2016-05-26



Image courtesy of Santa Barbara City College.

Education is the cornerstone of a vibrant community, supporting and sustaining the local economy. Community colleges play a crucial role, providing students with the skills they need to be valuable workforce contributors. According to the U.S. Bureau of Labor Statistics, California community colleges are the largest provider of workforce training in the state and nation. Occupations requiring an associate’s degree are projected to grow by 18 percent through 2020 – faster than the new job growth for those with a bachelor’s degree. There is no doubt about it – when it comes to the local economy, community college graduates are good for business.

A recent Emsi study on the economic impact of America’s community colleges titled Where Value Meets Values: The Economic Impact of Community Colleges looked at the value of community colleges for students, taxpayers, and society. According to the study, “America’s community colleges play a key role in helping students increase their employability and achieve their individual potential. However, the contributions of community colleges consist of more than just influencing the lives of students. The colleges serve a range of industries in the U.S. and supply businesses with skilled workers. Society as a whole benefits from an expanded economy and improved quality of life. The benefits created by community colleges extend as far as the national treasury, in the form of increased tax revenues and public sector savings.”

Santa Barbara is no different from the rest of the state, and the nation, in the benefit it receives from skilled individuals, especially those graduating from Santa Barbara City College. Every year, students graduate with degrees or certificates in business, entrepreneurship, STEM fields, culinary arts, automotive, and nursing, to name a few. These students then become prime candidates for employment in Santa Barbara’s thriving economy.

In 2012, the total investment made by community college students across the nation in their own education amounted to $97.5 billion, equal to $18.7 billion in out-of-pocket expense plus $78.7 billion in forgone time and money. This included tuition, fees, books, supplies, and interest on loans. In return for their investment, community college students will receive higher wages that will continue to grow through their working lives. For example, the average associate’s degree completer will see an increase in earnings of $10,700 each year compared to someone with a high school diploma or equivalent. Over a working lifetime, this increase in earnings amounts to an undiscounted value of approximately $470,800 in income.

Keeping this data in mind, one can now imagine the impact the SBCC Promise will have on students attending Santa Barbara City College. If students do not have to pay for tuition, fees, books, supplies, and interest on loans, they are starting out with a clean financial state – making their total return on investment in themselves even greater over the course of their lifetimes.

In addition, the Emsi study concluded that benefits to society also consist of the savings generated by the improved lifestyles of students. Education is statistically correlated with a variety of lifestyle changes that generate social savings across three main categories: 1) health, 2) crime, and 3) unemployment. Health savings include avoided medical costs associated with smoking, alcoholism, obesity, drug abuse, and mental disorders. Crime savings include reduced security expenditure and insurance administration, lower victim costs, and reduced criminal justice system expenditures. Unemployment savings include the reduced demand for income assistance and welfare benefits.

With more than 100 associate degree and certificate programs, Santa Barbara City College is graduating young people with the skills to take on the professional mantle of all of Santa Barbara’s booming industries – whether high tech, nonprofit, health care, or tourism, to name a few. In addition, the college itself provides economic stimulus in the many job opportunities and resources it provides to the more than 1,200 individuals working and teaching on campus.

For example, the SBCC School of Culinary Arts and Hotel Management has between 120-150 students in its department in any given year. Of those students, 20-30 graduate during that period on average. “The School of Culinary Arts and Hotel Management has been a part of the Santa Barbara food and hospitality scene for more than 45 years,” said Department Chair Randy Bublitz. “Because of the support of our local restaurant community, we have been able to place our graduates in many of the top professional kitchens in the area. Indeed, many of the local restaurants are now helmed by our graduates. And they in turn look to us for filling cooking positions with qualified staff, creating in effect a huge alumni support network.”

The MESA (Mathematics, Engineering, Science Achievement) Program supports students in successfully transferring to four-year universities in science, technology, engineering, and math (STEM) majors. This assistance is especially crucial to students who come from low-performing high schools, are economically disadvantaged, or are the first in their family to attend college. Since its start at SBCC in January 2007, the program has transferred 103 students, 35 percent of whom have graduated with bachelor’s degrees.

“While the goal of the MESA Program is mainly geared toward getting students transferred to four-year universities, our data clearly shows how successful our students are beyond the transfer in their ability to get jobs and move into STEM career-fields,” said MESA Director/Coordinator Virginia Estrella. “A good number of our students come back to the Santa Barbara area, bringing with them skills that contribute to local businesses and our community’s ability to be an economic driver. Also, because of the camaraderie generated at the MESA center on the SBCC campus, many of our alums come back to volunteer at the center so that they can pay it forward to the next generation of MESA students.”

In the Automotive Service and Technology Department, students prepare for careers in the automotive repair industry. On average, 150-200 students take classes every year, with 60-80 students declared auto majors. “I was an automotive student at SBCC in the 1970s, and today I continue as a teacher on campus,” said Automotive Service and Technology Department Chair Bob Stockero. “Local employers stay in contact with us and often look for graduates to work in their shops. Toyota of Santa Barbara alone has more than a dozen of our former students working in its service department.”

Without a healthy workforce, a community cannot thrive. Santa Barbara City College graduates are our community’s next generation of thought leaders, crafts people, entrepreneurs, and business professionals.

The post When it Comes to the Local Economy, SBCC Graduates are Good for Business appeared first on SBCC Foundation.

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