An economic impact study of Coosa Valley Technical College
McDaniel, Forrest Craig
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This study utilized the Ryan short-cut model to determine the economic impact of Coosa Valley Technical College on its service area during the 2004 fiscal year. The college serves Floyd, Gordon, and Polk counties in Northwest Georgia and is a unit of the Georgia Department of Technical and Adult Education. The Ryan short-cut model was selected after a review of the work of Caffrey and Isaacs, the Ryan New Jersey model, and CC Benefits Inc. The study replicated an economic impact study conducted by Seybert for Barton County Community College in 2003. The Ryan short-cut is a cash flow model that utilized a multiplier to estimate the impact of the college’s budget on the community it served. Utilizing data gathered from within the college and from national surveys, the study estimated that Coosa Valley Technical College had a total tangible economic impact of $36,851,912 on its service area during the 2004 fiscal year. The study further estimated that a total of 1,031 full-time jobs were created by the college’s total direct economic impact of $14,740,765. This number of jobs combined with the number of full-time employees of the college (204) yielded a total of 1,235 jobs attributable to Coosa Valley Technical College. The college’s return on investment for each tax dollar spent during the year was $2.71. The study concluded that beyond the economic benefits derived from the college’s presence, there were also non-economic benefits which include the enrollees, graduates and successful placements of students on jobs, as well as the value of its services to business and industry. The Ryan short-cut model was deemed to be an appropriate model for other Georgia technical college administrators who wish to determine the impact of their institutions on the counties served by their schools. It is recommended that further research be conducted regarding the impact that a Georgia technical college has on human capital. It is also recommended that additional studies of economic impact models should be conducted in an effort to develop a model that more clearly states the value of the non-economic benefits of a Georgia technical college.