1. Analysis of the Economic Impact and Return on Investment of Education
The economic value of Montgomery College

2. What is an economic impact analysis?
Measures how an event or institution affects the local economy.
What is an investment analysis?
A comparison of the costs and benefits to determine the return on investment.

3. About Montgomery County
Higher earnings by education level at career midpoint
Total gross regional product
Total jobs

4. in credit students served Non-credit students served Employees
Total Payroll/Benefits
students from outside the region
students remaining in the county after leaving the college

5. OVERVIEW OF RESULTS total income supported in the county
Jobs supported in the county
Rate of return to students
Rate of return to taxpayers
of region’s GRP

6. Operations Spending Impact
Student Spending Impact
Relocated/Retained student spending + ripple effects
Alumni Impact
Higher alumni earnings and increased business profit + ripple effects
College payroll and other spending + ripple effects
added county income
added county income
added county income or or or
Jobs supported in the county
Jobs supported in the county
Jobs supported in the county
All results measured in income, not sales
Results are net of counterfactual scenarios

7. Total Impact of Gross Regional Product (GRP) or Impacts by industry
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
18,000
3,587
Professional & Technical Services
of Gross Regional Product (GRP)
1,156
Government, Non-Education
580
Management of Companies & Enterprises
Jobs
Total added county income
10,805
All Other or
Total added county jobs

8. N/A Taxpayer Perspective Student Perspective Social Perspective
Benefit: Future tax revenue, government savings
Benefit/Cost ratio
Rate of return
Cost: State and local funding
Student Perspective
Social Perspective
Benefit: Future earnings, tax revenue, private savings
Benefit/Cost ratio
Rate of return
N/A
Cost: Student and all college costs
Benefit: Higher future earnings
Cost: Tuition, supplies, opportunity cost
Benefit/Cost ratio
Rate of return
Future benefits are discounted to the present.

9. ADDING INCOME TO YOUR county/STATE
Add value to your alumni.
Push workforce training and dual-credit.
Increase enrollment.
Keep your graduates in-county.
Attract outside funding.
Note that external factors heavily influence a college’s impact.

10. Next Steps How can Emsi help?
Send the executive summary to local legislators
Use social media to broadcast student returns to prospective students and parents
Share industry impacts with local business partners
Leverage impacts for proposals, grant writing, & strategic planning
Publish results in campus fliers, newsletters, & websites
Share results with local media
How can Emsi help?
Emsi’s Press Packet
Ongoing presentations from your Emsi economist
/call us anytime

11. The results of this study were prepared by
For a copy of the report, please contact the College.