A complete assessment of the impact of community colleges should not only focus on primary college missions, but also on the economic impact of the colleges on their local communities and the state. In calculating the economic impact of the community colleges of the State University of New York (SUNY), three assumptions should be made: (1) expenditures by the colleges and their members and revenues and services generated by the colleges' presence have a significant impact on the local economy; (2) in most cases, SUNY community colleges that conducted formal impact studies (less than 50% of the schools) found that they had an annual positive economic impact that approximated their annual budget; and (3) statewide economic impact is impossible to measure since most dollars spent in conjunction with college operations originate and remain in state. An individual college seeking to determine its economic impact should systematically estimate the financial transactions of the college itself and its faculty, staff, and students. The most basic of these estimates are first-round impact measures. In the public sector, these should take into account government funds and services, monies charged back to other counties, and taxes paid by the college and its constituents. In the private sector, data should be collected on the direct expenditures of the college and its members. Estimates should also be made of the secondary impact of college expenditures with respect to employment opportunities, secondary demand for goods and services, and additional taxes paid by businesses and their employees. Impact studies provide evidence for taxpayers and legislators to justify investment in community colleges. (HB)