Legislative Overview
Legislative Overview
Economic impact of Edmonds Community College
What role does Edmonds Community College play in the local economy? The CC Benefits study (2005) demonstrates that Edmonds Community College is a sound investment from multiple perspectives. Students benefit from improved lifestyles and increased earnings. Taxpayers benefit from an enlarged economy and lower social costs. And 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.
The economic benefits of Edmonds Community College are:
- The regional economy is measurably stronger.
- The college saves taxpayers far more than it costs.
- The college provides a great return on investment to the community.
- Edmonds Community College alumni are measurably better off.
Edmonds Community College stimulates the state and local economy
- The college’s operations and capital spending contributes roughly $29.4 million to regional income.
- College activities encourage new business, assist existing business, and create long-term economic growth. The college enhances workers’ skills and provides customized training to local business and industry. The present-day regional workforce embodies about 5.5 million credit and non-credit hours of Edmonds Community College training.
- Edmonds Community College skills in the workforce increase income in the regional economy, where former students are employed, by $605.2 million. Indirect (or multiplier) effects increase earnings by another $82.7 million.
- The regional economy owes roughly $717.3 million of its current labor and non-labor income to the past and present efforts of the college. Edmonds Community College is an engine of economic growth.
Edmonds Community College leverages taxpayer dollars
- For every credit earned by Edmonds Community College students, the state and local community will see social savings of about $10 per year from improved health, lower crime costs, and reduced welfare and unemployment.
- The State of Washington receives $3.4 million of social savings from Edmonds Community College graduates.
- Students benefit from higher earnings, thereby expanding the tax base and reducing the tax burden on state and local taxpayers. Alumni generate about $31.5 million annually in higher earnings due to their Edmonds Community College education.
Edmonds Community College offers return on investment
- State and local government allocated around $32.3 million in support of the college in fiscal year 2005. For every dollar appropriated by state and local government, taxpayers will see a cumulative return of $7.03 million over the next 30 years or so.
- State and local government support for Edmonds Community College will be fully recovered in 5.8 years, in the form of higher tax receipts and social savings.
- State and local government will see a rate of return of 25% on their support for Edmonds Community College. This return compares very favorably with private sector rates of return on investment.
Edmonds Community College increases students’ earning potential
- A total of 17,812 credit and non-credit students attended the college in 2004-05. As many as 90% of students stay in the region after graduating and contribute to the local economy.
- Studies demonstrate that education increases lifetime earnings. The average annual earnings of a student with a one-year certificate are $33,954, or 82% more than someone without a high school diploma or GED, and 15% more than a student with a high school diploma. The average earnings of someone with an Associate Degree are $39,724, or 112% more than someone without a high school diploma or GED, and 35% more than a student with a high school diploma or GED.
- Graduates will see their annual income increase, on average, by about $96 per year for every credit completed at Edmonds Community College.
- Over the next 36 years in the workforce, Edmonds Community College alumni will see their lifetime earnings increase $4.93, on average, for every dollar invested in their education including, tuition, fees, books, and foregone earnings from employment.
- Students enjoy an 18.1% rate of return on investment in their education at Edmonds Community College, and recover all costs (including wages foregone while attending college) in 7.8 years.
