The Economic Value of the Maine Community College System. Main Report
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| Title: | The Economic Value of the Maine Community College System. Main Report |
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| Language: | English |
| Authors: | Maine Community College System (MCCS), Lightcast |
| Source: | Maine Community College System. 2026. |
| Availability: | Maine Community College System. 323 State Street, Augusta, ME 04330. Tel: 207-629-4000; Fax: 207-629-4048; Web site: http://www.mccs.me.edu |
| Peer Reviewed: | N |
| Page Count: | 114 |
| Publication Date: | 2026 |
| Document Type: | Reports - Research |
| Education Level: | Higher Education Postsecondary Education Two Year Colleges |
| Descriptors: | Community Colleges, Economic Impact, Expenditures, Community College Students, School Construction, Operating Expenses, Alumni, Consumer Economics, Outcomes of Education, Investment, Student Costs, Education Work Relationship, Taxes, Cost Effectiveness |
| Geographic Terms: | Maine |
| Abstract: | During fiscal year (FY) 2024-25, the Maine Community College System (MCCS) spent $115.2 million on payroll and benefits for 1,760 full-time and part-time employees and spent another $74.4 million on goods and services to carry out the colleges' day-to-day and construction operations. This initial round of spending creates more spending across other businesses throughout the state economy, resulting in the commonly referred to multiplier effects. This report assesses the collective impact of MCCS as a whole on the state economy and the benefits generated by the colleges for students, taxpayers, and society. The approach is twofold, beginning with an economic impact analysis of the colleges on the Maine economy. A specialized Multi-Regional Social Accounting Matrix (MR-SAM) model is used to calculate the added income created in the Maine economy as a result of increased consumer spending and the added knowledge, skills, and abilities of students. Results of the economic impact analysis are broken out according to the following impacts: (1) impact of the colleges' operations spending; (2) impact of the colleges' construction spending; (3) impact of student spending; and (4) impact of alumni who are still employed in the Maine workforce. The second component of the study measures the benefits generated by MCCS for students, taxpayers, and society. For students, an investment analysis is performed to determine how the money spent by students on their education performs as an investment over time. The students' investment in this case consists of their out-of-pocket expenses, the cost of interest incurred on student loans, and the opportunity cost of attending the colleges as opposed to working. In return for these investments, students receive a lifetime of higher earnings. For taxpayers, the study measures the benefits to state taxpayers in the form of increased tax revenues and public sector savings stemming from a reduced demand for social services. Finally, for society, the study assesses how the students' higher earnings and improved quality of life create benefits throughout Maine as a whole. The results of this study show that MCCS creates a positive net impact on the state economy and generates a positive return on investment. |
| Abstractor: | ERIC |
| Entry Date: | 2026 |
| Accession Number: | ED679620 |
| Database: | ERIC |
| Abstract: | During fiscal year (FY) 2024-25, the Maine Community College System (MCCS) spent $115.2 million on payroll and benefits for 1,760 full-time and part-time employees and spent another $74.4 million on goods and services to carry out the colleges' day-to-day and construction operations. This initial round of spending creates more spending across other businesses throughout the state economy, resulting in the commonly referred to multiplier effects. This report assesses the collective impact of MCCS as a whole on the state economy and the benefits generated by the colleges for students, taxpayers, and society. The approach is twofold, beginning with an economic impact analysis of the colleges on the Maine economy. A specialized Multi-Regional Social Accounting Matrix (MR-SAM) model is used to calculate the added income created in the Maine economy as a result of increased consumer spending and the added knowledge, skills, and abilities of students. Results of the economic impact analysis are broken out according to the following impacts: (1) impact of the colleges' operations spending; (2) impact of the colleges' construction spending; (3) impact of student spending; and (4) impact of alumni who are still employed in the Maine workforce. The second component of the study measures the benefits generated by MCCS for students, taxpayers, and society. For students, an investment analysis is performed to determine how the money spent by students on their education performs as an investment over time. The students' investment in this case consists of their out-of-pocket expenses, the cost of interest incurred on student loans, and the opportunity cost of attending the colleges as opposed to working. In return for these investments, students receive a lifetime of higher earnings. For taxpayers, the study measures the benefits to state taxpayers in the form of increased tax revenues and public sector savings stemming from a reduced demand for social services. Finally, for society, the study assesses how the students' higher earnings and improved quality of life create benefits throughout Maine as a whole. The results of this study show that MCCS creates a positive net impact on the state economy and generates a positive return on investment. |
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