Local and state taxpayers invested $176 million in MATC during the 2012-13 fiscal year (July 1 – June 30). Recent research shows strong returns from this investment.
A comprehensive study by Economic Modeling Specialists International, reveals that MATC provides numerous, measurable benefits to businesses, the college's students and graduates, and taxpayers.
Published in February 2014, the study, Demonstrating the Value of MATC, puts the college's overall effect on the local business community at $1.7 billion in 2012-13, accounting for 3.1% of the Gross Regional Product. This "total impact" equals graduate/former student productivity ($1.5 billion), college operations ($192.8 million) and student spending ($8.3 million).
Graduate/former student productivity represents higher wages earned during the study year, the increased output of businesses that employed the graduates/former students and the multiplier effect that occurred as graduates/former students and their employees spent money at other businesses. The college's graduates totaled more than 3,000 in December 2012 and May 2013.
"This study reconfirms what we all know: our community is better when more people have an opportunity to educate themselves," said Milwaukee County Executive Chris Abele. "In many obvious and indirect ways, MATC makes Milwaukee a better place."
When students succeed at MATC, they put themselves in a better place financially. According to the study:
• For every $1 students invest in MATC, they receive $5 in higher future wages.
• The average MATC associate degree graduate will realize an increase in earnings of $10,900 each year compared to someone with a high school diploma.
Taxes that local and state government will collect from the added income created by MATC graduates/former students is significant. The study says that by the end of their careers, MATC's 2012-13 graduates and former students will have added $460.9 million in added paid state and local taxes.
Taxpayers also receive savings of $26 million from MATC graduates and former students through reduced social costs including less demand for welfare and unemployment benefits, reduced crime and related societal costs. All told:
• For every $1 of public money invested in the college, taxpayers receive a cumulative value of $2.80 over the course of graduates' and former students' working lives.
• The average annual rate of return for the taxpayer investment in MATC is 7.5%.
MATC President Dr. Michael L. Burke said the study quantifies MATC's regional value and "helps to tell the college's story, reaffirming that MATC is a remarkable investment for its students, graduates and taxpayers."
A complete copy of the report is available at this link.