Investment analysis

Investment analysis is the practice of comparing the costs and benefits of an investment to determine whether or not it is profitable. This study considers KC as an investment from the perspectives of students, taxpayers, and society.

Student perspective

For every dollar students spend on their education at KC, students will receive an average of $4.30 in return Students invest their own money and time in over the course of their working lives. their education to pay for tuition, books, and supplies. While some students were employed while attending the college, students overall forewent earnings that they would have generated had they been in full employment instead of learning. Summing these direct outlays and opportunity costs yields a total of $15.3 million in present value student costs.

In return, students will receive a present value of $66 million in increased earnings over their working lives. This translates to a return of $4.30 in higher future earnings for every dollar that students invest in their education at KC. The corresponding annual rate of return is 16.1%.

Taxpayer perspective

Taxpayers will receive an estimated present value of $24.6 million in added tax revenue stemming from the students’ higher lifetime earnings and the increased output of businesses. Savings to the

public sector add another estimated $2.3 million in benefits due to a reduced demand for government-funded social services in Illinois. Total benefits to taxpayers came to almost $27 million.

Social perspective

People in Illinois invested $46.8 million in KC in FY 2018-19. This includes the college’s expenditures, student expenses, and student opportunity costs. In return, the state of Illinois will receive an estimated present value of $257 million in added state revenue over the course of the students’ working lives. Illinois will also benefit from an estimated $8.5 million in present value social savings related to reduced crime, lower welfare, and unemployment, plus increased health and well-being across the state. For every dollar society invests in KC, an average of $5.70 in benefits will accrue to Illinois over the course of the students’ careers.

Acknowledgments

Emsi gratefully acknowledges the excellent support of the staff at Kaskaskia College in making this study possible. Special thanks go to George Evans, President, who approved the study, and to Bruce Fischer, Director of Institutional Effectiveness, and Tiffany Hixenbaugh, Institutional Research Support Specialist, who collected much of the data and information requested. Any errors in the report are the responsibility of Emsi and not of any of the above-mentioned individuals.