Blinn College District

Economic Impact Study

The Economic Value of the Blinn College District's Brenham Campus

Executive Summary

Economic Impact and Investment Analysis Fiscal Year 2018–19

Overview

Introduction

The Blinn College District's Brenham Campus (Blinn-Brenham) creates value in many ways. The campus plays a key role in helping students increase their employability and achieve their individual potential.

Blinn-Brenham draws students to Washington County, generating new dollars and opportunities for the county. The campus provides students with the education, training, and skills they need to build fulfilling and prosperous careers.

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

The campus influences both the lives of its students and the county economy. It supports a variety of industries in Washington County, serves county 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-Brenham on the business community and the benefits generated in return for investments made by students, taxpayers, and society.

  • Economic impact analysis
  • Investment analysis

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

Washington County Economy

Economic Impact Analysis

Blinn-Brenham promotes economic growth in Washington County through its direct expenditures and the resulting expenditures of students and county businesses.

The campus serves as an employer and buyer of goods and services for day-to-day and construction operations. Its activities attract students from outside Washington County, whose expenditures benefit county vendors.

Blinn-Brenham also provides higher education to Washington County residents and supplies trained workers to county industries, enhancing productivity in the workforce.

Impacts Created by Blinn-Brenham in FY 2018–19

$19.4 million
Operations spending impact
$2.3 million
Construction spending impact
$6 million
Student spending impact
$43 million
Alumni impact
$70.7 million
Total impact
1,560
Jobs supported

Operations Spending Impact

In FY 2018–19, Blinn-Brenham employed 637 full-time and part-time faculty and staff, 55% of whom lived in Washington County.

Total payroll was $18.3 million, much of which was spent in the county on housing, food, dining, and other household expenses.

The campus also spent $13.1 million on day-to-day expenses related to facilities, supplies, and professional services.

Day-to-day operations added $19.4 million in income to Washington County, equivalent to supporting 656 jobs.

Construction Spending Impact

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

In FY 2018–19, construction spending generated $2.3 million in added income, equivalent to supporting 44 jobs.

Student Spending Impact

Approximately 79% of students attending Blinn-Brenham originated from outside Washington County in FY 2018–19.

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

Their spending generated $6 million in added income and supported 145 jobs.

Alumni Impact

Former Blinn-Brenham students contribute to the Washington County economy through higher earnings and the increased productivity they bring to the businesses that employ them.

In FY 2018–19, alumni generated $43 million in added income, equivalent to supporting 714 jobs.

Total Impact

Blinn-Brenham added $70.7 million in income to the Washington County economy during the analysis year.

This impact was approximately 4.3% of Washington County's gross regional product and supported 1,560 county jobs.

Blinn-Brenham Impacts by Industry

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

Industry impact data
Industry Jobs supported
Government, Non-Education 141
Retail Trade 136
Health Care & Social Assistance 93
Construction 92
Real Estate & Rental & Leasing 77

Return on Investment

Investment Analysis

The investment analysis considers Blinn-Brenham as an investment from the perspectives of students, taxpayers, and society in Texas.

Student Perspective

In FY 2018–19, Blinn-Brenham served 3,641 credit students and 610 non-credit students.

The students' total investment amounted to a present value of $36.7 million, including $26.2 million in out-of-pocket expenses and $10.4 million in forgone time and money.

In return, those students are projected to receive $78.6 million in higher future earnings over their working careers.

The average Blinn-Brenham associate degree graduate from FY 2018–19 will see annual earnings approximately $7,900 higher than a person with a high school diploma or equivalent working in Texas.

Student Return on Investment

9.5% Average annual return for Blinn-Brenham students
2.1 Student benefit-cost ratio
$2.10 Higher future earnings received for every $1 invested

Student Perspective

$78.6 million
Present value benefits
$36.7 million
Present value costs
$41.9 million
Net present value
Benefit-cost ratio 2.1
Rate of return 9.5%

Taxpayer Perspective

$25.3 million
Present value benefits
$8.4 million
Present value costs
$16.9 million
Net present value
Benefit-cost ratio 3.0
Rate of return 7.1%

Social Perspective

$364.1 million
Present value benefits
$53.4 million
Present value costs
$310.7 million
Net present value
Benefit-cost ratio 6.8
Rate of return N/A

Taxpayer Perspective

Blinn-Brenham generates more in tax revenue than it takes. The state and local government are projected to collect a present value of $22.5 million in added taxes over the working lives of FY 2018–19 students.

Improved student lifestyles also are projected to generate $2.8 million in savings related to healthcare, crime, and income assistance.

Total taxpayer benefits amount to $25.3 million, compared with $8.4 million in taxpayer costs.

For every dollar of public money invested in Blinn-Brenham, state and local taxpayers are projected to receive $3.00 over the students' working lives.

Social Perspective

Social Benefits in Texas from Blinn-Brenham

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-Brenham, people in Texas are projected to receive a cumulative value of $6.80 in benefits.

Washington County

Return on Investment for Local Taxpayers

Washington County taxpayers provided 4% of Blinn-Brenham's funding, or $1.9 million, in FY 2018–19.

In return for that investment, the county is projected to receive a present value of $4.8 million in benefits generated by increased tax revenues and government savings.

$2.50 Returned for every $1 invested by Washington County taxpayers
10.8% Annual rate of return for local taxpayers
$4.8 million Present value of local taxpayer benefits

Summary

Conclusion

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

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

Blinn-Brenham enriches students' lives by increasing their lifetime earnings and helping them achieve their individual potential.

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

Finally, Blinn-Brenham 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 the Blinn College District'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.

  • $70.7 million Total income added to the Washington County economy.
  • 1,560 Washington County jobs supported.
  • 1 in 16 Washington County jobs supported by Blinn-Brenham and its students.
  • $2.10 Higher future earnings students receive for every $1 invested.
  • $3.00 Value returned to state and local taxpayers for every $1 invested.
  • $6.80 Value returned to society for every $1 invested.
  • $2.50 Value returned for every $1 invested by Washington County taxpayers.
  • 10.8% Annual rate of return for Washington County taxpayers.