STUDY INDICATES PANOLA COLLEGE STUDENTS EARN 28%
RETURN ON EDUCATIONAL INVESTMENT

In a recent study, CCbenefits, Inc. applied a comprehensive economic model developed to capture and quantify the economic and social benefits of community colleges (CCs) across the state of Texas, to Panola College.  The model, which took over a year to develop with funding from the Texas Association of Community Colleges (TACC), relies on data collected from individual CCs, and translates these into common sense benefit-cost and investment terms. Model results are based on solid economic theory, carefully drawn functional relationships, and a wealth of national and local education-related data. The model provides relief from the all-too-common “advocacy analyses” that inflate benefits, understate costs, and thus discredits the process of higher education impact assessment.  

The report, The Socioeconomic Benefits Generated by Panola College, stated: 

Business sales in Panola College’s service areas (Panola, Shelby, Harrison and Marion counties) are $26.2 million greater, and labor income is $14.8 million larger due to the past and present operations of the College.   

Panola College activities encourage new business, assist existing business, and create long-term economic growth.  The college enhances worker skills and provides customized training to local business and industry.  It is estimated that the present-day Panola College service area workforce embodies over 100,000 credit and non-credit hours of past and present Panola College training. 

Panola College skills embodied in the present-day workforce increase the output of industries in Panola College service area economies, where former students are employed, by $10.98 million.  Associated multiplier effects (sometimes called indirect effects) in other industries increase sales by $9.82 million. 

3215 credit and non-credit students attended Panola College in fiscal 2000. Of these, 75% were employed full- or part-time while attending.  

Students enjoy an attractive 28.0% rate of return on their Panola College educational investment, and recover all costs (including wages foregone while attending Panola College) in 5.4 years. 

The average Panola College student will spend 38.0 years in the workforce.  During this time, their average lifetime earnings will increase $22 for every education dollar invested (in the form of tuition, fees, books, and forgone earnings from employment).  Students who graduate with a two-year college degree will earn $300,065 more than someone with just a high school degree or GED. 

Panola College had an operating budget of $9.8 million in fiscal 2000, and spent $7.6 million (77%) of this on wages, salaries and supply purchases in Panola College’s service areas.   

Panola College pays wages and salaries, which generate additional incomes as they are spent. Panola College employs 112 full-time and 51 part-time faculty and staff.  For every $1 Panola College pays in wages and salaries, there is another $0.30 in wages and salaries generated off campus in Panola College service area economies—this is the commonly known multiplier effect. In 2000, faculty and staff wages totaled $6.4 million.   

State and local government spent $6,259,765 in support of Panola College during the analysis year. For every dollar appropriated by state and county government, Panola College’s spending alone generated $1.33 in wages and salaries in Panola College service areas.  

Panola College skills from current and former students increase wages and salaries in Panola College service areas by $3.4 million directly, and by another $3.1 million indirectly in fiscal 2000. 

Taxpayers see a real money “book” return of 7.6% on their annual investments in Panola College and recover all investments in 12.3 years in the form of higher tax receipts (from increased student wages) and avoided costs (e.g., from reduced public expenditures on incarceration). 

The State of Texas benefits from reduced health, welfare, unemployment, and crime expenses. For example, persons with higher education are less likely to smoke or abuse alcohol, draw welfare or unemployment benefits, or commit crimes. This translates into associated dollar savings (avoided costs) amounting to some $15 per credit per year, counted as an indirect benefit of Panola College education. When aggregated across all exiting students, the State of Texas will benefit from $400,000 worth of avoided costs per year. 

The report concluded that Panola College is a sound investment from a multiple of perspectives. It enriches the lives of students while reducing the demand for taxpayer-supported social services. Finally, it contributes to the vitality of both the local and state economies.  

Dr. Gregory Powell, Panola College President, stated “this comprehensive report confirms what I often hear in the community—A Panola College Education results in higher pay and a better life for the individual and the College itself contributes enormously to the local economy.”   Powell also said that in addition to the economic impact, the positive cultural and social benefits afforded by Panola College are invaluable.