St. Clair County Community College hired CCbenefits Inc. to examine the financial impact of SC4 on the local and statewide community.

Following is a brief summary of the CCbenefits report:

• The economy of the current SC4 service area, which is all of St. Clair County, gets $5.6 million in annual regional income from SC4 operations and capital spending.
• The SC4 service area work force has taken about 3.7 million credit and non-credit hours of SC4 training.
• SC4 skills obtained by the present-day work force increase regional income where the former students are currently employed by $534.6 million annually.
• The service area owes $603.4 million of its annual labor and non-labor income to the past and present efforts of SC4.
• Students generate $20.3 million annually in higher earnings because of their SC4 education. This expands the tax base and reduces the tax burden on taxpayers.
• Up to 66% of former SC4 students initially stay locally and contribute to the economy after they leave SC4.
• State and local government allocated about $17.1 million to support SC4 in fiscal year 2005. For each of those dollars, taxpayers will see a cumulative return of $5.30 over the next 36 years.
• SC4 students will see their annual income increase on average by $120 for each credit completed at SC4.
• CCbenefits Inc. was established in 2000 in collaboration with the Association of Community College Trustees. The company provides credible, fact-based information for legislators, taxpayers and other education stakeholders that helps in determining budgets and evaluating the financial health of institutions.

###

FACT SHEET

SC4 Community Impact Report

• St. Clair County Community College hired CCbenefits Inc. to examine the financial impact of SC4 on the local and statewide community.
• CCbenefits Inc. was established in February 2000 in collaboration with the Association of Community College Trustees. The company provides credible, fact-based information for legislators, taxpayers and other education stakeholders that helps in determining budgets and evaluating the financial health of institutions. For more information: www.ccbenefits.com.
• SC4 paid $7,500 for the report.

Summary of SC4’s impact:

• The economy of the current SC4 service area, which is all of St. Clair County, gets $5.6 million in annual regional income from SC4 operations and capital spending.
• SC4 encourages new business, assists existing business and creates long-term economic growth. The SC4 service area work force has taken about 3.7 million credit and non-credit hours of SC4 training.
• SC4 skills obtained by the present-day work force increase regional income where the former students are currently employed by $534.6 million annually.
• The service area owes $603.4 million of its annual labor and non-labor income to the past and present efforts of SC4.
• When aggregated across all existing students, the state of Michigan will benefit from $2.4 million worth of avoidable costs each year for the next 36 years, including improved health and reduced welfare and unemployment. For example, people with higher education are less likely to smoke or abuse alcohol, draw welfare or commit crimes. This equals money savings for local and statewide taxpayers.
• Students generate $20.3 million annually in higher earnings because of their SC4 education. This expands the tax base and reduces the tax burden on taxpayers.
• Up to 66% of former SC4 students initially stay locally and contribute to the economy after they leave SC4.

Return on investment

• State and local government allocated about $17.1 million to support SC4 in fiscal year 2005. For each of those dollars, taxpayers will see a cumulative return of $5.30 over the next 36 years.
• State and local government costs will be fully recovered in seven years in the form of higher tax receipts and avoided social costs.
• Governments will see a 19% rate of return on their support of SC4.

Student rewards

• Average annual earnings of a student with a one-year certificate are $29,808, or 16% more than someone with only a high school diploma. Average annual earnings of someone with an associate degree are $34,921, or 35% more than someone with only a high school diploma.
• SC4 students will see their annual income increase on average by $120 for each credit completed at SC4.
• SC4 students’ lifetime earnings will increase $5.98 for every education dollar invested, including tuition, fees, books and earnings lost while attending classes.