College produces $3.9 billion cumulative annual impact throughout state
An in-depth study, conducted by Economic Modeling Specialists, Intl. (Emsi), has revealed the significant positive economic impact Ivy Tech Community College makes on the State of Indiana, including the local impact of $271.5 million in income to the Evansville Campus Service Area economy in 2018-19.* The report outlines the return on investment the Community College makes to its major stakeholder groups – students, taxpayers and the communities it serves. Results of the analysis reflect a $3.9 billion cumulative annual impact statewide.
The 2020 Ivy Tech Community College Economic Impact Report, based on fiscal year 2018-19, includes the following key findings for the local area:
- Alumni have the greatest impact on the state because of higher earnings and increased productivity of the businesses that employ them. In FY 2018-19, Ivy Tech alumni generated $244.7 million in added income for the region’s economy, which is the equivalent to supporting 3,145 jobs.
- In the 10-county Evansville service area, Ivy Tech employs 457 full-time and part-time faculty and staff with a total operation spend of $23.7 million contributing to the local economy.
- The expenditures of retained students in FY 2018-19 also added $3.1 million in income to the local economy and supported the equivalent of 80 jobs in the Evansville Campus Service Region.
“We who work and learn at Ivy Tech, see daily the incredible impact the college has on our communities and state, but this report is very eye opening,” said Evansville Region Chancellor Daniela Vidal. “In FY 2018-19, Ivy Tech Evansville served 6,053 credit and 1,266 non-credit students – who invested in their future. In return, they are receiving a stream of higher future earnings that will continue to grow throughout their working lives,” she said.
And, Ivy Tech Evansville generates more in tax revenue than it takes. The report indicates that for every $1 of public money invested in Ivy Tech Evansville, taxpayers will receive a cumulative value of $2 over the course of the students’ working lives. Value is created from several perspectives, Vidal said.
“Benefits to taxpayers will also consist of savings generated by the improved lifestyles of Ivy Tech Evansville students and the corresponding reduced government services,” Vidal said. “Education is statistically correlated with a variety of lifestyle changes. This will generate savings in healthcare, crime and income assistance, which in turn lowers the demand for national healthcare services, law enforcement, and make graduates more employable reducing income assistance needed.”
“Ivy Tech’s impact goes well beyond the benefits students derive from their education,” said Sue Ellspermann, president of Ivy Tech. “When the College’s students enter the workforce, they bring with them valuable skills acquired through their education, resulting in increased productivity for their employers. That has a lasting impact on our state and the dozens of communities where our students live and work.”
For details on the statewide impact, visit www.ivytech.edu/impact. To find full details about the Evansville campus, click the Evansville button.
Individual student impact grows with investment
In addition to identifying the economic impact of the institution, the study also analyzed the value of the investment students are making in themselves by choosing an Ivy Tech education, and the value the community is investing in students through public dollars the institution receives from taxpayers.
The study found that students invested $502.8 million in time and money that will generate a cumulative return of $2.2 billion in higher future earnings over their working careers. The average Ivy Tech associate degree graduate from FY 2018-19 will see annual earnings that are $10,200 higher than a person with a high school diploma or equivalent working in Indiana.
“In today’s job market, a post-secondary credential is more important than ever,” Ellspermann said. “Ivy Tech offers a cost-effective way of acquiring knowledge and skills that lead to new careers and improved earnings.”
In fact, students will see an average annual return on investment of 18.3%, which is significantly higher than the U.S. stock market’s 30-year average rate of return of just under 10%, or the 30-year U.S. Treasury at 1.91% rate of return.
*Evansville campus service area consists of the following counties: Vanderburgh, Warrick, Gibson, Posey, Perry, Dubois, Pike, Daviess, Knox and Spencer.