This handbook provides information and guidelines to assist college administrators and researchers in calculating the economic impact of their community college on its locality. First, background is presented on an economic impact project conducted in New Jersey to help support the case for increased state and county funding to community colleges. Next, section I discusses three categories of college-related local expenditures (i.e., college, staff, and student expenditures); ways of determining the number of jobs attributable to the college; and the operation of the income multiplier in determining indirect spending generated by a college's presence. Section II lists 10 information needs of the economic impact model and identifies sources for this information. Section III provides a step-by-step process to determine economic impact, listing the dollar amounts to be calculated and providing the formulas for these calculations. Section IV explains additional calculation variables needed for the completion of the study, i.e., estimates of non-housing expenditures, in-state and in-county expenditures, and percentages of renters in the county and average rents. A comprehensive bibliography is presented in section V. Finally, section VI provides a set of model graphics for the display of economic impact data. (HB)