Economic Impact Study: RVCC Creates Positive Impact on Students, Taxpayers, Society
A new economic study shows that Raritan Valley Community College creates a significant positive impact on the regional business community and generates a return on investment to students, taxpayers, and society. These are the findings of The Economic Value of Raritan Valley Community College, an economic impact study just released by Emsi Burning Glass of Boston and Moscow, ID.
The study, which was commissioned by RVCC, details the role the College plays in promoting economic development, enhancing students’ careers, and improving the quality of life for residents in Somerset and Hunterdon counties.
“The economic impact survey confirms that a Raritan Valley Community College education is an excellent investment for our students, taxpayers, the regional economy, and society as a whole. Students benefit by receiving a terrific education resulting in higher lifetime earnings, and taxpayers benefit through increased tax revenues and lower demands for government services. RVCC truly enriches the quality of life for everyone in Somerset and Hunterdon County, providing students with greater opportunities to succeed and giving taxpayers a return on their investment,” said RVCC President Michael J. McDonough.
Highlights of the study include:
• In FY 2019-2020, RVCC and its students added over $302 million in income to the economies of Somerset and Hunterdon County, supporting 3,483 jobs—or one out of every 99 jobs in the two counties.
• The net impact of the College’s operations spending added $46.4 million in income to the regional economy in FY 2019-2020.
• Taxpayers provided RVCC with $25.7 million of funding in FY 2019-2020. In return, they benefited from students’ higher lifetime earnings and increased business output, amounting to $103.7 million.
• For every dollar of public money invested in educating students at RVCC, taxpayers will receive $4.50 in return over the course of students’ working lives. This represents an annual rate of return of 11.2%.
• The net impact of RVCC alumni currently employed in the regional workforce amounted to $252.9 million in added income in FY 2019-2020.
For students, an RVCC education produces a lifetime of higher earnings. The study found that:
• The average student’s income increased by $3.80 for every $1 invested in their education.
• Students enjoy a 14.5% rate of return on their RVCC educational investment.
• The average student who receives an Associate Degree from RVCC will see an increase in earnings of $11,200 each year, compared to someone with only a high school diploma working in New Jersey.
• As RVCC students are educated, they are statistically more likely to develop healthier lifestyles that lead to reduced government-supported services. This leads to $19.2 million in social savings for society as a whole.
Data sources for the study included the College’s fiscal year 2019-2020 academic and financial reports, industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs of Emsi Burning Glass’ Multi-Regional Social Accounting Matrix Model, and a variety of studies and surveys relating education to social behavior.
Emsi Burning Glass provides colleges and universities with labor market data that help create better outcomes for students, businesses, and communities. The company has been conducting economic impact studies since 2001.
For additional information, visit www.raritanval.edu/emsi.
Ranked by WalletHub.com and Niche.com as the #1 community college in New Jersey, Raritan Valley Community College has been serving as an academic and cultural center for Somerset and Hunterdon County residents for over 50 years. The College has been nationally recognized for its service to the community, environmental stewardship, and commitment to diversity. It is home to a Planetarium, Science Education Institute and 3M Observatory; a Theatre offering professional performances for all ages; and an Honors College for high achieving students.
The College offers more than 90 associate degrees and certificates, as well as career training, small business assistance through the Small Business Development Center, and professional development courses. RVCC is located at 118 Lamington Road in Branchburg, NJ. For further information, visit www.raritanval.edu.
FOR IMMEDIATE RELEASE
March 1, 2022
Media contact: Donna Stolzer, 908-526-1200, ext. 8383