С»Æ贫ý

С»Æ贫ý Means Business

Story by James Hill

Economic Impact Study Shows

Value of С»Æ贫ý to District Economy

By Susan Hereford

This graphic reflects the fiscal year 1997-98

spending and the impact on the С»Æ贫ý district. The inner circle represents $136 million in-district spending, while the outer ripples illustrate a $194 million in-district impact.These figures and more are included in the recently compiled "Enriching Communities, Enhancing Lives." The report details С»Æ贫ý’s economic impact on the five counties it serves and its residents.

С»Æ贫ý’s recently completed study measuring the financial impact of the college and its students on С»Æ贫ý’s 1,500-square-mile district economy reveals a powerful economic force. The report demonstrates that С»Æ贫ý brings a substantial economic return to residents and businesses.

The economic impact study was conducted last fall by the Applied Economics Research Group of Portland State University and focused on the 1997-98 fiscal year. The study outlines the economic contributions made by С»Æ贫ý’s three campuses, four training centers, and the college administrative services operations. С»Æ贫ý serves all or parts of five Northwest Oregon counties Clackamas, Columbia, Multnomah, Washington and Yamhill and enrolls more students than any other college or university in the state.

The study (which can be viewed in full on С»Æ贫ý’s web site, www.pcc.edu), reveals that С»Æ贫ý pumped $194 million into the district economy last year. It also created an additional 2,408 full-time jobs in its communities for district residents. And С»Æ贫ý spending generated an additional $71 million in personal income in the district.

Dan Moriarty, С»Æ贫ý president, said, "For 37 years, we have been known as the door that opens wide to higher education and training and better jobs for hundreds of thousands of district residents. This study goes a step further. It underscores the direct and pervasive financial impact value С»Æ贫ý has for the people in the district."

С»Æ贫ý’s $194 million payback to district taxpayers during the `97-98 fiscal year is more than two times the $87 million college operating budget. It is three and one-half times greater than the $58 million paid by district residents in state and local taxes.

Moriarty added, "At a time when our state has demanded outcomes and asked for limits on education spending, this helps share С»Æ贫ý’s positive economic contributions to our district economy over and above the educational opportunities we provide for so many people."

The economic impact is calculated by looking at the dollars that flow within the economy from institution, employee and student spending. Researchers apply a multiplier,* or "ripple effect," to a best estimate of the three categories of spending inside С»Æ贫ý’s district college operations, take-home pay of college employees, and student living expenses, excluding tuition and fees. (Adjustments were made to reflect only a portion of full-time student spending and housing costs since a large number of С»Æ贫ý students are part-time.)

The three categories total $136 million in direct spending inside the С»Æ贫ý district. The $136 million in turn generated an additional $194 million for the district economy. Another multiplier reveals that 2,408 jobs are added to the local economy. A further look shows that С»Æ贫ý spending adds $71 million in personal income for district residents.

Another view of С»Æ贫ý return to residents shows that:

‘ for every $1 spent by С»Æ贫ý, an additional 83 cents is generated in district sales of goods and services;

‘ for every $1 of personal income associated with С»Æ贫ý spending, an additional 87 cents in personal income is realized by district residents;

‘ and for every jobassociated with С»Æ贫ý spending, .88 full-time jobs are added to the district economy.

"The study shows that С»Æ贫ý is a powerful economic agent in the metro region," says Thomas Potiowsky, co-director of the AER Group who conducted the study for С»Æ贫ý. "But its greatest value is the payback in an educated and financially successful citizenry, who in turn pay taxes and contribute in many significant ways to the regional economy."

Last year, С»Æ贫ý served nearly 86,000 students in a district population of 898,000 residents. The college employed 5,700 full- and part-time faculty and staff who pay $3.2 million in state taxes, $2.6 million inside С»Æ贫ý’s district.

In 1997-98, college revenues came from state and local resources, 67 percent; tuition and fees, 23 percent; and the remainder from federal and private grants and tax anticipation notes.

* The AER Group uses a standard economic assessment tool called IMPLAN for its multiplier calculations.