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ERIC Number: ED478590
Record Type: Non-Journal
Publication Date: 2003-Mar-7
Pages: 10
Abstractor: N/A
Reference Count: N/A
ISBN: N/A
ISSN: N/A
Cost/Benefit Analysis of "Closing the Gaps." Final Report.
Texas State Higher Education Coordinating Board, Austin. Div. of Research, Campus Planning and Finance.
In October 2002, the Texas Higher Education Coordinating Board adopted a preliminary analysis of the costs and benefits of reaching the first two goals of "Closing the Gaps by 2015," the state's higher education plan. Refinements to the analysis, which adjusted for inflation and made other changes, were presented in January 2003, and the updated report was approved in March 2003. Changes, taken together, increased the previous cost estimate for "Closing the Gaps," which included only marginal growth using fiscal year 2000 data for 300,000 students, from $6.3 billion to $8.4 billion. An additional $4.8 billion was associated with normal growth, bringing the total cost associated with general revenue appropriations to institutions, financial aid, and tuition and fees to $13.2 billion through 2015. An alternative analysis was also developed to provide the potential costs associated with continuing past enrollment trends, those expected if "Closing the Gaps" is not implemented. The analysis indicates that there is a net positive return associated with obtaining education beyond high school. This investment in human capital, by both the state and the student, is projected to cost an estimated $6.9 billion in new construction costs for public universities and community colleges and also to account for the cost of normal growth in enrollment and for "Closing the Gaps" growth. However, the discounted return on the investment for both normal growth and growth associated with "Closing the Gaps," with the multiplier effect included, is calculated at $325 billion. Subtracting opportunity costs produces a net benefit of $274 billion. Overall, the investment produced more than a 13-fold return and an additional $2.8 billion in discounted general revenue. (SLD)
For full text: http://www.thecb.state.tx.us.
Publication Type: Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: Texas State Higher Education Coordinating Board, Austin. Div. of Research, Campus Planning and Finance.
Identifiers - Location: Texas