GRCC impact in Michigan totals $1 billion according to new study
Oct. 9, 2023 GRAND RAPIDS, Mich. ā The total economic impact created by Grand Rapids Community CollegeĀ in 2020-21 was $1 billion, according to a new study commissioned by the college. That includes an operations spending impact of $110.2 million, construction spending impact of $7.3Ā million, student spending impact of $31.9 million and alumni impact of $898.4 million. āThe Economic Value of the Grand Rapids Community College,ā by Lightcast, broke down GRCCās impact inĀ Kent and Ottawa counties and the results were significant in both. GRCC President Charles Lepper, nearing the end of one year on the job, was pleased to see the findings.Ā He said the results demonstrate that GRCC is a strong investment for students, taxpayers and society. āGRCC creates value from multiple perspectives,ā he said. āWe generate more in tax revenue than weĀ receive which is significant. But beyond that, GRCC plays a key role in helping students increase their employability and achieve their individual potential. The college draws students to the region, generating new dollars and opportunities. And GRCC provides students with the education, training and skills they need to have fulfilling and prosperous careers.ā GRCC benefits regional businesses by increasing consumer spending in the region and supplying a steadyĀ flow of qualified, trained workers to the workforce, Lightcast said. It also determined that the college enriches the lives of students by raising their lifetime earnings andĀ helping them achieve their individual potential. The college also benefits state and local taxpayers through increased tax receipts and a reduced demandĀ for government-supported social services and benefits society as a whole in Michigan by creating a moreĀ prosperous economy and generating a variety of savings through the improved lifestyles of students. Altogether, Lightcast found that the social benefits of GRCC equal a present value of $2.8 billion. TheseĀ benefits include $1.9 billion in added student income, $760.8 million in added business income, $131.2Ā million in added income from college activities, as well as $58.5 million in social savings related toĀ health, the justice system, and income assistance in Michigan. āPeople in Michigan invested a present value total of $192.2 million in GRCC in fiscal year 2020-21,āĀ Lepper noted. āThat means for every dollar invested in GRCC, people in Michigan will receiveĀ a cumulative value of $14.80 in benefits.ā Lepper added that an interesting aspect of Lightcastās findings was that society as a whole in MichiganĀ benefits from the presence of GRCC in two major ways. Primarily, he said, society benefits from an increased economic base in the state. This is attributed to theĀ added income from studentsā increased lifetime earnings (added student income) and increasedĀ business output (added business income), which raises economic prosperity in Michigan. But benefits to society also consist of the savings generated by the improved lifestyles of GRCC studentsĀ (education is statistically correlated with a variety of lifestyle changes that generate social savings).Ā In 2020-21, GRCC served 19,836 credit and 11,394 non-credit students. Those students will receive aĀ stream of higher future earnings that will continue to grow throughout their working lives. For example, the average GRCC associate degree graduate from 2020-21 will see annual earnings thatĀ are $9,600 higher than a person with a high school diploma or equivalent. In addition, around 18% ofĀ credit students attending GRCC originated from outside the region in 2020-21 and some of thoseĀ students stayed, adding new talent to the area. In 2020-21, the college employed 1,338 full-time and part-time faculty and staff, all of whomĀ lived in the GRCC Service Region. Total payroll at GRCC was $91.6 million, much of which was spent inĀ the region for groceries, mortgage and rent payments, dining out and other household expenses. The college also spent $57.3 million on day-to-day expenses related to facilities, supplies, andĀ professional services. Grand Rapids Community College has been offering educational opportunities in West Michigan forĀ more than 100 years. Established in 1914, the college offers degree courses, certification and trainingĀ programs, and workshops and personal enrichment classes. Offerings are held on GRCCās downtownĀ Grand Rapids campus, and at several locations throughout Kent and Ottawa counties, as well as throughĀ distance learning.