In an effort to better understand our impact, we recently commissioned a study to measure the economic impact CR has on the business community and the benefits we generate as a Return on Investments (ROI) made by our students, taxpayers, and society. I want to share some of the findings of the study with you.
In fiscal year 2018-19, CR added $147 million in income to our service region economy and supported 2,441 jobs. For perspective, the activities of CR and its students support one out of every 36 jobs in the CR’s service region.
CR employs 561 full-time and part-time faculty and staff, most of whom spend their income in the region for groceries, mortgage and rent payments, dining out, and other household expenses. The College also supports the local economy with expenditures related to day-to-day activities in our facilities, supplies, and professional services areas. Together, the net impact of the college’s operational spending added $45.9 million in income to the regional economy.
Additionally, CR invests in construction each year to maintain its facilities, create additional capacities, and meet its growing educational demands. This means we employ many local businesses, generating more short-term jobs in the regional economy. The net impact of CR’s construction projects was $3.9 million in added income for our service region.
RETURN ON INVESTMENT TO STUDENTS, TAXPAYERS, AND SOCIETY
Over the years, students have studied at CR and entered or re-entered the workforce with newly acquired knowledge and skills. Today, thousands of these former students are employed in the region. The net impact of CR’s former students currently employed in the regional workforce amounted to $87.8 million.
CR’s 2018-19 students paid a present value of $6.4 million to cover the cost of tuition, fees, supplies, and interest on student loans. In return for their investment, students will receive $127.7 million in increased earnings over their working lives. This translates to a return of $5.20 in higher future earnings for every dollar students invest in their education. Students’ average annual rate of return is 21.9%.
From a taxpayer’s perspective, the revenue stemming from students’ higher lifetime earnings and increased business output, amounts to $29.1 million, and a reduced demand for government-funded services in California will add another $4.6 million for a total of $33.7 million, just for Fiscal Year 2018-19. Over the course of students’ working lives, California’s economy will grow by $416.6 million because of these students and see $7.5 million in public and private sector savings. For every dollar invested in CR in FY 2018-19, California taxpayers will receive $4.60 in return, for as long as those students remain active in the state workforce.