SCCC Contributes $330 Million Annually to the Schenectady County Economy

An economic impact report by EMSI, an independent data analysis firm, will be presented today to the Schenectady County Community College Board of Trustees at the Board’s regular meeting at 4:45 p.m. in the Library Conference Room, Begley Building. The report details the economic contribution of the College to Schenectady County.

“This report details the significant contributions that SCCC has made to the vitality of our local economy and to the lives of our students. It is important that our county and state taxpayers, as well as our students, know that the investment they have made in SCCC for nearly 40 years, has resulted in long-term positive financial effects for them. The report was created by an independent national firm utilizing many sources of data relating to the College and its economic impact on the local area. We want to share this report with members of our community to let them actually see the return on their investment and that our students, faculty and staff continue to be essential contributors to the economic stability of the county,” said Gabe Basil, SCCC President.    

 Overall, the report concludes:

·       Schenectady County receives $329.8 million in income each year due to SCCC and its students. This figure amounts to 5% of the county’s total annual income.

·        Schenectady County taxpayers see a real money return of 15% on their annual investment in SCCC.

·        Over the course of a working lifetime, a student with an Associate’s degree earns $590,400 more than someone with a high school diploma, which contributes to the county’s economy via higher taxes, greater spending, and the accompanying economic multiplier effect.

·       Students receive a 21% annual return on their SCCC educational investment of time and money.

·        New York state benefits from improved health and reduced welfare, unemployment, and crime, saving the public $1.6 million per year each year that students are in the workforce. 

Benefits to Schenectady County:

Schenectady County receives $329.8 million in income each year due to SCCC and its students. This represents 5% of the county’s $6.6 billion annual income, as calculated by the United States Department of Commerce.

This total economic impact of SCCC on the county ($329.8 million) is a result of three factors.  First, the Schenectady County economy receives $15.1 million annually in regional income due to SCCC operations, primarily faculty and staff salaries, and capital spending.

Second, the 31% of SCCC students who commute to or relocate to Schenectady County from other counties generate $0.8 million annually in regional income in Schenectady County. This includes spending on rent, food, and other goods and services.

Third, increased productivity of former students and graduates accounts for $313.9 million in annual income in Schenectady County. The economic impact study analyzed the SCCC student population for the past 30 years and calculated how graduates and those who upgraded their skills at SCCC improved their earning power. Because 59% of SCCC students remain in Schenectady County after they complete their education, the majority of the economic impact stays in the local economy. Included in this annual income figure are:

·        the direct wage effects of higher salaries;

·        the associated effects of higher property values, increased investment income and enhanced productivity; and

·        the economic supply and demand multiplier effects of higher wage earners.

Benefits to Taxpayers:

State and local government see a rate of return of 15% on their support for SCCC. This return compares very favorably with private sector rates of return on similar long-term investments.

Students benefit from higher earnings, thereby expanding the tax base and reducing the tax burden on state and local taxpayers. In the aggregate, SCCC students generate about $18.9 million annually in higher earnings due to their SCCC education.

State and local government allocated about $15.2 million in support of SCCC in fiscal year 2007. For every $1 of this support, taxpayers see a cumulative return of $4.40 over the course of students’ working careers in the form of higher tax receipts and avoided social costs.

The state and local community will see avoided social costs savings associated with improved health, lower crime costs, and reduced welfare and unemployment. This translates to $1.6 million in avoided costs to New York state each year.

Benefits to Students:

The average income at the career midpoint of a person with an SCCC Associate’s degree is $53,000, 37% more than a student with a high school diploma or GED whose average income is $38,600. Over the course of a working lifetime, a student with an Associate’s degree earns $590,400 more than someone with a high school diploma or GED, which calculates to a 21% annual return on an SCCC student’s educational investment of time and money.

SCCC students experience an average annual income increase of $237 for every credit completed

at SCCC.

“The full impact of Schenectady County Community College, detailed in the Economic Impact Study, demonstrates that the College greatly benefits most, if not all, of the citizens of Schenectady County and beyond in a host of ways beyond just dollars and cents. I applaud President Basil, the faculty, students and staff of SCCC for the great work they do each and every day in making the county a better place to live, work and raise a family,” said Dr. Dennis Golladay, Vice Chancellor for Community Colleges for the State University of New York.

The report was conducted by Economic Modeling Specialists Inc. (EMSI, economicmodeling.com), an Idaho based company that is a leading company in integrated regional economic and labor market data analysis. It has produced socioeconomic impact and strategic planning reports and analysis for private corporations, economic development agencies, government agencies, and over 800 colleges and universities in the U.S., Canada and the United Kingdom. EMSI specializes in detailed information about regional economies for assessment and planning purposes, bringing together industry, workforce, and education perspectives.

Copies of the Study are available through a link on the home page of the SCCC Web site

at www.sunysccc.edu. 

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