Report: Alabama’s community colleges generate $8.1B for the state’s economy

MONTGOMERY – In a perfect case of “more bang for the buck,” Alabama’s Community College System generates more tax dollars than it takes in, according to a recent report.

The report by Lightcast, a labor market analytics firm, also said students and alumni of the Alabama Community College System contributed $8.1 billion to the state’s economy, an amount equal to about 3% of Alabama’s total gross state product.

“The ACCS enriches the lives of students by raising their lifetime earnings and helping them achieve their individual potential,” the report said. “The colleges benefit state and local taxpayers through increased tax receipts and a reduced demand for government-supported social services.”

According to the report, Alabama’s community colleges support 114,043 jobs in Alabama, which is equivalent to one in every 26 jobs. Some students, who might have otherwise left Alabama for higher education, stayed because of the opportunities available at the state’s community colleges.

In generating more tax dollars than it takes in, for every dollar invested into the system, state taxpayers will see $1.20 in added tax revenue and public sector savings. Society will also benefit $6.50 in added incomes and social savings for every dollar, the report said.

In the 2023-24 school year, 3% of ACCS students were from out of state, with some relocating to Alabama specifically to attend a community college.

While the ACCS plays a role in attracting and retaining talent, its greatest impact comes from its graduates. In FY 2023-24 alone, ACCS alumni generated $6.9 billion in added income, supporting the equivalent of 96,200 jobs in Alabama.

“Our students and graduates are working, earning, and reinvesting in Alabama’s communities,” said ACCS Chancellor Jimmy H. Baker. “Businesses across the state rely on them to keep operations strong. No other entity has a greater reach in education and workforce training, and we are committed to ensuring every student leaves our colleges prepared to contribute to their communities, their industries, and Alabama’s economic growth.”  

Over the years, the ACCS has become the largest training entity in the state. Its graduates and students have gained valuable skills and knowledge, enabling them to contribute to Alabama’s workforce.

Individually, students can expect a more than reasonable return on investment from their two-year education. For every dollar a student invests in their community college education, they can expect to gain $5.60 in lifetime earnings.

Additional report highlights:

• The expenditures of relocated and retained students in FY 2023-24 added $170.3 million in income to the Alabama economy.
• The average ACCS associate degree graduate from FY 2023-24 will see annual earnings $9,200 higher than a person with a high school diploma or equivalent working in Alabama.
• The Alabama Technology Network (ATN) – a division of the ACCS – helped businesses retain or create more than3,000 jobs in FY 2023-24. These jobs, along with additional business investments supported by ATN, contributed $383.8 million in added income to Alabama’s economy.