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direct income of faculty and staff plus… The indirect income due to associated multiplier effects minus… Any monies withdrawn from the state economy in support of the colleges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
Student Spending Measures income generated by spending of students from outside the State plus… Associated multiplier effects
Annual Contribution 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
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
Rate of Return Student Perspective Students receive an annual rate of return of 20.9% on their educational investment.
Benefit/Cost Ratio Student Perspective 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.
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
Rate of Return Taxpayer Perspective Taxpayers receive an annual rate of return of 9.8% on their educational investment.
Benefit/Cost Ratio Taxpayer Perspective For every $1 invested in education, taxpayers receive a cumulative return of $2.00.
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.