SDCCD: The Economic Value Of The California Community Colleges System

Press release from San Diego Community College District:

February 17, 2022

Community College System Supports 1.5 million California Jobs; Increases Students’
Earnings

California’s community colleges generate $128.2 billion in economic activity, an amount equal to approximately 4.2%
of California’s total gross state product, according to a new study that examined
a wide range of factors such as payroll, job creation and alumni’s improved standard
of living. “This study validates the clear fact that California’s community colleges
are an investment playing a critical role in driving the state’s economy and making
a difference in millions of lives daily,” said California Community Colleges Chancellor
Eloy Ortiz Oakley.

“This study validates the clear fact that California’s community colleges are an investment
playing a critical role in driving the state’s economy and making a difference in
millions of lives daily,” said California Community Colleges Chancellor Eloy Ortiz
Oakley.

He noted the report’s estimates that for every $1 invested in the community college
system, students gain $5 in earnings, and taxpayers see a net benefit of $2 in added
tax revenue stemming from students’ higher lifetime earnings and increased output
by businesses.

The average community college graduate with an associate degree will see an increase
in earnings of $11,100 annually, when compared to a person with a high school diploma
or equivalent.

“Millions of former community college students have secured the education and workforce
training needed to earn higher incomes and an improved standard of living while businesses
in virtually every industry sector are becoming more profitable thanks to the skills
obtained by community college alumni,” said Board of Governors of the California Community
Colleges President Pamela Haynes.

Among the report’s highlights:

The California Community Colleges, which include 73 districts and 116 colleges, is
among the state’s largest employers with 91,328 full-time and part-time faculty and
staff.

Payroll alone amounted to $8.5 billion, with colleges spending an additional $4.2
billion on day-to-day expenses. This initial round of spending creates more spending
across other businesses throughout the state economy through what is commonly known
as the multiplier effect.The California Community Colleges supported nearly 1.5 million jobs – or one of every
16 jobs in the state – when combining the impact of payroll, operating expenses and
construction costs with spending by students, faculty and staff.

The sum of the social benefits of California community colleges equal a present-day
value of $265.9 billion when combining savings related to health, crime and income
assistance ($3.3 billion) with students’ increased future income ($179 billion), added
business income ($64.4 billion) and additional income from college activities ($19.2
billion).

The 101-page study produced by Emsi Burning Glass, titled The Economic Value of the California Community College System, incorporated an array of data including 2018-19 academic and financial reports from
the college system, industry and employment data from the Bureau of Labor Statistics
and Census Bureau. The economic modeling considers the added income created in the
California economy as a result of increased consumer spending and the added knowledge,
skills and abilities of students; and a variety of published materials relating education
to social behavior.

The California Community Colleges is the largest system of higher education in the nation, composed of 73 districts
and 116 colleges serving 2.1 million students per year. California community colleges
provide career education and workforce training; guaranteed transfer to four-year
universities; degree and certificate pathways; and basic skills education in English
and math. As the state’s engine for social and economic mobility, the California Community
Colleges supports the Vision for Success, a strategic plan designed to improve student
success outcomes, increase transfer rates and eliminate achievement gaps. 

View the California Community Colleges Environmental Impact Report

This article originally ran on the California Community Colleges website

This press release was produced by San Diego Community College District. The views expressed here are the author’s own.