College tallies its economic impact
A recent study of Flathead Valley Community College’s economic impact on the Flathead Valley revealed an average return value of about $6.50 for every dollar the community invested in the college in the 2015-16 fiscal year.
The study conducted by Idaho-based Economic Modeling Specialist International (Emsi) states that FVCC and its students contributed a total of $93.6 million in added income to the region last year, nearly matching the impact of the entire agriculture, forestry, fishing and hunting industries in the area.
That total supported the equivalent of nearly 1,800 jobs regionally.
Approximately $65.6 million — 70 percent of the college’s total impact — comes from alumni employed in the regional workforce, equivalently supporting over 1,100 jobs.
According to FVCC President Jane Karas, the size of alumni impact can be attributed to the fact that approximately 94 percent of the college’s student population comes from Flathead and Lincoln counties.
“The reason why you do see this big impact from alumni is because of our partnerships with local business and industry and making sure that we meet local community workforce needs,” Karas told the Inter Lake. “So many people that come to the college stay here and work here and pay taxes and give back to the community.”
In addition to the community’s benefit from the college as a whole, taxpayers and students are seeing a sizeable return on their investments as well, with taxpayers receiving around a 200 percent return and students earning approximately $3.10 over their lifetime for every dollar spent.
In return for its investment, Karas said, the community also gains a well-trained and educated workforce of nurses, EMTs, law enforcement and other professionals with connections and commitments to the Flathead.
Though local student spending accounted for around $4.1 million of the total impact in 2015-2016, Karas said the study does not account for the expected increase in student spending in 2016-2017 brought on by the implementation of student housing on campus.
Construction projects accounted for $156,800 of the school’s spending impact and another $2.4 million of added economic income in the region with the addition of residential housing on campus in 2016-2017, according to the study.
The college is still awaiting confirmation of the impact state budget cuts will have on future spending, but Karas said in a board meeting Nov. 27 that she believed the financial impact will be less severe than formerly indicated by the state Legislature.
With no new construction projects scheduled for the upcoming year, according to Karas, the construction impact will likely decline in fiscal year 2017-2018.
The purpose of the economic impact study, Karas said, was to reaffirm the college’s standing as an asset to the community for more than strictly educational purposes.
“We are a great asset to the community in many ways, not just being able to provide education but also as an economic driver, and that’s just something that we like to check in on every once in a while to make sure we are still having that positive impact,” Karas said. “It reaffirms the fact that the investment that the community makes in the college definitely provides a great return.”
Reporter Mary Cloud Taylor can be reached at 758-4459 or mtaylor@dailyinterlake.com.
FVCC Impact Numbers:
Operations spending- $23.8 million; 476 jobs
Construction spending- $156.8 thousand; 3 jobs
Student spending- $4.1 million; 114 jobs
Alumni- $65.6 million; 1,185 jobs
Total- $93.6 million; 1,779 jobs
Top Industries Impacted by FVCC:
Health care and social assistance- $13.5 million income; 236 jobs
Manufacturing- $11.6 million income; 138 jobs
Construction- $7.1 million income; 145 jobs
Government, non-education- $6.6 million income; 80 jobs
Accommodation and food services- $6 million income; 186 jobs
Other industries- $48.8 million income; 993 jobs
Total- $93.6 million income; 1,779 jobs