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

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.

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

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

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

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

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

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.

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.

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 Email/call us anytime

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