Central New Mexico Community College

1. Central New Mexico Community College Economic Impact Study – Summer 2012

2. Investment analysisEconomic growth analysis Two parts to the study ……

3. - Third time we have contracted for this study- Model evolves and is refined. Not comparable to previous results- Snapshot using 10-11 data- Reflection of today’s economic conditions and economic theory General Information

4. Treats education funding as an investment, calculates measurable returns and compares to cost from three perspectives Investment Analysis Are you getting your money’s worth?

5. - Student perspective- Social perspective- Taxpayer perspective Investment Analysis

6. - Sacrifice current earnings in return for lifetime of higher income- Cost: tuition and fees, books and supplies, and time Investment Analysis: Student perspective

7. - Average CNM student income increases $4.30 for every $1 invested in CNM- By 2021, anticipated 162K new and replacement jobs in CNM service area- About 27% will require Associate and 8% certificate Investment Analysis: Student perspective Education Will Pay You Back – For A Lifetime

8. Investment Analysis: Student perspective

9. 14.1%return on investment of time and money Investment Analysis: Student perspective

10. - Adds all benefits attributable to CNM and compares to the original investment made Investment Analysis: Social perspective

11. Investment Analysis: Social perspective Higher earnings of CNM students and associated increases in state income expand the tax base by about $85.5M with $5.1M in social savings

12. Every dollar of state and local tax money invested in the college today yields a cumulative of $14.30 to all New Mexico residents Investment Analysis: Social perspective

13. Only benefits that accrue to state and local governments are counted such as increased tax collections and reduced government expenditures Investment Analysis: Taxpayer perspective

14. For every $1 appropriated by state and local governments to CNM, taxpayers see a $1.60 return in higher tax revenues and avoided social costs Investment Analysis: Taxpayer perspective

15. 5.6%annual rate of return state and local governments see on their support for CNM Investment Analysis: Taxpayer perspective

16. Economic Growth Analysis

17. - College Operations- Student spending- Student productivity Economic Growth Analysis Measures added income into the region due to

18. - Faculty and staff earnings become part of the service area income- The institution also purchases supplies and services generating additional jobs and income. Economic Growth Analysis: College Operations

19. $79.8 million net contribution to service area income Economic Growth Analysis: College Operations

20. - Spending by students who are from outside the service area - Approximately 15% of students from outside the service area Economic Growth Analysis: Student Spending

21. $38.5 million net contribution to service area income Economic Growth Analysis: Student Spending

22. - Effects of former CNM students who increase skills and acquire new skills - Results in increased spending by those who increase skills and increased business and property income by those who acquire new skills Economic Growth Analysis: Student Productivity

23. $431.2 million net contribution to service area income Economic Growth Analysis: Student Productivity

24. - CNM is a great value! The bottom line ….