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 Northwest Texas economic region — 30 counties covering about 27,600 square miles in northern Texas — has five community college districts: Cisco College, North Central Texas College, Ranger College, Vernon College and Western Texas College. The region is home to about 549,000 people, or nearly two percent of the state’s population.
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 Northwest region’s four community college districts reported revenues of nearly $86.0 million in fiscal 2018, which produced an additional $42.4 million in indirect and induced economic activity for a total impact of $128.4 million annually. Nearly 1,400 jobs are supported by the region’s community college spending. Under normal economic conditions, every dollar spent by community colleges produces an additional 49 cents of economic activity, while every dollar spent on compensation produces an additional 20 cents of total income to the state economy (Exhibit 1).
Indicator | Direct | Indirect | Induced | Total | Total Multiplier |
---|---|---|---|---|---|
Employment | 1,127 | 61 | 208 | 1,396 | 1.24 |
Output | $86.0 million | $11.6 million | $30.8 million | $128.4 million | 1.49 |
Compensation | $58.3 million | $2.8 million | $9.1 million | $70.1 million | 1.2 |
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 and found considerably greater impact.
In general, the region’s health care professions, personal care and service and the restaurant industry, have seen the highest employment growth in the last five-years. The number of the Northwest region’s extraction workers has declined during the past five-years in large part due to the downturn is the oil and gas and petrochemical industries. The personal care and service industry added more 1,300 jobs, while the health care industry in the region added almost 1,000 jobs.
The region’s most significant occupations are shown in Exhibits 2 and 3, first by location quotient (which measures an industry’s proportionate concentration in a region versus its concentration in the 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 | 2,715 | $44,900 | 8.06 | 132 | 4.5% | -1,976 |
Funeral Service Workers | 208 | $38,100 | 1.97 | 7 | 3.5% | 19 |
Law Enforcement Workers | 3,321 | $48,600 | 1.9 | 28 | 0.9% | -150 |
Other Management Occupations | 12,308 | $80,300 | 1.85 | 112 | 1.0% | -168 |
Supervisors of Farming, Fishing, and Forestry Workers | 139 | $50,100 | 1.82 | 3 | 2.5% | 20 |
Figures may not sum due to rounding. Data are as of Q3 2019 except for wage data, which represent covered employment in 2018.
Source: JobsEQ
Occupation | Number Employed | Average Annual Wages | LQ | Number Unemployed | Unemployment Rate | Five-Year Employment Change |
---|---|---|---|---|---|---|
Other Personal Care and Service Workers | 7,652 | $20,900 | 1.17 | 321 | 4.2% | 1,313 |
Health Diagnosing and Treating Practitioners | 9,323 | $91,400 | 1.1 | 73 | 0.8% | 995 |
Food and Beverage Serving Workers | 11,957 | $20,400 | 1.05 | 693 | 5.4% | 786 |
Building Cleaning and Pest Control Workers | 5,422 | $22,400 | 0.98 | 243 | 4.3% | 639 |
Health Technologists and Technicians | 5,935 | $40,500 | 1.26 | 104 | 1.8% | 268 |
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 Northwest region, workers with some college or associate degrees and with stable jobs — defined as those employed with the same firm throughout a calendar quarter — earn an average of $3,401 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 | 31,068 | $35,612 | 2,065,483 | $42,808 |
High school or equivalent, no college | 55,171 | $39,212 | 2,765,759 | $52,035 |
Some college or associate degree | 58,694 | $42,613 | 3,245,675 | $60,428 |
Bachelor’s degree or advanced degree | 33,383 | $56,035 | 2,454,975 | $95,716 |
Educational attainment not available | 25,530 | $21,590 | 1,544,282 | $22,087 |
Total | 203,847 | $41,019 | 12,076,174 | $58,787 |
Sources: U.S. Census Bureau and JobsEQ
The increase in wages alone for those workers adds an additional $199.6 million in direct compensation to the state economy each year (Exhibit 5) — more than twice the total spending of the region’s community colleges.
Employed, Some College or Associate Degree:
58,694
Average Earnings Increase Beyond High School or Equivalent:
$3,401
Total Regional Earnings Increase:
$199.6 million
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 $3,139 per year and the modest two-year educational commitment required for an associate degree.1 The highest-paying jobs for associate-degree holders in Texas are in the energy/utility, management, professional services, trade and manufacturing sectors.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 award gaps are largely in agriculture, health professions and business administration.
The Northwest region’s community college districts awarded more than 1,100 certificates and associate degrees in general studies and liberal arts in the 2017-18 school year; the next most-common award areas were health professions, precision production and other trades (Exhibit 6).
Certificates and Degrees | Number Awarded |
---|---|
Liberal Arts and Sciences, General Studies and Humanities | 1,188 |
Health Professions and Related Clinical Sciences | 458 |
Skilled Precision Production of Leather, Metal or Wood Products | 142 |
Personal and Culinary Services | 134 |
Computer and Information Sciences and Support Services | 85 |
Agriculture, Agriculture Operations, and Related Sciences | 65 |
Business, Management, Marketing, and Related Support Services | 60 |
Family and Consumer Sciences/Human Sciences | 49 |
Mechanic and Repair Technologies/Technicians | 42 |
Engineering Technologies/Technicians | 29 |
Source: JobsEQ
The Northwest region’s five community college districts provided technical and academic coursework for more than 21,000 students in the 2017-18 school year (Exhibit 7).
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* |
---|---|---|---|---|---|---|---|
Cisco College | 3,358 | 693 | $3,810 | 72.9% | 27.1% | 93.5% | 98.0% |
North Central Texas College | 10,171 | 1,106 | 2,730 | 72.9% | 27.1% | 90.8% | 89.5% |
Ranger College | 2,399 | 371 | 3,065 | 81.2% | 18.8% | 90.2% | 92.4% |
Vernon College | 3,055 | 616 | 3,300 | 70.7% | 29.3% | 94.7% | 94.9% |
Western Texas College | 2,179 | 366 | 2,790 | 89.3% | 10.7% | 94.3% | 43.7% |
*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 Northwest region’s five community college districts work to address local skills gaps and meet the specific needs of area employers, they support nearly 1,400 jobs and add more than $128 million 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 nearly $200 million per year.
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