Alabama’s Community Colleges Pump $6.6 Billion Into State Economy

February 13, 2023

Students and alumni of colleges within the Alabama Community College System add $6.6 billion to Alabama’s economy, supporting one out of every 27 jobs in the state, according to an economic impact report released Monday.

The independent, 102-page report by LightCast estimates the Alabama Community College System directly impacts 98,923 jobs in the state, representing about 2.7% of Alabama’s gross state product. Additionally, taxpayers see a net benefit of $1.1 billion in added tax revenue from students’ higher lifetime earnings and increased output to businesses.

“Bevill State Community College (BSCC) creates a significant positive impact on the business community and generates a return on investment to its major stakeholder groups—students, taxpayers, and society,” according to the report. “In FY 2020-21, BSCC added $281.8 million in income to the BSCC Service Area economy, a value approximately equal to 0.5% of the region’s total gross regional product (GRP). Expressed in terms of jobs, BSCC’s impact supported 3,810 jobs.”

“Bevill State is strategically committed to our mission to provide the communities we serve with quality educational and training opportunities that enrich lives intellectually, economically, and culturally. The College’s service area includes over one-quarter million people in a seven-county area, spanning over 4,600 square miles, from the Birmingham city limits to the Mississippi state line,” stated Dr. Joel Hagood, President of Bevill State Community College. “The data provided in this report allows us to see quantitatively how impactful and vital Bevill State is to the region.”

Among the report highlights for Bevill State Community College:

• BSCC employed 640 full-time and part-time faculty and staff. Payroll amounted to $25 million, much of which was spent in the region for groceries, mortgage and rent payments, dining out, and other household expenses. The college spent another $15.5 million on day-to-day expenses related to facilities, supplies, and professional services.
• The net impact of the college’s operations spending added $36.6 million in income to the regional economy in FY 2020-21.
• The expenditures of relocated and retained students in FY 2020-21 added $12.6 million in income to the BSCC Service Area economy.
• The net impact of BSCC’s former students currently employed in the regional workforce amounted to $232.7 million in added income in FY 2020-21.
• In return for their investment, students will receive a cumulative present value $197.1 million in increased earnings over their working lives. This translates to a return of $6.20 in higher future earnings for every dollar students invest in their education. Students’ average annual rate of return is 25.0%.
• Taxpayers provided BSCC with $22.6 million of funding in FY 2020-21. In return, they will benefit from added tax revenue, stemming from students’ higher lifetime earnings and increased business output, amounting to $62.7 million. A reduced demand for government-funded services in Alabama will add another $3.5 million in benefits to taxpayers.
• For every dollar of public money invested in BSCC, taxpayers will receive $2.90 in return, over the course of students’ working lives. The average annual rate of return for taxpayers is 8.0%.
• In FY 2020-21, Alabama invested $67.5 million to support BSCC. In turn, the Alabama economy will grow by $720.3 million, over the course of students’ working lives. Society will also benefit from $12.5 million of public and private sector savings.
• For every dollar invested in BSCC in FY 2020-21, people in Alabama will receive $10.90 in return, for as long as BSCC’s FY 2020-21 students remain active in the state workforce.

Jimmy Baker, Chancellor of the Alabama Community College System said, “Residents are receiving a strong return on investment when they invest in training at one of our colleges – whether through an adult education program, rapid skills training program, rigorous certification or academic transfer program that allows them to move toward completing a bachelor’s degree. And, they’re using that training to make a difference right here in Alabama.”

About the Alabama Community College System (ACCS):
The Alabama Community College System (ACCS) is Alabama's gateway to first-class, affordable education and technical training to compete in a constantly evolving workforce. With 24 community and technical colleges in more than 130 locations, the ACCS benefits more than 144,000 Alabamians through various certification, credential, dual enrollment and degree programs ACCS offers alongside leading industry partners. A total of 95% of residents who study at Alabama’s community colleges remain in the state. The System includes the Alabama Technology Network, which provides extensive training and service offerings directly to business and industry. ACCS is governed by the Alabama Community College System Board of Trustees.

About Bevill State Community College (BSCC):
Bevill State Community College is a public, two-year, "open door" institution, committed to providing comprehensive education and educational support services for people in West Central Alabama and beyond. Bevill State is a member of the Alabama Community College System. Bevill State's four main campuses, and one instructional site, offer university parallel and applied technology educational opportunities to over one-quarter million people in a seven-county area. This service area spans over 4,600 square miles, from the Birmingham city limits to the Mississippi state line.

For more information contact Tana Collins-Allred at 800.648.3271 ext. 5742 or by email at tana.collins@bscc.edu.  Please visit our website at www.bscc.edu.