Klamath Community College Economic Impact Study

Economic Impact Study Infographic

Economic Impact Study Takeaways

"Good To Know" Isn't Good Enough

If you've spent money obtaining the best data available about your institution's economic value, you need that information to serve a purpose. How can you best use the data? What stories can you tell?

+ My Institution Generates More Tax Dollars Than It Takes
When your institution’s taxpayer benefit/cost ratio is greater than 1, it creates more tax revenue than it takes. For every dollar that state and local taxpayers give to Klamath Community College, the college returns $4.70 to government coffers. This $4.70 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.

This message is especially potent when compared to other uses of government funds. Public parks, for example, require funds to maintain but they don’t generate more tax revenue. Your higher education institution is unique: It’s a moneymaker that generates more than it takes.

Who Cares: Legislators, Board of Directors, Homeowners
+ My Institution Retains and Creates Wealth
Income, or value added, is just another way of talking about the extra money generated in the region even after subtracting costs of production and leakages (most money spent on computers in Oregon, for example, leaves Oregon for Seattle to pay Microsoft). The remaining funds for the region are wages, profits, and other forms of income: money that otherwise wouldn’t exist in the region if your institution didn’t exist. The institution also creates wealth by educating students who add to their businesses’ output. This alumni impact would never have come to exist if the college hadn’t existed.

Who Cares: County Commissioners, Rotary/Kiwanis Clubs, Mayors, City Council, Local Businesses
+ My Institution Performs Better Than the Stock Market
The S&P 500 has delivered an average return of 7.2% over the last 10 years, according to Forbes. If your institution has higher rates of return to its shareholders (students and taxpayers), then it’s a safer and stronger alternative to the stock market.

Who Cares: Prospective Students, Local Media, Trustees, Average Citizens