BLOOMINGTON – An in-depth study conducted by Emsi, reveals the significant economic impact Ivy Tech Community College makes in the state of Indiana. The report also outlines the regional impact in the Ivy Tech Bloomington service area, which includes Brown, Greene, Lawrence, Martin, Morgan, Monroe, Orange, and Owen counties.
The report outlines the return on investment the Community College makes to its major stakeholders – graduates, taxpayers, and the overall communities it serves. Results of the analysis reflect a $3.9 billion cumulative annual impact statewide and $78.8 million regional impact for the Bloomington campus.
The 2020 Ivy Tech Community College Economic Impact Report, based on fiscal year 2018-2019, includes the following key findings in the Bloomington region:
- Ivy Tech Bloomington’s total economic impact supported the equivalent of 1,439 jobs in the region.
- Ivy Tech Bloomington alumni generated $51.6 million in added income for the campus service area. Alumni have the greatest impact on the state because of higher earnings and increased productivity of the businesses that employ them.
- Ivy Tech Bloomington employed 524 full-time and part-time faculty and staff with a total operations spend of $24.9 million, contributing to the local economy.
- The expenditures of retained students added $2.2 million in income to the local economy.
“Ivy Tech Bloomington graduates see a valuable rate of return on investment for their community college education, receiving a stream of higher future earnings that will continue to open doors throughout their careers,” said Jennie Vaughan, Ivy Tech Bloomington chancellor. “The average Ivy Tech associate degree earner will see an increase of $10,100 at work each year compared to a high school diploma in Indiana.”
“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 the complete Ivy Tech Bloomington 2020 economic impact report, visit https://www.ivytech.edu/files/Ivy%20Tech%20Bloomington%20Campus%20-%20Economic%20Value%20Report%20-%20July%202020.pdf.
For details on the Ivy Tech 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.
“In today’s job market, a post-secondary credential is more important than ever,” Ivy Tech president Dr. Sue 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. At Ivy Tech Bloomington, students will see a 19% 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.
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.
About Ivy Tech Community College
Ivy Tech Community College (www.ivytech.edu) 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, industry certifications, 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 for a more affordable route to a Bachelor’s degree.