An economic impact study conducted for Lamar Community College and the Colorado Community College System found that LCC, its students, and regional alumni had a positive impact on regional business and commerce, adding $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.
The study, conducted by independent researcher Economic Modeling Specialists International (Emsi), indicated three main impacts LCC had on the region’s commerce:
Lamar Community College’s payroll and expenses support local businesses
The net impact of college payroll and expenses in the Lamar service area added $5.9 million in income during the analysis year. As one of the region’s largest employers, the study reported much of the campus’ $5 million payroll is spent in the region – in the form of rent, groceries essentials and household expenses – given the fact that 99% of the college’s employees live in the region.
LCC students boost local spending
The expenditures of Lamar’s relocated and retained students added $1.9 million in income to the region during the analysis year. Approximately one third of LCC students attended from outside the service area and spent money on groceries, transportation, rent, and at regional businesses. In addition, a number of in-region students would have left the region for other education opportunities if not for the existence of LCC.
Lamar training sustains a skilled workforce
Over the years, students have studied at Lamar and entered or re-entered the workforce with newly acquired skills. Today, thousands of former students are employed in the Lamar service area. As students apply the skills they acquired at the college, they are rewarded with higher earnings. They also raise business profits through their increased productivity. These higher earnings and increased profits create even more earnings as they are spent in the region. In FY 2015-16, the impact of former LCC students on the regional economy amounted to $33.3 million in added income.
A copy of the full report can be viewed online at www.lamarcc.edu/economic-impact.
This is the second release in a series of five highlighting the economic impact of Lamar Community College; to read previous releases, visit www.lamarcc.edu/economic-impact.
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.