Report: RCTC contribution to regional economy estimated at $235M
(ABC 6 News) – Minnesota State, the system of 26 state colleges and seven state universities, released the results of a study on Thursday which shows the impact that Rochester Community and Technical College (RCTC) has on the regional economy.
The study estimates that RCTC’s impact on the regional economy is $234.9 million and that the college supports and sustains 1,785 jobs.
The study was commissioned by Minnesota State and was conducted by Parker Philips, a nationally recognized consulting firm specializing in economic impact analysis.
“At Rochester Community and Technical College, our top priority is the success of our students, but it is important to note that RCTC plays a vital role in both the state and the regional economies,” said Jeffery Boyd, Ed.D., RCTC’s President. “Our operations and the economic activity generated by our faculty, staff, and students touch virtually every corner of our regional economy including healthcare, education, hospitality, construction, maintenance, and retail.”
In the analysis, the study considered the direct spending on operations, pay, benefits, and capital projects by RCTC and the estimated increase in demand for goods and services in industry sectors that supply or support the college. The study also measured the effect of student spending and the induced effect of increased household income.
According to the study, a key result of this activity are the 1,785 jobs that RCTC supports and sustains including direct employment by the college as well as indirect and induced jobs created by supply and equipment vendors, contractors, and laborers for the construction and renovation of facilities, and jobs created in the community at hotels, restaurants, and retail stores in support of the college’s faculty, staff, students, and visitors.
The study also calculated tax revenues generated by this level of economic activity, including sales, property, personal income, and corporate income taxes. The study concluded that RCTC generates about $18.7 million in tax revenues for state and local government.
The study further estimated the value of the increase in productivity that the degrees awarded by RCTC yield throughout the careers of the graduates. Assuming a 40-year work life, the education received by these graduates will yield additional state income of $6 billion (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration).
“RCTC makes a long-term contribution to the regional economy with every graduating class because the productivity improvements from higher education last for the worker’s entire career,” said President Boyd.
Statewide, all Minnesota State operations, including all seven state universities and 26 community and technical colleges, plus the spending of its faculty, staff, and students, had a total statewide economic contribution of $8.4 billion. This activity generated an estimated 62,125 jobs in the state.
The economic contribution report for RCTC can be found, HERE.