Economic Impact Study
Economic Impact Study
About the Study
An economic impact analysis is a study that measures how an event or institution affects the local economy. Marion Technical College conducted an economic impact analysis in 2019 based upon the fiscal year 2017-18. While MTC affects the region in a variety of ways, this study is concerned with considering its economic benefits. The college naturally helps students achieve their individual potential and develop the knowledge and skills they need to have successful careers. However, MTC impacts the region beyond simply influencing the lives of students.
The college’s program offerings supply employers with workers to make their businesses more productive. The college, its day-to-day operations, its construction activities, and the expenditures of its students support the regional economy through the output and employment generated by regional vendors. The benefits created by the college extend as far as the state treasury in terms of the increased tax receipts and decreased public sector costs generated by students across the state.
This report assesses the impact of MTC as a whole on the regional economy and the benefits generated by the college for students, taxpayers, and society. The study uses a wide array of data that are based on several sources, including the FY 2017-18 academic and financial reports from MTC; industry and employment data from the Bureau of Labor Statistics and Census Bureau; outputs of Emsi’s impact model, and MR-SAM model; and a variety of published materials relating education to social behavior.
Notable Metrics from the Study
The total Gross Regional Product (GRP) of MTC’s seven-county service area (Crawford, Delaware, Knox, Marion, Morrow, Union, and Wyandot counties) for 2017-18 was $23.6 billion, representing 256,285 jobs. MTC’s impact on the region included:
- A total income of $76.7 million was added to the region; or .3% of the GRP and 1092 jobs supported
- $12.9 million in added income due to operations spending, such as payroll and expenditures; or 283 jobs supported
- $518.5 thousand in added income due to retained student spending; or 13 jobs supported
- $62.3 million in added income due to alumni earnings and business profits; or 781 jobs supported
From student, taxpayer, and social perspectives, MTC’s investment analysis resulted in the following benefits:
- Higher future student earnings of $93.5 million on a $14.3 million investment (tuition, supplies, and opportunity cost); or a return rate of 21.7% on student investments
- Future tax revenue and government savings of $28.1 million on $8.4 million in state and local funding; or a return rate of 8.6%
- Future earnings, tax revenue, and private savings of $345.8 million on a $28.4 million investment (all college and student costs); or a 12.2 benefit to cost ratio
With a return rate of 21.7% for students, Marion Tech performs better than the stock market. The S&P 500 has only delivered an average return of 10.1% over the last 30 years. If an institution has higher rates of return to its shareholders (students), then it’s a safer and stronger alternative to the stock market.
The results demonstrate that Marion Technical College generates more tax dollars than it consumes. In fact, for every dollar that state taxpayers give to MTC, the college returns $3.30 to government coffers. This $3.30 represents a larger future tax base from students’ higher income, which has been discounted back to the present. After all, $1 today is worth more than $1 tomorrow.
The following documents were generated as a result of the economic impact study conducted by MTC for the fiscal year 2017-18: