Blinn College District

Economic Impact Study

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

Executive Summary

Economic Impact and Investment Analysis Fiscal Year 2018–19

Overview

Introduction

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

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

Blinn-Sealy also provides students a place to meet new people, increase their self-confidence, and promote their overall health and well-being.

Blinn-Sealy influences both the lives of its students and the county economy. The campus supports a variety of industries in Austin County, serves county businesses, and benefits society throughout Texas through an expanded economy and improved quality of life.

The benefits created by Blinn-Sealy also extend to state government through increased tax revenues and public-sector savings.

This study measures the economic impacts created by Blinn-Sealy 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 Austin County economy. Investment returns are reported for students, taxpayers, and society in Texas.

Austin County Economy

Economic Impact Analysis

Blinn-Sealy promotes economic growth in Austin 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 its day-to-day operations. Its activities attract students from outside Austin County, whose expenditures benefit county vendors.

Blinn-Sealy also serves as a primary source of higher education for Austin County residents and a supplier of trained workers to county industries, enhancing overall productivity in the workforce.

Impacts Created by Blinn-Sealy in FY 2018–19

$808.4 thousand
Operations spending impact
$233.9 thousand
Student spending impact
$1.1 million
Alumni impact
$2.2 million
Total impact
32
Jobs supported

Operations Spending Impact

In FY 2018–19, Blinn-Sealy employed eight full-time and part-time faculty and staff, 63% of whom lived in Austin County.

Total payroll was $636.7 thousand, much of which was spent in the county on groceries, mortgage and rent payments, dining, and other household expenses.

The campus also spent $510.2 thousand on day-to-day expenses related to facilities, supplies, and professional services.

Day-to-day operations added $808.4 thousand in income to Austin County, equivalent to supporting 10 jobs.

Student Spending Impact

Approximately 54% of students attending Blinn-Sealy originated from outside Austin 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 $233.9 thousand in added income and supported five jobs.

Alumni Impact

Students who have studied at Blinn-Sealy have entered the Austin County workforce with greater knowledge and new skills.

Their education increases their earnings and improves the productivity of the businesses that employ them.

In FY 2018–19, former Blinn-Sealy students working in Austin County generated $1.1 million in added income, equivalent to supporting 17 jobs.

Total Impact

Blinn-Sealy added $2.2 million in income to the Austin County economy during the analysis year.

This impact was approximately 0.1% of Austin County's gross regional product and supported 32 county jobs.

Blinn-Sealy Impacts by Industry

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

Industry impact data
Industry Jobs supported
Retail Trade 4
Accommodation & Food Services 3
Health Care & Social Assistance 2
Construction 2
Government, Non-Education 2

Return on Investment

Investment Analysis

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

Student Perspective

In FY 2018–19, Blinn-Sealy served 226 students.

The students' total investment amounted to a present value of $1.1 million, including $343 thousand in out-of-pocket expenses and $784.6 thousand in forgone time and money.

In return, those students are projected to receive $5.7 million in higher future earnings over their working careers.

The average Blinn-Sealy 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.

Student Return on Investment

17.9% Average annual return for Blinn-Sealy students
5.0 Student benefit-cost ratio
$5.00 Higher future earnings received for every $1 invested

Student Perspective

$5.1 million
Present value benefits
$1.1 million
Present value costs
$4.5 million
Net present value
Benefit-cost ratio 5.0
Rate of return 17.9%

Taxpayer Perspective

$1.8 million
Present value benefits
$436.8 thousand
Present value costs
$1.4 million
Net present value
Benefit-cost ratio 4.1
Rate of return 9.9%

Social Perspective

$26.6 million
Present value benefits
$2 million
Present value costs
$24.6 million
Net present value
Benefit-cost ratio 13.0
Rate of return N/A

Taxpayer Perspective

Blinn-Sealy generates more in tax revenue than it takes. The state government is projected to collect a present value of $1.7 million in added taxes over the working lives of FY 2018–19 students.

Improved student lifestyles also are projected to generate $141.2 thousand in savings related to healthcare, crime, and income assistance.

Total taxpayer benefits amount to $1.8 million, compared with $436.8 thousand in taxpayer costs.

For every dollar of public money invested in Blinn-Sealy, taxpayers are projected to receive $4.10 over the students' working lives.

Social Perspective

Social Benefits in Texas from Blinn-Sealy

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-Sealy, people in Texas are projected to receive a cumulative value of $13.00 in benefits.

Summary

Conclusion

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

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

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

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

Finally, Blinn-Sealy 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.

Important Note

In 2013, Emsi conducted an economic impact analysis of Blinn-Sealy on Blinn College's 13-county service area. The present study focuses on a single county to provide more localized information about the campus's impact.

Because the geographic regions used in the two studies differ, the results are not comparable.

Fact Sheet

At a Glance

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

  • $2.2 million Total income added to the Austin County economy.
  • 32 Austin County jobs supported.
  • $5.00 Higher future earnings students receive for every $1 invested.
  • $4.10 Value returned to taxpayers for every $1 invested.
  • $13.00 Value returned to society for every $1 invested.
  • 17.9% Average annual rate of return for Blinn-Sealy students.
  • 9.9% Average annual rate of return for taxpayers.
  • 54% Students who originated from outside Austin County in FY 2018–19.