Local
Report cites economic impact of Norwalk Community College
By Norwalk Community College
Jul 28, 2008 - 2:04:57 PM

Norwalk Community College gives Fairfield County a big bang for the buck

According to recent report on The Economic Contribution of Norwalk Community College prepared by Economic Marketing Specialists Inc., NCC plays a significant role in the local economy and is a sound investment from multiple perspectives.

NCC students benefit from increased annual incomes and brighter futures. Taxpayers benefit from a larger economy and lower social costs. And the community as a whole benefits from increased job and investment opportunities, higher business revenues and enhanced quality of life.

The May 2008 report by M. Henry Robison and Kjell A. Christophersen examined the socioeconomic impact of NCC from various perspectives including social benefits, taxpayer benefits, business perspective and student benefits.

It revealed that as NCC students learn more, they earn more, and in turn contribute to the community by stimulating the regional economy and expanding the tax base.

“Norwalk Community College adds more money to the state economy than it takes out,” the authors found. Not only does the college pull its own weight, but it also effectively subsidizes other sectors funded by the taxpayers.”

Norwalk Community College President David L. Levinson, Ph.D., a Westport resident, said “Especially during a time of economic downturn, investing in NCC is critically important for the health of Fairfield County. We are quick to respond to emerging workforce needs and provide a critical ingredient for our digitally-convergent, creative economy.”

Excerpts from the report follow:

NCC Helps State and Local Economy

The regional economy is $629.1 million stronger due to NCC and its students.

• The NCC impact region economy receives roughly $30.1 million in regional.

• NCC students who commute to the area from outside bring with them monies that would not have otherwise entered the local economy. The expenditures of NCC’s out-of-region students generate roughly $46,200 in added regional income in the NCC impact region.

• NCC activities encourage new business, assist existing business and create long-term economic growth. The college enhances worker stills and provides customized training to local business and industry. It is estimated that the NCC region workforce embodies about 953,700 credit and non-credit hours of past and present NCC training.

• NCC skills embodied in the regional workforce where former students are employed increase local income by $511.8 million. Associated indirect effects increase income by another $87.1 million in income due to past and present efforts of NCC.

• Altogether, the NCC impact region economy annually receives roughly $629.1 million in income due to past and present efforts of NCC.

NCC Leverages Taxpayer Dollars

State taxpayers earn a 10.4 percent rate of return on their investment in NCC.

• Approximately 93 percent of NCC students remain in Connecticut and contribute to economic growth.

• Each student who enters the workforce expands the tax base by generating higher earnings and reducing social costs, thereby reducing the burden on state taxpayers.

• NCC students generate about $35.9 million annually in higher earnings due to their NCC education.

• NCC yields a return on government investment. The State of Connecticut allocated approximately $24.9 million in support of NCC in fiscal year 2007. For every dollar of this support, taxpayers see a cumulative return of $2.50 over the course of students’ working careers (in the form of higher tax revenues and avoided social costs attributable to education.)

• The state and local community see $23 in avoided social costs per year for every credit earned by NCC students, including savings associated with improved health, lowered cost of law enforcement and reduced welfare and unemployment. This translates to $2.4 million in avoided costs to the State of Connecticut each year as long as students are in the workforce.

NCC Helps Students Earn More

Over the course of his or her working career, the average NCC student’s lifetime earnings will increase $8.10 for every $1 invested in their NCC education.

• Over the course of a working lifetime, NCC Associate degree graduates earn $816,200 more than someone with a high school diploma.

• The average annual income of a one-year NCC certificate graduate at the midpoint of his or her career is $65,700, or 83 percent more than someone without a high school diploma and 17 percent more than a student with a high school diploma.

• The average income at the career midpoint of someone with an NCC Associate degree is $78,100, or 118 percent more than someone without a high school diploma and 39 percent more than a student with a high school diploma.

• Students enjoy an attractive 22% rate of return on their NCC educational investment, recovering all costs in only seven years.(including wages given up while attending classes instead of working)

• Students see their annual income increase by $334 for every credit completed at NCC.

NCC Increases State Income

The activities of NCC’s current study body will generate about $18.4 million annually in labor income in the state economy each year.

• Once NCC’s current students become active in the workforce, they promote business output, raise consumer spending, and increase property income in the state economy. All of this contributes to an additional $7.2 million in taxable income each year.

• Altogether, higher student income and associated effects on business productivity add $25.6 million in income annually to the state economy.

EMSI Inc. (www.economicmodeling.com) is a leading provider of socioeconomic impact and strategic planning tools to community colleges in the U.S. and Canada.

To see full documentation of the study, contact Madeline Barillo at (203) 857-7039 or mbarillo@ncc.commnet.edu

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