Economic Impact Study
Did you know?
Altogether, the average annual added income to Montgomery County due to the activities of Montgomery College and its graduates equals $1.4 billion. This represents nearly 1.8% of the total Montgomery County economy and an 5.2% return rate for taxpayers on every dollar invested in the College. Additionally, every dollar that a student invests in their education they receive $3.30 in return in the form of higher future earnings. That's a 14% return on their investment!
Economic Impact Analysis at a Glance
- MC employed 3,189 full-time and part-time employees in FY 2015-16. Payroll amounted to $244.6 million, much of which was spent in Montgomery County to purchase groceries, clothing, and other household goods and services. The college spent another $99.7 million to support its day-to-day operations.
- The net impact of college payroll and expenses in Montgomery County during the analysis year was approximately $257.7 million in income.
- A number of students would have left the county if not for MC. These retained students spent money on groceries, transportation, rent, and so on at county businesses.
- The expenditures of retained students during the analysis year added approximately $25.1 million in income to the Montgomery County economy.
- Over the years, students have studied at MC and entered or re-entered the workforce with newly-acquired skills. Today, thousands of these former students are employed in Montgomery County.
- The accumulated contribution of former students currently employed in the county workforce amounted to $1.1 billion in added income during the analysis year.
Impacts Created by MC in FY 2015-16
Operations Spending Impact:
Added Income: $257.7 Million, Jobs: 3,423
Student Spending Impact:
Added Income: $25.1 Million, Jobs: 750
Alumni Impact:
Added Income: $1.1 Billion, Jobs: 11,955
- MC’s FY 2015-16 students paid a total of $90.2 million to cover the cost of tuition, fees, and supplies. They also forwent $443.4 million in money that they would have earned had they been working instead of learning.
- In return for the monies invested in the college, students will receive a present value of $1.8 billion in increased earnings over their working lives. This translates to a return of $3.30in higher future earnings for every $1 that students invest in their education. The average annual return for students is 14.0%.
- In FY 2015-16, state and local taxpayers in Maryland paid $238.4 million to support the operations of MC. The net present value of the added tax revenue stemming from the students’ higher lifetime earnings and the increased output of businesses amounts to $399.7 million in benefits to taxpayers. Savings to the public sector add another $34.6 million in benefits due to a reduced demand for government-funded services in Maryland.
- Dividing benefits to taxpayers by the associated costs yields a 1.8 benefit-cost ratio, i.e., every $1 in costs returns $1.80 in benefits. The average annual return on investment for taxpayers is 5.2%.
- The economic base in Maryland will grow by $4.9 billion over the course of the students’ working lives. Society will also benefit from $93.5 million in present value social savings related to reduced crime, lower unemployment, and increased health and well-being across the state.
- For every dollar that society spent on MC educations during the analysis year, society will receive a cumulative value of $6.10 in benefits, for as long as the FY 2015-16 student population at MC remains active in the state workforce.
For every $1 spent by ...
$3.30 gained in lifetime earnings for students.
$1.80 gained in added state revenue and social savings for taxpayers.
$6.10 gained in added taxes and public sector savings for society.
Economic Impact Reports (2021)
Full Report (PDF, 
) (Executive Summary only (PDF, ) )
Summary One-Sheet "Quick Facts" Report (PDF, )
Infographic (PDF, )
EMSI’s 2016 Economic Impact Study (EIS) estimates the impact of Montgomery College in terms of job and income formation, higher earnings captured by students, returns to taxpayers, and a broad collection of social benefits and avoided costs. The Economic Impact Study was last updated and posted on December 14, 2016. For previous versions of the 2008 and 2012 Economic Impact Study, please contact planning@montgomerycollege.edu.