Study Shows Tech College's Economic Impact at $6.9 Billion

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WISCONSIN RAPIDS - Mid-State Technical College (MSTC) and the state's 15 other technical colleges have an impact of roughly $6.9 billion on Wisconsin's economy each year, according to a recent study by the Wisconsin Taxpayer's Alliance (WISTAX). The multi-billion dollar boost is the total economic output from jobs, higher wages and spending in one year.

The study, "Growing Wisconsin's Economy: The Economic Impact of Wisconsin's Technical Colleges," used a computer input-output model to estimate the impact of the technical colleges in 2005-06. The study estimated $1.4 billion in total spending regenerated $2.8 billion in economic output. A total of $778 million in state and local taxes were invested in 2005-06, which means taxpayers experienced a return of $3.62 for every $1 invested.

The study also examined the additional earnings related to all technical college graduates under 62 years of age and determined these earnings generated nearly $4.1 billion in additional economic output in 2006.

The study projects that 2005-06 graduates will earn $2.1 billion more than they would have earned as high school graduates, representing a payback to taxpayers of nearly $6 to every $1 invested.

MSTC President Dr. John Clark said the survey results confirm the tremendous impact MSTC and the other technical colleges have on the state. "Preparing students for the job market is our first priority. The significant impact this has on every Wisconsin resident is obvious from the statistics shown in this report. We view the prudent expenditures we make to educate and prepare students not so much as a cost, but more as an investment toward the region and state's economic growth."

"This is great news for taxpayers who are investing in one of the state's most important assets and one of their state's biggest economic contributors," said Dan Clancy, president of the Wisconsin Technical College System (WTCS) about the WISTAX Report. "The Wisconsin Taxpayers Alliance study proves how closely linked and valuable the technical colleges are to economic development throughout the state," Clancy added. He said the study is actually a conservative estimate of the economic impact of the technical colleges because it did not measure the direct benefits of higher earnings and job opportunities for working adults who take individual courses. It also did not measure the social benefits of increased educational attainment, such as reduced crime, better health and fewer demands on social services.

Of the 409,000 residents using the technical colleges each year, 109,000 are enrolled in degree or diploma programs. Approximately 300,000 residents take individual courses to enhance their careers or lives.

The study was completed by the consulting arm of WISTAX at the request of the WTCS. The report is available online at www.wtcsystem.edu. More information on the study can be obtained from either Dale Knapp or Todd Berry at WISTAX at (608) 241-9789.