August 11, 2014
Categories: General News
A recent study done by the Kansas Independent College Association found that Tabor College generated $7.5 million in income to the Marion County economy during the 2012-2013 fiscal year. This equaled approximately 2.8% of the county’s gross regional product.
According to the study, during the analysis year, the economic impacts of Tabor College to Marion County are as follows:
Impact of college operations
Tabor employed 206 full-time and part-time employees. Payroll amounted to $7 million, a portion of which was spent in the county to purchase groceries, clothing and other household goods/services. The college spent another $9.9 million to support its day-to-day operations. The net impact of college payroll and expenses in Marion County during the analysis year was approximately $5.8 million in added county income.
Impact of student spending
Tabor students who relocated to Marion County from outside the county spent money at local businesses. The off-campus expenditures of Tabor’s out-of-county students added approximately $122,900 in income to the economy.
Impact of visitor spending
Visitors who came to Marion County impacted the economy through their off-campus expenditures at local businesses—adding $77,200 of income to the county economy.
Impact of student productivity
Over the years, students have studied at Tabor and entered or re-entered the workforce with newly-acquired skills. The accumulated contribution of former Tabor students employed in the county workforce amounted to $1.5 million in added income.
Delores Dalke, Mayor of Hillsboro, said, “We are so pleased to have Tabor College in Hillsboro. The students, faculty and staff contribute in so many ways to our economic stability, as well as to our cultural and social benefits. The jobs that are provided and the $7.5 million in economic benefits make our city one of the places where families want to make their homes, so that they can enjoy being a part of this vibrant community.”
Benefits to students:
Tabor’s students paid a total of $5.3 million to cover the cost of tuition, fees, books and supplies. They also forwent $10.3 million in money that they would have earned had they been working instead of learning. In return for the monies invested in the college, students will receive a present value of $60.5 million in increased earnings over their working lives. Dividing benefits to students by the costs of education yields a return of $3.90 in higher future income for every $1 that students invest in their education. The average annual return for students is 15.2%.
Benefits to society:
Society, as a whole in Kansas, will receive a present value of $105.2 million in added state income over the course of the students’ working lives. Society will also benefit from $19.5 million in present value social savings related to reduced crime, lower unemployment and increased health and well-being across the state.
Benefits to Taxpayers:
The net present value of the added tax revenue, stemming from the students’ higher lifetime incomes and the increased output of businesses, amounts to $9.6 million in added tax revenue across the state. Savings to the public sector add another $3.4 million in reduced government expenditures due to a reduced demand for publicly-funded services in Kansas.
Tabor College generates a positive economic impact on Marion County and creates lifelong benefits for its students. The entire state of Kansas benefits from the education provided by Tabor through the added income and social savings generated by students who remain in the state.
“The economic impact of Tabor College is significant,” said Jules Glanzer, president of Tabor College. “We do not always think about this as we go about our daily lives, but when you put numbers to what the economic impact of the college is on the city and county, it is very significant. What struck me was the impact of the number of students that we bring into the state and also the number of jobs that we create for the county.”
Director of the Marion County Economic Development Department, Teresa Huffman, realizes how much everyone who’s a part of Tabor brings to the area.
“The students and staff of Tabor College provide a tremendous economic impact,” Huffman said, “not only to Hillsboro, but also to Marion County—from the groceries, food at restaurants, gas for their vehicles and participation in community events.”