Community Colleges Generate $23.2 Billion Added Revenue to LA County’s Economy
LOS ANGELES, CA – February 22, 2024 – Today, the Los Angeles Regional Consortium, the coordinating body of the 19 Los Angeles community colleges focused on promoting career and technical education, released the ‘Economic Value of Los Angeles County’s Community Colleges’ study, showcasing the substantial economic impact of LA’s Community Colleges on the region’s economy. The report reveals that in the 2021-22 fiscal year (the most recent data available), the colleges’ operations, construction activities, student spending, and alumni contributions generated $23.2 billion in added income, equivalent to approximately 2.6% of the total gross regional product of Los Angeles County.
“The findings of the LARC Economic Value Report underscore the vital role that community colleges play in driving the economy and job creation within the region,” said Dr. Narineh Makijan, Chair and Assistant Vice President, Los Angeles Regional Consortium.
“The impact of LA’s community colleges extends far beyond our campuses. We are not just institutions of learning, we are engines of economic growth and social mobility, shaping the future workforce and driving prosperity across Los Angeles County,” added Dr. Jose Fierro, Superintendent / President, Cerritos College and CEO Co-Chair of the Los Angeles Regional Consortium.
Key findings from the report include:
- Operations Spending Impact: The colleges’ day-to-day operations resulted in approximately $2.9 billion in added income, supporting 28,384 jobs in Los Angeles County.
- Construction Spending Impact: Investments in construction generated $189.5 million in added income, supporting 2,376 jobs.
- Student Spending Impact: Student expenditures added approximately $1.4 billion in income, supporting 17,749 jobs.
- Alumni Impact: Former students contributed $18.7 billion in added income to the county economy, supporting 193,644 jobs.
Furthermore, the study evaluates LA’s community colleges as an investment from the perspectives of students, taxpayers, and society at large. Students investing in their education at community colleges can expect a substantial return, with a present value of $7.8 billion in increased earnings over their working lives, translating to a return of $6.90 for every dollar invested. Taxpayers also reap significant benefits, with an estimated present value of $3.9 billion in added tax revenue and public sector savings.
“Our nineteen colleges offer over two hundred and fifty career and technical education programs for people entering the workforce for the first time or transitioning into a new field a program that will meet their needs and prepare them for a fulfilling career,” concluded Dr. Luis Dorado, President, LA Harbor College and Co-Chair of the Los Angeles Regional Consortium.
For more information on the LARC Economic Value Report, please visit https://losangelesrc.org/wp-content/uploads/2023/12/LARC_MainReport.pdf.
About Los Angeles Regional Consortium
The Los Angeles Regional Consortium consists of 19 community colleges in Los Angeles County. It serves to coordinate, collaborate, organize, and facilitate interaction in the region to ensure workforce training is provided to all in a way that is accessible, efficient, responsive, data-driven and improves outcomes. Supported by the State Chancellor’s Office, and hosted at Pasadena City College, LARC’s primary objective is to bridge the gap between workforce preparedness and employer’s needs in the LA region. For more information, visit https://losangelesrc.org
