The Economic Value of Main Report

Table 4.3 displays all benefits to taxpayers. The first row shows the added tax revenues created in the state, equal to $166.1 million , from students’ higher earnings, increases in non-labor income, and spending impacts. The sum of the government savings and the added income in the state is $197.2 million, as shown in the bottom row of Table 4.3. These savings continue to accrue in the future as long as the FY 2022-23 student population of MCC remains in the workforce.

Table 4.3: Present value of added tax revenue and government savings (thousands)

Added tax revenue

$166,138

Government savings Health-related savings

$5,686

Crime-related savings

$6,818

Income assistance savings

$18,514

$31,017

Total government savings

Total taxpayer benefits

$197,155

Source: Lightcast impact model

Return on investment for taxpayers

Taxpayer costs are reported in Table 4.4 and come to $71.0 million, equal to the contribution of state and local government to MCC. In return for their public support, taxpayers will receive an investment benefit-cost ratio of 2.8 (= $197.2 million ÷ $71.0 million), indicating a profitable investment.

Table 4.4: Projected benefits and costs, taxpayer perspective

1

2

3

4

Benefits to taxpayers (millions)

State and local gov’t costs (millions)

Years out of school

Net cash flow (millions)

0

$11.9

$71.0

-$59.1

1

$0.8

$0.0

$0.8

2

$1.1

$0.0

$1.1

3

$1.6

$0.0

$1.6

4

$2.6

$0.0

$2.6

5

$4.5

$0.0

$4.5

6

$4.7

$0.0

$4.7

7

$4.9

$0.0

$4.9

8

$5.1

$0.0

$5.1

9

$5.3

$0.0

$5.3

10

$5.5

$0.0

$5.5

11

$5.7

$0.0

$5.7

12

$5.8

$0.0

$5.8

The economic value of Monroe Community College

58