Central New Mexico Community College Economic Impact Study – Summer 2012

Investment analysis Economic 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 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

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 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 $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 $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 $431.2 million net contribution to service area income Economic Growth Analysis: Student Productivity

- CNM is a great value! The bottom line ….