Report Reveals Ivy Tech Community College Terre Haute Economic Impact
An in-depth study, conducted by Emsi, reveals the significant positive economic impact Ivy Tech Community College makes on the state of Indiana. The report also outlines the regional impact in the Ivy Tech Terre Haute service area in FY 2018-19: Clay, Greene, Knox, Parke, Putnam, Sullivan, Vermillion, and Vigo counties. The report outlines the return on investment the Community College makes to its major stakeholder groups – students, taxpayers and the communities it serves. Results of the analysis reflect a $3.9 billion cumulative annual impact statewide.
The 2020 Ivy Tech Community College Economic Impact Report, based on fiscal year 2018-19, includes the following key findings for our local area:
- Ivy Tech’s impact supported the equivalent of 2,731 jobs in Clay, Greene, Knox, Parke, Putnam, Sullivan, Vermillion, and Vigo counties.
- One out of every 53 jobs in the Terre Haute Campus Service Region is supported by the activities of Ivy Tech Terre Haute and its students.
- Alumni have the greatest impact on the state because of higher earnings and increased productivity of the businesses that employ them. In FY 2018-19, Ivy Tech Terre Haute alumni generated $154.5 million in added income for the campus service region.
- In the Terre Haute service area, Ivy Tech employs 379 full-time and part-time faculty and staff with a total operations spend of $11.9 million contributing to the local economy.
- The expenditures of retained students in FY 2018-19 also added $1.9 million in income to the local economy.
“In addition to Ivy Tech’s economic impact, Ivy Tech students see a high rate of return for their investment in Ivy Tech,” said Dr. Lea Anne Crooks, Ivy Tech Terre Haute chancellor. “The average Ivy Tech associate degree graduate from FY 2018-19 will see annual earnings that are $10,100 higher than a person with a high school diploma or equivalent working in Indiana. Annually, the students’ investment in Ivy Tech Terre Haute has an average annual internal rate of return of 18.5%. This demonstrates of Ivy Tech’s significant impact on students’ lives in addition to economic impact.”
For the complete regional economic impact report, visit: https://www.ivytech.edu/files/Ivy%20Tech%20Terre%20Haute%20Campus%20-%20Economic%20Value%20Report%20-%20July%202020.pdf
For details on the statewide impact, visit www.ivytech.edu/impact.
Individual student impact grows with investment
In addition to identifying the economic impact of the institution, the study also analyzed the value of the investment students are making in themselves by choosing an Ivy Tech education, and the value the community is investing in students through public dollars the institution receives from taxpayers.
The study found that students invested $502.8 million in time and money that will generate a cumulative return of $2.2 billion in higher future earnings over their working careers. The average Ivy Tech associate degree graduate from FY 2018-19 will see annual earnings that are $10,100 higher than a person with a high school diploma or equivalent working in Indiana.
“In today’s job market, a post-secondary credential is more important than ever,” Ivy Tech president Dr. Sue Ellspermann said. “Ivy Tech offers a cost-effective way of acquiring knowledge and skills that lead to new careers and improved earnings.”
In fact, students will see an average annual return on investment of 18.3%, which is significantly higher than the U.S. stock market’s 30-year average rate of return of just under 10% or the 30-year U.S. Treasury at 1.91% rate of return.
Taxpayers are also benefiting from investing in students. For every dollar of public money invested in Ivy Tech, taxpayers will receive a cumulative value of $1.90 over the course of the students’ working lives. This equates to a net present value of $287.2 million after accounting for taxpayer costs and is an average annual rate of return of 5.3% for taxpayers.
Other benefits are outlined in the full report at www.ivytech.edu/impact.
About Emsi
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. Since 2000, Emsi has completed over 2,000 economic impact studies for institutions across three countries.
About Ivy Tech Community College
Ivy Tech Community College is Indiana’s largest public postsecondary institution and the nation’s largest singly accredited statewide community college system, accredited by the Higher Learning Commission. Ivy Tech has campuses throughout Indiana and also serves thousands of students annually online. It serves as the state’s engine of workforce development, offering associate degree and short-term certificate programs, industry certifications and trainings that align to the needs of the community. The College also offers courses and associate degree programs that seamlessly transfer to other colleges and universities for a more affordable route to a Bachelor’s degree.
