The Socioeconomic Benefits Generated by New Jersey's 19 Community Colleges. Volume 1: Main Report

This document addresses the benefits generated by New Jersey's 19 community colleges. Some of the benefits are students earning more money and society benefiting through avoided costs such as reduced welfare and unemployment, improved health, and reduced crime. The study is divided into the following four chapters: (1) overview of the benefits measured; (2) the major assumptions underlying the analysis; (3) presentation of the main socioeconomic, business, and statewide economic results; and (4) a sensitivity analysis of some the key assumptions and tracking the changes in the changes in the results as assumptions are changed. The authors address the fact that although all sectors of society benefit directly or indirectly through higher education, higher education requires a big investment. Therefore all education stakeholders (such as taxpayers, legislatures, employers, and students) want to know that they are getting their money's worth. To address this concern, the study investigates the attractiveness of the returns generated in the state relative to alternative public investments. The benefits are presented on three ways: (1) annual benefits; (2) present values of future annual benefits including rates of return and benefit/cost ratios; and (3) statewide economic benefits including returns to the business community. (MZ)