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Study Shows
Taxpayers and Students Get Strong
Return on Investment from Madison Area Technical College
Taxpayers and students are
getting their money's worth as a result of their investment in Madison
Area Technical College (MATC), according to a newly released socioeconomic
impact study. The study concluded taxpayers who fund MATC get a return
on their investments of more than 100 percent and recover all investments
in 2.1 years. The study results show students enjoy a 17 percent return
on their investment with a payback period of 7.1 years. It also reveals
that the State of Wisconsin benefits from a potential savings of $5.4
million per year for costs related to programs such as welfare and unemployment,
incarceration and health subsidies.
"Students benefit directly from higher personal earnings, and society
at large receives benefits from a more competitive and robust economy,
and from an assessment of cost savings associated with reduced welfare
and unemployment, improved health and reduced crime," said Dr. M.
Henry Robison, co-author of the socioeconomic benefits study.
Several major benefits of MATC emerged from the socioeconomic study, including:
- Higher earnings realized by exiting students.
- Cost savings to taxpayers as a result of fewer publicly supported social
programs.
- Tax revenue generated by improved earnings of technical college students.
- Expansion of the skill base, a key element in attracting new business
to Wisconsin.
"We've known that MATC makes a significant contribution to our local
and state economy through spending generated by our college, employees
and students, but we are pleased to see new data that measures the value-added
benefits provided through our operations, services and education,"
states Dr. Beverly S. Simone, MATC president. "Return on investment
is the bottom line for taxpayers and I think most taxpayers would agree
this is a very solid return."
One major influence on these returns on investment numbers is that more
than 80 percent of MATC graduates stay in the area to work and reinvest
in the economy and tax base.
"A major factor in all of this is that MATC does not have a major
brain drain issue," stressed Simone. "The investments we make
in our technical college students are likely to come back to us in the
form of various benefits, whether it be social or economic. In the end,
the economy, tax base, and ultimately the community, are so much stronger
as a result of MATC."
A major factor in the students' rate of return is higher wages. For every
year a full-time student attends MATC, he or she earns an additional $3,
806 per year, on average. Major influencers in the taxpayers' rate of
return are the additional tax revenues these higher wages generate, as
well as savings on taxpayer-funded social programs.
MATC commissioned this study by CCBenefits, Inc. as part of a statewide
effort among the colleges of the Wisconsin Technical College System. CCBenefits,
Inc. developed the economic modeling framework for the study in cooperation
with the Association of Community College Trustees (ACCT). The model,
which took over a year to develop, has been subject to peer review and
has been field tested on 35 other colleges. CCBenefits, Inc. collaborated
with institutional researchers within the Wisconsin Technical College
System to gather the data necessary to conduct the study.
MATC is one of the largest of the Wisconsin Technical College System's
16 colleges. It provides a comprehensive curriculum of technical, liberal
arts and science, adult basic education and life enrichment studies and
activities, as well as customized employee training. MATC provides training
in more than 100 career programs. It awards associate degrees, vocational
diplomas and certificates, and offers non-degree courses. The college
serves all or parts of 12 counties located in south-central Wisconsin
and offers instruction through five campuses and various other locations
throughout the district.
Socioeconomic
Impact Study (Download
via Adobe Acrobat Reader.) * If
you do not have Adobe® Acrobat® Reader® software, you can
download it free from the Adobe
Website.
###
Last
Modified:
April 24, 2002
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