The Virginia Community College System (VCCS) operates 23 colleges on 40 campuses throughout Virginia. VCCS educated 63% of all Virginians enrolled as undergraduates in any public college or university in the Commonwealth in fall 2002. VCCS is the major provider of higher education services in economically struggling regions of the state, and educated 75% of all undergraduate students 25 or older and 55% of all undergraduate ethnic minorities. The traditional rationale for public subsidization of education is that education generates externalities, or spillover effects, including increased economic productivity. This report aims to measure the effect VCCS' educational services have on economic productivity. The paper uses the Black and Lynch (1997) model for determining the empirical relationship between educational attainment and productivity. The study suggests that the present value of a VCCS Associate's degree is $106,487 for males, and $85,512 for females. For those who attend community college to enhance skills, the increase in average annual income for a single credit hour at VCCS is calculated at $137 for males and $119 for females. The paper also analyzes VCCS' benefits for economically struggling regions, and state savings in general fund dollars for education. Perkins Core Performance Measures for 2001-02 are appended. (NB)