HENRY COUNTY, VA – Patrick & Henry Community College adds $75.1 million to the economy, a study by Lightcast EIS found.
In a review of the economic value of the community college, the analysis determined that for every $1 received by the college, society gains $4.10 in added income and social savings.
The results, which reflected fiscal year 2021-2022, demonstrate that P&HCC is a strong investment for all three of its major stakeholder groups—students, taxpayers, and society, according to the community college.
Students receive a substantial return for their investments in an education from P&HCC, gaining $3.80 in lifetime earnings for every $1 invested, a news release read.
According to the study, taxpayers’ investment in P&HCC returns more to government budgets than it costs—$1.70 in added tax revenue and public sector savings for every dollar—and creates a wide range of social benefits throughout Virginia.
The college benefits regional businesses by increasing consumer spending in the region and supplying a steady flow of qualified, trained workers to the workforce - one of every 37 jobs in the service region is supported by the activities of P&HCC and its students, the study found.
The college says it benefits state and local taxpayers through increased tax receipts and a reduced demand for government-supported social services.
P&HCC President Dr. Greg Hodges briefed the P&HCC Board on the study at its regular monthly meeting on Monday, highlighting the following:
P&HCC plays a key role in helping students increase their employability and achieve their individual potential. The college draws students to the region, generating new dollars and opportunities for the P&HCC Service Region. P&HCC provides students with the education, training, and skills they need to have fulfilling and prosperous careers. Furthermore, P&HCC is a place for students to meet new people, increase their self-confidence, and promote their overall health and well-being.
Approximately 14% of students attending P&HCC originated from outside the region. Some of these students relocated to the P&HCC service region. In addition, some in-region students, referred to as retained students, would have left the P&HCC service region for other educational opportunities if not for P&HCC. These relocated and retained students spent money on groceries, mortgage and rent payments, and other living expenses at regional businesses. The expenditures of relocated and retained students in FY 2021-22 added $1.4 million in income to the P&HCC service region economy.
In FY 2021-22, P&HCC added $75.1 million in income to the P&HCC service region economy, a value approximately equal to 1.7% of the region’s total gross regional product. The net impact of the college’s operations spending added $17.6 million in income to the regional economy in FY 2021-22.
Over the years, students have studied at P&HCC and entered or re-entered the workforce with newly-acquired knowledge and skills. Today, thousands of these former students are employed in the P&HCC service region.
The net impact of P&HCC’s former students currently employed in the regional workforce amounted to $56.1 million in added income in FY 2021-22.
Taxpayers provided P&HCC with $8.9 million of funding in FY 2021-22. In return, they will benefit from added tax revenue, stemming from students’ higher lifetime earnings and increased business output, amounting to $13.4 million. A reduced demand for government-funded services in Virginia will add another $1.9 million in benefits to taxpayers.
Total taxpayer benefits amount to $15.2 million, the present value sum of the added tax revenue and public sector savings. For every dollar of public money invested in P&HCC, taxpayers will receive $1.70 in return, over the course of students’ working lives. The average annual rate of return for taxpayers is 3.7%.
In FY 2021-22, Virginia invested $37 million to support P&HCC. In turn, the Virginia economy will grow by $145.7 million, over the course of students’ working lives. Society will also benefit from $5 million of public and private sector savings. For every dollar invested in P&HCC in FY 2021-22, people in Virginia will receive $4.10 in return, for as long as P&HCC’s FY 2021-22 students remain active in the Virginia workforce.
“This report reinforces the critical role P&HCC plays in our regional economy, and the ripple effect our programs have in making our community an excellent place to live, work and learn,” Dr. Hodges said.
By the numbers FY 2021-2022
3,360: Number of students at the institution
483: Number of full-time and part-time employees
1,530: Jobs directly and indirectly supported
$17.6 million: Operations spending
$1.4 million: Amount spent by students who relocated or stayed in the region and who wouldn't be here if not for the institution
$56.1 million: Spending by alumni currently working in the region
$75.1 million: Total economic impact
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