Central New Mexico Community College Economic Impact Study – Summer 2012.

Central New Mexico Community College

Economic Impact Study – Summer 2012

Investment analysisEconomic growth analysis

Two parts to the study ……

- Third time we have contracted for this study

- Model evolves and is refined. Not comparable to previous results

- Snapshot using 10-11 data

- Reflection of today’s economic conditions and economic theory

General Information

Treats education funding as an investment, calculates measurable returns and compares to cost from three perspectives

Investment Analysis Are you getting your money’s worth?

- Student perspective

- Social perspective

- Taxpayer perspective

Investment Analysis

- Sacrifice current earnings in return for lifetime of higher income

- Cost: tuition and fees, books and supplies, and time

Investment Analysis: Student perspective

- Average CNM student income increases $4.30 for every $1 invested in CNM

- By 2021, anticipated 162K new and replacement jobs in CNM service area

- About 27% will require Associate and 8% certificate

Investment Analysis: Student perspective Education Will Pay You Back – For A Lifetime

Investment Analysis: Student perspective

<HS HS Associate'sBachelor's Master's Doctorate-$10,000

$10,000

$30,000

$50,000

$70,000

$90,000

$110,000

$19,500$30,300

$41,000

$58,800$70,900

$101,990

Average income in CNM Service Area at career midpoint

14.1%return on investment of time and money

Investment Analysis: Student perspective

- Adds all benefits attributable to CNM and compares to the original investment made

Investment Analysis: Social perspective

Investment Analysis: Social perspective

Added income, $85.5

Social savings,

$5.1

Higher earnings of CNM students and associated increases in state income expand the tax base by about $85.5M with $5.1M in social savings

Every dollar of state and local tax money invested in the college today yields a cumulative of $14.30 to all New Mexico residents

Investment Analysis: Social perspective

Only benefits that accrue to state and local governments are counted such as increased tax collections and reduced government expenditures

Investment Analysis: Taxpayer perspective

For every $1 appropriated by state and local governments to CNM, taxpayers see a $1.60 return in higher tax revenues and avoided social costs

Investment Analysis: Taxpayer perspective

5.6%annual rate of return state and local

governments see on their support for CNM

Investment Analysis: Taxpayer perspective

Economic Growth Analysis

- College Operations

- Student spending

- Student productivity

Economic Growth Analysis Measures added income into the region due to

- Faculty and staff earnings become part of the service area income

- The institution also purchases supplies and services generating additional jobs and income.

Economic Growth Analysis: College Operations

$79.8 million

net contribution to service area income

Economic Growth Analysis: College Operations

- Spending by students who are from outside the service area

- Approximately 15% of students from outside the service area

Economic Growth Analysis: Student Spending

$38.5 million

net contribution to service area income

Economic Growth Analysis: Student Spending

- Effects of former CNM students who increase skills and acquire new skills

- Results in increased spending by those who increase skills and increased business and property income by those who acquire new skills

Economic Growth Analysis: Student Productivity

$431.2 million

net contribution to service area income

Economic Growth Analysis: Student Productivity

- CNM is a great value!

The bottom line ….