ERIC Number: ED382261
Record Type: RIE
Publication Date: 1995-May
Reference Count: N/A
The State's Return on Investment in the Arizona Community Colleges. Institutional Effectiveness Series: Return on Investment Measure, May 1995.
Rubi, David C.
According to U.S. Census statistics, for every step up in educational attainment, there is an increase in average income. The mean income for those with an associate's degree, $21,116 per year, is five percent more than a person with some college, and 40% more ($6,050), than a person with only a high school diploma or equivalent. The basic cost of obtaining an Arizona community college Associate's degree, $3,267, will increase a persons 40-year worklife income by $242,000 providing a return of 731% on the original cash investment. In 1992-94, the total state cost for 64 credit hours was $2,356.01 per full-time student equivalent. When the amount of 1994 income taxes paid by high school graduates is compared with those holding associate's degrees, the difference is $238 or 77% more, resulting in a 304% long-term return on the state's original investment. There is also the potential return on investment via sales and sales tax revenues. If the holder of an associate's degree has $6,050 more discretionary income than a person without a degree, that would earn the state another $302.50 per year, which over the course of 40 years could bring the state an additional $12,100. Community colleges serve as a significant gateway for those who wish to pursue bachelor's degrees, and are the central way that the state can improve the standard of living of Arizona residents. (KP)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Arizona State Board of Directors for Community Colleges, Phoenix.