The Economic Value of the Maricopa County Community College District. Main Report

The Maricopa County Community College District (MCCCD), established in 1920, has grown to serve 191,073 credit and 24,497 non-credit students. This report assesses the impact of MCCCD as a whole on the county economy and the benefits generated by the colleges for students, taxpayers, and society. The approach is twofold. It begins with an economic impact analysis of the colleges on the Maricopa County economy. To derive results, it relies on a specialized Multi-Regional Social Accounting Matrix (MR-SAM) model to calculate the added income created in the Maricopa County economy as a result of increased consumer spending and the added knowledge, skills, and abilities of students. Results of the economic impact analysis are broken out according to the following impacts: (1) impact of the district's day-to-day operations; (2) impact of student spending; and (3) impact of alumni who are still employed in the Maricopa County workforce. The second component of the study measures the benefits generated by MCCCD for the following stakeholder groups: students, taxpayers, and society. For students, an investment analysis is performed to determine how the money spent by students on their education performs as an investment over time. The students' investment in this case consists of their out-of-pocket expenses, the cost of interest incurred on student loans, and the opportunity cost of attending the colleges as opposed to working. In return for these investments, students receive a lifetime of higher earnings. For taxpayers, the study measures the benefits to state taxpayers in the form of increased tax revenues and public sector savings stemming from a reduced demand for social services. Finally, for society, the study assesses how the students' higher earnings and improved quality of life create benefits throughout Arizona as a whole. [For the Executive Summary, see ED627562.]