As part of the strategic planning process, Roxbury Community College (RCC) recently collaborated with Emsi to produce an economic impact and investment analysis. The final study measures the economic impacts created by RCC on the business community and the benefits the college generates in return for the investments made by its key stakeholder groups—students, taxpayers, and society.
Highlights from the study include:
- Student Perspective – RCC provides a strong return on student investment:
- $68.5 million – benefit: higher future earnings
- $8.3 million – cost: tuition, supplies, opportunity cost
- 8.4 benefit/cost ratio
- 31.9% rate of return
- Taxpayer Perspective – RCC is a valuable investment for taxpayers:
- $21.3 million – present value benefits for MA taxpayers for increased future tax revenue & government savings
- $22.9 million – cost: state funding
- Social Perspective – RCC provides society-at-large with hundreds of millions in benefits:
- $241.6 million – benefit: future earnings, tax revenue, private savings
- $35.8 million – cost: all college and student costs 6.7 benefit/cost ratio
The results of this study demonstrate that RCC 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. RCC enriches the lives of students by raising their lifetime earnings and helping them achieve their individual potential. The college benefits state taxpayers through increased tax receipts and a reduced demand for government-supported social services. Finally, RCC benefits society as a whole in Massachusetts by creating a more prosperous economy and generating a variety of savings through the improved lifestyles of students.