Okanagan College Media Release - Sept. 19, 2007
 
A province-wide study released today found that Okanagan College’s impact on the region goes far beyond training and educating students.

An independent analysis of the College’s economic impact found the regional economy receives approximately $542.6 million in annual income from the activities of Okanagan College and the cumulative effects of its past students – contributing to roughly 4.4 per cent of the total income of the regional economy. 

The study was conducted for B.C. colleges by CCbenefits Inc. and included analysis of 13 colleges and institutes located in more than 50 campuses throughout B.C.

Today’s announcement by the British Columbia College Presidents (BCCP) concluded that the B.C. economy receives about $7.7 billion in annual income due to the economic impact of the consortium of institutions, an amount that equals more than four per cent of the provincial economy.

The report also finds that as a result of attending Okanagan College, students benefit from a 14 per cent annual return on their investment of time and money in their education due to increased earning potential and future income.

“This report provides clear evidence of the considerable impact that our college, and colleges throughout the province, have on our community and economy,” says Okanagan College president Jim Hamilton. “We have long known that educating and training our students contributes to the cultural and economic fabric of the Okanagan region and the numbers released today solidly support that view.”

Taxpayers may be interested to know that post-secondary students and the economy aren’t the only beneficiaries of an educated population. After weighing the fiscal cost of the provincial government’s investment in Okanagan College over the course of a year, the report finds the financial return far outweighs the cost, especially when considering social savings to taxpayers.

The study finds students and alumni of Okanagan College to be strong contributors to the economy who use fewer social services than do those without a college education.  Avoided costs in areas such as improved health, reduced crime, reduced welfare and unemployment result in an annual rate of return of 11 per cent on regional taxpayers’ investments in Okanagan College. 

“This study confirms the importance of B.C. colleges in contributing to a skilled workforce and to the vitality of both the local and provincial economies,” says Jim Reed, President of the BC College Presidents.

“The results show that rural colleges as well as urban colleges contribute a significant financial return to governments, students and communities,” said Lou Dryden, Chair of the BC College Presidents and president of North Island College in Campbell River.

CCbenefits Inc. reports a benefit/cost ratio of 3.8, meaning that every dollar of taxpayer money invested in B.C. colleges returns $3.80 to the provincial and local governments.

     Other key findings of the study, taking all institutions into account, include:

•    Community colleges encourage new business, assist existing business, and create long-term economic growth.
•    Students generate about $219.3 million annually in higher earnings due to their BC college education, thereby expanding the tax base and reducing the tax burden on taxpayers.
•    The province saves $19.6 million per year that college students are in the workforce due to improved health and reduced welfare, unemployment and crime.

The BC College Presidents is a consortium of 12 community colleges and the Justice Institute of B.C.  It was created in 2002 to represent B.C.’s community colleges and technical institutes. Its purpose is promote a better understanding of the role colleges and institutes play in British Columbia's post-secondary system.

CCbenefits Inc. is an economic modeling company. The economic impact model used in the analysis is a peer-reviewed model that has generated more than 700 studies for communities and technical colleges in the U.S. and Canada.

PDFs of the Executive Summary for the province and Okanagan College are available by following this link.