Owensboro Community & Technical College presented an economic impact presentation to city commissioners Tuesday based on how the institution impacts the local economy and whether the investment made by graduates of OCTC ends up being worth it.
The study found that OCTC helps Daviess County grow as college graduates often continue living here locally after graduating. The study also found that OCTC provides better job opportunities for those who graduate, with higher pay, and helps contribute millions of dollars to the economy, both locally and regionally.
According to OCTC President Scott Williams, the results from the 2018-2019 study determined that OCTC graduates make thousands more annually than those with only a high school diploma. On average, those who receive their associate degree from OCTC make $10,000 more a year while those who earn their bachelors make $20,000 more a year, Williams said.
OCTC has been a key component in maintaining and contributing toward local and regional employment, economically impacting 79,927 total jobs and producing $6.7 billion in Total Gross Regional Product (GRP) across a four-county region.
“We’re not creating these jobs — it’s just another way to determine the economic impact,” he said.
In the 2018-2019 school year, OCTC employed 364 people totaling $12.3 million in payroll and benefits. Total tuition revenue totaled $4.6 million, including tuition payments made by 21 percent of people who attended OCTC outside of the four-county region.
The study found that the operations spending impact, including college payroll and other spending, from OCTC totaled $15.9 million added regional income, supporting 416 jobs in the region. The alumni impact, including higher alumni earnings and increased business profit, was even bigger at $182.4 million added regional income, supporting 2,178 jobs across the region.
The total economic income added to the region totaled $203 million for 2018-2019, up from $176 million three years ago, Williams said.
And the investment made by OCTC graduates, whether through tuition costs or student loans taken out during their time in school, proves worth it in the end, according to the study. For every dollar an OCTC student spends on their education, they get a return of $8.3 dollars, Williams said.
“Higher education is contributing not only to the well-being of our students, but it’s an economic engine for our community,” he said.
