An in-depth study conducted by Emsi reveals the economic impact Ivy Tech Community College makes on the state of Indiana, including the local impact in Michiana.
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. In Michiana, the college boasts more than 2,000 jobs. And it says Ivy Tech alumni have a great impact on the state because of higher earnings and increased productivity of the businesses that employ them. The study shows in fiscal year, 2018-19, Ivy Tech alum generated $105.9 million in added income for the local economy.
You can read more from the study with this story below:
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 Michiana. 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 for our local area:
- Ivy Tech’s impact supported the equivalent of 2,093 jobs in 2018-2019.
- Alumni have the greatest impact on the state because of higher earnings and increased productivity of the businesses that employ them. In FY 2018-19, Ivy Tech alumni generated $105.9 million in added income for the county economy.
- Ivy Tech employs 475 full-time and part-time faculty and staff with a total operations spend of $24.3 million contributing to the local economy.
- The expenditures of retained students in FY 2018-19 also added 2.6 $million in income to the local economy.
“Our Ivy Tech Campus is proud to be THE Community College and trusted education partner for community organizations, industries and businesses throughout the South Bend-Elkhart Region. It’s exciting and rewarding to see our students gain the skills, knowledge, and work based learning experiences that position them for future academic success and or impactful careers in a wide variety of disciplines critical to the growth of St. Joseph, Elkhart and Marshall Counties” said Dr. David Balkin, Chancellor of Ivy Tech South Bend-Elkhart. “We are honored to collaborate with local employers engaged in a breadth of industries that include nursing, health sciences, hospitality, business, IT, advanced manufacturing, applied science.”
“Ivy Tech’s impact goes well beyond the benefits students derive from their education,” said Sue Ellspermann, president of Ivy Tech. “When the College’s students enter the workforce, they bring with them valuable skills acquired through their education, resulting in increased productivity for their employers. That has a lasting impact on our state and the dozens of communities where our students live and work.”
For details on the statewide impact, visit www.ivytech.edu/impact.
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 FY 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,” Ellspermann said. “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 are outlined in the full report at www.ivytech.edu/impact.
Emsi is a labor market analytics firm that integrates data from a wide variety of sources to serve professionals in higher education, economic development, workforce development, talent acquisition, and site selection. Emsi is a leading provider of economic impact studies and labor market data to educational institutions in the U.S. and internationally. Since 2000, Emsi has completed over 2,000 economic impact studies for institutions across three countries.
Ivy Tech Community College is Indiana’s largest public postsecondary institution and the nation’s largest singly accredited statewide community college system, accredited by the Higher Learning Commission. Ivy Tech has campuses throughout Indiana and also serves thousands of students annually online. It serves as the state’s engine of workforce development, offering associate degree and short-term certificate programs, and trainings that align to the needs of the community. The College also offers courses and associate degree programs that seamlessly transfer to other colleges and universities in Indiana, as well as out of state, for a more affordable route to a Bachelor’s degree.