VC issues results of economic impact study for Golden Crescent region

Victoria College recently completed an economic impact study that documents the vital role VC plays in the economic future of Texas—specifically the Golden Crescent region—and especially in the lives of the more than 10,000 credit and workforce students VC serves each year.

The report concludes that Victoria taxpayers see a rate of return of 5.6 percent on their investment in VC. The overall Texas economy sees an increase of $20.1 million from the higher earnings generated by VC students and the economy of the Golden Crescent region receives approximately $17.4 million in direct revenue from VC’s operations.

State and local economies see additional benefit from avoided social costs that amount to a savings of more than $1.1 million per year. The savings translation for every dollar of state and local tax money invested in VC today yields a cumulative of $1.60 in benefits that accrue to all Texas residents as added income and avoided social costs.

The study shows a meaningful economic impact for students who attend VC. Students see a rate of return on their educational investment of 14.2 percent, which compares very favorably with the overall rate of return for all of Texas at 15.2 percent. For every dollar a student invests in their education they receive a cumulative $4.50 over their working careers. Associate degree graduates in the Golden Crescent region earn an average of $35,400 per year, 36 percent more than someone with a high school diploma.

The skills students gain at VC translate to higher earnings for themselves and higher productivity and profitability for local business and industry. This added income, which is directly attributable to the accumulation of VC credits in the workforce, amounts to approximately $91.5 million each year in the Golden Crescent region.

 “As the State of Texas faces a looming budget shortfall, there is clear concern that additional cuts to these critical institutions could reduce their ability to impact the regional economy,” said VC President Dr. Tom Butler. “But clearly, Victoria College’s educational services are essential to the economy of the state and especially in the Golden Crescent region, both now and into the future.

“We need the state to remain committed to investing in community colleges or Texas could be in danger of losing economic ground.” Butler added, “There can be no doubt that community colleges provide a solid foundation for the state’s economy and that means we must continue to have state funding that allows us to provide economic opportunities for our students and our communities to move towards a brighter future.”

The economic impact study was performed by Economic Modeling Specialists, Inc (EMSI), using a comprehensive model designed to quantify the economic benefits of community and technical colleges and translate these into common sense benefit/cost and investment terms.

Published: Thursday, 27 January 2011

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