Ivy Tech produces $3.9 billion cumulative annual impact throughout state
An in-depth study, conducted by Emsi, reveals the significant positive economic impact Ivy Tech Community College makes on the state of Indiana.
|Ivy Tech Statewide Economic Value Reports|
|Main Report||Executive Summary|
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.
|Ivy Tech Campus Specific Economic Value Reports|
|South Bend - Elkhart||Terre Haute||Valparaiso|
|Please Note: Because the Hamilton County campus did not open until 2021, data was not available, at the time, for a report to be generated.|
The 2020 Ivy Tech Community College Economic Impact Report, based on fiscal year 2018-19, includes the following key findings:
- Ivy Tech’s impact supported the equivalent of 56,697 jobs. For perspective, the activities of Ivy Tech and its students support one out of every 70 jobs in Indiana.
- 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 $3.6 billion in added income for the state economy.
- Ivy Tech employs 7,447 full-time and part-time faculty and staff with a Payroll of $302.8 million and another $199.4 million in expenses related to facilities, supplies and professional services.
- The expenditures of retained students in FY 2018-19 also added $70.9 million in income to the Indiana economy.
“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.”
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.
*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.