“HCC: A Sound Economic Investment”
Dr. Ervin V. Griffin, Sr.
President, Halifax Community College

  In my last column, I noted what an education is worth to an individual. To recap, according to the Bureau of Labor Statistics data (2002), individuals who earn at least a two-year, post-secondary vocational or technical degree can expect to earn around $1.5 million over a 40-year career. Compare that figure to the high school dropout who will earn only about $800,000 over the same time period. This shows a significant difference and proves that higher levels of education and training substantially boost lifetime earnings.

 Now, let's follow those statistics up with some highlights from a 2004 economic impact study completed for Halifax Community College. The study shows the socioeconomic benefits generated by the College and proves that HCC is now, will be, and has been, a great economic benefit to this region.

 Some highlights from the study include:

• HCC paid $9.9 million in 2003 in direct faculty and staff wages, salaries, and benefits in the local region, and accounted for an additional $61.8 million in earnings off campus
•  Taxpayers saw a real money “book” return of 8.6% of their annual investments in HCC and recovered all investments in 12.2 years
•  Students enjoy an attractive 19.4% annual return on the investment of time and money—for every $1 the student invests in HCC, he or she will receive a cumulative $3.68 in higher future earnings over the next 30 years or more. 
• The State of North Carolina benefits from improved health and reduced welfare, unemployment and crime, saving the public some $1.8 million per year.

This study presents interesting data about HCC and its impact on the region. Did you know that the College accounts for $71.7 million of all annual earnings in the HCC Service Area economy, which includes Halifax and Northampton counties? The earnings are equal to roughly 2,500 jobs. To understand this figure, we have to examine HCC's spending and the higher earnings due to instruction. First, HCC faculty and staff earnings generate additional incomes as they are spent. Also, the College's operating and capital expenses create more earnings. In total, earnings account for $12.2 million annually in the HCC service area, equaling about 340 jobs. Secondly, students leave HCC and join the workforce each year. Added skills translate into higher earnings and a more robust area economy. The accumulated contribution of past and present HCC instruction adds $59.5 million in annual earnings, or around 2,100 jobs.

Also, for every credit completed, HCC students will, on average, earn $91 more per year each year they are in the workforce. For every full-time year they attend, they will earn an additional $2,723 per year. The higher earnings add up to $4.5 million per year for each year they remain in the workforce. From an investment perspective, HCC students will receive a 19.4% rate of return on their investments of time and money.

From a taxpayer's standpoint, state and local government spent $12.7 million in support of the College during the analysis year. Was this a good use of public money? The study indicated a resounding “yes”—that returns far outweighed costs, especially when reviewing the social savings.

People with higher education are less likely to smoke or abuse alcohol, draw welfare or unemployment benefits or commit crimes. In total, the state benefited from $1.8 million worth of avoided costs. Studies show that incarceration drops with each year of higher education. In the HCC area, about 28 fewer individuals will be incarcerated per year, resulting in annual savings of $241,400. Reductions in victim costs result in savings of $265,900 annually. Also, there are about 90 fewer people on welfare and 39 fewer drawing unemployment per year, saving more than $400,000 in each category per year.

From the President's Perspective, this study shows that HCC is a good investment for the Roanoke Valley and for all students who spend their time here, graduate from HCC, and apply their skills in local business and industry. I hope you can easily see that HCC is a Sound Economic Investment and Education Pays! It pays the students, alumni, employees, employers and the community in many ways.

If you would like to view the Executive Summary of the economic impact study titled “The Socioeconomic Benefits Generated by Halifax Community College,” click here. If you have comments about HCC or ideas to share, please email me at president@halifaxcc.edu.