The study uses a wide array of data based on several sources, including the FY 2017-18 academic and financial reports from NoCoPCU; industry and employment data from the Bureau of Labor Statistics and Census Bureau; outputs of Emsi’s Multi-Regional Social Accounting Matrix model; and a variety of published materials relating education to social behavior.

Report Highlights

Highlights of the economic impacts of NoCoPCU for Larimer and Weld Counties include:

• The net impact of institutions’ day-to-day operations (payroll, expenses and employee spending) during the analysis year was approximately $1.1 billion in added income to the Larimer and Weld economy.
• NoCoPCU’s research spending generated $299 million for the region.
• The net impact of NoCoPCU’s construction spending in FY2017-18 was $126 million.
• Start-up and spin-off companies generated $227.9 million.
• Spending by students, those who relocated or stayed in the region and who wouldn’t be in the region if not for the institutions, added approximately $147.9 million.
• Contributions from alumni currently employed in the regional workforce amounted to $2 billion.
• This combined total equates to a $3.9 billion impact, or 50,594 jobs supported for Larimer and Weld Counties’ economy during FY17-18.

The overall economic value is significantly higher than was measured in a similar study conducted two years earlier, and the count of supported jobs increased markedly, due to updates and improvements in methodology, background data, and institutional data. As a result, the present study offers a more relevant, comprehensive picture of the institutions’ value.

The study also included an investment analysis which looked at the total amount NoCoPCU received in FY 2017-18 through tuition and fees, government student aid, and other all other revenue, as provided by students, taxpayers and society. That investment resulted in an average rate of return of 12.3% for the investment students make, and 14.1% for the investment by taxpayers.

Student Perspective

NoCoPCU’s FY 2017-18 students paid a present value of $641.5 million to cover the cost of tuition, fees, supplies, and interest on student loans. They also forwent $495.8 million in money they would have earned had they been working instead of attending college.

In return for their investment, students will receive $3.6 billion in increased earnings over their working lives. This translates to a return of $3.20 in higher future earnings for every dollar students invested in their education. Students’ average annual rate of return is 12.3%. The study notes this return outpaces the average 9.9% return investors see in the U.S. stock market.

Taxpayer Perspective

Taxpayers provided NoCoPCU with $307.2 million of funding in FY 2017-18. In return, they will benefit from added tax revenue, stemming from students’ higher lifetime earnings and increased business output, amounting to $1 billion. A reduced demand for government-funded services in Colorado will add another $236.1 million in benefits to taxpayers.

For every dollar of public money invested in NoCoPCU, taxpayers will receive $4 in return, over the course of students’ working lives. The average annual rate of return for taxpayers is 14.1%.

Social Perspective

In FY 2017-18, Colorado invested $2.5 billion to support NoCoPCU. In turn, the Colorado economy will grow by $12.4 billion, over the course of students’ working lives. Society will also benefit from $649.5 million of public and private sector savings.

For every dollar invested in NoCoPCU in FY 2017-18, people in Colorado will receive $5.20 in return, for as long as NoCoPCU’s FY 2017-18 students remain active in the state workforce.

The full NoCoPCU economic impact report is available online here.