WCC Yields Return on Investment for Wiregrass Economy

Matt Boster

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Posted by: Matt Boster
Date: Oct 22 2014 8:32 AM

Dothan, Ala.—Wallace Community College has contributed to residents in the Wiregrass since 1949, when 13 sheet-metal students, all WWII veterans, joined the first class at the newly-formed college. A well-known source for education in the Wiregrass, Wallace has been present during important junctures in the area’s history, creating a source for workforce and economic development.

 

A report from Economic Modeling Specialists International, commissioned by Wallace Community College, confirms how WCC has positively impacted the economics of the area and the state as a whole.

 

The report states that in the 2012-13 academic year, the total impact of WCC on the Wiregrass economy was $183.6 million or 2% of the Wiregrass Region’s Gross Regional Product. According to the report, the monetary benefits WCC provides to investors in education, including students, society, and taxpayers are substantial.

 

“This report underscores the importance of obtaining a degree beyond high school,” said Dr. Linda C. Linda, president of Wallace Community College. “While almost everyone in the Wiregrass has either attended or knows someone who has attended Wallace, it is eye-opening to see the tangible effects that the College has on the area. When students gain marketable skills through investment in education, everyone wins. ”

 

Alabama taxpayers invested $15.2 million into WCC during 2012-13. Because of this investment, the Alabama economy will see tax revenues of $39.9 million due to students’ higher lifetime incomes. Taxpayers will also save $5.2 million because these students are much less likely to require government assistance and other public services when they complete their education.

 

“Wallace Community College is a bargain for taxpayers in Alabama. The investment in WCC improves the lives of Wiregrass citizens in terms of increased wages,” said Lynn Bell, dean of business affairs. “To put the $183.6 million impact on the Wiregrass economy in perspective, this amount supports 4,390 jobs of average salary here in the Wiregrass.”

 

For every $1.00 that students paid for tuition, books, fees, and supplies, they will gain $4.90 in higher future income. This represents an average annual return of 18.6%.  Associate degree completers will earn almost $500,000 more in lifetime income compared to someone with a high school diploma. WCC’s 2012-13 student population will add $722.1 million in additional income to the state of Alabama over their working lifetime.

 

As community college graduates accomplish higher degrees, they also acquire healthier lifestyles. According to the report, this leads to an $18.1 million savings to students and society in medical treatment of lifestyle illnesses, including smoking, obesity, drug abuse, alcoholism, and other disorders.

 

“The exponential impact that education can have on a community is enhanced as cycles of generational poverty become cycles of generational success,” said Tony Holland, dean of instructional affairs. “Higher education leads to higher employment and reduced health care costs and lower crime rates, which means fewer claims for public assistance.” 

 

The report summarizes that Wallace Community College plays an integral role in preparing students to become skilled employees with rewarding and fulfilling careers. For many students, the College also represents an opportunity to study locally, saving time and money. “By furthering their education, our students will enhance their own lives and society as a whole, and not just in terms of money. They will be healthier, happier, and will lead more productive lives,” said Dr. Young.

Economic Modeling Specialists International (EMSI) developed the report on behalf of Wallace Community College.

 

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