EXECUTIVE SUMMARY

1 The Economic Value of the Community college of allegheny CountyJULY 2021 EXECUTIVE SUMMARYI ntroduction2 COMMUNITY college OF allegheny county (CCAC) creates value in many ways. The college plays a key role in helping students increase their employability and achieve their individual potential. The college draws students to the county , generating new dollars and opportunities for allegheny county . CCAC provides students with the education, training, and skills they need to have fulfilling and prosperous careers. Furthermore, CCAC is a place for students to meet new people, increase their self-confidence, and promote their overall health and influences both the lives of its students and the county economy.

2 The college supports a variety of industries in allegheny county , serves county businesses, and benefits society as a whole in Pennsylvania from an expanded economy and improved quality of life. The benefits created by CCAC even extend to the state and local government through increased tax revenues and public sector study measures the economic impacts created by CCAC on the business community and the benefits the college generates in return for the investments made by its key stakeholder groups students, taxpayers, and society. The following two analyses are presented:All results reflect employee, student, and financial data, provided by the college , for fiscal year (FY) 2019-20.

3 Impacts on the allegheny county economy are reported under the economic impact analysis and are measured in terms of added income. The returns on investment to students, taxpayers, and society in Pennsylvania are reported under the investment impact analysisInvestment analysisTHE C C A C SERVICE AREACCAC influences both the lives of its students and the regional impact analysis3 CCAC promotes economic growth in allegheny county through its direct expenditures and the resulting expenditures of students and county businesses. The college serves as an employer and buyer of goods and services for its day-to-day and construction operations.

4 The college s activities attract students from outside allegheny county , whose expenditures benefit county vendors. In addition, CCAC is a primary source of higher education to allegheny county residents and a supplier of trained workers to county industries, enhancing overall productivity in the county workforce. Operations spending impactCCAC adds economic value to allegheny county as an employer of county residents and a large-scale buyer of goods and services. In FY 2019-20, the college employed 1,926 full-time and part-time faculty and staff, 78% of whom lived in allegheny county . Total payroll at CCAC was $ million, much of which was spent in the county for groceries, mortgage and rent payments, dining out, and other household expenses.

5 In addition, the college spent $ million on day-to-day expenses related to facilities, supplies, and professional s day-to-day operations spending added $ million in income to the county during the analysis year. This figure represents the college s payroll, the multiplier effects generated by the in- county spending of the college and its employees, and a downward adjustment to account for funding that the college received from county sources. The $ million in added income is equivalent to supporting 2,200 jobs in the Spending ImpactCCAC invests in construction each year to maintain its facilities, create additional capacities, and meet its growing educational demands.

6 While the amount varies from year to year, these quick infusions of income and jobs have a substantial impact on the county economy. In FY 2019-20, CCAC s construction spending generated $ million in added income, which is equivalent to supporting 39 IMPACT ANALYSISIMPACTS CREATED BY CCAC IN FY 2019-20 Jobs supported15,705 ORTOTAL ECONOMIC IMPACT$ billionOperations spending impact$ millionStudent spending impact$ millionAlumni impact$ billionConstruction spending impact$ millionEconomic impact analysis4 Student spending impactAround 36% of credit students attending CCAC originated from outside the county in FY 2019-20, and some of these students relocated to allegheny county to attend CCAC.

7 These students may not have come to the county if the college did not exist. In addition, some in- county students, referred to as retained students, would have left allegheny county if not for the existence of CCAC. While attending the college , these relocated and retained students spent money on groceries, accommodation, transportation, and other household expenses. This spending generated $ million in added income for the county economy in FY 2019-20, which supported 424 jobs in allegheny impactThe education and training CCAC provides for county residents has the greatest impact. Since its establishment, students have studied at CCAC and entered the county workforce with greater knowledge and new skills.

8 Today, hundreds of thousands of former CCAC students are employed in allegheny county . As a result of their CCAC educations, the students receive higher earnings and increase the productivity of the businesses that employ them. In FY 2019-20, CCAC alumni generated $ billion in added income for the county economy, which is equivalent to supporting 13,043 impactCCAC added $ billion in income to the allegheny county economy during the analysis year, equal to the sum of the operations and construction spending impacts, the student spending impact, and the alumni impact. For context, the $ billion impact was equal to approximately of the total gross regional product (GRP) of allegheny county .

9 This contribution from the college alone is nearly as large as the entire Utilities industry in the s total impact can also be expressed in terms of jobs supported. The $ billion impact supported 15,705 county jobs, using the jobs-to-sales ratios specific to each industry in the county . This means that one out of every 57 jobs in allegheny county is supported by the activities of CCAC and its students. In addition, the $ billion, or 15,705 supported jobs, stemmed from different industry sectors. Among non-education industry sectors, CCAC s spending and alumni in the Health Care & Social Assistance industry sector supported 3,866 jobs in FY 2019-20.

10 These are impacts that would not have been generated without the college s presence in allegheny county . One out of every 57 jobs in the allegheny county is supported by the activities of CCAC and its IMPACTS BY INDUSTRY (JOBS SUPPORTED)3,8661,3421,0341,007997100+35+ 27+26+26 Professional & Technical ServicesHealth Care & Social AssistanceConstructionRetail TradeOther Services (except Public Administration) Investment analysis5 STUDENTS SEE A HIGH RATE OF RETURN FOR THEIR INVESTMENT IN CCACS ource: Forbes S&P 500, 1989-2018. , 6-2019. Interest earned on savings account (National Rate Cap)Average annual return for CCAC studentsStock market 30-year average annual return39+18+ investment analysis evaluates the costs associated with a proposed venture against its expected benefits.