An economic impact study conducted for Lamar Community College and the Colorado Community College System found that LCC, its students, and regional alumni added $41.1 million in income to the local economy in the 2015-2016 fiscal year. This figure is equal to 6.4 percent of the region’s total gross regional product, an impact that is slightly larger than the entire retail trade industry in the area.
Conducted by Economic Modeling Specialists International (Emsi) of Moscow, Idaho, the study reports, “The results of this study demonstrate that Lamar creates value from multiple perspectives. The college benefits local businesses by increasing consumer spending in the region and supplying a steady flow of qualified, trained workers into the workforce. It enriches the lives of students by raising their lifetime earnings and helping them achieve their individual potential. It benefits state taxpayers through increased tax receipts across the state and a reduced demand for government supported social services. Finally, it benefits society as a whole in Colorado by creating a more prosperous economy and generating a variety of savings through the improved lifestyles of students.”
The study concluded that $41.1 million in income to the local economy includes:
- $5.9 million added to the region as a result of the campus’ day-to-day operations and annual construction spending. As one of the region’s largest employers, the study reported much of the campus’ $5 million payroll is spent locally – in the form of rent, groceries essentials and household expenses – given the fact that nearly all of the college’s employees (99%) live in the region.
- $1.9 million added to the region as a result of out-of-region Lamar student expenditures.
- $33.3 million added to the region as a result of Lamar Community College’s alumni currently employed in the regional workforce.
Overall, the $41.1 million impact supports 1,063 jobs in the region.
Additionally, the study’s investment analysis revealed that Lamar Community College students receive great value for their educational investment. At the same time, the investment made by state taxpayers to the college creates a wide range of benefits to society and returns more to government budgets than it costs.
View the full economic impact report.
About the Emsi Study
Data and assumptions used in the study are based on several sources, including the FY 2015-16 academic and financial reports from the college, industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs of Emsi’s Multi-Regional Social Accounting Matrix model, and a variety of studies and surveys relating education to social behavior. The study applies a conservative methodology and follows standard practice using only the most recognized indicators of investment effectiveness and economic impact.