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Economic Impact

Economic Impact Study
  • Results released by N.C. Community College System in January 2005
  • Funded by the Association for Community College Trustees (ACCT)
  • Included all 58 N.C. community colleges
  • Conducted by CCbenefits, Inc., a highly-respected national economic research firm that provides economic analysis services to 2-year technical and community colleges
  • Findings based on Fiscal 2003 figures
Four types of benefits tracked
  • Regional economic benefits (contributions to local job and income formation)
  • Higher earnings by exiting students
  • Broad social benefits (improved health, reduced crime, lower welfare, and unemployment)
  • Return to taxpayers
ECC stimulates the local economy
  • College operating expenses – $17 million
    • Amount spent in Edgecombe County – $13 million (74%)
  • 190 full-time and 65 part-time faculty and staff
    • Wages, salaries, & benefits = $10 million
  • For every $1 in earnings, an additional $0.32 in earnings is generated off campus
  • Local workforce embodies more than 1.6 million credit and non-credit hours of past & present ECC training
  • Workforce skills gained at ECC increase output of Edgecombe County industries by $157 million
  • Indirect effects in other industries increase sales by $69 million
    • $54 million directly
    • $26 million indirectly
  • Workforce skills gained at ECC increase Edgecombe County earnings by:
ECC leverages taxpayer dollars
  • For every $1 appropriated by state and local government:
    • ECC’s spending generated $1.61 in earnings in Edgecombe County
    • Student earnings will increase by $0.88 per year for every year in the workforce
  • For every state dollar appropriated:
    • Edgecombe County will see social savings of $0.38 per year
ECC generates a return on government investment
  • Through tax receipts (from increased student wages) and avoided costs (reduced public expenditures on incarceration, for example):
    • State and local support will be fully recovered in 5.5 years
    • State and local support will see a 24.5% rate of return
ECC increases earning potential of students
  • 10,654 credit & non-credit students attended ECC in Fiscal 2003
  • 62% employed full-time or part-time
  • 90% remain in area initially following ECC education
  • Average ECC student will spend 35 years in the workforce
  • An individual with 2-year degree will earn $168,598 more than someone with a high school diploma
  • ECC students enjoy an 18% rate of return on their ECC educational investment
  • ECC students recover all costs of attending, including foregone wages, in 7.8 years
Education increases lifetime earnings
  • Average annual earnings with 2-year degree
    • 112% higher than those without high school diploma
    • 36% higher than those with high school diploma
  • Average annual earnings with 1-year certificate
    • 80% higher than those without high school diploma
    • 16% higher than those with high school diploma