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 South Texas economic region — 28 counties covering about 37,800 square miles in southernmost Texas — has six community college districts: Coastal Bend College, Del Mar College, Laredo Community College, South Texas College, Southwest Texas Junior College and Texas Southmost College. The region is home to more than 2.4 million people, nearly 9 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 South Texas region’s six community college districts reported revenues of more than $550.1 million in fiscal 2018, which produced an additional $270.6 million in indirect and induced economic activity for a total impact of $820.7 million annually. More than 8,300 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 23 cents of total income to the state economy (Exhibit 1).
Indicator | Direct | Indirect | Induced | Total Impact | Total Multiplier |
---|---|---|---|---|---|
Employment | 6,511 | 392 | 1,451 | 8,353 | 1.28 |
Output | $550.1 million | $65.6 million | $205.0 million | $820.7 million | 1.49 |
Compensation | $326.5 million | $16.0 million | $59.1 million | $401.5 million | 1.23 |
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 and found considerably greater impact.
In general, occupations related to the South Texas region’s restaurant, personal care and healthcare industries have seen the highest employment growth in the last five years. The recent downturn in the oil and gas industries reduced employment in its extraction sector by more than 6 percent. The region has seen an uptick in the personal care and service worker occupation, adding almost 20,000 jobs in the region during the last five years. Food preparation added more than 5,500 jobs, while the region’s health care and social assistance industries added more than 4,000 jobs.
Exhibits 2 and 3 show the region’s most significant occupations, 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 | Unemployed | Unemployment Rate | Five-Year Employment Change |
---|---|---|---|---|---|---|
Extraction Workers | 6,524 | $43,200 | 4.92 | 438 | 6.2% | -4,512 |
Fishing and Hunting Workers | 351 | $15,100 | 2.75 | 40 | 10.2% | 0 |
Other Personal Care and Service Workers | 59,215 | $20,400 | 2.31 | 4,579 | 7.1% | 19,575 |
Nursing, Psychiatric and Home Health Aides | 29,698 | $21,300 | 2.06 | 1,776 | 5.6% | -3,271 |
Preschool, Primary, Secondary and Special Education School Teachers | 44,409 | $55,500 | 1.84 | 1,677 | 3.7% | 1,547 |
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 |
---|---|---|---|---|---|---|
Other Personal Care and Service Workers | 59,215 | $20,400 | 2.31 | 4,579 | 7.1% | 19,575 |
Food and Beverage Serving Workers | 50,703 | $20,100 | 1.13 | 4,777 | 8.4% | 5,503 |
Health Diagnosing and Treating Practitioners | 38,402 | $95,500 | 1.15 | 570 | 1.5% | 4,420 |
Business Operations Specialists | 19,982 | $62,900 | 0.64 | 842 | 4.1% | 1,994 |
Health Technologists and Technicians | 23,170 | $43,700 | 1.25 | 719 | 3.0% | 1,933 |
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
Educational Attainment | Number Employed, Region | Average Annual Earnings, Region | Number Employed, Texas | Average Annual Earnings, Texas |
---|---|---|---|---|
Less than high school | 208,634 | $36,756 | 2,065,483 | $42,808 |
High school or equivalent, no college | 190,717 | $42,462 | 2,765,759 | $52,035 |
Some college or associate degree | 200,785 | $46,544 | 3,245,675 | $60,428 |
Bachelor’s degree or advanced degree | 103,605 | $60,260 | 2,454,975 | $95,716 |
Educational attainment not available | 112,033 | $22,869 | 1,544,282 | $22,087 |
Total | 815,773 | $42,662 | 12,076,174 | $58,787 |
Sources: U.S. Census Bureau and JobsEQ
The increase in wages alone for those workers adds an additional $819.6 million in direct compensation to the state economy each year (Exhibit 5) — much more than the total spending of the region’s community colleges.
Employed, Some College or Associate Degree:
200,785
Average Earnings Increase Beyond High School or Equivalent:
$4,082
Total Regional Earnings Increase:
$819.6 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 $3,429 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 South Texas region’s community college districts awarded more than 5,500 certificates and associate degrees in health professions in the 2017-18 school year; the next most-common award areas were general studies and liberal arts, precision production and other trades (Exhibit 6).
Certificates and Degrees | Number Awarded |
---|---|
Health Professions and Related Clinical Sciences | 5,599 |
Liberal Arts and Sciences, General Studies and Humanities | 3,408 |
Skilled Precision Production of Leather, Metal or Wood Products | 1,308 |
Business, Management, Marketing and Related Support Services | 1,290 |
Personal and Culinary Services | 1,041 |
Security and Protective Services | 897 |
Computer and Information Sciences and Support Services | 890 |
Mechanic and Repair Technologies/Technicians | 789 |
Engineering Technologies/Technicians | 609 |
Education | 502 |
Source: JobsEQ
The South Texas region’s six community college districts provided technical and academic coursework for more than 72,000 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* |
---|---|---|---|---|---|---|---|
Coastal Bend College | 4,633 | 887 | $2,646 | 61.1% | 38.9% | 86.8% | 80.2% |
Del Mar College | 11,867 | 2,025 | $3,170 | 69.3% | 30.7% | 88.3% | 87.5% |
Laredo Community College | 10,145 | 2,040 | $4,080 | 82.5% | 17.5% | 92.4% | 87.9% |
South Texas College | 31,640 | 6,508 | $3,800 | 73.0% | 27.0% | 91.0% | 87.9% |
Southwest Texas Junior College | 6,894 | 1,001 | $2,978 | 83.6% | 16.4% | 93.1% | 88.8% |
Texas Southmost College | 7,130 | 724 | $3,900 | 91.0% | 9.0% | 90.4% | 82.6% |
*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 South Texas region’s six community college districts work to address local skills gaps and meet the specific needs of area employers, they support nearly 8,400 jobs and add almost $821 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 another $820 million per year.
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