Using a Virginia study as a model, this study assessed the effect on Washington state's economy of its 27 campus community college system. The study was based on a simple circular cash-flow model for the years 1969-1976 and measured economic impact in three areas: on the level of business volume done in-state, on employment, and on total state personal income. Results indicated: the college system yielded a 31% return on tax investments; system operations generated over $147 million in out-of-state funds between 1969 and 1976; $690 million in business revenues were generated for the reporting period, representing 147% of the amount allocated to the college system by the state legislature; and during a severe recession in 1975-76, system operations produced jobs for 15,837 people. In 1976, $161 million in personal income resulted from system operations, and in 1969-76, the average contribution to personal income was 171% of the state's general community college expenditure fund. Social benefits contributed to the state's overall development included 41,000 high school diplomas or GED certificates (1969-1976); 26,500 associate academic degrees (and 36,000 university transfers) during 1970-1976; and 61,000 persons trained in technical/occupational programs, 1970-1975, with correlations between occupational program graduates and employment figures in those fields of .90 or better. (TR)