central new mexico community college
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Central New Mexico Community College. Economic Impact Study – Summer 2012. Investment analysis Economic growth analysis. Two parts to the study ……. - PowerPoint PPT PresentationTRANSCRIPT
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
$101,990Average 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 ….