RALEIGH, NC -- January 18, 2005 -- North Carolina community colleges return significantly more money to the state’s economy and to students’ pockets than they take out, according to an independent study released today (9 A.M. TUESDAY, JANUARY 18, 2005).

H. Martin Lancaster, President of the North Carolina Community College System (NCCCS), announced the study results in a media briefing hosted by Representative Joe Tolson (D-Edgecombe) at the Legislative Building.

As part of the system’s comprehensive response to state lawmakers’ requests for increased educational accountability, the NC Association of Community College Presidents worked with NCCCS to commission the study in October 2004 to measure the performance of the statewide community college system, college by college, throughout the state. The study documents the actual dollar impact of the community colleges from three important economic perspectives:

1) Impact on students

2) Return on investment to taxpayers

3) Contribution to the North Carolina communities it serves.

Governor Mike Easley commented in a prepared statement, "This study demonstrates the tangible results of our ongoing commitment to improve the lives of our people by supporting our strong Community College System. Our investments in our knowledge, skill and talent by providing educational opportunity will pay off in the global economy."

"This is the vital next step in the performance reporting the General Assembly has rightly required of community colleges since 2001," according to President Lancaster. "Year by year, we’re proving that we can meet strict standards for educating our students, meeting the needs of employers and serving communities, with 36 of our community colleges now ranked as superior institutions. We are getting the job done with great programs and services. This study shows just how much that job is worth to North Carolina." 

This comprehensive study, prepared by CCbenefits, a highly-respected national economic research firm, is entitled the Socioeconomic Impact Model (SEIM). It measures the economic contribution of each of the 58 colleges in NCCCS and the collective contribution of the system as a whole. The findings of the study reinforced the value many citizens and leaders intuitively felt inherent in NCCCS but had previously not measured.

The SEIM found students graduating from North Carolina Community Colleges enjoy an 18.6% annual return on their investment. Stated differently, for every dollar invested by a student they will receive $4.24 back in future, higher earnings. Few investments offer students this level of return.

The study also indicated North Carolina community colleges are net providers of public revenue. Every dollar of state and local tax money invested in North Carolina community colleges by taxpayers generates a return of $2.74 in direct state and local tax receipts (over the next 32 years). This is especially noteworthy in light of the fact that often state governments undertake activities needed by the public, but which are unprofitable in the marketplace. Unlike those scenarios, the report shows North Carolina Community Colleges deliver a solid 16.8% return on taxpayer’s investments.

According to the study, North Carolina community colleges also account for $1.4 billion in the North Carolina economy (equal to approximately 52,000 jobs).

President Lancaster predicted the economic impact of community colleges will continue to grow. "I'm proud of those numbers. But I am much more impressed with what those numbers represent. It's our job to work with you to guarantee that the promises we made together four years ago become promises kept for the millions of North Carolinians who voted with their dollars to support community colleges."

The North Carolina Community College System is the state’s primary provider of workforce training, adult education and literacy programs. The System’s 59 institutions enroll more than 800,000 adults. For details about this release and the overall work of the system, contact the Public Affairs Office in Raleigh, 919-807-6962.