MUNCIE, Ind. — A recent study has revealed the positive economic impact Ivy Tech Community College makes on the state of Indiana, and takes a closer look at how the college’s Muncie service area added jobs and income to the local economy.
Conducted by Emsi, the study outlines the return on investment that Ivy Tech makes to its major stakeholder groups, including students, taxpayers and the community. The analysis reflects a $3.9 billion cumulative annual impact through the state.
Emsi is a labor market analytics firm, bringing in data from a variety of sources to serve professionals in higher education, economic development, workforce development, talent acquisition and site selection. Since 2000, it has completed more than 2,000 economic impact studies for institutions.
Based on the 2018-19 fiscal year, the 2020 Ivy Tech Community College Economic Impact Report showed that the school system supported the equivalent of 1,505 jobs in Delaware and Henry counties alone.
Ivy Tech alumni generate added income
According to a release, alumni have the greatest impact on the state, because of higher earnings and increased productivity of the businesses that employ them. Ivy Tech Muncie’s alumni generated $59.8 million in added income for the county economy.
“We are building strategies that will help local employers for the short, mid and long term. As an anchor institution, we are invested in making a continued positive impact. We strive to always do the right thing for the right reasons,” Jeffrey Scott, chancellor for Muncie-Henry County, said in the release. “We care deeply about the people, places and things of Delaware and Henry counties. As highlighted by this report and our day-to-day deeds, we contribute greatly to our community’s ability to thrive. We are a beacon to a brighter tomorrow.”
The study also noted that Ivy Tech’s Muncie campus service area, which includes Delaware and Henry County facilities, employs 334 full-time and part-time faculty and staff, with a total operations spending of $17 million contributing to the local economy.
In total, the expenditures of retained students from 2018-19 added $1.2 million in income to the local economy.
Students’ investment in Ivy Tech
Along with identifying the institution’s economical impact, Emsi’s study also looked into the investment students are making in themselves by choosing Ivy Tech, and also, the value the community is investing in students through public dollars the institution receives from taxpayers.
According to the release, it was found that students invested about $502 million in time and money, which will eventually generate a cumulative return of about $2.2 billion in higher future earnings over their working careers.
The study concludes the average Ivy Tech associate degree graduate from the 2018-19 fiscal year will see annual earnings that are about $10,000 higher than a person with only a high school diploma or equivalent working in Indiana.
“In today’s job market, a post-secondary credential is more important than ever,” said said Sue Ellspermann, president of Ivy Tech, in the release. “Ivy Tech offers a cost-effective way of acquiring knowledge and skills that lead to new careers and improved earnings.”
Benefits for taxpayers
The report also indicated that taxpayers are seeing benefits from investing in students. For every dollar of public money invested in Ivy Tech, taxpayers will receive a cumulative value of $1.90 over the course of the students’ working lives, the study found.
This equates to a net present value of about $287 million after accounting for taxpayer costs and is an average annual rate of return of 5.3% for taxpayers, according to the release.
The full report can be read at bit.ly/MuncieImpactReport.
Charlotte Stefanski is a reporter at The Star Press. Contact her at 765-283-5543, [email protected] or follow her on Twitter @CharStefanski.