Study demonstrates PJC’s economic impact

Published or Revised January 06, 2011

Paris Junior College's presence brings a $95.3 million economic impact to the service area including Lamar, Delta, Hunt, Hopkins and Red River counties, according to a study recently completed for the college. The study looks at both economic contributions and return on investment. "We know Paris Junior College brings huge benefits to individuals, businesses and communities in our service area," said PJC President Dr. Pam Anglin, "but it is helpful to demonstrate dollar amounts so people are aware of how valuable PJC is to this area. And with today's economy, retraining for the workforce and helping businesses upgrade employee skills is especially important." For every dollar a student invests in their education at PJC, they have a 16 percent rate of return on their time and money. The benefit/cost ratio is 5.5, meaning the student receives $5.50 in higher future income for every $1 spent. The payback period is 9.3 years. Individual taxpayers see a return of $2 for each dollar they contribute to PJC. State and local governments see a rate of return of 7 percent in support of PJC, an enviable rate in today's economic climate. PJC benefits the local economy through local purchases, wages and salaries paid to faculty and staff, and spending of students from outside the region and increasing the skills base of the local workforce. College operations bring the economy a net $15.4 million, spending of non-local students is $12.5 million, and student productivity adds $67.3 million in higher earnings and increased business output. These figures add up to $95.3 million brought to the service area economy each year because of PJC. As students attain higher levels of education, they bring savings to the local economy through lower rates of smoking, alcohol abuse, drawing welfare or unemployment benefits, and crime. Because of PJC, the five counties in the service area see annual savings of $1.6 million. PJC students bring $33.5 million in taxable income to the economy each year as a benefit. These two figures combined mean PJC provides a benefit/cost ratio of 29.0 – meaning that every dollar of state and local tax money invested in PJC today yields a cumulative societal benefit of $29. "This study proves that PJC is a solid investment from multiple perspectives," Dr. Anglin stated. "The college contributes to the vitality of both the local and state economies and plays a crucial role in the economic development of this area" The study, completed by Economic Modeling Specialists out of Idaho, was performed at the same time it was evaluating the economic impact of the 50 Texas community colleges on the State of Texas.