In 2011, Delta College commissioned a study through Economic Modeling Specialists, Inc. (EMSI), to determine its impact on the Great Lakes Bay Region. This study is a benchmark of what Delta has accomplished at 50 years of service to its community.
Ten years ago, EMSI (then CCbenefits) started conducting economic impact studies to show community colleges the affect they have on their economy and workforce. The economic impact study estimates the impact of community colleges and universities in terms of job and income formation, higher earnings captured by students, returns to taxpayers, and a broad collection of social benefits and avoided costs.
The investment analysis focuses on benefits and costs that accrue to students, taxpayers, and the public at large.
- From the student perspective, the study examines the higher earnings of students relative to their costs (i.e., tuition, fees, and opportunity cost).
- From the social perspective, the study analyzes a broad collection of external benefits that accrue to the public.
- From the taxpayer perspective, the study measures the cost of funding the college against the returns generated by the college’s educational activities.
The findings? Delta College has an immense impact on the region.
- Students enjoy an attractive 14.9% rate of return on their Delta College educational investment.
- Michigan will see avoided social costs amounting to $2.7 million per year due to Delta College students, including savings associated with improved health, reduced crime, and reduced welfare and unemployment.
- Altogether, the average annual added income due to the activities of Delta College and its former students equals $385.3 million. This is approximately equal to 3.0% of the total Great Lakes Bay Region economy.