7 Investment analysis Benefits to society also consist of the savings generated by the improved lifestyles of SUNY WCC students. As discussed in the previous section, education is statistically correlated with a variety of lifestyle changes that generate social savings. Note that these costs are avoided by the consumers but are distinct from the costs avoided by the taxpayers outlined above. Healthcare savings include avoided medical costs associated with smoking, alcohol dependence, obesity, drug abuse, and depression. Justice system savings include avoided costs to the government and society due to less judicial activity. Income assistance savings include reduced welfare and unemployment claims. For a list of study references, contact the college for a copy of the main report. Altogether, the social benefits of SUNY WCC equal a present value of $929.3 million. These benefits include $535.9 million in added student income, $251.5 million in added business income, $123.2 million in added income from college activities, as well as $18.7 million in social savings related to health, the justice system, and income assistance in New York. People in New York invested a present value total of $140.3 million in SUNY WCC in FY 2021-22. The cost includes all the college and student costs. The benefit-cost ratio for society is 6.6, equal to the $929.3 million in benefits divided by the $140.3 million in costs. In other words, for every dollar invested in SUNY WCC, people in New York will receive a cumulative value of $6.60 in benefits. The benefits of this investment will occur for as long as SUNY WCC’s FY 2021-22 students remain employed in the state workforce. Summary of investment analysis results The results of the analysis demonstrate that SUNY WCC is a strong investment for all three major stakeholder groups—students, taxpayers, and society. As shown, students receive a great return for their investments in an education from SUNY WCC. At the same time, taxpayers’ investment in SUNYWCC returns more to government budgets than it costs and creates a wide range of social benefits throughout New York. Social benefits in New York from SUNY WCC Source: Lightcast impact model. 16+2525+22+5757+USocial savings $18.7 million Added student income $535.9 million $929.3 million Total benefits to society Added business income $251.5 million Added income from college activities $123.2 million * The rate of return is not reported for the social perspective because the beneficiaries of the investment are not necessarily the same as the original investors. Benefit-cost ratio Rate of return 4.1 16.4% Benefit-cost ratio Rate of return 1.4 2.1% Benefit-cost ratio Rate of return 6.6 n/a* Student perspective Taxpayer perspective Social perspective Present value benefits Present value benefits Present value benefits Present value costs Present value costs Present value costs Net present value Net present value Net present value $195.9 million $96.6 million $929.3 million $48.1 million $71.2 million $140.3 million $147.8 million $25.4 million $789.1 million
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