FAYETTEVILLE, NC – February 21, 2014 – Fayetteville Technical Community College (FTCC) announced today that in FY 2012-13, FTCC’s total impact on the Cumberland County economy was $530.3 million in added income, equal to 2.8% of the region’s Gross Regional Product. A regional economic impact analysis was commissioned to examine the impact of FTCC on the local business community through increased consumer spending and enhanced business productivity. Results were measured in terms of added income and were organized according to the following three effects: 1) Impact of college operations; 2) Impact of the spending of students who relocated to the county, and; 3) Impact of the increased productivity of former students that were employed in the regional workforce during the analysis year.
Impact of college operations – FTCC is an important employer in Cumberland County. In FY 2012-13, the college employed 973 full-time and part-time faculty and staff. Of these, 87% lived in Cumberland County. Total payroll at FTCC was $58.5 million, much of which was spent in the county for groceries, eating out, clothing, and other household expenses. FTCC is also a large-scale buyer of goods and services, spending $44.5 million in FY 2012-13 to cover its expenses for facilities, professional services, and supplies. The total income that FTCC created during FY 2012-13 as a result of its day-to-day operations was $75.7 million.
Impact of student spending – Approximately 10.5% of FTCC’s students relocated to Cumberland County to attend college in FY 2012-13. These students would not have come to the county if the college did not exist. While attending, out-of-county students spent $34.1 million to purchase groceries, rent accommodation, and pay for transportation. A significant portion of these expenditures occurred in the county, generating $13.8 million in new income in the economy during the FY 2012-13.
Impact of student productivity – FTCC’s greatest impact results from the education and training it provides for local residents. Since the college was established, students have studied at FTCC and entered or re-entered the workforce with newly acquired skills. Today thousands of former students are employed in Cumberland County. As students apply the skills they acquired at the college, they are rewarded with higher incomes. They also raise business profits through their increased productivity. These higher incomes and increased profits create even more income as they are spent in the region. During 2012-13, FTCC’s students who are currently employed in Cumberland County generated $440.8 million in added income to the regional economy.
“Approximately 88% of FTCC’s students remain in North Carolina upon completing their education goals,” said Dr. Larry Keen, FTCC President. “As our students earn more, they and their employers pay higher taxes through increased output and spending. Over the student’s working lives, state and local government in North Carolina will collect a present value of $234.2 million in the form of higher tax receipts. Additionally, as our students earn more because of the skills and qualifications they acquire at FTCC, employers will earn more as their businesses become more productive. Over their working lives, the FTCC student population will generate a present value of $2.5 billion in added income in the state of North Carolina. For every dollar that state and local taxpayers spend on FTCC, society as a whole in North Carolina will receive a cumulative value of $41.90 in benefits, for as long as our students remain active in the state workforce.”
To learn more about the FTCC 2012-13 regional economic impact analysis, please contact Carl Mitchell, Vice President for Human Resources, Workforce Development, and Institutional Effectiveness at (910) 678-8373.