In a recent regional labor market study commissioned by the Orange County Regional Consortium in collaboration with Lightcast, an underscored ΒιΆΉ΄«Γ½ (ΒιΆΉ΄«Γ½) as a robust economic engine in Orange County. The study highlighted ΒιΆΉ΄«Γ½βs substantial $738.4 million impact on the local economy in Fiscal Year 2023β24, representing approximately 0.2% of the county's total Gross Regional Product (GRP). This impact is enough to support 6,983 jobs, demonstrating ΒιΆΉ΄«Γ½'s role in fostering employment opportunities. Moreover, the study reflects that the college has played a key role in equipping its alumni 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 that ΒιΆΉ΄«Γ½ plays a vital role in shaping studentsβ futures by providing education, training, and essential skills for successful and rewarding careers. The study confirms that ΒιΆΉ΄«Γ½ is a sound investment, generating strong returns for students, taxpayers, and society. On average, students see a lifetime return of $3.50 in higher future earnings for every dollar invested in their education. This translates to an average annual rate of return of 13.6%, higher than the 30-year U.S. stock market average of 10.1% and well above the 0.5% average interest earned on savings accounts.
According to the study, ΒιΆΉ΄«Γ½ also stimulates economic growth by attracting and retaining students who spend money locally on housing, food, transportation, and other living expenses. In FY 2023β24, about 25% of students came from outside Orange County, with many relocating to attend ΒιΆΉ΄«Γ½. Together, relocated and retained students contributed $65.2 million to the county economy, supporting 904 jobs.
βThe findings of this study highlight the essential role ΒιΆΉ΄«Γ½ plays in supporting both students and the economy,β said ΒιΆΉ΄«Γ½ President Dr. John Hernandez. βWe provide pathways to transfer, degrees, and careers while connecting students to real-world opportunities that lead to good-paying jobs and strong futures. Together with business, government, and education partners, ΒιΆΉ΄«Γ½ helps shape a thriving region built on economic growth and social mobility.β
In FY 2023β24, taxpayers invested $146.9 million in ΒιΆΉ΄«Γ½. In return, state and local governments will collect a present value of $160.1 million in added tax revenue over the working lives of ΒιΆΉ΄«Γ½ students, as graduates earn more and employers expand business activity. Taxpayers will also benefit from $18.9 million in savings tied to improved health, reduced reliance on income assistance, and lower justice system costs. Altogether, total taxpayer benefits equal $179 million, producing a benefit-cost ratio of 1.2 β meaning that for every public dollar invested, taxpayers will receive $1.20 in return. The average annual rate of return for taxpayers is 1.8%, which compares favorably to other long-term public sector investments.
From a broader perspective, California also benefits significantly from ΒιΆΉ΄«Γ½. Over studentsβ working lives, the present value of social benefits amounts to $2.1 billion, including $1.2 billion in added student income, $553 million in added business income, $323.9 million in income from college activities, and $27.3 million in social savings related to health care, the justice system, and income assistance. With a total investment of $259 million in FY 2023β24, this yields a benefit-cost ratio of 8.3 βmeaning every dollar invested in ΒιΆΉ΄«Γ½ generates $8.30 in benefits to California society.
Impacts created by ΒιΆΉ΄«Γ½ in Fiscal Year 2023β24:
- Operations spending impact: $120.8 million
- Construction spending impact: $5.7 million
- Student spending impact: $65.2 million
- Alumni impact: $546.7 million
Total economic impact: $738.4 million, (.02% of country GRP), or 6,983 jobs supported.