An in-depth study, conducted by Emsi, reveals the significant positive economic impact Ivy Tech Community College makes on the state of Indiana, including the local impact in northeast Indiana. 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.
The 2020 Ivy Tech Community College Economic Impact Report, based on fiscal year 2018-19, includes the following key findings for our local area:
- Ivy Tech’s impact supported the equivalent of 4,937 jobs in northeast 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 Fort Wayne and Warsaw alumni generated $285.8 million in added income for the local economy.
- In northeast Indiana, Ivy Tech employs 767 full-time and part-time faculty and staff with a total operations spend of $41.1 million contributing to the local economy.
- The expenditures of retained students in FY 2018-19 also added $5.2 million in income to the local economy.
“We’ve long known that Ivy Tech Community College Fort Wayne and Warsaw provides value beyond an education for our students. We deliver an economic boost to the region through our graduates, faculty, staff, and students,” said Ivy Tech Fort Wayne and Warsaw Chancellor Kim Barnett-Johnson. “This economic impact report confirms the benefits our College brings, both to our students’ lives and the growth of northeast Indiana.”
For details on the 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. 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,” Sue Ellspermann, president of Ivy Tech. “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.