By Ofelia Garcia Hunter
Alice Echo-News Journal
Research economist Timothy P. Nadreau said the impact Coastal Bend College has on the local economy it serves runs in the millions.
A recent study by Economic Modeling Specialists, Inc. out of Idaho, projected that Coastal Bend College has a return of 12.7 percent.
The study showed that a student body at the college spent $24.5 million for tuition associated cost of going to school, but gets a return of $98.4 back in income revenue and back to the community. A ratio of four times more.
“This is adjusted for inflation,” Nadreau said. “That’s better then what you can ever find. Especially with the stock market bouncing around.”
About two dozen community members from Alice, Three Rivers, George West and Beeville attended the presentation representing their chambers and economic development entities.
As a society as a whole, Nadreau said the study demonstrates that social savings also come into play. He said an educated workforce or individual has reduced medical costs, lower crime rate and reduced income assistance.
“The real importance is the dollars that are staying here,” he said. “This is the impact that’s rippling through the economy.”
With CBC operations and the multiplier effect, plus the students’ contributions, the economy is seeing more than $16 million going through the communities being served by the college including Jim Wells and Duval counties.
“These counties would be losing out,” he said. “It would be $21 million smaller just because the skills wouldn’t be there and you wouldn’t be attracting students to the region.”
And as taxpayers, he said because of the college, taxes are staying down.
“With higher earnings that goes directly to tax revenue,” Nadreau said. “The state doesn’t raise these taxes as revenue is coming in.”
The analysis illustrated that the economic growth was because of the college operation, student spending and student productivity.
“The college is generating a workforce,” he said. “Tax rates would be higher without the college…two things would happen – the government would shrink or they will increase taxes.”
(Source: Alice Echo-News Journal, www.aliceechonews.com)