January 8, 2008

Broome Community College
Releases Results Of Socio-Economic Impact Study

-Report Shows BCC Contributes $290.1 Million Annually to Regional Economy-

(TOWN OF DICKINSON, NY) Broome Community College President Dr. Laurence Spraggs today released a report highlighting the College’s economic contribution to Broome County and the regional economy.

“This report details the role that the college plays in promoting economic development, enhancing students’ careers, and improving the overall quality of life,” said Dr. Spraggs. “The report was created with a vast array of data sources and standard, peer-reviewed analysis taking into account hard facts and dollar values. As the College is funded by students and local and state taxpayers, I believe it’s important for the community to know specifically what the financial contributions of the College are and what educational and economic benefits students and community members continue to receive.”

Overall the report concludes:

• Students enjoy a 15% annual return on their investment of time and money.
• Students see their annual income increase by $114 per year for every credit completed at BCC.
• For every $1 students invest in BCC, they receive a cumulative $5.10 in higher future earnings over the course of their working careers.
• Taxpayers see a real money return of 11% on their annual investments in BCC.
• The State of New York benefits from improved health and reduced welfare, unemployment, and crime, saving the public some $1.5 million per year each year that students are in the workforce.
• The regional economy receives roughly $290.1 million each year due to BCC and its students. This figure amounts to roughly 5.1% of the area’s total annual income.

Benefits to Broome County:

• The Broome County economy receives roughly $30.3 million in regional income due to BCC operations and capital spending.
• About 32% of BCC ‘s students come to the area from outside regional boundaries, which generates roughly $10.5 million in regional income in Broome County.

• It is estimated that the Broome County workforce embodies about 1.8 million credit hours of past and present BCC training.
• BCC skills embodied in the regional workforce where former students are employed increase local income by $212.3 million.

Benefits to Taxpayers:

• The state and local community will see avoided social costs amounting to $10 per year for every credit earned by BCC students, including savings associated with improved health, lower crime costs, and reduced welfare and unemployment. This translates to $1.5 million in avoided costs to the State of New York each year as long as students are in the workforce.
• Students benefit from higher earnings, thereby expanding the tax base and reducing the tax burden on state and local taxpayers. When aggregated together, BCC students generate about $16.4 million annually in higher earnings due to their BCC education.
• State and local government allocated around $24.8 million in support of BCC in fiscal year 2006. For every $1 of this support, taxpayers see a cumulative return of $3.00 over the course of students’ working careers (in the form of higher tax receipts and avoided social costs)
• State and local government see a rate of return of 11% on their support for BCC. This return compares very favorably with private sector rates of return on similar long-term investments.

Benefits to Students:

• The average annual income of a student with a one-year certificate is $32,500, or 83% more than someone without a high school diploma or GED, and 17% more than a student with a high school diploma.
• The average income of someone with an associate’s degree is $38,500, or 116% more than someone without a high school diploma or GED, and 38% more than a students with a high school diploma or GED.
• Students see their annual income increase by $114 per year for every credit completed at BCC.

“This report demonstrates the many ways in which Broome Community College is a driving force for the Southern Tier,” continued Dr. Spraggs. “Our students, faculty and staff are absolutely vital to the economic well-being of our region and New York State. If the College were not here, there would be a monumental financial impact on the regional economy.”

The report was conducted by EMSI/CC Benefits, Inc., an Idaho based company that is a leading provider of socioeconomic impact and strategic planning tools to community and technical colleges in the US and Canada. EMSI/CC Benefits specializes in detailed information about regional economies for assessment and planning purposes, bringing together industry, workforce, and education perspectives.

The 76-page study was funded through a $9,000 grant from the BCC Foundation. Copies of the study are available upon request.