COCC brings nearly $300 million in added income to C. Oregon, new study finds; statewide CC impact $9.6 billion
BEND, Ore. (KTVZ) -- A new study demonstrates the transformative value and benefits that Central Oregon Community College generates for the regional economy, the school said Tuesday.
Lightcast, a leading provider of economic impact studies and labor market data, has just released both statewide and regional reports assessing the economic impact of Oregon’s 17 community colleges. These studies find that COCC creates a strong net-positive impact on the Central Oregon economy and generates a positive return on investment for students, taxpayers, and society.
COCC added $289.6 million in income to the economies of Crook, Jefferson, and Deschutes counties during the 2021-22 analysis year and supported 3,562 regional jobs. This means that one out of every 43 jobs in Central Oregon is supported by the activities of COCC and its students. For context, the college’s nearly $300 million in economic impact was equal to approximately 2% of the total gross regional product (GRP) of Central Oregon — nearly as large as the entire Transportation and Warehousing industry in the same region.
“This new report is a powerful testament to the benefits COCC generates in return for the investments made by students, local taxpayers, and all Central Oregonians,” says Dr. Laurie Chesley, the college’s president.
The Lightcast study notes students see a high rate of return for their investment in higher education at COCC. The average COCC associate degree graduate from FY 2021-22 will see annual earnings that are $8,000 higher than a person with a high school diploma or equivalent working in Oregon. Over a working lifetime, the benefits of the associate degree from COCC over a high school diploma will amount to $280,000 in higher earnings per graduate.
“COCC offers our students a fantastic value during their studies,” adds Chesley. “But we also offer our students a pathway to higher incomes throughout their lifetimes, which will in turn impact their families, their employers, and our communities at large.”
The report finds that COCC supports a variety of industries and regional businesses in Crook, Deschutes, and Jefferson counties. The college also generates more in tax revenue than it receives, resulting in increased local and state tax revenues and public sector savings. According to the study, COCC also provides societal benefits through an increased economic base from students’ increased lifetime earnings and increased business output, both of which raise economic prosperity in Oregon. In total, for every dollar invested in COCC, Oregonians will receive a cumulative value of $5.90 in benefits.
The Lightcast studies demonstrate that COCC 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. COCC 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, COCC benefits Oregon society at large by creating a more prosperous economy and generating a variety of savings through the improved lifestyles of students.
The full “Economic Value of Central Oregon Community College” report is available online.
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Oregon community colleges drive $9.6 billion economic impact and foster job growth, reveals new data
SALEM, Ore. – The Oregon Community College Association (OCCA) has released new data that underscores the profound influence that Oregon's community colleges wield over the state's economy. The comprehensive analysis, conducted by independent labor market analytics firm Lightcast and commissioned by OCCA and the state’s 17 community colleges, highlights the substantial contributions of Oregon's community colleges, which collectively generate an impressive $9.6 billion annual economic impact while supporting 1 out of every 22 jobs in the state.
The focus of the report, spanning Fiscal Year (FY) 2021-2022, demonstrates that this impact corresponded to 3.3% of Oregon's gross state product, reinforcing the colleges' pivotal role in driving the economic engine of the region. This influence radiates across the state, sustaining an impressive 117,970 jobs.
Notably, the financial support extended to Oregon's community colleges in FY 2021-22 totaled $834.3 million, a strategic investment by taxpayers. This investment is poised to yield substantial returns, including heightened tax revenue stemming from students' augmented lifetime earnings and increased business output, a cumulative effect amounting to an estimated $1 billion. Moreover, the substantial decrease in the public’s reliance on government-funded services within Oregon is anticipated to confer an additional $89 million in benefits to taxpayers.
The comprehensive report was crafted by Lightcast, drawing from a myriad of sources including academic and financial reports from state community colleges, as well as pertinent industry and employment data meticulously collated from authoritative bodies such as the U.S. Bureau of Labor Statistics and Census Bureau.
“A core mission of Oregon community colleges is to empower individuals with the skills imperative for constructing the foundation of our state's economy,” said Karen Smith, Interim Executive Director of OCCA. “The robust dataset presented in this report unequivocally attests to the colleges’ relentless pursuit of excellence in fulfilling this mission and demonstrates the impact community colleges have on their local communities. The findings of this analysis undeniably demonstrate that Oregon's community colleges are a compelling investment for the triad of major stakeholders — students, taxpayers, and society at large.”
Students are poised to reap a 21% return on their educational investment in an Oregon community college. Simultaneously, taxpayers’ funding allocations not only exhibit a positive balance when juxtaposed with budgetary spending, but they also reverberate in the form of diverse societal benefits that resonate throughout Oregon.
Other key points from the report include:
- Reduced demand for government-funded services in Oregon because of public sector savings from community colleges’ impact increases the annual benefit to taxpayers to $89 million.
- For every dollar of public money invested in Oregon’s community colleges, taxpayers will receive $1.30 in return, over the course of students’ working lives. The average annual rate of return for taxpayers is 1.9%.
- An Oregon community college graduate earns $9,100 more annually than someone with just a high school diploma.
- Oregon community college students earn an average return on their educational investment of 21%, and students gain a return of $5.20 in higher future earnings for every dollar they invest in their community college education.
- Oregon community colleges’ operations spending added $769.8 million to the state’s economy, supporting 9,894 jobs. That’s comparable to the ability to purchase 16,352 new cars.
- Their construction spending provided $28.4 million in added income for Oregon, while student spending added $177.5 million. That’s enough to buy 14,341 families a years’ worth of groceries.
- Over the years, students have studied at Oregon’s community colleges and entered or re-entered the workforce with newly-acquired knowledge and skills. Today, hundreds of thousands of these former students are employed in Oregon. The net impact of the colleges’ former students currently employed in the state workforce amounted to $8.6 billion in added income in FY 2021-22. That’s an economic boost similar to hosting the Super Bowl 24 times.
For an in-depth look at the economic impact of Oregon’s community colleges, please visit https://www.occa17.com/economic-impact/. Please contact individual colleges for their local economic impact.
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The Oregon Community College Association (OCCA) represents the 17 publicly chartered community colleges and their locally elected board members in Oregon. Founded in 1962, OCCA’s purpose is to support the colleges before policy-makers and partners whose actions affect the well-being of community colleges across the state.
