Public community colleges serve a vital role in our state’s economy by training our workforce and preparing students for further academic study. Created specifically to expand access to higher education, they’re also notable for filling the specific educational and vocational needs of their service areas.
The Texas Comptroller of Public Accounts divides the state into 12 economic regions. The Gulf Coast economic region — 13 counties covering about 13,900 square miles in eastern coastal Texas — has nine community college districts: Alvin Community College, Brazosport College, College of the Mainland, Galveston College, Houston Community College System, Lee College, Lone Star College System, San Jacinto College and Wharton County Junior College.
The region is the home to almost 7.2 million people, about a fourth of the state’s population, with a higher share of bachelor’s and graduate degree holders than the state as a whole.
In 2020, the Comptroller’s office requested financial data from Texas’ 50 community college districts and conducted statewide and regional studies of their economic impact. Our analysis predated the COVID-19 crisis and the economic impacts that followed. The Gulf Coast region’s nine districts reported revenues of more than $1.5 billion in fiscal 2018, which produced an additional $1.2 billion in indirect and induced economic activity for a total impact of more than $2.7 billion annually. More than 20,000 jobs are supported by the region’s community college spending. Under normal economic conditions, every dollar spent by community colleges produces an additional 82 cents of economic activity, while every dollar spent on compensation produces an additional 33 cents of total income to the state economy (Exhibit 1).
Indicator | Direct | Indirect | Induced | Total | Total Multiplier |
---|---|---|---|---|---|
Employment | 14,862 | 1,910 | 3,306 | 20,077 | 1.35 |
Output | $1.5 billion | $543 million | $669 million | $2.7 billion | 1.82 |
Compensation | $1.0 billion | $132 million | $204 million | $1.3 billion | 1.33 |
Note: Output refers to the intermediate and final economic values of goods and services. Induced impact refers to the jobs, sales/output, and compensation created when new employees spend their wages at local establishments. Figures may not sum due to rounding.
Sources: JobsEQ, Texas Comptroller of Public Accounts, Texas Higher Education Coordinating Board and Texas community colleges
Our model represents a conservative estimate. Other studies, including one conducted by this agency in 2008 and another by Emsi in 2015, have applied a broader view of the economic ripple effects of a community college education in Texas and found considerably greater impact.
In general, the restaurant industry, the health care professions and other personal care and service workers have seen the highest growth in the last five years. Due to the Gulf Coast region’s heavy concentration of oil and gas and petrochemical workers, the recent downturn in those industries reduced employment in the extraction sector by almost 6 percent annually in that period. But food preparation added more than 25,000 jobs, while health care and social assistance industries in the region added more than 18,000 jobs, for a 5.3 percent annual growth rate.
The region’s most significant occupations are shown in Exhibit 2 and Exhibit 3, first by location quotient (which measures an industry’s proportionate concentration in a region versus its concentration in U.S. as a whole) and secondly by numeric growth during the last five years.
Occupation | Number Employed | Average Annual Wages | LQ | Number Unemployed | Unemployment Rate | Five-Year Employment Change |
---|---|---|---|---|---|---|
Extraction Workers | 23,444 | $47,600 | 4.87 | 1,293 | 5.6% | -8,225 |
Water Transportation Workers | 4,775 | $72,300 | 2.66 | 220 | 4.8% | -138 |
Plant and System Operators | 14,077 | $64,700 | 2.13 | 135 | 1.0% | -1,495 |
Supervisors of Construction and Extraction Workers | 25,116 | $76,100 | 1.79 | 866 | 3.4% | 1,460 |
Air Transportation Workers | 9,711 | $111,100 | 1.65 | 61 | 0.6% | -127 |
Note: Figures may not sum due to rounding. Data are as of Q3 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
Occupation | Number Employed | Average Annual Wages | LQ | Number Unemployed | Unemployment Rate | Five-Year Employment Change |
---|---|---|---|---|---|---|
Food and Beverage Serving Workers | 172,191 | $23,100 | 1.05 | 11,720 | 6.4% | 25,174 |
Other Personal Care and Service Workers | 79,010 | $22,900 | 0.85 | 4,144 | 5.0% | 18,124 |
Construction Trades Workers | 160,545 | $42,400 | 1.34 | 10,731 | 6.3% | 16,057 |
Health Diagnosing and Treating Practitioners | 102,161 | $104,300 | 0.85 | 1,028 | 1.0% | 13,840 |
Business Operations Specialists | 96,304 | $82,700 | 0.85 | 2,955 | 2.9% | 12,390 |
Note: Figures may not sum due to rounding. Data are as of Q3 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
Community colleges deliver a particularly good return on investments of time and tuition. In the Gulf Coast region, workers with some college or associate degrees and with stable jobs — defined as those with the same firm throughout a calendar quarter — earn an average of $6,408 more annually than high school graduates (Exhibit 4).
Educational Attainment | Number Employed, Region | Average Annual Earnings, Region | Number Employed, Texas | Average Annual Earnings, Texas |
---|---|---|---|---|
Less than high school | 516,634 | $43,491 | 2,065,483 | $42,808 |
High school or equivalent, no college | 661,979 | $51,093 | 2,765,759 | $52,035 |
Some college or associate degree | 796,592 | $57,501 | 3,245,675 | $60,428 |
Bachelor's degree or advanced degree | 648,501 | $81,421 | 2,454,975 | $95,716 |
Educational attainment not available | 347,982 | $22,443 | 1,544,282 | $22,087 |
Total | 2,971,687 | $54,377 | 12,076,174 | $58,787 |
Source: U.S. Census Bureau and JobsEQ
The increase in wages alone for those workers adds an additional $5.1 billion in direct compensation to the state economy each year (Exhibit 5) – more than three times the total spending of the region’s community colleges.
Employed, Some College or Associate Degree:
796,592
Average Earnings Increase Beyond High School or Equivalent:
$6,408
Total Regional Earnings Increase:
$5.1 billion
Source: U.S. Census Bureau, JobsEQ and Texas Comptroller of Public Accounts
The wage effect is particularly noteworthy given an average annual tuition for the region’s community colleges of just $2,227 per year and the modest two-year educational commitment required for an associate degree.1 The region’s highest-paying jobs for associate-degree holders are in mining, construction, education and health care.2
While the region’s new graduates and certificate holders enter the workforce in large numbers, demand for some degrees still outpaces supply. Broadly speaking, these gaps occur largely in education and business administration and management, followed by nursing and health care administration.
Gulf Coast community colleges awarded more than 12,000 general studies and liberal arts certificates and associate degrees in the 2017-18 academic year, followed by health care and business administration (Exhibit 6).
Certificates and Degrees | Number Awarded |
---|---|
Liberal Arts and Sciences, General Studies and Humanities | 12,574 |
Health Professions and Related Clinical Sciences | 7,797 |
Business, Management, Marketing and Related Support Services | 3,974 |
Personal and Culinary Services | 2,599 |
Skilled Precision Production of Leather Metal or Wood Products | 2,246 |
Mechanic and Repair Technologies/Technicians | 2,220 |
Engineering Technologies/Technicians | 2,185 |
Science Technologies/Technicians | 1,385 |
Computer and Information Sciences and Support Services | 777 |
Security and Protective Services | 739 |
Source: JobsEQ
The Gulf Coast region’s nine community college districts provided technical and academic coursework for more than 196,000 students in the 2017-18 school year (Exhibit 7). In addition to community colleges, the region is home to 10 universities, the Baylor College of Medicine and three University of Texas medical branches.
Community College District | Enrollment | Awards | Average Tuition and Fees | Academic Share of Students Enrolled | Technical Share of Students Enrolled | Enrolled or Employed, Academic* | Enrolled or Employed, Technical* |
---|---|---|---|---|---|---|---|
Alvin Community College | 5,645 | 1,288 | $1,998 | 76.9% | 23.1% | 95.7% | 94.5% |
Brazosport College | 4,304 | 1,269 | $2,715 | 62.4% | 37.6% | 96.1% | 91.9% |
College of the Mainland Community College | 4,673 | 773 | $1,773 | 65.5% | 34.5% | 90.0% | 88.3% |
Galveston College | 2,423 | 625 | $2,050 | 68.9% | 31.1% | 91.4% | 96.0% |
Houston Community College | 48,309 | 7,056 | $2,031 | 77.9% | 22.1% | 90.1% | 88.6% |
Lee College | 7,773 | 3,026 | $2,358 | 60.4% | 39.7% | 90.7% | 83.9% |
Lone Star College System | 78,244 | 9,897 | $2,150 | 87.7% | 12.3% | 90.8% | 86.4% |
Lone Star College—CyFair | 20,536 | 2,295 | $2,150 | 89.8% | 10.2% | 91.3% | 88.5% |
Lone Star College—Kingwood | 11,358 | 1,271 | $2,150 | 86.6% | 13.4% | 90.0% | 82.1% |
Lone Star College—Montgomery | 13,088 | 1,568 | $2,150 | 88.4% | 11.6% | 91.6% | 88.0% |
Lone Star College—North Harris | 13,980 | 1,991 | $2,150 | 79.2% | 20.8% | 91.1% | 85.9% |
Lone Star College—Tomball | 7,639 | 664 | $2,150 | 84.9% | 15.1% | 88.3% | 90.7% |
Lone Star College—University Park | 11,643 | 819 | $2,150 | 92.9% | 7.1% | 91.1% | 83.8% |
San Jacinto College | 37,895 | 7,332 | $1,860 | 72.4% | 27.6% | 91.7% | 81.4% |
San Jacinto College — Central Campus | 15,302 | 3,372 | $1,860 | 69.2% | 30.8% | 90.7% | 88.3% |
San Jacinto College — North Campus | 10,043 | 1,927 | $1,860 | 64.9% | 35.1% | 94.0% | 90.4% |
San Jacinto College — South Campus | 12,550 | 2,193 | $1,860 | 82.6% | 17.4% | 91.5% | 90.8% |
Wharton County Junior College | 6,768 | 1,081 | $3,110 | 81.1% | 18.9% | 92.2% | 92.6% |
*The percentage of academic or technical graduates employed in the fourth quarter of the calendar year after graduation and/or enrolled in a Texas two- or four-year institution in the following fall after graduation, as specified.
Source: Texas Higher Education Coordinating Board
Community colleges play a vital role for students and businesses by offering postsecondary education and job training at great value. As the Gulf Coast region’s nine community college districts work to address local skills gaps and meet the specific needs of area employers, they support more than 20,000 jobs and add about $2.7 billion in economic output annually. Furthermore, the higher pay of those with some college or an associate degree helps raise total wages in the region by $5.1 billion per year.
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