The Economic Value of East Central College on the ECC Taxing District
Economic impact analysis
In FY 2022-23, ECC added $110.9 million in income to the ECC Taxing District* economy, a value approximately equal to 2.7% of the region’s total gross regional product (GRP). Expressed in terms of jobs, ECC’s impact supported 1,891 jobs.
For perspective, the activities of ECC and its students support one out of every 26 jobs in the ECC Taxing District.
Operations spending impact
ECC employed 453 full-time and part-time faculty and staff. Payroll amounted to $18.2 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 $8.7 million on its expenses related to facilities, supplies, and professional services (excluding construction).
The net impact of the college’s operations spending added $10.9 million in income to the regional economy in FY 2022-23.
Student spending impact
Around 34% of students attending ECC originated from outside the region. Most of them relocated to the ECC Taxing District. In addition, some in-region students, referred to as retained students, would have left the ECC Taxing District for other educational opportunities if not for ECC. 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 2022-23 added $9.5 million in income to the ECC Taxing District economy.
Alumni impact
Over the years, students have studied at ECC and entered or re-entered the workforce with newly acquired knowledge and skills. Today, thousands of these former students are employed in the ECC Taxing District.
The net impact of ECC’s former students currently employed in the regional workforce amounted to $90.5 million in added income in FY 2022-23.
* For the purposes of this analysis, the ECC Taxing District is comprised of 16 zip codes spanning across Crawford, Franklin, St. Charles, and Warren Counties in Missouri.
Impacts created by
ECC in FY 2022–23
Investment analysis
Student perspective
ECC’s FY 2022-23 students paid a present value of $7.7 million to cover the cost of tuition, fees, supplies, and interest on student loans. They also forwent a value of $5.7 million in time and money had they been working instead of attending college.
In return for their investment, students will receive a cumulative present value of $74.3 million in increased earnings over their working lives.
This translates to a return of $5.60 in higher future earnings for every dollar students invest in their education. Students’ average annual rate of return is 17.9%.
Taxpayer perspective
Taxpayers provided ECC with $18.6 million of funding in FY 2022-23. In return, they will benefit from added tax revenue, stemming from students’ higher lifetime earnings and increased business output, amounting to $22.5 million. A reduced demand for government-funded services in Missouri will add another $3.1 million in benefits to taxpayers.
Total taxpayer benefits amount to $25.6 million, the present value sum of the added tax revenue and public sector savings. For every dollar of public money invested in ECC, taxpayers will receive $1.40 in return over the course of students’ working lives. The average annual rate of return for taxpayers is 2.2%.
Social perspective
In FY 2022-23, Missouri invested $35.4 million to support ECC. In turn, the Missouri economy will grow by $289.0 million, over the course of students’ working lives. Society will also benefit from $12.6 million of public and private sector savings.
For every dollar invested in ECC in FY 2022-23, people in Missouri will receive $8.50 in return, for as long as ECC’s FY 2022-23 students remain active in the state workforce.
Students see a high rate of return for their investment in ECC
Summary of Investment Analysis Results
Student perspective
Taxpayer perspective
Social perspective
Links
Conclusion
The results of this study demonstrate that ECC creates value from multiple perspectives.
The college benefits regional businesses by increasing consumer spending in the region and supplying a steady flow of qualified, trained workers to the workforce. ECC enriches the lives of students by raising their lifetime earnings and helping them achieve their individual potential. The college benefits state and local taxpayers through increased tax receipts and a reduced demand for government-supported social services.
Finally, ECC benefits society as a whole in Missouri by creating a more prosperous economy and generating a variety of savings through the improved lifestyles of students.
About the study
Data and assumptions used in the study are based on several sources, including the FY 2022-23 academic and financial reports from ECC, industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs of Lightcast’s Multi-Regional Social Accounting Matrix model, and a variety of studies and surveys relating education to social behavior. The study applies a conservative methodology and follows standard practice using only the most recognized indicators of economic impact and investment effectiveness. For a full description of the data and approach used in the study, please contact the college for a copy of the main report.
Inquiries about the report can be sent to Dr. Jon Bauer, president, East Central College. Jon.Bauer@eastcentral.edu
ECC Rolla
ECC Rolla influences both the lives of its students and the regional economy. The campus supports a variety of industries in the ECC Rolla Service Region, serves regional businesses, and benefits society as a whole in Missouri from an expanded economy and improved quality of life.
Explore full economic impact of ECC–Rolla
Lightcast provides colleges and universities with labor market data that help create better outcomes for students, businesses, and communities. Their data, which cover more than 99% of the U.S. workforce, are compiled from a wide variety of government sources, job postings, and online profiles and résumés. Hundreds of institutions use Lightcast to align programs with regional needs, drive enrollment, connect students with in-demand careers, track their alumni’s employment outcomes, and demonstrate their institution’s economic impact on their region. Visit lightcast.io/solutions/education to learn more.