Study shows BCTCâ€™s impact on the regionâ€™s economy and earning potential of graduates
Published on Jan 29, 2020
LEXINGTON, KY â€” A new study by Emsi, a national provider of research to educational institutions, shows investments in Bluegrass Community and Technical College (BCTC) during FY 2018-19 have had a significant effect on Central Kentuckyâ€™s economy. In addition, the average associate degree graduate from BCTC will earn an additional $9,900 each year, compared to someone with only a high school diploma. Furthermore, a recent study from the Council on Postsecondary Education (CPE) showed associate degree graduates earn $422,000 more than a high school graduate over a lifetime.
â€œIf there is any doubt about the value of higher education,â€ said Dr. Koffi Akakpo, BCTC president, â€œthese studies clearly show that investing in BCTC provides better lives for our graduates and a better economy for Central Kentucky.â€
Investments consist of expanded and improved facilities at BCTC, including the upcoming Advanced Manufacturing Center in Danville, the Newtown Campus and Leestown Campus renovations. This expansion has increased access to quality science, technology, engineering and math (STEM) courses and programs, as well as advanced technology training to serve manufacturing.
Through these investments and others, the economic impact of BCTC reaches everyone in the community. Students receive an average $6.40 return on every dollar invested in attending BCTC, according to a new study by Emsi. Additionally, the study shows local taxpayers receive an $8.10 return on every investment dollar. Central Kentucky communities as a whole benefit $13.90 in added income and social services savings for every dollar invested in BCTC.
When considering the over 13,000 students, 1,000 employees, and alumni of BCTC, the total impact on Central Kentucky is $419M in added income and 6,516 in supported jobs, annually.
Clearly, BCTC creates value from multiple perspectives, including local businesses and the regionâ€™s economy through the following:
- increasing consumer spending in Central Kentucky and supplying a steady flow of qualified, educated people into the workforce
- enriching the lives of students by raising their lifetime earnings and helping them achieve their Better Lives
- benefitting state taxpayers through increased tax receipts across the state and a reduced demand for government-supported social services
- benefitting communities in Central Kentucky by creating a more prosperous economy
generating a variety of savings through the improved lifestyles of students
About the study
Data and assumptions used in the study are based on external data inputs which reflect the most current economic activity and data. These data include (but are not limited to): the taxpayer discount rate; the student discount rate; the consumer savings rate; the consumer price index; national health expenditures; state and local industry earnings as a percent of total industry earnings; income tax brackets and sales tax by state; and unemployment, migration, and life tables. All data sets are maintained quarterly, although most updates occur only once a year.
Emsi, a CareerBuilder company, is a leading provider of economic impact studies and labor market data to educational institutions, workforce planners, and regional developers in the U.S. and internationally. Since 2000, Emsi has completed over 2,000 economic impact studies for educational institutions in three countries. Visit www.economicmodeling.com for more information about Emsiâ€™s products and services.