills to get higher paying jobs, adds an additional impact of $1.05 billion.
According to Christophersen and Robison, "The earnings explained by the colleges are equal to that of roughly
35,574 jobs."
Both state and local government invest a significant sum of money in community colleges
and they receive a significant return on their investment. Community colleges return the investment in the form of
higher wages for their students and through avoided costs - resulting from improved health, reduction in crime and
reduced welfare and unemployment. Measured broadly, taking into account all of the earnings of community college
students and the avoided costs, every dollar of state or local tax money invested in ACCD today returns a cumulative
of $21 over the next 30 years.
Even if measured from a narrow perspective, taking into account only the increased
tax revenue attributable to community college students and the avoided costs, state and local governments receive a
return of $3.27 for every dollar invested. According to Christophersen and Robison, "the rate of return is 17.1%
and the payback period is 7.7 years."
The State of Texas benefits from improved health and reduced welfare,
unemployment and crime, saving the public in the ACCD area some $23.8 million per year, broken down as follows:
-$2.9 million in annual dollar savings from a reduction in health-related absenteeism
-$4,833,888 in annual dollar savings from fewer smokers
-$3,035,754 in annual dollar savings from fewer alcohol abusers
-$5,625,291 in annual dollar savings from reduced crime
-$1,181,369 in annual dollar savings from reduced victim costs
-$1,668,547 in dollar earnings from people employed rather than incarcerated
-$1,192,290 in annual dollar savings from fewer people on welfare
-$3,364,111 in annual dollar savings from fewer people drawing unemployment
benefits
ACCD students also invest money in their education. The study shows that they receive excellent returns on their money and recover and surpass their costs in a relatively short period of time. From an investment standpoint, ACCD students will enjoy a 21% rate of return on their investments of time and money, which compares favorably with the returns on other investments like stocks and bonds. "For every dollar the student invests in ACCD education, he or she will receive a cumulative of $6.92 in higher future earnings over the next 30 years or so," explained Christophersen and Robison. The payback period, the time needed to recover all costs, is 6.9 years. The study also notes that 80% of ACCD students stay in the region and contribute to the local economy after they leave college. The average annual earnings of someone with an associate degree is $29,115, and, the student who receives a two-year degree will earn $290,177 more than someone with just a high school diploma or GED.
ACCD Chancellor Robert W. Ramsay summarized the study: "The results demonstrate that the Alamo Community College District is a sound investment, based on a number of perspectives. It enriches the lives of students and reduces the demand for taxpayer-supported services. And finally, the Alamo Community College District contributes to the vitality of both local and state economies and to the education of citizens."
CCBenefits has conducted field tests for the study at more than 160 community colleges throughout the United States; the organization uses economic theories, functional relationships and national and local education-related data for its analyses and conclusions. "We take data collected from individual community colleges and translate the information into common-sense cost-benefit and investment terms," said Christo-phersen. "Our model provides relief from the all-too-common ‘advocacy analyses ’ that inflate benefits,underestimate costs and, as a result, discredit the process of assessing the impact of higher education and community colleges."