Anderson Oconee Pickens

First-Ever Economic Impact Study Says Tri-County is Sound Investment

CONTACT: DR. RONNIE L. BOOTH, 646-1773

FOR IMMEDIATE RELEASE 3/12/2004
(By Lisa Garrett)

PENDLETON --- The data was confirming, but certainly not surprising, to Tri-County Technical College President Dr. Ronnie L. Booth when he read the results of a first-ever study outlining of the socioeconomic benefits generated by the 42-year-old College.

A study commissioned by Dr. Booth last year and recently released by CCbenefits Inc. of Iowa revealed that the College is a sound investment because it enriches the lives of students and increases their lifetime earnings, generates a return on government investment and reduces the demand for taxpayer-supported social services.

The study, using a comprehensive economic model developed with funding from the Association of Community College Trustees, captures and quantifies the economic and social benefits of community and technical colleges. It collects data from individual colleges and translates it into common sense benefit/cost and investment terms. The study tracks four benefits: regional economic benefits; higher earnings captured by exiting students; a broad collection of social benefits and a return to taxpayers for their College support.

"The real deal is the return on the investment for taxpayers, which is 16-plus percent," said Dr. Booth. The study estimates that every dollar of state or local tax money invested in the College today returns a cumulative of $16 over the next 30 years.

Taxpayer dollars invested in Tri-County benefit the entire community, said Dr. Booth.

"The cumulative effect shows persons who graduated 20 years ago are still benefiting from their education here at Tri-County, and that's important to see," he added.

The study confirms that an average graduate earns 35 percent more per year than if he or she didn't have a degree. "Every dollar a student invests gets returned seven fold," he added. "Students get their money back."

A graduate will earn $306,190 more than someone with a high school diploma or GED. Students enjoy a 25.4 percent rate of return on their Tri-County educational investment and recover all costs (including wages foregone while attending college) in 5.7 years.

Graduates contribute an estimated $60.3 million worth of added income per year to the regional economy after leaving the college.

The study shows that employers and the community will see improved health and less job absenteeism, reduced crime and lower unemployment.

The indirect return is important but often overlooked, said Dr. Booth. "By spending money on education, we save money on crime, healthcare, welfare and unemployment. The results are significant and overwhelmingly positive."

"A lot of money the state spends is to fix problems, and these are legitimate needs. The dollars spent here really do build for the future," he said.

To view the entire study, which includes an executive summary, fact sheet, and power point presentation presenting in the socioeconomic benefits, go to the College's website, www.tctc.edu, and click on the College News section.

Highlights:

Tri-County pays $17.4 million annually in direct faculty and staff wages, salaries and benefits in the local region. Faculty and staff wages and salaries add $7 million worth of income as they are spent in the local region.

Taxpayers see a real book return of 16.4 percent on their annual investments at the College and recover all investments in 8.2 years.

Students enjoy an attractive 25 percent annual return on their investment of time and money -- for every $1 the student invests in TCTC, he or she will receive a cumulative $6.95 in higher future earnings over the next 30 years or so.
For every credit completed, students will on average earn $128 more per year each year they are in the workforce. Alternately, for every full-time year they attend, they will earn an additional $3,825 per year.

The state benefits from improved health and reduced welfare, unemployment, and crime, saving the public some $23 million per year.

A degree from Tri-County will increase earnings to $34,338 per year or 35.2 percent more than the average high school graduate.
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