[Freeport, Ill.] — A recent study by Lightcast shares the impact that Highland Community College (HCC) plays in driving economic growth, workforce development, and community prosperity throughout northwest Illinois for the fiscal year 2023-24.
Lightcast highlighted HCC’s influences on both the lives of its students and the regional economy. According to the study, the College supports a wide range of industries throughout District 519, while also contributing to Illinois as a whole through economic growth and enhancing the quality of life within its service region. Additionally, the study finds that, “the benefits created by HCC extend to the state and local government through increased tax revenues and public sector savings.”
In fiscal year 2023-24, HCC had 3,598 students and 296 employees. The economic impact analysis shows that HCC’s total annual impact amounts to $89.9 million or 1,351 jobs supported. The increased earnings of HCC alumni and the businesses they work for amounts to $73.6 million in added income, and the daily spending of HCC students in the region amounts to $.4 million. The impact of annual payroll and other spending of the college amounts to $15.9 million in added income.
HCC generates more in tax revenue than it receives. From the taxpayer perspective, the total benefits amount to $18.1 million, and taxpayer costs amount to $16 million, meaning every dollar of public money invested in HCC gives taxpayers a cumulative value of $1.10 over the course of the students’ working lives.
One out of every 49 jobs in District 519 is supported by the activities of HCC and its students.
The social benefits of HCC equal a present value of $168.7 million, including student income,added business income, added income from college activities, and savings related to health, the justice system, and income assistance in Illinois. This results in a benefit-cost ratio of 5.3, meaning for every dollar invested in HCC, people in Illinois will receive a cumulative value of $5.30 in benefits.
According to the investment analysis, for every dollar invested in HCC by students, whether, through forgone time and money or other out-of-pocket costs, they will see a cumulative value of $4.30 in higher future earnings, meaning students see an average annual return rate of 14.4%.
The average person who graduates with an associate degree from HCC will see a $6,800 increase in earnings per year compared to someone with a high school diploma working in Illinois. The average earnings of someone with a high school education is $32,300, a certificate is $34,800, an associate degree is $39,100, and a bachelor’s degree is $61,000.
“The results of the analysis demonstrate that HCC is a strong investment for students and society. As shown, students receive a great return for their investments in an education from the college. From the taxpayer perspective, the benefits generated by the college and its students recover all of the costs borne by taxpayers and create a wide range of social benefits throughout Illinois,” according to Lightcast.
About Lightcast
Lightcast combines global labor market data, powerful analytics, and expert guidance to help communities, businesses, and education providers confidently navigate workforce challenges and seize emerging opportunities. To learn more, go to: https:/lightcast.io.
Source Note
Data and assumptions used in the study are based on several sources, including the FY 2023-24 academic and financial reports from Illinois Community College Board and Highland Community College, industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs
of Lightcast’s Multi-Regional Social Accounting Matrix model, and a variety of studies and surveys relating education to social behavior.