Sheldon, Iowa — Iowa’s community colleges, including Northwest Iowa Community College in Sheldon, have an impact of $5.5 billion. That’s according to a new report.
The Iowa Department of Education recently released an Economic Impact report about Iowa’s Community Colleges, including Northwest Iowa Community College. The report was prepared by a company with an interesting name — “Emsi Burning Glass.” Emsi Burning Glass officials tell us they are economic data analytics advisors to leaders in higher education, business, and community development.
The report shows a $5.5 billion impact to Iowa’s economy, including the support of 87,149 jobs to Iowans during the last year. It says Iowa’s Community Colleges provide a lasting impact to students, taxpayers, and society. The report includes an investment analysis for each of those groups:
Students see a return of $6.30 in higher future earnings for every dollar they invest in their education and have an average annual rate of return of 24.9%.
For every dollar of public money invested in the Community Colleges, taxpayers receive $2.50 and an average annual rate of return of 6.2%.
Society benefits from $277.9 million of public and private sector savings, receiving $8.60 in return for every dollar spent for as long as students remain active in the state workforce.
The report says Iowa’s 15 Community Colleges and their students support one out of every 23 jobs in the state. Disaggregated, construction spending supports 352 jobs, student spending supports 3,936 jobs, and alumni working in Iowa supports 71,230 jobs.
NCC President Dr. John Hartog says that EMSI has provided the taxpayers of Iowa with some useful data by which everyone can gain a better understanding of the positive economic impact that Iowa’s community colleges make within our State. He says, “Clearly, taxpayers receive a positive return on their investments in their community colleges. Also, businesses and industries receive skilled workers who populate vibrant communities.” Den Hartog says that the community colleges are doing good work, making the most of taxpayer investments. He says that’s why Iowans smartly look to their community colleges for many of their educational needs and workforce solutions.
The report goes on to say that Iowa’s Community Colleges also contribute to overall higher individual earnings. During FY 2019-20, students invested $626.2 million to attend Iowa’s Community Colleges and in return, students earn a yearly income that’s $7,900 higher than someone with only a high school diploma.
The report created by Emsi Burning Glass used data from FY 2019-20 reports from Iowa’s Community Colleges, data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, Emsi Burning Glass’s Multi-Regional Social Accounting Matrix model, and various studies and surveys.
