A study was conducted to measure the economic impact of Virginia's community colleges on the state's business volume, employment, and income between 1966 and 1974; to analyze the degree of change in these factors since 1966; and to compare findings with state and national trends. The colleges' economic impact was measured using a model based on that devised by Caffrey and Isaacs. The impacts on business volume, employment, and personal income were divided into those related to the presence of the colleges and those related to the new money attracted to the state through the presence of the colleges. Wage and hour data, unemployment, personal and per capita income, non-agricultural income, and personal income by place of work were used as indicators of the changes in the performance of the Virginia economic system since the advent of the community colleges. The study found that the expenditures of the colleges had a significant impact on the state's economy. Between 1966 and 1974, the state general fund appropriation to the community colleges totalled $156,424,000. A business volume of $278,030,000 was generated by total monies related to the colleges and $146,521,000 by new monies. By 1974, a total of 11,318 jobs had been generated due to the presence of the colleges. Finally, $491,648,000 in individual income was generated by community college spending. The study report includes a literture review, conclusions and recommendations. (Author/HB)