Good Economic News in Tough Times
MDC Positively Impacts Region, Study Shows
What investor wouldn’t appreciate getting a 13.4 percent rate of return in the tough times our economy has endured lately?
Well, that’s exactly what taxpayers got on their recent investment in Miami Dade College, according to a report by Economic Modeling Specialists, Inc. (EMSI), a leading provider of socioeconomic impact and strategic planning tools to colleges in the United States and Canada.
That 13.4 percent is even more impressive when you consider that the average rate of return state and local governments normally make on their investments is just 3 percent, the study notes.
“By funding Miami Dade College, therefore, other recipients of state and local funding are actually subsidized through the revenues generated by MDC,” the reports states.
And MDC students did even better than taxpayers, enjoying an attractive 19 percent rate of return on their MDC educational investment, the study adds.
The comprehensive 78-page report, titled The Economic Contribution of Miami Dade College, was released this summer and analyzed data from the 2008-2009 fiscal year. EMSI incorporated into the study both economic growth analysis and investment analysis using a model that has been field- tested to generate more than 900 studies for academic institutions in the U.S., Canada, the United Kingdom and Australia.
In addition to the great return on both taxpayers’ and students’ investments, the college credits accumulated by MDC students over the past 30 years have translated into $3.7 billion in added regional income each and every year due to students’ ability to generate higher earnings once they have completed their courses and degrees at MDC and due to the increased output of businesses in the region as a result of this additional education that their employees have received at MDC.
As the income base of MDC alumni grows and the local economy increases its output, taxable income also grows, generating additional revenue for the Florida economy as well.
“EMSI’s study provides the economic and statistical data proving what we’ve known intuitively for years: MDC provides a win-win economic situation for everyone involved, from students to taxpayers to society as a whole,” said MDC President Eduardo J. Padrón, who has a Ph.D. in economics from the University of Florida.
Looking at the numbers from a variety of perspectives, EMSI concludes that the results of its study demonstrate MDC is a sound investment.
“The College enriches the lives of students and increases their lifetime incomes,” the report states. “It benefits taxpayers by generating increased tax revenues from an enlarged economy and reducing the demand for taxpayer-supported social services. Finally, it contributes to the vitality of both the local and state economies.”
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