The Economic Value of Selected Individual Programs at SUNY Westchester Community College JUNE 2O23 Main Report
2 3 Executive summary 7 Chapter 1: Introduction 10 The Westchester County economy 12 Career outlook 16 Chapter 2: Economic value of individual programs 17 Business program 19 Information Technology program 21 Engineering and Advanced Manufacturing program 23 Healthcare program 25 Chapter 3: Methodology 26 Economic impact analaysis 33 Student investment analysis 42 Taxpayer benefits analysis 45 Appendices 45 Resources and references 53 Appendix 1: CIP to SOC mapping 56 Appendix 2: Sensitivity analysis 60 Appendix 3: Glossary of terms 63 Appendix 4: Frequently asked questions (FAQs) 65 Appendix 5: Example of sales versus income 66 Appendix 6: Lightcast MR-SAM 71 Appendix 7: Value per credit and the Mincer function 74 Appendix 8: Alternative education variable 75 Appendix 9: Overview of investment analysis measures 79 Appendix 10: Social externalities Contents
Executive summary
4 Executive summary THIS REPORT ASSESSES the impact of four of SUNY Westchester Community College’s (SUNYWCC) programs on theWestchester County economy, the return on investment to the programs’ students, and the benefits generated for New York taxpayers. Some of the key findings of this analysis are below. Business In fiscal year (FY) 2021-22, SUNY WCC enrolled 1,586 students in its Business program, 213 of whom graduated in the analysis year and 126 were workforce students. Students who complete this program are expected to enter occupations such as accountants and auditors; market research analysts and marketing specialists; secretaries and administrative assistants; business operations specialists; and real estate sales agents. In Westchester County, the total number of jobs in these types of occupations1 in 2022 was 94,227, and over the next 10 years, the average number of jobs is expected to grow 6.7%. At the associate degree level and below there were 5,674 annual job openings. In 2022, regional employers published 5,516 unique job postings at the associate and below degree level for the considered occupations in Westchester County.2 Comparing annual job openings to the 378 regional Business program completers,3 there is a gap of 5,296 job openings, meaning that there is not enough supply of trained workers in this area to meet the need of regional employers.4 SUNY WCC’s Business program alumni generated an estimated $48 million in added income to the Westchester County economy in FY 2021-22. The undiscounted lifetime earnings increase per student is $433.8 thousand. For every dollar current students invest in their education in SUNY WCC’s Business program, they will receive on average $3.5 back over the course of their working lives. The corresponding internal rate of return for these students is 14.7%. Finally, students aren’t the only ones who receive benefits from completing the Business program at SUNY WCC. New York taxpayers will also receive benefits from SUNY WCC’s Business program students in the form of added 1 See Appendix 1 for a complete list of mapped occupations. 2 The number of job postings lower than the number of job openings may indicate the fact that employers hire multiple workers using one job posting or that the education level is not specified in a job advertisement. The number of job postings higher than the number of job openings may reflect intense job distribution and cross-posting of job advertisements across multiple job boards in different cities, indicating a lack of labor supply. 3 Program completions at the associate and below degree level from other institutions in the region are included along with SUNY WCC program completions when calculating the total number of regional program completers. 4 Note that in the total headcount of regional program completers, non-credit or non-degree completions of other regional institutions are not included due to data limitations. Thus, the estimated gap of job openings may be overstated if other educational institutions offer similar workforce or professional development courses in Westchester County. Program completions from other institutions in the county are reflective of FY 2020-21 and were reported to the Integrated Post-secondary Education Data System (IPEDS) survey for the same Classification of Instructional Programs (CIP) codes that represent SUNY WCC’s program in question. WES TCHES T ER COUNTY, NEW YORK
5 Executive summary tax revenues and government savings. In total, throughout the FY 2021-22 students’ working lifetime, New York taxpayers will receive $14.8 million in present value benefits. Information Technology In FY 2021-22, SUNY WCC enrolled 909 students in its Information Technology program (including 12 dually-enrolled high school students), 84 of whom graduated in the analysis year and 274 were workforce students. Students who complete this program are expected to enter occupations such as software developers; computer user support specialists; information security analysts; computer programmers; and web developers. In Westchester County, the total number of jobs in these types of occupations in 2022 was 14,694, and over the next 10 years, the average number of jobs is expected to grow 11.9%. At the associate degree level and below there were 633 annual job openings. In 2022, regional employers published 666 unique job postings at the associate and below degree level for the considered occupations in Westchester County. Comparing annual job openings to the 358 regional Information Technology program completers, there is a gap of 275 job openings, meaning that there is not enough supply of trained workers in this area to meet the need of regional employers. SUNY WCC’s Information Technology program alumni generated an estimated $26.7 million in added income to the Westchester County economy in FY 2021-22. The undiscounted lifetime earnings increase per student is $455.2 thousand. For every dollar current students invest in their education in SUNY WCC’s Information Technology program, they will receive on average $2.4 back over the course of their working lives. The corresponding internal rate of return for these students is 10.7%. Finally, students aren’t the only ones who receive benefits from completing the Information Technology program at SUNY WCC. New York taxpayers will also receive benefits from SUNY WCC’s Information Technology program students in the form of added tax revenues and government savings. In total, throughout the FY 2021-22 students’ working lifetime, New York taxpayers will receive $8.9 million in present value benefits. Engineering and Advanced Manufacturing In FY 2021-22, SUNYWCC enrolled 511 students in its Engineering and AdvancedManufacturing program (including 17 dually-enrolled high school students), 56 of whom graduated in the analysis year and nine were workforce students. Students who complete this program are expected to enter occupations such as civil engineering technologists and technicians; architectural and civil drafters; construction managers; electrical, electronic, and electromechanical assemblers; and firstline supervisors of mechanics, installers, and repairers. In Westchester County, the total number of jobs in these types of occupations in 2022 was 34,524, and over the next 10 years, the average number of jobs is expected to grow 10%. At the associate degree level and below there were 1,915 annual job openings. In 2022, regional employers published 2,086 unique job postings at the associate and below degree level for the considered occupations in Westchester County. Comparing annual job openings to the 65 regional Engineering and Advanced Manufacturing program completers, there is a gap of 1,850 job openings, meaning that there is not enough supply of trained workers in this area to meet the need of regional employers. SUNYWCC’s Engineering and Advanced Manufacturing program alumni generated an estimated $24.2 million in added income to the Westchester County economy in FY 2021-22. The Engineering and
6 Executive summary Lightcast gratefully acknowledges the excellent support of the staff at SUNYWestchester Community College in making this study possible. Special thanks go to Dr. Belinda Miles, President, who approved the study, and to Yelizaveta Adams, Ed.D., Assistant Dean of Institutional Research, Planning, and Effectiveness; Naomi Dogani, Assistant Director of Institutional Research, Planning, and Effectiveness; Jonathan Reyes, Senior Research Analyst, Institutional Research, Planning, and Effectiveness; Joseph Phillips, Ed.D., Research Analyst, Institutional Research, Planning, and Effectiveness; and Peter Lillo, Program Specialist, who collected much of the data and information requested. Any errors in the report are the responsibility of Lightcast and not any of the above-mentioned individuals. Acknowledgments Advanced Manufacturing workforce program was created in 2014, so this impact is expected to grow over time as more workforce program completers are added to the regional workforce. The undiscounted lifetime earnings increase per student is $302.7 thousand. For every dollar current students invest in their education in SUNY WCC’s Engineering and Advanced Manufacturing program, they will receive on average $4.1 back over the course of their working lives. The corresponding internal rate of return for these students is 16.1%. Finally, students aren’t the only ones who receive benefits from completing the Engineering and Advanced Manufacturing program at SUNYWCC. New York taxpayers will also receive benefits from SUNY WCC’s Engineering and Advanced Manufacturing program students in the form of added tax revenues and government savings. In total, throughout the FY 2021-22 students’ working lifetime, New York taxpayers will receive $5.6 million in present value benefits. Healthcare In FY 2021-22, SUNY WCC enrolled 574 students in its Healthcare program, 147 of whom graduated in the analysis year and 209 were workforce students. Students who complete this program are expected to enter occupations such as registered nurses; radiologic technologists and technicians; respiratory therapists; billing and posting clerks; and nursing assistants. In Westchester County, the total number of jobs in these types of occupations in 2022 was 64,970, and over the next 10 years, the average number of jobs is expected to grow 12.3%. At the associate degree level and below there were 6,952 annual job openings. In 2022, regional employers published 4,968 unique job postings at the associate and belowdegree level for the considered occupations inWestchester County. Comparing annual job openings to the 448 regional Healthcare program completers, there is a gap of 6,504 job openings, meaning that there is not enough supply of trained workers in this area to meet the need of regional employers. SUNY WCC’s Healthcare program alumni generated an estimated $13.8 million in added income to the Westchester County economy in FY 2021-22. The undiscounted lifetime earnings increase per student is $831.2 thousand. For every dollar current students invest in their education in SUNY WCC’s Healthcare program, they will receive on average $2.7 back over the course of their working lives. The corresponding internal rate of return for these students is 15.2%. Finally, students aren’t the only ones who receive benefits from completing the Healthcare program at SUNY WCC. New York taxpayers will also receive benefits from SUNYWCC’s Healthcare program students in the form of added tax revenues and government savings. In total, throughout the FY 2021-22 students’ working lifetime, New York taxpayers will receive $4.6 million in present value benefits.
Introduction Chapter 1:
8 Chapter 1: Introduction SUNY WESTCHESTER COMMUNITY COLLEGE’S (SUNY WCC) region, for the purpose of this report, is Westchester County in New York. While SUNY WCC offers a variety of programs, this study is concerned with the economic impact and return on investment derived from the students of four of its programs. These programs are the following: Business Information Technology Engineering and Advanced Manufacturing Healthcare The first component of this study analyzes the career outlook for each program. Each program maps to a number of occupations, which we use to measure the employer demand for graduates. We also provide annual median advertised salaries and top companies hiring in Westchester County. The second component of the study measures the economic impact from the alumni of each program. While the programs each affect the region in a variety of ways, many of them difficult to quantify, this study is concerned with considering the economic benefits of their alumni. The programs are designed to help students achieve their individual potential and develop the knowledge, skills, and abilities they need to have fulfilling and prosperous careers. However, SUNY WCC’s value consists of more than simply influencing the lives of students. The college’s program offerings supply employers with workers to make their businesses more productive. To derive results, we rely on a specialized Multi-Regional Social Accounting Matrix (MR-SAM) model to calculate the added income created in the Westchester County economy as a result of the increased consumer spending and the added knowledge, skills, and abilities of SUNY WCC students. Important note When reviewing the impacts estimated in this study, it is important to note that they are reported in the form of added income rather than sales. Sales includes all of the intermediary costs associated with producing goods and services, as well as money that leaks out of the region as it is spent at out-of-region businesses. Income, on the other hand, is a net measure that excludes these intermediary costs and leakages, and is synonymous with gross regional product (GRP) and value added. For this reason, it is a more meaningful measure of new economic activity than sales. WES TCHES T ER COUNTY, NEW YORK
9 Chapter 1: Introduction The third component of the study measures the benefits generated by students of the programs. We perform an investment analysis to determine how the money spent by the programs’ students on their education performs as an investment over time. The students’ investment in this case consists of their out-of-pocket expenses and their opportunity cost of attending the college as opposed to working. In return for these investments, students receive a lifetime of higher earnings. The fourth component of the study measures the benefits generated by program students for New York taxpayers. As students earn more because of the education they receive at SUNY WCC, the tax base in New York also will increase. In addition, savings will be generated to the public sector from reduced demand for governmentfunded social services in New York. The study uses a wide array of data that are based on several sources, including the programs’ FY 2021-22 academic and student financial data from SUNYWCC; industry and employment data from the Bureau of Labor Statistics and Census Bureau; outputs of Lightcast’s impact model and MR-SAMmodel; and a variety of published materials relating education to social behavior.
10 Chapter 1: Introduction Since the college was first established, it has been serving Westchester County in New York by enhancing the workforce, providing local residents with easy access to higher education opportunities and preparing students for highly-skilled, in-demand professions. Table 1.1 summarizes the breakdown of the county economy by major industrial sector ordered by total income, with details on labor and non-labor income. Labor income refers to wages, salaries, and proprietors’ income. Non-labor income refers to profits, rents, and other forms of investment income. Together, labor and non-labor income comprise the county’s total income, which can also be considered the county’s gross regional product (GRP). The Westchester County economy Table 1.1: Income by major industry sector in Westchester County, 2022* Industry sector Labor income (millions) Non-labor income (millions) Total income (millions)** % of total income Sales (millions) Other Services (except Public Administration) $1,480 $14,894 $16,375 16% $21,145 Finance & Insurance $8,022 $4,550 $12,572 13% $21,280 Professional & Technical Services $8,387 $2,726 $11,113 11% $18,741 Health Care & Social Assistance $8,157 $1,362 $9,519 9% $14,810 Government, Non-Education $4,685 $1,165 $5,849 6% $28,400 Retail Trade $2,815 $2,604 $5,418 5% $9,066 Real Estate & Rental & Leasing $3,299 $2,008 $5,306 5% $12,578 Wholesale Trade $1,916 $2,889 $4,805 5% $8,057 Government, Education $4,323 $0 $4,323 4% $4,996 Construction $3,174 $797 $3,971 4% $8,125 Information $1,419 $2,287 $3,706 4% $6,164 Manufacturing $1,840 $1,567 $3,407 3% $6,794 Management of Companies & Enterprises $2,304 $242 $2,546 3% $4,143 Administrative & Waste Services $1,881 $512 $2,393 2% $4,320 Accommodation & Food Services $1,190 $979 $2,169 2% $4,104 Utilities $392 $1,712 $2,103 2% $3,573 Transportation & Warehousing $1,330 $579 $1,908 2% $3,823 Arts, Entertainment, & Recreation $935 $569 $1,504 1% $2,370 Educational Services $1,106 $153 $1,259 1% $1,738 Agriculture, Forestry, Fishing & Hunting $34 $17 $52 <1% $105 Mining, Quarrying, & Oil and Gas Extraction $8 $18 $25 <1% $47 Total $58,696 $41,629 $100,325 100% $184,378 * Data reflect the most recent year for which data are available. Lightcast data are updated quarterly. ** Numbers may not add due to rounding. Source: Lightcast industry data 100 + 76 + 67 + 58 + 35 + 33 + 32 + 29 + 26 + 24 + 22 + 20 + 15 + 14 + 13 + 12 + 11 + 9 + 7 + 2 + 1
11 Chapter 1: Introduction As shown in Table 1.1, the total income, or GRP, of Westchester County is approximately $100.3 billion, equal to the sum of labor income ($58.7 billion) and non-labor income ($41.6 billion). Figure 1.1 provides the breakdown of jobs by industry in Westchester County. The Health Care & Social Assistance sector is the largest employer, supporting 84,678 jobs or 13.5% of total employment in the county. The second largest employer is the Finance & Insurance sector, supporting 62,647 jobs or 10.0% of the county’s total employment. Altogether, the county supports 629,008 jobs.5 5 Job numbers reflect Lightcast’s complete employment data, which includes the following four job classes: 1) employees counted in the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages (QCEW), 2) employees not covered by the federal or state unemployment insurance (UI) system and are thus excluded fromQCEW, 3) self-employed workers, and 4) extended proprietors. Figure 1.1: Jobs by major industry sector in Westchester County, 2022* Health Care & Social Assistance Finance & Insurance Real Estate & Rental & Leasing Professional & Technical Services Retail Trade Other Services (except Public Administration) Construction Government, Non-Education Administrative & Waste Services Accommodation & Food Services Government, Education Transportation & Warehousing Educational Services Arts, Entertainment, & Recreation Wholesale Trade Manufacturing Management of Companies & Enterprises Information Utilities Agriculture, Forestry, Fishing & Hunting Mining, Quarrying, & Oil and Gas Extraction * Data reflect the most recent year for which data are available. Lightcast data are updated quarterly. Source: Lightcast employment data 0 30,000 90,000 60,000 100+ 73+ 69+ 63+ 61+ 46+ 44+ 39+ 36+ 35+ 34+ 26+ 26+ 21+ 17+ 15+ 13+ 12+ 2+ 1+ 1
12 Chapter 1: Introduction Business program The Business program can lead students into a number of occupations such as accountants and auditors; market research analysts and marketing specialists; secretaries and administrative assistants; business operations specialists; and real estate sales agents.6 The 46 mapped occupations supported 94,227 jobs across all educational levels in the Westchester County economy in 2022. Over the next 10 years, these jobs are expected to grow 6.7% (Figure 1.2). In 2022, there were 5,674 job openings within the mapped occupations at the associate degree level and below. The 5,674 job openings are in part being filled by the 339 SUNY WCC’s Business program completers, as well as the 397 completers from other institutions in the region. Subtracting this supply of human capital from the 5,674 annual openings, we arrive at 5,296 job openings, or a gap of 5,296.8 This means there is not enough supply of trained workers in Westchester County to meet the need of regional employers. 6 See Appendix 1 for a list of mapped occupations with their corresponding Standard Occupational Classification (SOC) codes. 7 Program completions at the associate and below degree level from other institutions in Westchester County are reflective of FY 2020-21 and were reported to the IPEDS survey for the same CIP codes that represent SUNY WCC’s program in question. 8 Note that in the total headcount of regional program completers, non-credit or non-degree completions of other regional institutions are not included due to data limitations. Thus, the estimated gap of job openings may be overstated if other educational institutions offer similar workforce or professional development courses in Westchester County. Career outlook Figure 1.2: Projected job growth in Westchester County of Business program mapped occupations Source: Lightcast Projected jobs Year 87 + 88 + 89 + 90 + 91 + 92 + 93 + 94 + 94 + 94 + 95 75,000 60,000 45,000 30,000 15,000 0 90,000 105,000 2025 2024 2023 2022 2027 2030 2029 2028 2026 2031 2032
13 Chapter 1: Introduction In 2022, regional employers posted 5,516 unique job postings at the associate degree level or below for these occupations in Westchester County.9 The annual median advertised salary for these job postings was $45,947. The top companies with the greatest number of unique postings for the mapped occupations are Northwell Health, CVS Health, Mastercard, Cintas, and Albert Einstein College of Medicine. Information Technology program The Information Technology program can lead students into a number of occupations such as software developers; computer user support specialists; information security analysts; computer programmers; and web developers. The 20 mapped occupations supported 14,694 jobs across all educational levels in the Westchester County economy in 2022. Over the next 10 years, these jobs are expected to grow 11.9% (Figure 1.3). In 2022, there were 633 job openings within the mapped occupations at the associate degree level and below. The 633 job openings are in part being filled by the 358 SUNY WCC’s Information Technology program completers. Subtracting this supply of human capital from the 633 annual openings, we arrive at 275 job openings, or a gap of 275. This means there is not enough supply of trained workers in Westchester County to meet the need of regional employers. In 2022, regional employers posted 666 unique job postings at the associate degree level or below for these occupations in Westchester County. The annual median advertised salary for these job postings was $68,994. The top companies with the 9 Job openings and job postings come from different data sources and can therefore differ from each other. They both provide insights into local employer demand. Job openings are from government data sources and, while lagged, can be more stable. Job postings reflect real-time employer demand but can have more fluctuations. The number of job postings lower than the number of job openings may indicate the fact that employers hire multiple workers using one job posting or that the education level is not specified in a job advertisement. The number of job postings higher than the number of job openings may reflect intense job distribution and cross-posting of job advertisements across multiple job boards in different cities, indicating a lack of labor supply. Figure 1.3: Projected job growth in Westchester County of Information Technology program mapped occupations Source: Lightcast Projected jobs Year 82 + 84 + 85 + 86 + 87 + 88 + 89 + 90 + 92 + 94 + 95 12,500 10,000 7,500 5,000 2,500 0 15,000 17,500 2025 2024 2023 2022 2027 2030 2029 2028 2026 2031 2032
14 Chapter 1: Introduction greatest number of unique postings for the mapped occupations are Mastercard, Cerner, CBRE, Wireless Vision, and Applied Materials. Engineering and Advanced Manufacturing program The Engineering and AdvancedManufacturing programcan lead students into a number of occupations such as civil engineering technologists and technicians; architectural and civil drafters; construction managers; electrical, electronic, and electromechanical assemblers; and first-line supervisors of mechanics, installers, and repairers. The 62 mapped occupations supported 34,524 jobs across all educational levels in the Westchester County economy in 2022. Over the next 10 years, these jobs are expected to grow 10.0% (Figure 1.4). In 2022, there were 1,915 job openings within the mapped occupations at the associate degree level and below. The 1,915 job openings are in part being filled by the 65 SUNY WCC’s Engineering and Advanced Manufacturing program completers. Subtracting this supply of human capital from the 1,915 annual openings, we arrive at 1,850 job openings, or a gap of 1,850. This means there is not enough supply of trained workers in Westchester County to meet the need of regional employers. In 2022, regional employers posted 2,086 unique job postings at the associate degree level or below for these occupations in Westchester County. The annual median advertised salary for these job postings was $58,760. The top companies with the greatest number of unique postings for the mapped occupations are Cintas, CBRE, AutoNation, Children’s Village, and WSP Global. Figure 1.4: Projected job growth in Westchester County of Engineering and Advanced Manufacturing program mapped occupations Source: Lightcast Projected jobs Year 86 + 88 + 89 + 89 + 90 + 90 + 91 + 91 + 92 + 94 + 95 25,000 20,000 15,000 10,000 5,000 0 30,000 35,000 2025 2024 2023 2022 2027 2030 2029 2028 2026 2031 2032 40,000
15 Chapter 1: Introduction Healthcare program The Healthcare program can lead students into a number of occupations such as registered nurses; radiologic technologists and technicians; respiratory therapists; billing and posting clerks; and nursing assistants. The 30mapped occupations supported 64,970 jobs across all educational levels in theWestchester County economy in 2022. Over the next 10 years, these jobs are expected to grow 12.3% (Figure 1.5). In 2022, there were 6,952 job openings within the mapped occupations at the associate degree level and below. The 6,952 job openings are in part being filled by the 356 SUNY WCC’s Healthcare program completers, as well as the 92 completers from other institutions in the region. Subtracting this supply of human capital from the 6,952 annual openings, we arrive at 6,504 job openings, or a gap of 6,504. This means there is not enough supply of trained workers in Westchester County to meet the need of regional employers. In 2022, regional employers posted 4,968 unique job postings at the associate degree level or below for these occupations in Westchester County. The annual median advertised salary for these job postings was $41,600. The top companies with the greatest number of unique postings for the mapped occupations are Northwell Health, New York-Presbyterian Hospital, White Plains Hospital, St. John’s Riverside Hospital, HealthAlliance Hospital, and Westchester Medical Center. Figure 1.5: Projected job growth in Westchester County of Healthcare program mapped occupations Source: Lightcast Projected jobs Year 84 + 85 + 86 + 87 + 88 + 89 + 91 + 92 + 93 + 94 + 95 75,000 60,000 45,000 30,000 15,000 0 2025 2024 2023 2022 2027 2030 2029 2028 2026 2031 2032
Economic value of individual programs Chapter 2:
17 Chapter 2: Economic value of individual programs SUNY WCC’s first Business program10 was established in 1962. In FY 2021-22, SUNYWCC enrolled 1,586 students in the program. Of these students, 208 graduated with an associate degree, five graduated with a certificate, and 126 completed workforce development courses. The remaining students were enrolled with the intent of returning the next year to finish their credential. Career outlook The Business program can lead students into a number of occupations, which may include accountants and auditors; market research analysts and marketing specialists; secretaries and administrative assistants; business operations specialists; and real estate sales agents. Many of the Business program students will enter Westchester County workforce. Using the regional number of annual job openings for these occupations (5,674) and subtracting the regional graduates who may fill these openings (378), we arrive at a gap of 5,296 unfilled positions.11 Alumni impact Former students of SUNY WCC’s Business program added $48 million in income to the Westchester County economy in FY 2021-22. This figure represents the increased wages collected by former students active in FY 2021-22 in the regional workforce as a direct result of their education, the increased output of businesses that employ these students, and the multiplier effects that occur. 10 The Business program is defined by the following CIP codes: Business Administration & Management, General (52.0201), Accounting Technology/Technician & Bookkeeping (52.0302), Administrative Assistant & Secretarial Science, General (52.0401), Marketing/Marketing Management, General (52.1401), Real Estate (52.1501), and Real Estate Development (04.1001). 11 Note that in the total headcount of regional program completers, non-credit or non-degree completions of other regional institutions are not included due to data limitations. Thus, the estimated gap of job openings may be overstated if other educational institutions offer similar workforce or professional development courses in Westchester County. Program completions at the associate degree level and below from other institutions in the county are reflective of FY 2020-21 and were reported to the IPEDS survey for the same CIP codes that represent SUNY WCC’s Business program. Business program Program-to-occupation metrics in Westchester County Number of occupations 46 Total jobs (2022) 94,227 Projected 10-year job growth +6.7% Job openings (2022)1 5,674 Job postings (2022)2 5,516 Median annual advertised salary (2022)3 $45,947 1 The job openings reported in this analysis are specific to students entering the workforce with an associate degree and below. 2 Job openings and job postings come from different data sources and can therefore differ from each other. They both provide insights into local employer demand. Job openings are from government data sources and, while lagged, can be more stable. Job postings reflect real-time employer demand but can have more fluctuations. The number of job postings lower than the number of job openings may indicate the fact that employers hire multiple workers using one job posting or that the education level is not specified in a job advertisement. 3 The median annual advertised salary is specific to job postings at the associate degree level and below. Alumni lifetime earnings increase and impact Lifetime earnings increase per graduate $433.8 thousand Total alumni impact in FY 2021-22 $48 million
18 Chapter 2: Economic value of individual programs Student return on investment To earn a degree in the program, students experience costs in the form of tuition and fees, books and supplies, and the opportunity cost of attending school instead of working. In return for this investment, students can earn higher wages. For every dollar students invest in their education in the program, they will receive $3.5 back over the course of their working lives. This investment can also be seen in terms of a rate of return of 14.7%. This is an impressive return, especially when compared to the U.S. stock market 30-year average return of 9.6%. Taxpayer benefits Taxpayers will receive an estimated present value of $13.9 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 $959.6 thousand in benefits due to a reduced demand for government-funded social services in New York. Throughout the FY 2021-22 students’ working lives, New York taxpayers will receive a total of $14.8 million in present value benefits. Lifetime earnings of a program graduate compared to a high school graduate*1 *Earnings of a program graduate are weighted by the number of SUNY WCC’s Business program associate degree, certificate, and workforce course completions. High school graduate Program graduate Annual earnings Age (years) 30 34 36 38 40 42 44 46 48 50 32 28 52 54 56 58 60 62 64 66 $40,000 $30,000 $20,000 $10,000 $0 $50,000 $60,000 Throughout the FY 2021-22 students’ working lives, New York taxpayers gain in added tax revenue and public sector savings $14.8 million
19 Chapter 2: Economic value of individual programs SUNY WCC’s first Information Technology program12 was established in 1970. In FY 2021-22, SUNY WCC enrolled 909 students in the program. Of these students, 69 graduated with an associate degree, 15 graduated with a certificate, 274 completed workforce development courses, and 12 were dual-credit high school students. The remaining students were enrolled with the intent of returning the next year to finish their credential. Career outlook The Information Technology program can lead students into a number of occupations, which may include software developers; computer user support specialists; information security analysts; computer programmers; and web developers. Many of the Information Technology program students will enter Westchester County workforce. Using the regional number of annual job openings for these occupations (633) and subtracting the regional graduates who may fill these openings (358), we arrive at a gap of 275 unfilled positions.13 Alumni impact Former students of SUNYWCC’s Information Technology program added $26.7 million in income to the Westchester County economy in FY 2021-22. This figure represents the increased wages collected by former students active in FY 2021-22 in the regional workforce as a direct result of their education, the increased output of businesses that employ these students, and the multiplier effects that occur. 12 The Information Technology program is defined by the following CIP codes: Computer Science (11.0701), Computer & Information Systems Security/Information Assurance (11.1003), Computer & Information Sciences, General (11.0101), Computer & Information Sciences, Other (11.0199), Computer Programming/Programmer, General (11.0201), Computer Programming, Specific Applications (11.0202), Computer Programming, Other (11.0299), and Data Processing & Data Processing Technology/Technician (11.0301). 13 Note that in the total headcount of regional program completers, non-credit or non-degree completions of other regional institutions are not included due to data limitations. Thus, the estimated gap of job openings may be overstated if other educational institutions offer similar workforce or professional development courses in Westchester County. Program completions at the associate degree level and below from other institutions in the county are reflective of FY 2020-21 and were reported to the IPEDS survey for the same CIP codes that represent SUNY WCC’s Information Technology program. Information Technology program Program-to-occupation metrics in Westchester County Number of occupations 20 Total jobs (2022) 14,694 Projected 10-year job growth +11.9% Job openings (2022)1 633 Job postings (2022)2 666 Median annual advertised salary (2022)3 $68,994 1 The job openings reported in this analysis are specific to students entering the workforce with an associate degree and below. 2 Job openings and job postings come from different data sources and can therefore differ from each other. They both provide insights into local employer demand. Job openings are from government data sources and, while lagged, can be more stable. Job postings reflect real-time employer demand but can have more fluctuations. The number of job postings higher than the number of job openings may reflect intense job distribution and cross-posting of job advertisements across multiple job boards in different cities, indicating a lack of labor supply. 3 The median annual advertised salary is specific to job postings at the associate degree level and below. Alumni lifetime earnings increase and impact Lifetime earnings increase per graduate $455.2 thousand Total alumni impact in FY 2021-22 $26.7 million
20 Chapter 2: Economic value of individual programs Student return on investment To earn a degree in the program, students experience costs in the form of tuition and fees, books and supplies, and the opportunity cost of attending school instead of working. In return for this investment, students can earn higher wages. For every dollar students invest in their education in the program, they will receive $2.4 back over the course of their working lives. This investment can also be seen in terms of a rate of return of 10.7%. This is an impressive return, especially when compared to the U.S. stock market 30-year average return of 9.6%. Taxpayer benefits Taxpayers will receive an estimated present value of $8.4 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 $579.1 thousand in benefits due to a reduced demand for government-funded social services in New York. Throughout the FY 2021-22 students’ working lives, New York taxpayers will receive a total of $8.9 million in present value benefits. Throughout the FY 2021-22 students’ working lives, New York taxpayers gain in added tax revenue and public sector savings $8.9 million Lifetime earnings of a program graduate compared to a high school graduate*1 *Earnings of a program graduate are weighted by the number of SUNY WCC’s Information Technology program associate degree, certificate, and workforce course completions. High school graduate Program graduate Annual earnings Age (years) 30 34 36 38 40 42 44 46 48 50 32 28 52 54 56 58 60 62 64 66 $40,000 $30,000 $20,000 $10,000 $0 $50,000 $60,000
21 Chapter 2: Economic value of individual programs SUNYWCC’s first Engineering and AdvancedManufacturing program14 was established in 1947. In FY 2021-22, SUNY WCC enrolled 511 students in the program. Of these students, 53 graduated with an associate degree, three graduated with a certificate, nine completed workforce development courses, and 17 were dual-credit high school students. The remaining students were enrolled with the intent of returning the next year to finish their credential. Career outlook The Engineering and AdvancedManufacturing programcan lead students into a number of occupations, which may include civil engineering technologists and technicians; architectural and civil drafters; construction managers; electrical, electronic, and electromechanical assemblers; and first-line supervisors of mechanics, installers, and repairers. Many of the Engineering and Advanced Manufacturing program students will enter Westchester County workforce. Using the regional number of annual job openings for these occupations (1,915) and subtracting the regional graduates who may fill these openings (65), we arrive at a gap of 1,850 unfilled positions.15 Alumni impact Former students of SUNYWCC’s Engineering and Advanced Manufacturing program added $24.2 million in income to the Westchester County economy in FY 2021-22. This figure represents the increased wages collected by former students active in FY 14 The Engineering and Advanced Manufacturing program is defined by the following CIP codes: Engineering, General (14.0101), Civil Engineering Technology/Technician (15.0201), Electrical, Electronic & Communications Engineering Technology/Technician (15.0303), CAD/CADD Drafting and/or Design Technology/Technician (15.1302), Energy Systems Technology/Technician (15.1701), Manufacturing Engineering (14.3601), and Manufacturing Engineering Technology/ Technician (15.0613). 15 Note that in the total headcount of regional program completers, non-credit or non-degree completions of other regional institutions are not included due to data limitations. Thus, the estimated gap of job openings may be overstated if other educational institutions offer similar workforce or professional development courses in Westchester County. Program completions at the associate degree level and below from other institutions in the county are reflective of FY 2020-21 and were reported to the IPEDS survey for the same CIP codes that represent SUNY WCC’s Engineering and Advanced Manufacturing program. Engineering and Advanced Manufacturing program Program-to-occupation metrics in Westchester County Number of occupations 62 Total jobs (2022) 34,524 Projected 10-year job growth +10.0% Job openings (2022)1 1,915 Job postings (2022)2 2,086 Median annual advertised salary (2022)3 $58,760 1 The job openings reported in this analysis are specific to students entering the workforce with an associate degree and below. 2 Job openings and job postings come from different data sources and can therefore differ from each other. They both provide insights into local employer demand. Job openings are from government data sources and, while lagged, can be more stable. Job postings reflect real-time employer demand but can have more fluctuations. The number of job postings higher than the number of job openings may reflect intense job distribution and cross-posting of job advertisements across multiple job boards in different cities, indicating a lack of labor supply. 3 The median annual advertised salary is specific to job postings at the associate degree level and below. Alumni lifetime earnings increase and impact Lifetime earnings increase per graduate $302.7 thousand Total alumni impact in FY 2021-22 $24.2 million
22 Chapter 2: Economic value of individual programs 2021-22 in the regional workforce as a direct result of their education, the increased output of businesses that employ these students, and the multiplier effects that occur. Student return on investment To earn a degree in the program, students experience costs in the form of tuition and fees, books and supplies, and the opportunity cost of attending school instead of working. In return for this investment, students can earn higher wages. For every dollar students invest in their education in the program, they will receive $4.1 back over the course of their working lives. This investment can also be seen in terms of a rate of return of 16.1%. This is an impressive return, especially when compared to the U.S. stock market 30-year average return of 9.6%. Taxpayer benefits Taxpayers will receive an estimated present value of $5.2 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 $375.4 thousand in benefits due to a reduced demand for government-funded social services in New York. Throughout the FY 2021-22 students’ working lives, New York taxpayers will receive a total of $5.6 million in present value benefits. Throughout the FY 2021-22 students’ working lives, New York taxpayers gain in added tax revenue and public sector savings $5.6 million Lifetime earnings of a program graduate compared to a high school graduate*1 *Earnings of a program graduate are weighted by the number of SUNY WCC’s Engineering and Advanced Manufacturing program associate degree, certificate, and workforce course completions. High school graduate Program graduate Annual earnings Age (years) 30 34 36 38 40 42 44 46 48 50 32 28 52 54 56 58 60 62 64 66 $40,000 $30,000 $20,000 $10,000 $0 $50,000 $60,000
23 Chapter 2: Economic value of individual programs SUNYWCC’s first Healthcare program16 was established in 1962. In FY 2021-22, SUNY WCC enrolled 574 students in the program. Of these students, 126 graduated with an associate degree, 21 graduated with a certificate, and 209 completed workforce development courses. The remaining students were enrolled with the intent of returning the next year to finish their credential. Career outlook The Healthcare program can lead students into a number of occupations, which may include registered nurses; radiologic technologists and technicians; respiratory therapists; billing and posting clerks; and nursing assistants. Many of the Healthcare program students will enter Westchester County workforce. Using the regional number of annual job openings for these occupations (6,952) and subtracting the regional graduates who may fill these openings (448), we arrive at a gap of 6,504 unfilled positions.17 Alumni impact Former students of SUNYWCC’s Healthcare program added $13.8 million in income to the Westchester County economy in FY 2021-22. This figure represents the increased wages collected by former students active in FY 2021-22 in the regional workforce as a direct result of their education, the increased output of businesses that employ these students, and the multiplier effects that occur. 16 The Healthcare program is defined by the following CIP codes: Medical Insurance Coding Specialist/Coder (51.0713), Medical Radiologic Technology/Science - Radiation Therapist (51.0907), Respiratory Care Therapy/Therapist (51.0908), Registered Nursing/Registered Nurse (51.3801), Medical Office Management/Administration (51.0705), Medical Administrative/Executive Assistant & Medical Secretary (51.0716), Electrocardiograph Technology/Technician (51.0902), Phlebotomy Technician/Phlebotomist (51.1009), and Nursing Assistant/Aide & Patient Care Assistant/Aide (51.3902). 17 Note that in the total headcount of regional program completers, non-credit or non-degree completions of other regional institutions are not included due to data limitations. Thus, the estimated gap of job openings may be overstated if other educational institutions offer similar workforce or professional development courses in Westchester County. Program completions at the associate degree level and below from other institutions in the county are reflective of FY 2020-21 and were reported to the IPEDS survey for the same CIP codes that represent SUNY WCC’s Healthcare program. Healthcare program Program-to-occupation metrics in Westchester County Number of occupations 30 Total jobs (2022) 64,970 Projected 10-year job growth +12.3% Job openings (2022)1 6,952 Job postings (2022)2 4,968 Median annual advertised salary (2022)3 $41,600 1 The job openings reported in this analysis are specific to students entering the workforce with an associate degree and below. 2 Job openings and job postings come from different data sources and can therefore differ from each other. They both provide insights into local employer demand. Job openings are from government data sources and, while lagged, can be more stable. Job postings reflect real-time employer demand but can have more fluctuations. The number of job postings lower than the number of job openings may indicate the fact that employers, such as hospitals, hire multiple workers using one job posting or that the education level is not specified in a job advertisement. 3 The median annual advertised salary is specific to job postings at the associate degree level and below. Alumni lifetime earnings increase and impact Lifetime earnings increase per graduate $831.2 thousand Total alumni impact in FY 2021-22 $13.8 million
24 Chapter 2: Economic value of individual programs Student return on investment To earn a degree in the program, students experience costs in the form of tuition and fees, books and supplies, and the opportunity cost of attending school instead of working. In return for this investment, students can earn higher wages. For every dollar students invest in their education in the program, they will receive $2.7 back over the course of their working lives. This investment can also be seen in terms of a rate of return of 15.2%. This is an impressive return, especially when compared to the U.S. stock market 30-year average return of 9.6%. Taxpayer benefits Taxpayers will receive an estimated present value of $4.1 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 $482.5 thousand in benefits due to a reduced demand for government-funded social services in New York. Throughout the FY 2021-22 students’ working lives, New York taxpayers will receive a total of $4.6 million in present value benefits. Throughout the FY 2021-22 students’ working lives, New York taxpayers gain in added tax revenue and public sector savings $4.6 million Lifetime earnings of a program graduate compared to a high school graduate*1 *Earnings of a program graduate are weighted by the number of SUNY WCC’s Healthcare program associate degree, certificate, and workforce course completions. High school graduate Program graduate Annual earnings Age (years) 30 34 36 38 40 42 44 46 48 50 32 28 52 54 56 58 60 62 64 66 $40,000 $30,000 $20,000 $10,000 $0 $50,000 $60,000
Chapter 3: Methodology For the purpose of explaining the methodology, one program, Business, will be used as an example. The results for each program under study follows the same methodology outlined below.
26 Chapter 3: Methodology Economic impact analaysis SUNY WCC provides its Business program’s students with the knowledge, skills, and abilities they need to become productive citizens and add to the overall output of the region. In this section, we describe the methodology in calculating the alumni impact, which measures the income added to the region as former students of the program expand the regional economy’s stock of human capital. Economic impact measures When estimating the alumni impact, we measure a net impact, not a gross impact. Gross impact represents an upper-bound estimate in terms of capturing all activity stemming from the alumni; however, a net impact reflects a truer measure since it demonstrates what would not have been generated in the regional economy if not for these selected programs at SUNY WCC. Economic impact analyses use different types of impacts to estimate the results. The impact focused on in this study assesses the change in income. This measure is similar to the commonly used gross regional product (GRP). Income may be further broken out into the labor income impact, also known as earnings, which assesses the change in employee compensation; and the non-labor income impact, which assesses the change in business profits. Together, labor income and non-labor income sum to total income. Another way to state the impact is in terms of jobs, a measure of the number of full- and part-time jobs that would be required to support the change in income. Finally, a frequently used measure is the sales impact, which comprises the change in business sales revenue in the economy as a result of increased economic activity. It is important to bear in mind, however, that much of this sales revenue leaves the regional economy through intermediary transactions and costs.18 All of these measures – added labor and non-labor income, total income, jobs, and sales – are used to estimate the economic impact results presented in this chapter. The analysis breaks out the impact measures into different components, each based on the economic effect that caused the impact. The following is a list of each type of effect presented in this analysis: 18 See Appendix 5 for an example of the intermediary costs included in the sales impact but not in the income impact. Economic impact Economic impact measures Alumni impact analysis
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