A review of the economic value of Patrick & Henry Community College (P&HCC), Lightcast EIS determined that for every $1 received by the college, society gains $4.10 in added income and social savings.
The results of the analysis (reflecting fiscal year 2021-2022) demonstrate that P&HCC is a strong investment for all three of its major stakeholder groups—students, taxpayers, and society. Students receive a substantial return for their investments in education from P&HCC, gaining $3.80 in lifetime earnings for every $1 invested. At the same time, taxpayers’ investment in P&HCC returns more to government budgets than it costs ($1.70 in added tax revenue and public sector savings for every dollar) and creates a wide range of social benefits throughout Virginia.
The results of this study indicate that P&HCC creates value from multiple perspectives. The college benefits regional businesses by increasing consumer spending in the region and supplying a steady flow of qualified, trained workers to the workforce – one of every 37 jobs in the service region is supported by the activities of P&HCC and its students. P&HCC enriches the lives of students by raising their lifetime earnings and helping them achieve their individual potential. The college benefits state and local taxpayers through increased tax receipts and a reduced demand for government-supported social services. Ultimately, P&HCC benefits society as a whole by creating a more prosperous economy and generating a variety of savings through the improved lifestyles of students.
P&HCC president Dr. Greg Hodges briefed the P&HCC Board on the study at its regular monthly meeting on Monday, highlighting the following:
* P&HCC plays a key role in helping students increase their employability and achieve their individual potential. The college draws students to the region, generating new dollars and opportunities for the P&HCC Service Region. P&HCC provides students with the education, training, and skills they need to have fulfilling and prosperous careers. Furthermore, P&HCC is a place for students to meet new people, increase their self-confidence, and promote their overall health and well-being.
*Approximately 14% of students attending P&HCC originated from outside the region. Some of these students relocated to the P&HCC Service Region. In addition, some in-region students, referred to as retained students, would have left the P&HCC Service Region for other educational opportunities if not for P&HCC. These relocated and retained students spent money on groceries, mortgage and rent payments, and other living expenses at regional businesses. The expenditures of relocated and retained students in FY 2021-22 added $1.4 million in income to the P&HCC Service Region economy.
*In FY 2021-22, P&HCC added $75.1 million in income to the P&HCC Service Region economy, a value approximately equal to 1.7% of the region’s total gross regional product (GRP). The net impact of the college’s operations spending added $17.6 million in income to the regional economy in FY 2021-22.
Over the years, students have studied at P&HCC and entered or re-entered the workforce with newly acquired knowledge and skills. Today, thousands of these former students are employed in the P&HCC Service Region. The net impact of P&HCC’s former students currently employed in the regional workforce amounted to $56.1 million in added income in FY 2021-22.
*Taxpayers provided P&HCC with $8.9 million of funding in FY 2021-22. In return, they will benefit from added tax revenue, stemming from students’ higher lifetime earnings and increased business output, amounting to $13.4 million. A reduced demand for government-funded services in Virginia will add another $1.9 million in benefits to taxpayers.
*Total taxpayer benefits amount to $15.2 million, the present value sum of the added tax revenue and public sector savings. For every dollar of public money invested in P&HCC, taxpayers will receive $1.70 in return, over the course of students’ working lives. The average annual rate of return for taxpayers is 3.7%.
In FY 2021-22, Virginia invested $37 million to support P&HCC. In turn, the Virginia economy will grow by $145.7 million, over the course of students’ working lives. Society will also benefit from $5 million of public and private sector savings. For every dollar invested in P&HCC in FY 2021-22, people in Virginia will receive $4.10 in return, for as long as P&HCC’s FY 2021-22 students remain active in the Virginia workforce.
“This report reinforces the critical role P&HCC plays in our regional economy, and the ripple effect our programs have in making our community an excellent place to live, work and learn,” Hodges said.
By the numbers FY 2021-2022:
* 3,360: Number of students at the institution
* 483: Number of full-time and part-time employees
* 1,530: Jobs directly and indirectly supported
* $17.6 million: Operations spending
* $1.4 million: Amount spent by students who relocated or stayed in the region and who wouldn’t be here if not for the institution
* $56.1 million: Spending by alumni currently working in the region
* $75.1 million: Total economic impact
Data and assumptions used in the Lightcast study are based on several sources, including the FY 2021-22 academic and financial reports from P&HCC, VCCS, 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. The study applies a conservative methodology and follows standard practice using only the most recognized indicators of economic impact and investment effectiveness.