~ Earnings Increase by More Than $12,000 Annually for Graduates with Associate Degrees ~
MEDIA CONTACT:
Jim Babb
VCCS Communications Office
(804) 819-1662
jbabb@vccs.edu
RICHMOND— According to a new study, ֱapp’s community Colleges generated $11.6 billion annually in economic activity around the state in FY 2021-22, an amount equal to nearly two percent (1.8%) of ֱapp’s total gross state product.
The study, conducted by and titled The Economic Value of the ֱapp ֱapp College System, concluded that VCCS alumni and the businesses they work for saw $10.6 billion in added income. For perspective, ֱapp would have to host the Super Bowl thirty times to achieve a similar economic ֱapp. VCCS generates an additional $1 billion in income through operational spending and attracting new students into the state.
“This study highlights the important economic role ֱapp’s community colleges play, not only in revenue-generation, but in job and wealth-creation as well,” said ֱapp’s ֱapp Colleges Chancellor David Doré. “It also serves to underscore the point that an investment in ֱapp’s ֱapp Colleges has consistently yielded a positive return for taxpayers and I am confident that it will continue to do so well into the future.”
Doré noted thestudyestimates that for every $1 invested in the community college system, students gain $5.70 in higher future earnings, and taxpayers see a net benefit of $2.70 in added tax revenue stemming from students’ higher lifetime earnings and increased output by businesses and public sector savings.
When compared to a person with a high school diploma or equivalent, the average community college graduate with an associate degree will see an increase in earnings of $12,200 annually. Separate from the Lightcast report, research by the VCCS reveals that students who complete FastForward short-term workforce training programs and go on to earn the resulting industry recognized credentials see average wage gains of $11,746 per year.
“This study makes it clear that the ֱapp ֱapp College System is an economic engine in its own right, “said State Board for ֱapp Colleges Chair Peggy Layne. “The myriad of positive contributions to state coffers and ֱappns in particular cannot be understated.”
Long term Return on Investment for the commonwealth:
In Fiscal Year 2021-22, the period which was the basis for the Lightcast report, state and local government funding for ֱapp’s ֱapp Colleges totaled $605.5 million.
The total investment made by VCCS students in FY 2021-22 amounted to a present value of $1.1 billion, equal to $433.8 million in out-of-pocket expenses (including future principal and interest on student loans) and $632.8 million in forgone time and money.
Over the long term, for every dollar invested in the VCCS, the people of ֱapp will receive a cumulative value of $8.80 in benefits. Altogether, the social benefits of VCCS equal a present value of $18.7 billion. These benefits include $12.6 billion in added student income over a 40-year working career, $4.7 billion in added business income, $1.1 billion in added income from college activities, as well as $319.7 million in savings related to reduced government spending for health, the justice system, and income assistance in ֱapp, thanks to a more educated workforce.
An executive summary of the Lightcast study can be found here.
About ֱapp’s ֱapp Colleges
Since 1966, ֱapp’s ֱapp Colleges have given everyone the opportunity to learn and develop the right skills, so lives and communities are strengthened. By making higher education and workforce training available in every part of ֱapp, we elevate all of ֱapp. In 2022, ֱapp’s ֱapp Colleges served approximately 230,000 students across 23 schools. For more information, please visit.
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