Economic Impact Report
Economic Impact Report
North Central Michigan College creates a significant positive impact on the business communities in Charlevoix, Cheboygan, Emmet and Otsego counties, where we generate a return on investment to our major stakeholder groups — students, taxpayers and society.
In the analysis year, fiscal year (FY) 2018-19, NCMC served approximately 3,389 credit and 886 non-credit students.
Emsi is a labor market analytics firm that integrates data from a wide variety of sources to serve professionals in higher education, economic development, workforce development, talent acquisition, and site selection. Emsi is a leading provider of economic impact studies and labor market data to educational institutions in the U.S. and internationally.Learn more about EMSI
Full EIS Report
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This study, conducted by EMSI, uses a two-pronged approach that involves an economic impact analysis and an investment analysis and calculates the benefits received by each of these groups.
Economic Impact Analysis
Impacts on the Four-County Region economy are reported in the economic impact analysis and are measured in terms of added income.
|IMPACT||ADDED INCOME||JOBS SUPPORTED|
|Operations Spending Impact||$11.8 million||326|
|Construction Spending Impact||$139 thousand||52|
|Student Spending Impact||$685 thousand||15|
|Alumni Impact||$61.6 million||1,031|
|TOTAL IMPACT||$74.2 million||1,376|
NCMC adds economic value to the Four-County Region as an employer of regional residents and a large-scale buyer of goods and services. In FY 2018-19, the college employed 311 full-time and part-time faculty and staff, 89% of whom lived in the Four-County Region. Total payroll at NCMC was $10.9 million, much of which was spent in the region for groceries, mortgage and rent payments, dining out, and other household expenses. In addition, the college spent $6.7 million on day-to-day expenses related to facilities, supplies, and professional services.
The returns on investment to students, taxpayers, and society in Michigan are reported under the investment analysis.
RATE OF RETURN
- 17.7% - Average annual return for NCMC students
- 9.9% - Stock market 30 year average annual return
- 0.8% - Interest earned on savings account (National Rate Cap)
For every dollar of public money invested in NCMC in FY 2018-19, taxpayers will receive a cumulative value of $1.80 over the course of the students’ working lives.
- NCMC generates more in tax revenue than it takes.
- Benefits to taxpayers also consists of savings generated by the improved lifestyles of NCMC students and the corresponding reduced government services. Education is statistically correlated with a variety of lifestyle changes in the categories of: 1) healthcare, 2) crime, and 3) income assistance.
- Altogether, the present value of the benefits associated with an NCMC education will
generate $1.4 million
in savings to state and local taxpayers.
For every dollar invested in NCMC, people in Michigan will receive a cumulative value of $7.00 in benefits.
Society benefits from an increased economic base in the state. This is attributed to higher student earnings and increased business output, which raise economic prosperity in Michigan.
Benefits to society also consist of the savings generated by the improved lifestylesof NCMC students.