In a recent economic impact report by the Alabama Community College System (ACCS), data shows that students and alumni within the ACCS add $6.6 billion to the state’s economy.
Keep reading for a full rundown of their report:
By the numbers
The analysis shows that in the 2020-21 fiscal year, operations, construction, business support and student spending– together with the productivity of the colleges’ alumni– generated $6.6B in added income for the Alabama economy.
To put that number in perspective, the impact of $6.6B is equivalent to supporting almost 99,000 jobs in the state. That’s 1 out of every 27 jobs supported by the economic engagement of Alabama community colleges and their students.
Additionally, the economic impact represents 2.7% of the state’s GSP, which is nearly as large as Alabama’s entire transportation and warehousing industry.
How did they total $6.6B?
So, where does all the money come from?
As reported by the ACCS report:
“During the analysis year, ACCS spent $457 million on payroll and benefits for 8,613 full-time and part-time employees and spent another $852.5 million on goods and services to carry out the colleges’ day-to-day operations. This initial round of spending creates more spending across other businesses throughout the state economy, resulting in the commonly referred to multiplier effects.”
Due to this high return on spending, Alabama community colleges can be considered an investment from students, taxpayers and the community.
For example, students invest their own time and money to pay for things such as tuition, books and supplies. The sum of all student spending totals $523.9 million, however in return students will receive a total of $3.7 billion in increased earnings over their working lives.
This represents a return of $7 for every dollar invested by students in their education at ACCS schools.
About the Alabama Community College System
The ACCS has 24 community colleges in the state, including:
- Jefferson State Community College
- Lawson State Community College
- Shelton State Community College
- Snead State Community College
- Southern Union Community College
- Calhoun Community College
Click here for a full list of colleges within the ACCS.
Check out this video where ACCS Vice-Chancellor Keith Phillips discusses the release of the 2023 impact study:
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