College produces $3.9 billion cumulative annual impact throughout state
An in-depth study, conducted by Emsi, reveals the significant positive economic impact Ivy Tech Community College makes on the state of Indiana, including the local impact in Indianapolis. The report outlines the return on investment the Community College makes to its major stakeholder groups – students, taxpayers and the communities it serves. Results of the analysis reflect a $3.9 billion cumulative annual impact.
The 2020 Ivy Tech Community College Economic Impact Report, based on fiscal year 2018-19, includes the following key findings in Indianapolis:
- Ivy Tech’s impact supported the equivalent of 8,667 jobs
- Alumni have the greatest impact on the state because of higher earnings and increased productivity of the businesses that employ them. In 2018-19, Ivy Tech Indianapolis alumni generated $681.6 million in added income for the local economy.
- In the Indianapolis service area, Ivy Tech employs 1,390 full-time and part-time faculty and staff with a total operations spend of $72.7 million contributing to the local economy.
- The expenditures of retained students in 2018-19 also added $17.4 million in income to the local economy.
“The campus benefits regional businesses by increasing consumer spending in the region and supplying a steady flow of qualified, trained workers to the workforce,” said Dr. Lorenzo L. Esters, chancellor of Ivy Tech Indianapolis. “Here in the Indianapolis service area, we are looking forward to expanding things even further by bringing community college into the community and becoming a campus without walls.”
Individual student impact grows with investment
In addition to identifying the economic impact of the institution, the study also analyzed the value of the investment students are making in themselves by choosing an Ivy Tech education, and the value the community is investing in students through public dollars the institution receives from taxpayers.
The study found that students invested $502.8 million in time and money that will generate a cumulative return of $2.2 billion in higher future earnings over their working careers.
The average Ivy Tech associate degree graduate from 2018-19 will see annual earnings that are $10,100 higher than a person with a high school diploma or equivalent working in Indiana.
“In today’s job market, a post-secondary credential is more important than ever,” Esters added. “Ivy Tech offers a cost-effective way of acquiring knowledge and skills that lead to new careers and improved earnings.”
In fact, students will see an average annual return on investment of 18.3%, which is significantly higher than the U.S. stock market’s 30-year average rate of return of just under 10% or the 30-year U.S. Treasury at 1.91% rate of return.
Taxpayers are also benefiting from investing in students. For every dollar of public money invested in Ivy Tech, taxpayers will receive a cumulative value of $1.90 over the course of the students’ working lives. This equates to a net present value of $287.2 million after accounting for taxpayer costs and is an average annual rate of return of 5.3% for taxpayers.
Other benefits and statewide impact details are outlined in the full report at IvyTech.edu/impact.