Below are the results of the analysis for fiscal year (FY) 2017-18.
Moberly Area Community College (MACC) creates a significant positive impact on the business community and generates a return on investment to its major stakeholder groups—students, taxpayers, and society. Using a two-pronged approach that involves an economic impact analysis and an investment analysis, this study calculates the benefits received by each of these groups. Results of the analysis reflect fiscal year (FY) 2017-18.
In FY 2017-18, MACC added $89.7 million in income to the MACC Service Region* economy, a value approximately equal to 0.6% of the region’s total gross regional product (GRP). Expressed in terms of jobs, MACC’s impact supported 1,861 jobs.
Operations Spending Impact
MACC employed 567 full-time and part-time faculty and staff. Payroll amounted to $16.8 million, much of which was spent in the region for groceries, mortgage and rent payments, dining out, and other household expenses. The college spent another $11.9 million on day-to-day expenses related to facilities, supplies, and professional services.
The net impact of the college’s operations spending added $21.1 million in income to the regional economy in FY 2017-18.
Student Spending Impact
Around 21% of credit students attending MACC originated from outside the region. Some of these students relocated to the MACC Service Region. In addition, some in-region students would have left the MACC Service Region for other educational opportunities if not for MACC. These relocated and retained students spent money on groceries, mortgage and rent payments, and other living expenses at regional businesses.
The expenditures of relocated and retained students in FY 2017-18 added $4.3 million in income to the MACC Service Region economy
Over the years, students have studied at MACC and entered or re-entered the workforce with newly-acquired knowledge and skills. Today, thousands of these former students are employed in the MACC Service Region.
The net impact of MACC’s former students currently employed in the regional workforce amounted to $64.2 million in added income in FY 2017-18.
MACC’s FY 2017-18 students paid a present value of $16.9 million to cover the cost of tuition, fees, supplies, and interest on student loans. They also forwent $12.7 million in money that they would have earned had they been working instead of attending college.
In return for their investment, students will receive $124 million in increased earnings over their working lives. This translates to a return of $4.20 in higher future earnings for every dollar students invest in their education. Students’ average annual rate of return is 15.4%.
Taxpayers provided MACC with $7.2 million of funding in FY 2017-18. In return, they will benefit from added tax revenue, stemming from students’ higher lifetime earnings and increased business output, amounting to $36.7 million. A reduced demand for government-funded services in Missouri will add another $5.8 million in benefits to taxpayers.
For every dollar of public money invested in MACC, taxpayers will receive $5.90 in return, over the course of students’ working lives. The average annual rate of return for taxpayers is 14.4%.
In FY 2017-18, Missouri invested $46.7 million to support MACC. In turn, the Missouri economy will grow by $441.9 million, over the course of students’ working lives. Society will also benefit from $19.2 million of public and private sector savings.
For every dollar invested in MACC in FY 2017-18, people in Missouri will receive $9.90 in return, for as long as MACC’s FY 2017-18 students remain active in the state workforce.