Blinn College District

Economic Impact Study

The Economic Value of the Blinn College District

Executive Summary

Economic Impact and Investment Analysis Fiscal Year 2018–19

Overview

Introduction

The Blinn College District creates value in many ways. The College plays a key role in helping students increase their employability and achieve their individual potential.

Blinn College draws students to the region, generating new dollars and opportunities for the Blinn College Service Area. The College provides students with the education, training, and skills they need to have fulfilling and prosperous careers.

Blinn College also provides opportunities for students to meet new people, increase their self-confidence, and promote their overall health and well-being.

The College influences both the lives of its students and the regional economy. It supports a variety of industries in the Blinn College Service Area, serves regional businesses, and benefits society throughout Texas through an expanded economy and improved quality of life.

Benefits also extend to state and local government through increased tax revenues and public-sector savings.

This study measures the economic impacts created by Blinn College on the business community and the benefits generated in return for investments made by its key stakeholder groups: students, taxpayers, and society.

  • Economic impact analysis
  • Investment analysis

Results reflect employee, student, and financial data provided by the College for fiscal year 2018–19. Economic impacts are reported as added income to the Blinn College Service Area economy. Investment returns are reported for students, taxpayers, and society in Texas.

Regional Economy

Economic Impact Analysis

Blinn College promotes economic growth throughout the Blinn College Service Area through its direct expenditures, student spending, regional business activity, and the increased productivity of former students.

The College serves as an employer and buyer of goods and services for day-to-day and construction operations. Its activities attract students from outside the region, whose expenditures benefit regional vendors.

Blinn College also provides higher education to service-area residents and supplies trained workers to regional industries, enhancing productivity in the workforce.

Impacts Created by Blinn College in FY 2018–19

$90.9 million
Operations spending impact
$4.9 million
Construction spending impact
$32.2 million
Student spending impact
$242.1 million
Alumni impact
$370.1 million
Total impact
6,010
Jobs supported

Operations Spending Impact

In FY 2018–19, Blinn College employed 1,563 full-time and part-time faculty and staff, 71% of whom lived in the Blinn College Service Area.

Total payroll was $70.3 million, much of which was spent in the region on housing, food, dining, and other household expenses.

The College also spent $43.2 million on day-to-day expenses related to facilities, supplies, and professional services.

Day-to-day operations added $90.9 million in income to the region, equivalent to supporting 1,813 jobs.

Construction Spending Impact

Blinn College invests in construction to maintain its facilities, create additional capacity, and meet growing educational demands.

In FY 2018–19, construction spending generated $4.9 million in added income, equivalent to supporting 80 jobs.

Student Spending Impact

Approximately 77% of students attending Blinn College originated from outside the region in FY 2018–19.

Relocated and retained students spent money on groceries, accommodations, transportation, and other household expenses.

Their spending generated $32.2 million in added income and supported 730 jobs in the Blinn College Service Area.

Alumni Impact

Former Blinn College students contribute to the regional economy through increased earnings and the additional productivity they bring to the businesses that employ them.

In FY 2018–19, alumni generated $242.1 million in added income, equivalent to supporting 3,386 jobs.

Total Impact

Blinn College added $370.1 million in income to the Blinn College Service Area economy during the analysis year.

This impact equaled approximately 0.7% of the region's gross regional product and supported 6,010 regional jobs.

Blinn College Impacts by Industry

Jobs supported in selected non-education industries during FY 2018–19.

Industry impact data
Industry Jobs supported
Retail Trade 659
Accommodation & Food Services 476
Health Care & Social Assistance 424
Government, Non-Education 404
Real Estate & Rental & Leasing 372

Return on Investment

Investment Analysis

The investment analysis considers Blinn College from the perspectives of students, taxpayers, and society in Texas.

Student Perspective

In FY 2018–19, Blinn College served 26,567 credit students and 2,331 non-credit students.

The students' total investment amounted to a present value of $169.7 million, including $73.6 million in out-of-pocket expenses and $96.2 million in forgone time and money.

In return, those students are projected to receive $627.7 million in higher future earnings over their working careers.

The average Blinn College associate degree graduate from FY 2018–19 will see annual earnings approximately $9,700 higher than a person with a high school diploma or equivalent working in Texas.

Students See a High Rate of Return

14.0% Average annual return for Blinn College students
9.9% Stock market 30-year average annual return
0.8% Interest earned on a savings account

Student Perspective

$627.7 million
Present value benefits
$169.7 million
Present value costs
$458 million
Net present value
Benefit-cost ratio 3.7
Rate of return 14.0%

Taxpayer Perspective

$209.6 million
Present value benefits
$36 million
Present value costs
$173.6 million
Net present value
Benefit-cost ratio 5.8
Rate of return 13.6%

Social Perspective

$3.1 billion
Present value benefits
$236.8 million
Present value costs
$2.9 billion
Net present value
Benefit-cost ratio 13.1
Rate of return N/A

Taxpayer Perspective

Blinn College generates more in tax revenue than it takes. The state and local government are projected to collect a present value of $192.2 million in added taxes over the working lives of FY 2018–19 students.

Improved student lifestyles also are projected to generate $17.4 million in savings related to healthcare, crime, and income assistance.

Total taxpayer benefits amount to $209.6 million, compared with $36 million in taxpayer costs.

For every dollar of public money invested in Blinn College, taxpayers are projected to receive $5.80 over the students' working lives.

Social Perspective

Social Benefits in Texas from Blinn College

Total present-value benefits to society.

The social benefits include increased lifetime earnings and business output as well as savings related to health, crime, and income assistance.

For every dollar invested in Blinn College, people in Texas are projected to receive a cumulative value of $13.10 in benefits.

Summary

Conclusion

The results of this study demonstrate that Blinn College creates value from multiple perspectives.

The College benefits regional businesses by increasing consumer spending and supplying a steady flow of qualified, trained workers.

Blinn College enriches the lives of students by increasing lifetime earnings and helping students achieve their individual potential.

The College benefits state and local taxpayers through increased tax receipts and reduced demand for government-supported social services.

Finally, Blinn College benefits society throughout Texas by contributing to a more prosperous economy and generating savings associated with improved lifestyles.

About the Study

Data and assumptions used in the study are based on several sources, including Blinn College's FY 2018–19 academic and financial reports, industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs from Emsi's Multi-Regional Social Accounting Matrix model, and studies and surveys relating education to social behavior.

The study applies a conservative methodology and follows standard practice using recognized indicators of economic impact and investment effectiveness.

Fact Sheet

At a Glance

Key economic and investment findings from the FY 2018–19 analysis.

  • $370.1 million Total income added to the Blinn College Service Area economy.
  • 6,010 Regional jobs supported.
  • $3.70 Higher future earnings students receive for every $1 invested.
  • $5.80 Value returned to taxpayers for every $1 of public money invested.
  • $13.10 Value returned to society for every $1 invested.
  • 14.0% Average annual rate of return for Blinn College students.