In a recent regional labor market study commissioned by the in collaboration with , an Economic Impact Study underscored Â鶹´«Ã½ (Â鶹´«Ã½) as a robust economic engine in Orange County. The study highlighted Â鶹´«Ã½â€™s substantial $611.8 million impact on the local economy, representing approximately 0.2% of the county's total Gross Regional Product (GRP). This impact is enough to support the creation of 6,530 jobs , demonstrating Â鶹´«Ã½'s pivotal role in fostering employment opportunities. Moreover, the study reflects that the college has played a key role in equipping its alums with an education that paves the way for higher-paying careers, benefiting thousands of individuals and contributing significantly to the region's economic vitality.
The analysis shows Â鶹´«Ã½ plays a crucial role in shaping students’ futures, providing them with education, training, and essential skills for successful and fulfilling careers. The study affirms Â鶹´«Ã½ as a substantial investment, yielding high-value returns for students, taxpayers, and society. Students experience a lifetime return of $4.40 in future earnings for every dollar invested in their education, with an average annual rate of return at 14.7%, higher than the 10.5% 30-year stock market average yearly return.
According to the study, Â鶹´«Ã½ stimulates economic growth by attracting students from outside the region, creating new opportunities for regional businesses and vendors. Around 20% of students attending Â鶹´«Ã½ originated from outside the county.
"This study by Lightcast underscores the pivotal significance of Â鶹´«Ã½ and the extensive influence the college wields not only on the local economy but also in our region," said Â鶹´«Ã½ President Dr. John Hernandez. "This is a further testament to the tangible value of Â鶹´«Ã½â€™s mission of student equity, inclusion, access, and success. We provide distinct and well-directed routes to transfer options, certificates, associate degrees, employment, and advanced education for a diverse and vibrant local and global community. Through strategic collaborations with business, government, and educational networks, Â鶹´«Ã½ actively contributes to economic and workforce development."
In 2020-21, taxpayers contributed $114.4 million of funding. In return for this investment, taxpayers will benefit from added tax revenue from students’ higher lifetime earnings and increased business output, amounting to $200.2 million. A reduced demand for government-funded services in California will add another $21.7 million in benefits to taxpayers.
The study underscores California’s investment of $223.3 million in supporting Â鶹´«Ã½. The California economy will grow by $2.7 billion throughout students’ working lives. Society, at large, is also poised to reap the rewards, with projected public and private sector savings amounting to $35.8 million. For every dollar invested in Â鶹´«Ã½ in FY 2020-21, the people of California can expect a return of $12.40 for as long as Â鶹´«Ã½'s students from that period remain active contributors to the state's workforce.
Impacts created by Â鶹´«Ã½ in Fiscal Year 2020-21:
• Operations spending impact $73.2 million +
• Construction spending impact $5.3 million +
• Student spending impact $51.1 +
• Alumni Impact $482.1 +
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Total economic Impact $611.8 million or 6,530 jobs supported.
The Economic Value of Â鶹´«Ã½: Main Report
The Economic Value of Â鶹´«Ã½: Executive Summary
The Economic Value of Â鶹´«Ã½: Infographic